Redevelopment Commission Meeting Minutes 2012

Mr. Forbes called the meeting to order at 7:32 P.M. Roll call was taken with the following members present: Michael Forbes, President; Mark Barenie, Vice-President; Gregory Volk, Member; Ken Gembala, Member; Larry Bustamante, Member; David Austgen, Attorney; Pat Kocot, Citizen Member; Steve Kil, Town Manager; and Sherry Sury, Clerk-Treasurer. Absent was Dr. John DeVries, Citizen Member.

Approval of Minutes: June 16, 2011 Redevelopment Commission Regular Meeting -

Mr. Barenie motioned to approve the minutes. Seconded by Mr. Volk. Motion passed 3 ayes and 2 abstentions by Mr. Bustamante and Mr. Gembala.

Election of Officers: President – Vice-President – Secretary

Mr. Forbes nominated Mark Barenie for President, no other nominations were made. Motion unanimously passed.

Mr. Barenie conducted the remainder of the meeting.

Mr. Barenie recommended Michael Forbes for Vice-President, no other nominations were made. Motion unanimously passed.

Mr. Forbes nominated Gregory Volk for Secretary, no other nominations were made. Motion unanimously passed.

New Business

Consider acceptance and approval of the Annual Report to the Executive for Calendar Year 2011 –

Mr. Kil summarized the Annual Report to the Executive for Fiscal Year Ending December 31, 2011. He stated that the report is very detailed regarding the outstanding debt and what they can anticipate in the future. In summary, there were two bond issues; one which is commonly known as Ravenswood Bond which was paid in full in March, 2011. There is one outstanding bond, the St. John Market Place Bond. As of 12/31/2011 the outstanding principle account due was $1,897,905.75. They are on track to pay in full early. The outstanding due date is the year 2019; however, they are on an accelerated rate to pay this off. Mr. Kil concurs with the financial advisor that this bond could be paid off by the end of this year, if not, then in 2013.

Mr. Austgen asked if this is dependent upon the direction or notification to the Lake County Assessor on or before July 15th of this year of the intention to capture all of the increment from the district. Mr. Kil stated that they are definitely going to capture all of the increment this year because he has already read the bottom out of $1.9 million as outstanding and their cash is $1.7 million; depending on collections, he has no reason to believe they won’t collect all of the money.

Mr. Austgen stated it would be appropriate to request the Commission to authorize the issuance of that notice in a timely fashion for purposes of the debt service repayment that Mr. Kil just reported as contemplated. Mr. Kil stated that along with acceptance of the annual report the Commission can motion to authorize the preparation of a letter to the Auditor whereby we request capturing all of the tax increment per statute. Mr. Austgen added that this is his recommendation.

There was no further discussion. Mr. Barenie asked to enter the motion that Mr. Kil just made regarding the expedition of this and ensure it gets done as soon as possible, with the letter to the Auditor, etc. Mr. Forbes made that motion. Seconded by Mr. Volk. Motion unanimously passed.

Reports and Correspondence –

None

Open to the Floor for Public Comment

Ms. Pat Kocot, 10107 Olcott Avenue - asked if Ravenswood is part of Hanover Township. Mr. Forbes stated that part of it is. Ms. Kocot stated that because the debt is now paid asked if they will they be able to receive some of that money. Mr. Forbes stated that not yet, because they are still collecting all of the revenue to further pay off the remaining bonds, that the TIF district is still in place and they are still collecting the funds. Mr. Austgen interjected and stated that there are four sub-allocation areas and Ravenswood was identified as an area by itself, S3. With the payoff of the debt service obligations in Ravenswood it is his understanding, subject to confirmation, that the increment from that area is no longer being collected. The increment for the balance is what is being collected for the debt service pay down which is primarily the Target, Strack’s area. Mr. Kil added they collected the increment all of last year but they probably will release it this year because it is paid off.

Adjournment –

Mr. Forbes motioned to adjourn the meeting. Seconded by Mr. Volk. Motion unanimously passed. Meeting adjourned at 7:40 P.M.

ATTEST:

/s/ Sherry P. Sury
Clerk-Treasurer

Mr. Forbes called the meeting to order at 8:12 P.M. Roll call was taken with the following members present: Michael Forbes, Vice-President; Gregory Volk, Member; Ken Gembala, Member; Larry Bustamante, Member; David Austgen, Attorney; Steve Kil, Town Manager and Sherry Sury, Clerk-Treasurer. Absent was Mark Barenie, President.

New Business

Consider Resolution # RDC 12-06-28, a resolution of the Town of St. John Redevelopment Commission regarding use of assessed value within the expanded St. John North / South Economic Development Area –

Mr. Austgen stated that this is the annual notification direction from the Redevelopment Commission pertaining to the TIF District and the Notice of Intent to capture the increment from the TIF District for purposes of either debt service repayment or economic development. They understand there is no planned economic development but they have a final payment on debt service. They know they are not yet in possession of the distribution, they know when they get the distribution there will be sufficient funds to satisfy the debt service. This is Increment Notice for capture for next year; the rest of this year because of the arrearage they are in (in Indiana they collect in arrears), if they collect on or before July 15th then they will not need this increment. In order to ensure they had it, they don’t know when they will get it; they were advised by Phil Faccenda, their bond counsel to have a safeguard just in case. If they will pass the Resolution for pro forma purposes they will withhold the issuances of the notices to the taxing units until the very end, they have until July 15th. Upon the adoption of the Resolution he would recommend the Commission authorize and permit the President to withdraw the notification or issue it depending upon whether they have their distribution or not.

Mr. Kil stated that if we get the distribution in time, we will be able to satisfy the St. John Marketplace Bond, pay those off and have enough money in the bank for the construction of the road and demolition of the building as we previously talked about. Mr. Kil confirmed the deadline of July 15, that Mr. Austgen explained we do not know that we are going to get our tax money on time and do not want to say that we are going to pay off the bonds and that the tax draw is coming, he would rather have the money in hand. Mr. Forbes stated that to reiterate we are at a point where we are going to pay off all the bonds and want to make sure we recapture the money to make the last payment. Then in 2013 we won’t capture any more money. Mr. Kil stated that we are releasing all the taxes that come in to all the taxing bodies that it should go to. We are going to release the tax increment.

Mr. Gembala motioned to adopt Resolution # RDC 12-06-28. Seconded by Mr. Volk. Motion passed with a vote of 4-0.

Mr. Gembala motioned that the Redevelopment Commission authorize the President to authorize the release of the captured increment in the event the funds are collected from the distribution on or before July 15th. Seconded by Mr. Bustamante. Motion passed with a vote of 4-0.

Reports & Correspondence –

None

Public Comment –

None

Adjournment –

Mr. Gembala motioned to adjourn the meeting. Seconded by Mr. Bustamante. Motion passed with a vote of 4-0. Meeting adjourned at 8:18 P.M.

ATTEST:

/s/ Sherry P. Sury
Clerk-Treasurer

Mr. Barenie called the meeting to order at 7:07 P.M. Roll call was taken with the following members present: Mark Barenie, President; Michael Forbes, Vice-President; Gregory Volk, Member; Ken Gembala, Member; Larry Bustamante, Member; David Austgen, Attorney; Pat Kocot, Citizen Member; Steve Kil, Town Manager and Sherry Sury, Clerk-Treasurer. Absent was Dr. John DeVries, Citizen Member.

Approval of the Minutes: January 26, 2012 meeting and June 28, 2012 meeting minutes -

Mr. Gembala motioned to approve the minutes of the January 26, 2012 and the June 28, 2012 meetings. Seconded by Mr. Forbes. Motion passed with a vote of 5-0.

New Business

Consider economic development agreement with John Eenigenburg – Mr. Austgen stated that this agreement has been developed as a consequence of the redevelopment of the Eenigenburg parcels which are in the north east quadrant of 97th and Wicker Avenue and in anticipation of a portion of that parcel for a new McDonald’s Restaurant as well as a replacement of the structure and facility of the Eenigenburg Water Supply business adjacent thereto. The funds are contemplated to be used from TIF funds that are on hand, that remain after all debt service responsibilities and obligations have been met of capital financing of the district are required to be used for redevelopment within the allocation area of which this parcel is located and which contemplates redevelopment. Specifically, the funds will be used for the demolition of the primary facility of Eenigenburg ownership; it will be used for initially the extension to the Town standards of a frontage road running north / south parallel to U.S. Route 41 which would be part of a development subdivision plat, four lots are contemplated. The matter has been discussed internally there have been substantive meetings and it is the recommendation of staff, your Council, that in furtherance of redevelopment in this area this is a proper lawful use of the funds. It will stimulate and foster redevelopment and they are in good shape to use them if they so choose.

Mr. Kil showed a second edition plat for the board members reference. He added that this includes vacating the existing right of way that lies adjacent to Rte. 41 in favor of the frontage road continuance of Earl Drive. This will happen simultaneously with the approval of the plat. Discussion ensued.

Mr. Austgen stated that a schedule has been developed and it can happen in the next two months.

Mr. Forbes motioned to approve the agreement with John Eenigenburg. Seconded by Mr. Bustamante. Motion passed with a vote of 5-0.

Reports & Correspondence –

None

Public Comment –

None

Adjournment –

Mr. Forbes motioned to adjourn the meeting. Seconded by Mr. Bustamante. Motion passed with a vote of 5-0. Meeting adjourned at 7:14 P.M.

ATTEST:

/s/ Sherry P. Sury
Clerk-Treasurer