Meeting Minutes HIGHLAND REDEVELOPMENT COMMISSION PUBLIC FORUM MINUTES MARCH 4, 2006 The Highland Redevelopment Commission met in a special Public Forum on Saturday, March 4, 2006, at 10:00 AM at the Lincoln Center, 2450 Lincoln Street, Highland, Indiana. The Public Forum was called to order by Commissioner Mark Herak. The minutes were prepared by Cecile Petro, Redevelopment Director. ROLL CALL: Present on silent roll call were Commissioners: Bernie Zemen, Daniel Dernulc, Robert Helmer, Mark Herak, and Joseph Wszolek. Also in attendance were Clerk-Treasurer Michael Griffin, Attorney Steven Kennedy, Hammond Consultant Edward Krusa, former Commissioner Keith Magiera, Director Cecile Petro and members of the public. GENERAL SUBSTANCE OF THE PUBLIC FORUM Commissioner Herak, former Commissioner Magier, Clerk-Treasurer Griffin Commissioner Mark Herak, former Redevelopment Commission President, Keith Magiera, and Clerk-Treasurer Michael Griffin provided a PowerPoint presentation for the proposed loan to Hammond, Indiana. It included the projected cost of the bond, the loan process, and a review of the physical condition of the area called the River Park Apartment Complex in Hammond, Indiana. Their projections indicated that the total cost to Highland would be less than $348,125.00. This also included the issuance cost for the bond. Hammond would receive an interest free loan for eighteen (18) months. After that, Hammond would be charged interest on the loan. The loan would be utilized by Hammond for demolition purposes. Highland would be the first entity repaid with the proceeds from the sale of the property. Mr. Herak and Mr. Magiera stated that intangible benefits to Highland could be anywhere from $1,000,000.00 to $11,000,000.00 depending upon the redevelopment of the area. They also stated that Highland has entered into other agreements with bordering towns including Griffith (Cline Avenue project and the Deep Tunnel project) and Schererville (Main Street project). Mr. Herak called upon Mr. Ed Krusa, a consultant for Hammond, to address Hammond’s course of action. Mr. Ed Krusa Mr. Krusa stated that Hammond’s target date for demolition of the apartment complex is April 2006, or as soon as financial arrangementsare in place. He anticipated that the total cost for the demolition would be $1.50M to $1.7M. Mr. Krusa stated that Hammond needs this assistance for demolition purposes because Hammond has maximized its bonding power. Without Highland’s assistance, redevelopment of this area would take longer to complete and affect both Hammond’s and Highland’s ability to redevelop Kennedy Avenue. Clerk-Treasurer Michael Griffin Clerk-Treasurer Michael Griffin outlined the reason for the taxable nature of the bond. He stated that it was considered taxable by the bond attorneys because the bond will be used for the development of what will soon become private property. Mr. Griffin also stated that this amount is well within the bonding capacity of the Redevelopment Commission. Mr. Steven Kennedy, Attorney for the Redevelopment Commission on this issue, stated that the final use of this area will conform to the plans of both Hammond and Highland. Mr. Bernie Zemen, Redevelopment Commission President Mr. Zemen declared his support for the loan and the importance of Kennedy Avenue as a gateway into Highland. Mr. Joseph Wszolek, Redevelopment Commissioner Mr. Wszolek gave a history of the Interlocal Agreement process and stated that he conceptually agrees with this proposal. Mr. Daniel Dernulc, Redevelopment Commissioner Mr. Dernulc stated that he thinks that this will be a good project. Mr. Robert Helmer, Redevelopment Commissioner Mr. Helmer suggested that the Commission acquire a second opinion on the taxable nature of the bond. He also would like Highland contractors to receive the same preference that Hammond contractors will receive during the bidding process for demolition. PUBLIC COMMENTS Mr. Herak Mr. Herak asked for public comments at this time. Mr. Milligan Mr. Milligan expressed that he has changed his mind about the Agreement and now believes that this would be a good thing for Highland. He asked the new Town Manager to comment on the project. Mr. Richard Underkofler Mr. Richard Underkofler, Town Manager, responded that he thought this Agreement and the subsequent redevelopment of the area would benefit Highland. Mr. Cy Huerter Mr. Huerter stated that he supports the Agreement and that the demolition should have been done a long time ago. Ms. Kathy DeGuilio Fox Ms. Fox stated that the Agreement is a good idea. She added that it is her hope that Hammond will choose a stable, long term business to occupy that area. She wondered what was in Hammond’s plan at this time. Ed Kruza answered that the area will be rezoned commercial and that the RFP (request for proposal) process is being worked on at this time. He stated that the Hammond Redevelopment Commission meets at 5:00 PM on the second and fourth Tuesday at City Hall. This issue may be addressed during a Hammond Redevelopment Commission meeting in April 2006. Mr. Jim Sleder Mr. Sleder emphasized that Highland should receive something in return from Hammond for the loan. Mr. Frank Mrvan Mr. Mrvan inquired about providing preferences for Highland contractors. Mr. Kruza answered his questions. Mr.Adam Gawlakowski Mr. Gawlakowski declared that he is in favor of the Agreement, but had concerns regarding the process. Mr. Wes Miller Mr. Miller, a Hammond resident, requested that the Redevelopment Commission not approve this Agreement. Mr. Breslin Mr. Breslin asked about the future of the Redevelopment Commission. Redevelopment Commissioners responded to the question. Jim Sheehan Mr. Sheehan, a Hammond resident, questioned whether or not Highland would be the first to be paid back for the loan after the property was sold. He also asked if there had been an environmental impact statement about the property. He was told yes on both issues. Dennis Cox Mr. Cox inquired whether the cost of redevelopment is going to be high because of the proximity to the Little Calumet River. He also stated that he did not see a benefit to Highland. Tom Aglar Mr. Aglar emphasized that the north end of Kennedy Avenue needs to be redeveloped; otherwise future generations will leave the area and not return. Mr. Herak The forum was adjourned at 12:05 PM. BACK TO MAIN MENU