Wednesday, January 27, 2016

26 January 2016 Dearborn County Council Meeting Notes

 26 January 2016 Dearborn County Council Meeting Notes

Present: Dennis Kraus. Sr. (acting president), Dan Lansing, Liz Morris, Charlie Keyes, Ryan Brandt, Alan Goodman, and Bill Ullrich.  LIZ MORRIS is new president.

Also present: Gayle Pennington, Auditor and Teresa Randall, County Administrator
Also present: Commissioner Kevin Lynch and Randy Maxwell, Skally’s owners, and Jason Semler of Umbaugh and Associates.


The earlier executive session called pursuant to 5—14-1.5-6.1 to discuss pending litigation was certified that no decisions were made in executive session. 

Election of President Brandt nominated Liz Morris and there were no others nominated so she is elected.
Election of Vice  President- Goodman nominated Brandt Lansing 2nd. with all ayes. and Kraus nominated Ullrich with no 2nd after that vote needed. 
Plan Commission- Dan Lansing
Convention Visitors and Tourism Bureau- Ryan Brandt
Community Corrections - Liz Morris
Juvenile Advisory Board - Liz Morris
SIRPC - Dennis Kraus
SE IN Regional Development - Dennis Kraus says he hasn’t heard from them in a long time. So they are leaving it vacant for now. 
Solid Waste - Alan Goodman with Liz Morris as alternate.
Personnel Advisory Committee-  Liz Morris and Dennis Kraus
Community Mental Health - Alan Goodman (Keyes decided to stay off to avoid conflict of interest)
Emergency Management Advisory - Liz Morris with Bill Ullrich as alternate
Redevelopment Commission - Alan Goodman with Ryan Brandt as alternate

PTABOA ( Tax Appeals) - Bill Hartwell
Alcoholic Beverage - Glen Huismann
Park Board - Jim RedElk (There were issues on this board per Judge Humphrey with his appointments yet there was no discussion of the political balance in the make-up of the board on this one.)
OKI - Mark McCormack
Regional Sewer - Jeff Stenger

PLANNING and ZONING- Mark McCormack- Dillsboro Interlocal- Ryan Brandt excused himself from this discussion and vote due to working for the town of Dillsboro. McCormack discussed the agreement and presented the estimate for 200 hours of work for the entire year. Also 6-10 enforcement cases a year. They budgeted up to 80 hours for that portion. PAC committee had some concern with this and they thought we’d need a computer as we are already sharing it with GIS dept. Council asked him to charge $10,000 instead of the $7200. Lynch said he would vote yes at Commissioners on this when it comes back. He trusts that Mark has done the numbers right as he has done several of these for the other cities and towns.Keyes Nay. Brandt abstain. They feel that he needs a cushion. He can proceed if Dillsboro agrees to the $10K otherwise he has to come back to Council. 
McCormack also presented a Grant for IN Dept. of Health for pedestrian and bicycle trail as discussed with Commissioners. It’s for a Community wide bicycle and pedestrian trail plan. Local match max would be $20,000. Greendale and Lawrenceburg are working on similar plans in their areas. This is a closer view to get to a construction phase eventually. The match could come from another source or sources besides the county. Council seems loathe to add any expense here. The county is NOT committing any money but gave him permission to proceed. All ayes with Kraus Nay. 

Skalley’s TIF Bond- Jim Deaton- is here for the first reading of two economic development bonds. He read the entire bond ordinance for Odette, LLC (Skally’s Old World Bakery). TIF amount not to exceed $800,000. Financing agreement between the county and the company. They listed the findings and public benefits to improve economic stability of the county. The issuance of the bonds is paid by a portion of the personal property tax.Goes to 2031. He also introduced Two of the Skally family. They thanked the county for working with the, They are a family business around for 38 years. They are the first and 2nd generation and are working on the 4th generation also. Liz Morris said it was a pleasure to meet them. Looking forward to doing business with them. Sally’s said they have fallen in love with the area. They are exporting bagels to 40 states now. Randall spoke also saying that they are adding 40-45 jobs. They are talking about a new partnership that they will be working with here. The Whitewater Mills may be able to mill a product that Skally’s may be able to use. They are putting in $40 million. They have designed their own equipment line that is state o the art. Randall said that they had trouble in Cincinnati and when they came here- we were ready. This board provided the funding for the land that we are giving them now. You have also provided the funding for the sewer infrastructure. Jason Semler is here from Umbaugh for questions. Votes are for next month. They also have samples for you. Dallas Paul made comments that if it wasn’t for Randall and Randy (Maxwell) we wouldn’t be here. Having the land here made it an easy decision. Skally’s passed out bagels and Old World Pita and Meiers (sp?) and Aunt Millie’s brand is their product at Krogers. They also have a restaurant at their business in College Hill. 
Dennis Kraus asked about the list of incentives.
Randall: Incentives: Given 36.4 acres next to Hirlingers. Of the business personal property tax estimate is 65% of the total over 10 years is $800,000. That goes to them. They also have to give a financial impact statement out and the auditor has that now. She will mail that to Council tomorrow. [NOTE: Why wasn’t that included in the meeting prep?]

West Harrison LLC- Jim Deaton read the entire bond ordinance for Randy Maxwell (West Harrison, LLC)- bonds not to exceed $3 million. The acquisition of and building a facility. Financing by the bonds. Issuance of the bonds paid by a portion of the personal property tax of the Skally’s Economic Development area. Commissioners and auditor sell these bonds. And yet they are not responsible for paying them. Deaton said this begins the next step. We need some more companies up there and we don’t have much to offer. We are competing with so many other places. We have a TIF but nothing more. (Isn’t that enough?) We are getting some tax money into the redevelopment commission. With this bond we can acquire land. We can bring that and all up above the flood level. ( He’s talking about Maxwell’s purchased land in Tootles Trust that is in the 100  year flood plain.)  This gives us the option to do something now. [NOTE: I thought our big plus was larger blocks of land that the city can’t offer.] We are leveraging their property tax receipts. Question- Has the study been done to see if we have enough receipts in taxes to pay this bond off. 

Randall said- West Harrison is a new LLC that Randy Maxwell has created.[NOTE: West Harrison,LLC was filed with the state Nov 17, 2015 with Randall Maxwell at 440 Nowlin Ave, Greendale,IN 47025 as the Registered agent.]  Randall - They (Maxwell) are going out and taking risks to pay the bonds. They hope to get a margin on the construction and development. [NOTE: This is how Maxwell could  potentially make lots of money.] Randall- This is a public entity and a private entity in a partnership. People want a building that is already there. They are willing to borrow money on their dime to pay off that. [NOTE: No - they are borrowing money on the taxpayer's dime. That TIF or personal property money can go to other developers or businesses or back to the schools. Maxwell has locked it up for their business to potentially steer the development.] Randall- They borrow the money to build the building themselves. 

Ullrich said other counties have been successful in putting up structures for people in advance. 

Randy Maxwell- This is a tool that takes you out of the risk.[NOTE: It spreads the risk to a private developer. Taxpayers are still in the risk pool.] Maxwell- Stuff is only happening because you invested money. Every expenditure comes out with the county’s DCRC approval. Skally's revenues in the future are used to leverage this. We ( Maxwell) bought 92 acres ( Tootles Trust Land) down there in anticipation of more. I’m frustrated that development hasn’t happened faster. Every time we can take advantage of an opportunity we are going to do it.

 Ullrich- we owe Randy a debt of gratitude. Brandt- I commend the group of all the DCRC. [NOTE: Is this cheering squad product of a pre-meeting round- up- the- troops session?] Without all the relationships you have built we wouldn’t have this. 

Terri Randall- timing couldn't be better. Let’s say I work with Randy. We sit with Maxwell- they cost it out and decide if DCRC wants to support the project. As the TIF stream comes in they are reimbursed for it. Our attorney will be covering the county not Maxwell. [NOTE: Well somebody better be covering us taxpayers. Our administrator seems to be covering Maxwells- after all John Maxwell is the man she thanked by name as her supporter for the administrator job, when she was introduced at the commissioners meeting 4 years ago.]  

Randall -This will take over a year to start as we have to have Skally’s up and running and generating tax money first. Discussion about how many companies know how to play the incentive game and the move on again. Randall also talked about the Port coming here- and we will be ready.Newcastle got Boars Head.  

Lynch said- you are going to hear the numbers from Umbaugh etc. Once we get them ( businesses) hooked with this ( the spec building of Maxwells, etc) as bait- we can show them what all we can offer. Honda added CRV from Mexico to Greensburg is a plus too. We have to be proactive in going after the business. 

Jason Semler- Umbaugh- talked about the numbers. (There was no sheet of numbers for Council or reasoning on this)  We had to expand the existing area out there around Skally’s in the TIF. Right now it’s capturing $20,000. It will increase to $425,000 with Skally’s. Taking 65% of that will support the $800,000 bond. 
The 2nd bond issue with Maxwell as West Harrison,LLC. This opens up for future development. You already have a developer willing to take that risk. They are making a $20 million investment in land and building. 80% of the TIF from Skally’s is from this. When asked- he said he will email the information on the numbers and calculations on this. [NOTE: This is not good to have that many numbers spoken without the accompanying calculations. These are based on assumptions- they should be out front and center. Unless it is all smoke and mirrors…  Skally’s gets $800,000 bond for a big factory and expansion of employees. Maxwell gets $3 MILLION bond for what amounts to SPECULATION. They say he is taking all the risk. NOT TRUE. The taxpayers are - because the Skally’s TIF taxes are going to pay this bond. And that means they are not going to another business coming in- unless that business goes thru Maxwell and then the DCRC. Is there anyone else wondering who is in charge of the DCRC really?]

Chris Mueller - I asked about the unintended consequences of the 25 years of TIF taxes that don’t end up in the schools. Especially if the business brings more residents and kids. [NOTE: This is what happens when the focus is so narrow on economic development and not on the whole picture of our county and our residents. Who is paying for all these incentives. WE ARE. For 25 years.]
END DCRC presentation

Dennis Kraus, Jr. got a favorable approval for $12-14 per hour for an 8 hour per week employee. PAC was favorable also on this. 

AUDITOR- Gayle Pennington-
2016 Schedule- February 23rd 6:30 PM. May 31st 6:30 PM, Budget Hearings September 12-16th, November 22nd 6:30 PM. All other meeting will be scheduled as special meetings. 

Salary Ordinance Amendment- Steve Kelly came to Gayle for Superior Court II budget $54,493 from the program. These are all discretionary court funds based on his grant. Approved.

County Clerk is allowed to pay some employees a bonus and wants it moved out of County General to IV -D funds. Throughout the year Gayle will bring these in to vote on this and others that they set up at budget. This one was approved. 

Ordinance authorizing purchase of Crime Insurance Policy pursuant to IC 5-4-1-18c- Gayle said it costs $100 for each employee that touches money. It was more cost effective to just increase the Crime Insurance coverage rather than purchasing new bonds for everyone. Randall said we don’t have the quote yet. She hopes that the bond account will more than cover this. They are getting 2 quotes. The bond agent advised Gayle that this would be more cost effective and the AIC and Auditor’s association data shows many of them are already going to do this. Council approved adopting this ordinance.

Minutes from Dec.1st approved with corrections.

Budget Corrections- they had the 1782 notice to review and they made some cuts and need to make more to the general fund. $1,957,961was cut and approved by Council. Pennington will get those up to the state. [NOTE: Council can handle the budget cuts in a few ways.   They give the money as an additional within one of the Riverboat funds or put the money back into county general which requires filing more paperwork with the state. The budget cuts given to Council were just done using big dollar amounts to get to the required number from the DLGF to cut. This procedure uses up Riverboat revenue. So how exactly are we funding all this Jail, Annex, and DCRC construction and additional costs with these cuts for 2016 and beyond? Everyone- all together now- TAX INCREASES!] 

Meeting adjourned at 8:57 PM

Christine Brauer Mueller

Lawrenceburg Township

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