WARRICK COUNTY COUNCIL MEETING

 

                                                                                                     COMMISSIONERS MEETING ROOM

                                                                                                              107 W.  LOCUST STREET

                                                                                                    WARRICK COUNTY COURTHOUSE

                                                                                                                 BOONVILLE, INDIANA

                                                                                                                         March 11, 2004

                                                                                                                              6:00 P.M.

 

The Warrick County Council met in regular session  in the Warrick County Courthouse, Commissioners Meeting Room, 107 W.  Locust Street, Boonville, Indiana.  Deputy Auditor Cheyenne Phillips recorded the Minutes.

 

PLEDGE OF ALLEGIANCE: Lead by David Hachmeister.

 

ROLL CALL OF MEMBERS:

 

Cheyenne Phillips:  Gary Meyer, here;  Robert Addington, present; Raymond Bracher, here; David Hachmeister, here; Ray McIntyre, present; Joe Schitter, here; Greg Richmond, here.

 

APPROVAL OF MINUTES: February 5, 2004:

 

David Hachmeister: I have one small typo on page three.  Toward the bottom of the page, myself speaking, it states ‘if we would compensation’, it should be ‘if we would compensate’. 

 

Joe Schitter: I have one on page four, about the middle of the page, Greg Granger, it says ‘as long as it is compensation’, I think is should say ‘as long as it is not compensation’.  Then I had one on page nine, myself speaking, top of the page, ‘I continue’ it should be ‘I will continue’.

 

Gary Meyer: Any others?

 

MOTION: David Hachmeister made the motion to approve the Minutes as corrected.

SECOND: Raymond Bracher

VOTE:    7 Ayes   0 Nays

 

Gary Meyer: We are going to deviate from the agenda just for a second.  I have been requested to move an item, the Department of Economic Development , Epworth Road Improvement .  An additional appropriation of $72,400.00.  We have been asked to move that to the front.    While you are coming up, I have a couple of things I would like to say about this.  It has been brought to my attention.  The Council did not understand or know and no one was there that would tell us what this was for at the last meeting so this is the reason it was not approved.  Since the last meeting, there has been a lot of statements made that the Council is not in favor of Economic Development because this was not approved.  By the public and by elected officials and I would like to say as a Council member and President of the Council that I hope this Council continues to ask, if you don’t know something is for, that we ask for an explanation of what the money is going to be for.  Those of you that were here, knew that we were not questioning the amount of money, only what the money was going to be used for and no body was able to give us that answer.  I don’t think that this in any way reflects a negative connotation from the Council as far as Economic Development.    We just wanted to know what that money was going to be used for and no body gave us that answer.  The people that were here said this would not effect the project as far as delaying the project at all.    We were accused of that.  So I just wanted to make that statement before you went ahead. 

 

Rick Martin: Thank you Gary, I am here on behalf of the Economic Development, I have Brian Litherland with Bernardin Lochmueller with me and also Sue Gibbens the Economic Development Director.  It is my understanding that Mr. Emmons submitted to you a report as to what the expenses were.  We are all here to answer any further questions you may have.

 

Gary Meyer: It is my understanding that the, from what I read in that report, the $72,400 is a little bit inflated to cover any additional expenses that you may have. 

 

Brian Litherland:   That cost is the maximum that would be incurred potentially with the services purchase of property.  Depends on how much property is being purchased off each individual.  That effects different type of processes to be instigated to do this process.  So it is hard to say before the project starts which processes will have to be done to purchase property off of the various parcels out there.  So the number that is there is the maximum number that would be incurred if all of them would happen to go what we call the worse case scenario.  Depending on how some of  the parcels are impacted or purchased if there happens to be some donations or something like that.  Other processes would be utilized that are much cheaper. 

 

Gary Meyer: Basically these are the expenses due to purchasing the right of way

 

Brian Litherland: Correct.  Appraisal fees, transfer documents, exactly, a few appraisals, if needed.  This property is being purchased under the assumption that if mutual agreements aren’t there, then other processes will be taken to acquire the property so that instigates certain procedures rather than other procedures. 

 

Bob Addington: We will only be billed for the amount of monies that are actually spent on this?

 

Brian Litherland: That is correct.  The same even goes for the right of way engineering agreement that you all have already approved.  There are some processes even within that, that should even lower the amount that you already approved for the engineering agreement as well.  But again, just to make sure that it is there and you guys are aware of what the total possible cost is that you are approving, the worst case scenario was assumed for each of the parcels, as you found out, it is on a per parcel basis that these cost are developed. 

 

Gary Meyer: That explains a lot to me, thank you.  Anybody else? 

 

MOTION: Joe Schitter made the motion to approve $72,400.00.

SECOND: Ray McIntyre

VOTE:           7 Ayes   0 Nays

 

Gary Meyer: Okay we will go back to the front of the agenda.

 

PERSONNEL COMMITTEE REPORT: 

 

Area Plan:

 

Larry Willis: Vice President of Warrick County Area Planning Commission.

 

 

Sherri Phillips: Executive Director.  I do want to give you a new letter and I apologize the first letter, it was misunderstood, I wanted to be placed on the Personnel Committee Agenda, and not this agenda.  Also, I was directed by the Area Planning Commission Board to submit the request.  I didn’t realize that I should have the Board members submit it.  So that is why you are getting the new letter.   So that is why you are getting the new letter and we would like for this to be tabled until we do meet with the Personnel Committee first.  If you have any idea of when that would be, I would like to know.   

 

Gary Meyer:   They pretty much meet on call so Greg is the Chairman so he can probably set that up tonight.

 

MOTION: Raymond Bracher made the motion to table.

SECOND: Ray McIntyre

VOTE:           7 Ayes   0 Nays

 

Gary Meyer: Get with Greg and he can set that up.

 

TOWN OF NEWBURGH Infrastructure of Newburgh Sewer Department - Mae Mason:

 

Gary Meyer: It says Mae Mason but I believe it is Sherry Sherman presenting it.

 

Sherry Sherman: Thank you, my name is Sherry Sherman, I am on the Newburgh Town Council and I am also the Sewer Commissioner for the Town.  I am here to talk to you tonight, to give you some information and kind of a ‘heads up’ of where we are with the Newburgh Sewer Department and what directions we are headed as we look at continued growth in the Newburgh area and Warrick County in general.  So I did bring a slide presentation.  We are going to roll on through this here.  We have the existing collector system which consists of three sub systems.  One of them is the Cypress Creek interceptor which is the Southern most route.  We also have the Northeast interceptor which is the middle East and some of you that have been on the Council will remember that is the Pecka Ditch Project.  Then we also have victoria which is the North and the East route.  Newburgh has experienced linear growth in the last decade or more and in 1990 we had 4,799 customers by 2000 we had 7,007 customers, 2003 we reached 7,470 customers and we expect to reach 9,041 by the year 2010.  So it is growing.  In 1990 we sold 138 taps, 1995 we sold 261, 2002 we were up to 358, and for planning purposes we are averaging 224 annual tap ins and those are considered residential taps.  Flows in the system, in 1990 we had an average flow of 1.652 million gallons, in 1995 we were up to 1.96 million gallons, and 2000we had risen to 2.243 million gallons.  By 2010 we are expected to reach 4.121 million gallons per day.   Our current loading effect on the system, green is listed as adequate, yellow is marginal.  This is what our map looks like right now.    As you are looking at it, the green to the far right is the Victoria, the cypress Creek is along the southern route and you will notice we have some marginal going into green and then going back into yellow which again is marginal.  As we are looking at that, the center one is our Northeast interceptor.  And we see going from green to marginal, back to green and then back to marginal.  So this is what our current system looks like right now.  Now the effect if we do nothing, this is what is going to happen.   Red is over capacity, yellow is marginal and green is adequate and this is the direction we are heading looking at the 2010 projection.  We still have plenty of growth and capacity on the Victoria side but as you are looking at everything else, it goes just about completely red.  If you look at the very southern part where you see that green, while it is green it goes into red so in essence it is for all practical purposes it is over capacity.  So we are looking at that now.  We have a flow modeling study which Newburgh undertook a computerized flow study in 2001 and this modeling is updated and added to the new commercial growth since 2001.  What this system does is project our growth and future and immediate growth is occurring both the Cypress Creek interceptor and the Northeast interceptor basins.    And both of those are on the West side of Warrick county in Ohio Township, they both are effectively West of Newburgh.   Both basins reflect marginal collector system capacity at this particular time.  We looked at solutions.  The existing system improvement with improvements with a single waste water treatment plant, we looked at a new master lift station with improvements to a single waste water treatment plant and we also looked at construction of a second waste water treatment plant west of Newburgh and the connections to that.    Option two was selected as the least cost and the quickest to build.  Option two can be done in stages while Option one and three would have to be done in unstaged projects.  And just to refresh, Option Two is the Single Waste Water Treatment Plant with a Master Lift Station and force main to the plant.  Neither option one or three can be completed in less than five to seven years.  Stage one of Option Two can be done within two years.  Stage one of Option Two is the construction of some gravity sewers.  Redirection of some existing lift stations and the force main and construction of a new master lift station force main North and West of Newburgh to the existing plant which is North and East of Newburgh.   We can finish that within two years to meet the needs of the County.  When we are looking at this we are looking at the expected growth along 66 as it grows, when the construction is completed there you are looking at a lot of property along North of 66 that is available.  Also this takes into consideration along the Epworth Project that is expected to be completed by December of 2005.  The added benefit of this is that it unloads the Pecka Ditch interceptor and it increased the life capacity for redevelopment along 261, along the north corridor.   We are seeing a lot more growth there as more business is continuing to look at the road between Newburgh and Boonville.  This is the project that we looked at and this is for informational purposes only.  We have not gone into a stage where we are actually looking at land but what this does, this is for informational purposes only, shows what the master lift and force main would effectively do immediately is turn all the lines to green and allow extra capacity in every single line along the way.  Cost.  We use Umbaugh for our financial advisor and Commonwealth Engineer is our engineer on this project.  Phase 1 of Option 2 is projected to cost 6.4 million dollars in construction cost and added for the debt service reserve that we are required to pay, bond sales, real estate acquisitions and other cost will likely push the price close to 7.4 million.  Phase 2 of Option 2 includes improvements to the waste water treatment plant those will be needed by 2010.  They are projected to cost ten million dollars and would increase the capacity of the current system to 4.6 to 6.5 million gallons a day, dry weather flow.  Each option was studied for cost, functionality and time.  When they are compared to the total net cost basis, Option 1 cost out at $20,694,000.  Option 1 was the upgrade to the single system and upgrading all the lines along the way.   Option 2 is $20,383,000 and Option 3 which was a new plant on the West side of town, came in at $22,332,000.  Impact on Rates.  If we have no County participation, the rate increase for Phase 1 Option would be a 14% outside and 3% inside the town.  We are looking at the average 5000 gallon a day user would be paying $37.58 outside and $27.55 inside.  The added work to have the plant upgraded is also going to impact the rates.  Any contribution by the County can decrease the rates outside the town.  An example is if the County participates at $500,000 a year, for 20 years, the rate increase effectively would be 3% across the board.  Direct cash grants by the County would decrease the rate increase by reducing the amount borrowed and also the debt service reserve that we are required to pay.  For each million dollars we do not have to borrow, the rate increase goes down.  Three million dollars required the same increase as $300,000 per year for 20 years which would effectively be 9% outside and 3% inside.   So that is our presentation.  This is mainly as an F.Y.I. information to give you as a ‘heads up’ because we are talking to a number of groups.  We are going to the EDAC next week to do this very same presentation to try to get everybody in sync with what is happening, a ‘heads up’ because we are looking at how we can collectively fund this and how we can make this thing happen for, actually for the whole County.  This is an added benefit to the entire County.  We have a number of things that are happening along 66 along Epworth Road and when the roads are done, with this system, we will be able to have the sewers ready to go and be able to take the County forward as it goes.   I will open it up and ask if you have any questions. 

 

Gary Meyer: Does anybody have any questions? 

 

Ray McIntyre:   On the one map where you talk about the spotted red line, I take it that was the new forced main?

 

Sherry Sherman: Yes.  That would be the new forced main and that is just, you had to put a dot on the map, and put a dot there, that does not indicate any particular route, we have not we have not sited any particular spot. 

 

Ray McIntyre: And that turns all that yellow and red into green without changing them at all?

 

Sherry Sherman: Absolutely.  If we did the one system is upgraded all the other lines which is option 1 we would have to do a lot more construction along the way, so to disrupt the fewest number of people we are looking, and also for the cost, we are looking at that would be the most economical way to go and the fastest because we can do that.  We anticipate about nine months in the planning stage, and to acquire land, and we are looking at about a year to build.  We are moving forward but we need to know how we can get this paid for.   

 

Bob Addington: On the East side, was the Victoria?  That main...

 

 

Sherry Sherman: Victoria has plenty of capacity at this time because there is not as much growth along the very East side of the collector system.    If anyone wants to build along that we have plenty of capacity.  The other areas, there are some areas that are marginal, and we have to look at it on a case by case right now.   But we are looking at how can we balance this.  That area has been growing by leaps and bounds and grows faster than we can anticipate and we are just trying to stay ahead of the game and we as of now, as you saw, we are looking at the way things are.  We are almost to a cross road, especially in some of the collection systems along the way where it is getting very tight.  It does make a difference.

 

Bob Addington: The West side is then the critical spot.

 

Sherry Sherman: The West side is the critical, that is where the most growth is.  We are seeing more and more growth, when 66 is complete I am sure the Economic Development hopes that there is going to be a lot of businesses that want to go in there.  We certainly hope so we would like to have the sewers in place and ready to go we thing that would be an added incentive for economic development in that area.  Have a new road along Epworth and 66 but they are going to ask where are the sewers.  We are going to be asking for EDIT on along term basis to help fund this.  The EDIT monies coming in from the additional growth will offset the money that is going to be required to pay it back.   We are looking at a way that it can be a win, win situation for everyone.   

 

Bob Addington: The Deaconess Hospital, you say you are able to take care of  that?

 

Sherry Sherman: We can handle Deaconess right now.  That is anticipated to be on line in December of next year.  Three months ago we did not know about the two 80,000 square foot office buildings that were attached to that.  Deaconess in that area is going to be about the breaking point but that is not the one thing, if you look at, we have a developer along the Southern part of Epworth Road and they are putting in 500 homes.  While there is not 500 homes there right now, we have already reserved those 500 home capacity in our planning process because we don’t know when those are going to come.  But that is 500 households that have already been reserved.  It is really a juggling act so that we can maintain that capacity but at some point, all the balls are going to be up in the air and they will fall if we don’t get something going.   So that is where we are looking at.  We are also looking at the expected growth along the Epworth Road North, when that goes. 

 

Ray McIntyre: Did I understand that if you built a new plant by the time it was done, that was 20 million something?  A new plant on the West side.

 

Sherry Sherman: That is not in our plans at this time.  What we are looking at by 2010 we have the capacity at the present plant to upgrade that and that is what we are looking at for 2010.

 

Ray McIntyre: Nothing is for a new plant?

 

Sherry Sherman: A new plant?  No.   At this point the master lift station and the force main to the plant can take that capacity and then by 2010, we will need to upgrade the current plant to take the additional capacity.  Where it goes from there.  The balancing act is the Federal government doesn’t let us build bigger than we need so we have to build what we anticipate and we can’t over build.  So this is where we are looking at to make sure.

But at this time we are not looking to build a new plant on the West side.  This will get us past 2010 with the current system, lift station , force main and 2010 additional upgrade to the system.

 

Gary Meyer: Any other questions?  Thank you very much.   You are going to EDAC?

 

Sherry Sherman: We are going to EDAC next week and I will be back.  We will have exact numbers and ready to talk. 

 

TAX ABATEMENTS:

 

American Cold Storage-North America, L.P. - CF-1:     

 

Sue Gibbens: Glenda Gorges from American Cold Storage called me today and she is ill and can not be here tonight.  She did tell me that everything is the same as last year on their CF-1 form, no changes. 

 

MOTION: Greg Richmond made the motion to continue the abatement.

SECOND: David Hachmeister

 

Bob addington: Is this in the last year or the next to the last year?

 

Ray McIntyre: It was ten years, looks like three years are left.

 

Gary Meyer: Any further discussion on the motion?

VOTE:           6 Ayes   1 Nay (Gary Meyer)

 

 

Rine Enterprises, LLC - CF-1:

 

Jim Rine: I submitted this form and you will notice the benefits are lower than we originally estimated and basically what happened is we said last year, about the time we borrowed and spent all this money to build the building the economy went in the tank.  We are coming back, we have actually had to hire some people recently, so we are starting to see some improvement.   I shouldn’t say that should I?

 

Gary Meyer: Sometimes the least you say, the better.  Any body have any questions?

 

David Hachmeister: Although you are down on your commitment as far as employees, I guess we would like for you to get as close to your commitment as possible.

 

MOTION: David Hachmeister made the motion to approve the continuation.

SECOND: Joe Schitter

VOTE:           4 Ayes   3 Nays   (Gary Meyer, Ray McIntyre and Bob Addington)

 

Jim Rine: A lady in the Auditors office gave me a copy for you to sign on the back. Do you want me to give this to you.

 

Joe Schitter: I think we have the original right here.       

 

Jim Rine: Thank you. 

 

Broadway Summit, LLC - SB-1:  (requires Preliminary Resolution # if passed):

 

 

Sue Gibbens: While Jim is passing out the information I would just like to say that EDAC has reviewed this tax abatement request as presented to you on this project and voted to make a favorable recommendation for the allowable tax abatement by law for this project.   So of the positive things that were discussed about this project were that it is a 2.3 million project in new construction, there will be 100 new jobs, and the average wage of $12.00 per hour.  I am sure Jim will cover a lot of this in his presentation but 1.2 million in new wages, another million for annual spend for local services.  That they receive some of their other locations around 500,000 visitors each year which means tourism dollars to Warrick County.  It is a very big draw in the tourism arena.  They are involved in a lot of neighborhood and community activities.  This would also increase the property assessment on the ground for immediate tax revenue increase and about 40% of the employees will be involved in manufacturing.  The buildings will meet the code of the covenants and restrictions for development.  Jim, I will turn it over to you.

 

Jim Vincent: Thank you I appreciate you taking  the time to discuss the project.  I want to make a comment.  We have evaluated several locations in Counties surrounding this area and we have had some of the best cooperation with the people in this building, with your surveyor, your building and codes, your streets and highway, I just want to applaud some of the efforts they have put forth helping us understand our project in better detail.  The main thing I want to communicate is, this is a fairly well know operation here in Indiana.  This operation we are proposing for the Warrick County area is a corporate headquarters people who are interested in franchising this operation in several states around this area.   Specifically the St Louis area a branch in Missouri, Louisville, Kentucky, Lexington, Kentucky.  We believe as a corporation that we do not have the capability to support some of those operations if we don’t successfully develop our own model operation and we have chosen a couple of sights here in the Southern Indiana corridor, Vanderburgh County and Warrick County, we have narrowed it down to two sites.  We will place all of our corporate operations out of that location.  And also our model operation for the restaurant and also for the furniture.  So this will not only be an operating facility but also a production facility.  I don’t know if anybody has noticed this but we have rolled out our distributive products in the Buehler locations on the West side of Evansville, First Avenue in Evansville, Darmstadt and Morgan Avenue, and we will be in Boonville and the Newburgh location in the next two weeks.   These are our wholesale products that we manufacture.  I brought some examples with me tonight that I can share with you tonight.  In our operation that we propose for Warrick County, not only will we manufacture these products but we will also demonstrate the manufacturing for the public and also for people who are intending to sell our products in other locations.  We have about 130 different UPC codes or SKU’s of products we distribute or produce on site and we have twelve stores also in the Marsh Stores in Indianapolis today that we have already rolled out.  Again, this is a fairly significant operation from the standpoint that we will have about 10,000 square feet of the building dedicated solely to corporate office activity.  Another 15,000 square feet is related to food production in the restaurant operation and another 12,000 square feet is related to the furniture operation, cabinet design.  Things of that nature.  If I could I was going to take you quickly through this handout that I gave you.  I know you are pressed for time, But again A, who we are, this is the headquarters for our operation and a training center for our U.S. Franchise operations.  This is headquarters for our wholesale food operation, we are currently as I mentioned, in Buehler and Marsh.  We will end up in about 20 of the Buehler locations when we are complete with our roll out which will be mid summer.  Our manufacturing operations physically on sight is baked goods and canned items.  What we plan to accomplish in 2004, we will put our wholesale food operation R&D operation our corporate offices, our meeting rooms, our training facilities, will be in operation.  Our model restaurant, our food production operations will in operation.  That is line C, 15,000 square feet and line D, is model furniture and cabinet design that is 12,000 square feet.  We believe just based on the activities that we have had in our original location in Washington that there will be quite a bit of demand for other crafts and arts activities that we plan to support in the surrounding area around our operation.    This is a very family oriented development, we have a section devoted to history of the organization that we will replicate in all the future  suites. And we expect to have a park setting outdoors which can support other activities.   Not only related to the restaurant but to the people we bring into Warrick County for training.  We certainly intend to house people who are going through our university so to speak in Warrick County so we are hoping to see not only growth because of the tourism activity but growth just because of our business activities and hotel rooms and things of that nature.  Just to break down some numbers, we anticipate 100 new jobs that are broke down between management and retail activities.  There is about  1.5 million in new wages, a million dollars for annual spend for local services in Warrick county.  We have active School to Work Programs and school fund raising that we do at our original location today and we expect or anticipate about 400,000 visitors a year.  We know that we will have to work very closely in terms of working with your existing tourism and also maybe developing some new tourism activity for the county to communicate our presence here.   But we think we can accomplish based on the attitude and the willingness to work with us, that the people have shown in your county.  Number four, why we are asking for the sliding ten year tax abatement.  The bottom line is, it is a risky move for us to go to a lower traffic corridor, 41 and 164 are the corridors that our economic calculations point us toward.  We like the site in Warrick County we think it is possible to make it economically feasible.  We have a lot of people that work in the operation that also consider Warrick County home.  So we believe we can make the concept work here but it is going to require some assistance we believe from the standpoint of making our revenue numbers work.  The land we are considering is vacant now, there is infrastructure present, has been for several years and we believe on a very fast track we can get an operation there.  The current annual property tax revenue is currently low, over time we think we can ramp up as we grow our revenue numbers and not only be successful with our operation but contribute as that sliding scale goes over the ten years and we contributed more and more tax dollars each year.  Another challenge that we anticipate is the improvements that are planned for 261, they do have the potential to impact our operation negatively while they are occurring, we think it will be positive when they are complete.  Equipment is another important part of our operation, we have an extreme amount of equipment because of some of our manufacturing operations and just the volume of activity that we do, we have about $750,000 in equipment.  At Sue’s request, I did a break down, we submitted a detailed list of equipment for the abatement application.   We expect about $350,000 to be dedicated primarily to what we call manufacturing and training operations and about $400,000 dedicated primarily to retail operations.  I would like to answer any questions, I have some additional information with me.

 

Gary Meyer: Is retail operations your restaurant?

 

Ray McIntyre: Do you manufacture furniture? 

 

Jim Vincent: We do cabinets.  But we custom design, it is actually manufactured off site and distributed to the location but we do all the technical design at this location.  We do have some activities that are demonstration related that are included but it is nominal.  Not significant portion of the equipment.

 

Bob Addington: The manufacture will not take place here?

 

Jim Vincent: On the furniture side. That is correct.  All of the manufacturing we will do today, we produce and can these products.   We have done a couple of things, we have selected a local manufacturer in Evansville, Farm Boy to do our meat products, which require... operations, which means they are cooked in the jar and they form a vacuum for safety and seal.  All of the non-meat products we actually produce within our operation today.  We have a candy store that is off site in Daviess County and we intend to move it to this operation.  And again demonstrate our activities in addition to our actual production.  These products are also produced on site today in the operation and these will move directly to our store.   We have about 4,000 square feet that is dedicated to the sale of our produced products, our baked items our pies, these type of jar items we basically have 2,000 square feet just of jar items for sale within our organization.  That is a significant part of our business. 

 

Joe Schitter: It sounds like this is not just like your restaurant you have currently, this will be basically a sight where you can look into franchising, bringing people here to see the operations.  There is quite a bit of acreage in the parcel that you are looking at so you would have the ability to expand to other things related to that verses just a restaurant. 

 

Jim Vincent:   I want to make sure, our building, our primary building, over half of that is dedicated just to corporate activities.  Anyone who opens up one of these franchise operations will be required to not only go through training activities at the site but to actually work within the site for a period of time.  So we have a partnership with Vincennes University we are hoping we could extend that to the Universities here locally here in Evansville as a feeder for our production activities.  

 

Joe Schitter:   It looks like, just in pulling the parcels off of the information you gave us, it looks like 12.38 acres.  But that includes the lake and everything.  This is in Paradise Park.  That subdivision, just employing, asking for additional information today, was started and developed in 2000.  Right now only one lot has been developed and that is Peoples Bank.  So it has been sitting currently for four years and in that neighborhood area the developers rate is $3600 per lot.  With it graduated as unusable.  Undeveloped is $1000, unusable undeveloped is $7500, secondary $15,.000 and primary $25,000.

 

David Hachmeister: You are asking for the equipment and the total building which included the retail restaurant itself? 

 

Jim Vincent: That is correct.

 

David Hachmeister: I don’t think we are allowed to give an abatement on retail part of the restaurant.

 

Jim Vincent: I will make a comment.  Our designer facility which I have a small rendering of here, it consists of two levels.  One level is dedicated to corporate activity and a separate level is dedicated to the retail activity.   In my opinion there is segregation within the facility and because of the size of the lot and pure economics we really do not want to build two separate facilities if we can keep in the proximity of one another.   And from a training standpoint it makes it easier for people to move from one level to another to participate in real activity verses training.  

 

Joe Schitter:  There is a possibility on the restaurant part or the retail part you would be using that as a training purpose also.

 

Jim Vincent: That is correct. 

 

Joe Schitter: And as a model for franchising. 

 

Greg Granger: Steve I think what you were alluding to is the statue we discussed previously about, whether a facility is, the way the statue reads is ‘any facility of primary purpose of which is retail food and beverage services is not eligible for tax abatement.’  But from what I am hearing tonight this is not just for a restaurant facility or even the primary purpose, I guess if we were to add up the square footage or the acreage, or whatever, if the primary purpose is not retail food and beverage they probably could be eligible for abatement. 

 

Jim Vincent: I will make a comment.  We don’t anticipate that our growth is going to allow us to do this within the first few years, but organizations that we bench mark against normally have a pure production facility which are dedicated to the projection of materials that they can go to franchise operations.  There is one in Tennessee that is associated with the Golden Coral operation and again, it is a manufacturing facility, it is completely dedicated as a feeder operation for soups and things of that nature that get shipped to their operations.  We intend at some point in the future, to split those operations out but we don’t have any idea when economically it is going to be feasible to do that.  We would like to, it is another reason why we see Warrick County as an attractive location for us because it is central to the Southeast and the area that we are operating today.  It will be several years be believe, before we can effectively split that operation out, although we do intend to support five additional operations out of this facility with our production of products.  One company that we have used as a benchmark is the Cracker Barrel operation, we certainly wouldn’t even pretend to think that we can achieve that level of success.  Today they have about 350 operating sites and their headquarters in Lebanon, Tennessee which just by nature happens to be where they started, but that facility contributes about 20 million per year in both payroll and taxes to the location where they are.  It has only been about an 18 year story, that it has happened.  I don’t think anybody ever anticipated the potential economic impact.  Again, we would hope to even come close to a percentage of their success.  That is the fundamental principal behind the operation. 

 

Gary Meyer:  You state here in the application that you are going to build two buildings?

 

Jim Vincent: Yes, the first building is two levels, the corporate and the other is the furniture.  That won’t be housed inside the training operation. 

 

Bob Addington:   The $750,000 in equipment, that would be in addition to the $350,000 that is primary to manufacturing?

 

Jim Vincent: That is the total number.

 

Bob Addington: But it is broken down into $350,000 primary for manufacturing and $400,000 for the retail operation.

 

Jim Vincent:  For the, certainly our desire would be to incorporate all the equipment into the abatement program but to specifically break it down, to what would be purely considered production manufacturing operations verses what I call retail restaurant operations there is a split of 350 for production and 400 for retail.    I will say this, we will be open to itemizing these things to the auditor as they are purchased.  Because we will be submitting asset reports as the acquisitions take place.

 

Joe Schitter:  Greg, just as a, on the equipment and on the split, understanding that some of the retail equipment is going to be used for training purposes, and others.  How does that fit in with only manufacturing equipment being able to be used.  Does that have any impact at all on that, that you are aware of in the statute?

 

Greg Granger: The description I gave earlier, applied to real property as far as the statue.  For personal property for manufacturing equipment, the statue reads, ‘manufacturing equipment,’ you need to go to the definition of manufacturing and I think I gave you previously and I don’t have it before me.  But whether restaurant equipment falls under the category of manufacturing equipment is the question.

 

Jim Vincent: I know some examples, I suspect we will qualify for a utility tax abatement of sorts from the standpoint of the fact that our consumption of utilities some of that is used to produce products which are then done through distribution, not for resale to the public.  Actually today we operate in the Marsh and the Buehler locations all though sales of course are non-taxed because they are sold directly into their distribution channel and then they are sold to the public through their stores.  So that equipment I was breaking out is equipment that is utilized for the production of the product that from a sales tax perspective is charged by somebody else. 

 

Greg Richmond: The procedure, first we need the Preliminary Resolution and at that point, you can do two things, suspend the rules unanimously to do so if we did it all in one night tonight.

 

Greg Granger: I am not so sure we can do that on abatement. 

 

Greg Richmond: I am talking about the Preliminary Resolution. 

 

Greg Granger: WE have to do a Preliminary Resolution establishing an Economic Revitalization Area and there has to be a Confirming one.  I don’t think we can do both of those in one night. 

 

Greg Richmond: After that, do we then establish the breakdown according to the point system as to what the abatement would be or would that come with the resolution?

 

Greg Granger: It comes with the resolution.   You do the number of years in your resolutions. 

 

Joe Schitter: I do have that on new manufacturing equipment.  That qualifies machinery or equipment as defined in section six of this rule.  New manufacturing equipment includes new equipment that is, or used equipment or brought  from outside Indiana, special tooling, Production manufacture, fabrication, assembly, extraction, mining processing, refining, finishing, it is actually pretty wide open.  

 

Gary Meyer: While we are looking at that, Mr. Springstun would you like, Mr. Springstun is a part of REDAC and EDAC, would you like to address the Board?

 

 

Philip Springstun: I am a member of REDAC and EDAC and when this presentation was made to the EDAC Board we had a lot of questions and a lot of discussion.  When we first heard the words, manufacturing and processing, it was like, what are you going to do.  The gentlemen went into great detail, Tony Aylsworth is also on that Board, who wrote the covenant and restrictions for them, said they were very strict and everything they want to do falls within the guidelines of restrictions and covenants they have in place.  Most of you know I am not a big fan of tax abatements.  But I think this is a golden opportunity for Warrick County, they are going to bring in a corporate operation, you are going to bring in a restaurant facility, you are going to bring in a retail business and all these people are going to come in here, it will be good jobs and that encompasses almost that entire area behind Peoples.  They are going to use it all.  And it is even though it will be a phased in tax abatement, the revenue is going to far exceed what it is now and there is no immediate infrastructure needs.  I think this is a great opportunity and these people are taking a large risk putting it in that area verses a high traffic area like some of the places they have looked at and I think we need to jump on this while we can before they decide to go somewhere else. 

 

Ray McIntyre: Is it possible to separate the manufacturing from the retail store part?

 

Philip Springstun:    We discussed that because you know there has been earlier discussion, when the old K-Mart building, some of that qualified and some of it didn’t. That is going to have to be  legal counsel that  will have to determine that, and that is part of why he is giving the break down, there could be some things, that is the risk they are going to take if it doesn’t qualify for the abatement and you can’t do things that don’t qualify so these, I don’t remember the time table that was shared with us as far as you just mentioned what comes first, their whole dream is to build that whole area and add those things as they go.  I think it is just a great opportunity and Joe ran the numbers on the revenue that is generating now and the property taxes even with the amount of estimate they are making it is not going to be to long that the revenue that comes into the County will be greater than what it is now, significantly.   Not to mention the jobs and the opportunity.  I think they are taking a pretty big risk because that is not high traffic but they feel like it is a good location and I think we ought to let them go for it.  At EDAC we had a lot of questions whether that was a good thing or good area and what qualified and what didn’t and that is a legal issue that Mr. Granger is going to have to determine. 

 

Ray McIntyre: I went through the thing and I think it said something about competing businesses and I think there were no points taken away for competing businesses but in essence, 60% of it is restaurant, whether the competing business be a McDonalds or, and I know that is not the same thing, but ...

 

Philip Springstun:   Are you talking about the point system?

 

Ray McIntyre: Yes the point system.   I was a little confused when I went through the points, Jim, you said 100 but I thought I saw 65 and I think I heard you say 100.

 

Jim Vincent: There is a breakdown that I provided in the application that breaks down the number of full time and part time employees.

 

Ray McIntyre: So your 100 was a combination of both together?

 

Jim Vincent: That is to be the number from the point when we go into operation.  It is difficult for us to project what will happen over time, to be honest with you, we do not know exactly what type of administrative support is going to be required for the number of operations we intend to open in the next five years.  We have only compared other operations and we see an inordinate number of people, we were worried about having the sales strength to support the amount of people.  Usually training facilities a lot of corporate jurisdiction goes on, on the behavior and actions of these other locations that are opened. So people travel to the location when the training is done, continue to train and qualify whether the other operations are performing at the standards that we require as part of their franchise agreement.  But at this point I just don’t know what that growth number is going to be.  

 

Joe Schitter: One thing too, I am not so clear on the retail restaurant in being 60% of this so I don’t want to put that number out there.  When you look at what is going to be done throughout this facility on every account it is open to interpretation, of course I am not an attorney, but in what you read concerning either the manufacturing equipment and the Indiana Code or qualifies as that or not, is a little bit of gray area.  It is open to a lot of interpretation and it sounds as though, and one thing to speak to, I sat on EDAC also, I voted for this along with the rest of EDAC.  When we went through this looking at this, one of the reasons we  weren’t as concerned as a competing business is the possibility of this being an attraction that is going to draw more people to this area so therefore, the more people you draw, the more possibility that these people are going to go either somewhere else if this is full, or spend the day..

 

Ray McIntyre: ...down the corner to the stop light.  When a Lone Star comes to the stoplight, does that qualify for tax abatement?

 

Joe Schitter: No.  This is a very different situation than a Lone Star Restaurant opening a restaurant. 

 

Ray McIntyre: When a Cracker Barrel sits down at the corner, 66 and 261...

 

Joe Schitter: And yet again,...

 

Jim Vincent: I may be able to make a comment, I may be able to answer that.  One thing the organizations you are talking about those will be the franchise locations or corporate retail restaurants.  This is our base of operations.

 

Ray McIntyre: But the corporate and the manufacturing, if you made furniture, I don’t have any problem with the furniture, but the corporate office I would be a little fuzzy on and the manufacturing packaging plant, those are manufacturing, but retail is still retail and I am familiar with retail. 

 

Jim Vincent: When you talk about 60% I don’t know what the definition is, but if you look at percentage of sales, percentage of revenue, I can tell you today our revenue is 100% distribution for this operation because it is through the Marsh store and the Buehler stores.  I don’t anticipate that our retail sales will ever exceed 50% of what the revenue is for this operation.  I am not sure what the definition is, whether it is employment dollars, or if it is sales dollars.

 

Ray McIntyre: I looked at the paperwork that I have here, you mentioned a ten year abatement and I see that what I thought I was looking at, was five years on equipment and real property three years.  I thought that is what EDAC sent to us.

 

Joe Schitter: What you are looking at is the scoring sheet that has been used for years concerning tax abatements.  We have a committee presently that Council asked us in EDAC to do, to review our procedures, which we are.  We had no other mechanism during this tax abatement except to send you the old form with the score.  That form may well change as we make these changes.  What EDAC sent to you was a unanimous vote concerning their favorable comment toward this for the maximum amount the state would allow. 

 

Ray McIntyre: Which was ten years?

 

Joe Schitter: Right, so what we have on our scoring sheet is definitely the way that we have scored these in the past but we are currently looking at those.  I serve on that committee, as a matter of fact, I recently looked at Evansville’s scoring sheet that scores a little differently, Warrick County is not necessarily on the same playing field.  There is some different scoring where they tend to score a little higher.  Or would have scored a little higher on this situation. 

 

 

Jerry Lewis: Warrick County resident.  To explain all that Phil was saying I think it is important to understand what REDAC and EDAC was basically trying to accomplish.  Right now we, there are two sites, one in Vanderburgh County and one in Warrick County.  We were asking them to take out of place the factor of the tax abatement, we can do whatever Vanderburgh County can do.  By law they can only do so much and we can only do so much so we should take that right out of the play.  So REDAC wanted you to basically give them the maximum allowable by law so we would be competitive with Vanderburgh County.  I don’t know if that is a factor but it makes it very simple to me.  When you vote you are voting to basically do the what you can do and the best you can do for a tax abatement for these people, for the sixty jobs and take that factor out of play.

 

Joe Schitter: I think one thing too, a lot of the times, I talk to a lot of people, especially after being put on REDAC by this group, this year about these abatements that they don’t quite understand.  One, you have to realize land is not included in this, so the land is going to go from the lowest amounts that we can actually tax it on to at least primary, secondary or usable undeveloped ground.   Which immediately, that first year, even though there is a tax abatement, we will see an increase revenue coming in from those taxes being paid upon that land.  Then just the break down of ten, there is a percentage each year that we will be gaining.   So we have the opportunity to have this land lay vacant or maybe it will be sold next year, maybe it won’t.   This current subdivision has been in place since December of 2000 as of right now, there is one person located there and that is Peoples Bank.  There is eight other lots.  Over those years we have been getting a minimum amount of tax dollars.  Even though in an abatement, we won’t get the full amount at least we will be generating more tax dollars than we have in the past.   I supported this on EDAC and I support it now.  I am still not sure within the Indiana Code it says primary use as a restaurant, if there is other uses of that it doesn’t exclude it and say well then, immediately eliminate that, it is just saying you can’t grant it if it is a primary use.  It is not saying if there is a restaurant included, you can’t give them a tax abatement.  Look at Walt Disney World, do they have restaurants?  Is that their primary occupation.  We have.... away with the primary usage of this ground, what the primary use will be and for myself, I voted for it favorably on EDAC and I still believe it is a good idea.  I still believe we should support it for the maximum ten years. 

 

Motion: Greg Richmond made the motion to approve the preliminary resolution declaring an economic revitalization area for property tax abatement, I don’t know the number yet.  In section four, this designation the economic revitalization area being in effect up to and including ten years.  Section five also for a period of ten years.

SECOND: Joe Schitter

 

Gary Meyer: Motion has been made by Greg and seconded by Joe to grant a ten year abatement on the real property and the personal property, is that correct?

 

Greg Richmond: Yes.

 

Gary Meyer: Any further discussion?

 

Joe Schitter: I think it is a good fit for the County, I think it will be a benefit through the length of the abatement and afterwards.

 

Greg Richmond: I look at this being a good fit, non-polluting, adding jobs, plus we are kind of looking for a opening for tourism to come in, I know a lot of people have been wanting a hotel to go up down there and I think there is a small one going up now.  It will be beginning very soon.    This could bring in even more.  Especially when you get this many visitors to our area.  I would like to see them spending money here in Warrick County.  Resolution number 2004-02.

 

Gary Meyer: Gentlemen, we have a motion by Greg and seconded by Joe, any further discussion?

 

David Hachmeister: I like this other than the competition with the retail business. 

 

Jim Vincent: I will just make a comment, per Ray’s comments which I understand,  I don’t think you would ever see a Cracker Barrel or any retail operation consider this location for a site.  This is really an appropriate location for office type activities that we think we can stretch because of the proximity to two good highways that you are going to have shortly, 66 and 62 to accommodate our operations.  It is a significant risk, if we go to Vanderburgh County, we will not be in a location that a Cracker Barrel or a Lone Star or anyone else would locate.  We will be in a location that will be conducive to our corporate activities that would also be in close proximity to high traffic corridor and we can support retail activities.  It is a good discussion, one I really didn’t think about coming in, I would easily characterize our primary activities as the growth of our franchise operations, that is our goal.  We already have a successful operation that we can showcase in Washington, we think this operation probably will not exceed the sales of that operation from a retail standpoint.  But again, our focus is primarily on growth and this happens to be where the majority of the management team is located that is involved.  It was a decision by everybody involved, including the people in Washington that Evansville will be a good corridor. I appreciate the comments I do think, for example if you look at Washington today, several retail restaurant operations have opened because of the Black Buggy operation.  An Applebee’s is set to open there in the not to distant future.  To us the more the merrier.  It gives a lot of people a reason to come to the area and it is a kind of an anomaly in that particular industry that traffic is good for everybody. 

 

Bob Addington: I am sure you made surveys Jim, the type of customer that would come into your establishment for a meal, that type of customer would be different than those of fast food would they not?

 

Jim Vincent:   That is correct.  The demographics of our customers primarily are family, or 50 plus in terms of age, and demographics change some during the evening.  We are hoping that, our distribution activities through Marsh has been very well received in Indianapolis market, which it appears to be a younger demographic as buying those products and we are hoping we can drive them to some of our other locations because of their interest in the products they are buying in the supermarkets. 

 

Gary Meyer: Any further discussion?  We have a motion by Greg and seconded by Joe for a ten year tax abatement on real property and equipment as a preliminary resolution, all those in favor?

VOTE:           3 Ayes   4 Nays  (David Hachmeister, Gary Meyer, Ray McIntyre, & Raymond Bracher)

 

Gary Meyer: Motion fails three to four.

 

Jim Vincent: Thank you very much.

 

Ray McIntyre: Would anybody be interested in a motion for a lesser abatement more along the line of five years?

 

MOTION: Joe Schitter made the motion for a five year tax abatement.

 

Gary Meyer: Motion made by Joe.    Let me ask our attorney something, would this be the same preliminary resolution?  There are some questions about the shorter tax abatement for this project and is my understanding it would have to be made by one of the four no votes?

 

Greg Granger: This is a totally new motion it is not a motion to reconsider, so I guess it could be made by anyone. 

 

Gary Meyer: Would it be the same resolution number?

 

Greg Granger: It was defeated so, I don’t think we skip resolution numbers, we catalog them as they are passed.  So you can have the same resolution number. 

 

Gary Meyer: So it sounds like you can make the motion Joe if you would like to.  Although I would like to get David back here before we do it.  There has been some discussion regarding a shorter tax abatement than ten years.

 

Philip Springstun: I just want to comment.  I think every company that has ever asked for an abatement will stand here and tell you if we don’t get it, it plays a big part, how many times can we believe that?  I don’t know, but I truly believe that these people have an opportunity to go some where else.  These abatements are reviewed annually, you  do these annually by law and you can take it away at any time.  Why you would risk, a ten year verses a five year to see an operation of this size go away I don’t understand.  Just a while ago you extended an abatement on a company that stated they didn’t meet what they said they were going to do , and yet that was extended.  I think this is a larger opportunity than some that has been granted.  I don’t like tax abatements, I intend to speak on the one after this, but it is something that is allowed by the state of Indiana and it is competition, and you have to take that out of the equation because if nobody else can grant something for these people that we can’t either under the law.  To turn these people away that has taken this kind of a risk and opportunity, I just think it is a mistake. 

 

Joe Schitter: I did make a motion.

 

Gary Meyer: Yes but it died for a lack of a second.   You can make it again. 

 

Joe Schitter: I didn’t think we asked for a second.  Actually, I would like to withdraw that motion and make a motion.

 

MOTION: Joe Schitter made the motion that we grant them a nine year tax abatement for both real property and personal property.

SECOND: Greg Richmond

 

VOTE:           3 Ayes   4 Nays (David Hachmeister, Gary Meyer, Ray McIntyre and Raymond Bracher)

 

Joe Edwards (?) : If in fact as I understand, we talk about the area, by a new bank on 261 and Oakgrove Road, that we are talking about in addition to considering what has already been brought up, a concern of mine would be what if this development doesn’t go there, what will?   We have to remember we have a Junior High School adjacent.  I would much rather see a corporate training quasi use mix like this than I would a series of far less suitable retail shops.  Who know, pawn shop, fast food, retail.  That would not be a good neighbor to the bank or a good neighbor to Castle Junior High School.  This  seems to be a perfect match.  Especially if it precludes those other types of businesses and fill this park up. 

 

MOTION: Joe Schitter made the motion to grant an eight year tax abatement.

 

Gary Meyer: Is there a second to Joe’s motion?  Is there a second to Joe’s motion?  Is there a second for an eight year tax abatement?   Motion dies for a lack of a second. 

 

MOTION: Raymond Bracher made the motion for a five year tax abatement.

 

Jim Vincent: The question I want to ask is whether the actual property tax abatement can be separated from the, I am not clear, is this a debate about equipment or is it about property or is it a debate about retail or what?

 

Ray McIntyre: Can I make a statement?  I can not vote for an abatement on retail.  I can’t do that.  If it can de divided I can go for a ten year on the manufacturing but not on the retail.  Since I can’t do that, I would support a division of half 60/40, 50/50, since I can see a problem of abating it manufacturing verses retail, I could support a five year abatement which is in essence of a ten year abatement.   

 

Jim Vincent: One of the challenges I see, there is a high probability we are going to lease a significant amount of this equipment so tax abatement doesn’t come into play.  I really wish we could talk about the numbers because the actual tax impact is negligible.   The tourism impact should be significant.  I know that the other party that is interested in locating in that area, I think a lot of their thoughts are precluded on our participation and certainly it is an interest to us with them being there, it would benefit our corporate operation, but it is a challenge because we are kind of having a debate here but we don’t know what the number is.  It is apparently...significant to us the first few years because we feel we are going to have to overcome some challenges in order to become operational.  We will not have sold a franchise until at least one year from now.  We will be in operation for six months before we can allow it to happen. 

 

Bob Addington: Can you come before us and separate the manufacturing and I would assume training center?

 

Ray McIntyre: If we did a five year they will get a larger impact the first year, it will just be over quicker.  It will be better for them although my formula may be a little unique, I guess. 

 

Greg Richmond: If you looked at the scoring and bumped it up one notch from our own scoring is, because they are right at the break point if you use that scoring of 70.  Five years equipment and six years real property would be the next category.     I would be very open to that personally.  In fact I will just make a motion for that.

 

Gary Meyer: I think Raymond has a motion on the floor.

 

Raymond Bracher: I made a motion for a five year abatement on both.

 

SECOND: Ray McIntyre

 

Gary Meyer: We have a motion made by Raymond and seconded by Ray to grant a five year tax abatement on real and personal.  I guess we are still looking at Resolution Number 2004-02.  Any discussion on the motion? 

VOTE:           6 Ayes   1 Nay (Gary Meyer)

 

                                                                         WARRICK COUNTY COUNCIL RESOLUTION NUMBER 2004-02

 

                   A PRELIMINARY RESOLUTION DECLARING AN ECONOMIC REVITALIZATION AREA FOR PROPERTY TAX ABATEMENT

 

WHEREAS, Broadway Summitt, LLC (the ‘Applicant’) has submitted a Statement of Benefits and made application for Economic Revitalization Area designation pursuant to IC 6-1.1-12.1 et seq. and Warrick County Council Resolution No.  2004-02 (the ‘Tax Abatement Resolution’) for the real estate located at 7190, 7160, 7110 Parker Drive, Newburgh, Warrick County, Indiana and described as:

 

Lots 2, 3, 4, 5, 6, 7, 8 and 9 in Paradise Park Subdivision.  Subdivision of the South  half of the South East quarter, SE quarter Section 14, Township 6 South, Range 9 West, Ohio Township, Warrick County, Indiana

 

AND WHEREAS, said property meets the criteria for designation as an Economic Revitalization Area pursuant to IC 6-1.1-2.1 et seq;

 

NOW, THEREFORE, BE IT RESOLVED by the Warrick County council as follows:

 

Section 1.       The Warrick County Council has reviewed the Statement of Benefits and additional information submitted pursuant to IC 6-1.1-12.1 et seq and the Tax Abatement Resolution, and make the following findings:

 

 

a.             The estimate of the value for both the redevelopment and or rehabilitation of property and construction of structures to be used for rental and services is reasonable for projects of that type, and

 

b.             The estimate for the number of individuals who will be employed or whose employment will be retained by this project can be reasonably expected to result form the proposed redevelopment and/or rehabilitation, and construction of structures to be used for rental or real estate and services; and

 

c.             The estimated of the annual salaries of those individuals who will be employed or whose employment will be retained can reasonably be expected to result from the proposed redevelopment and/or rehabilitation; and

 

d.             The totality of benefits likely to accrue from this project is sufficient to justify a tax deduction; and

 

e.             The property know as Paradise Park.

 

Has been found to meet the requirements of an Economic Revitalization Area pursuant to IC 6-1.1-12.1

 

Section 2.      Based on this findings, the Warrick County Council has determined that the purposes of IC 6-1.1-12.1 are served by allowing the deduction and the property described in Section 1.e above is hereby declared to be an Economic Revitalization Area.

 

Section 3.     The designation of this Economic Revitalization Area should apply to property tax deductions for ‘property’ as provided in IC 6-1.1-12.1-3 and ‘personal property’ as described in IC 6-1.1-12.1-4.

 

Section 4.    The designation of this is Economic Revitalization Area should be in effect up to and including   12/31/2009 .

 

Section 5.    Deductions for redevelopment and/or rehabilitation which takes place with this Economic Revitalization Area shall be allowed for a period of   five     (5) years beginning with increases in assessed value which are first assessed on March 1, 2004.

 

Section 6.    The Warrick county Auditor shall cause to be published notice of the adoption and substance of this resolution in accordance with IC 5-3-1.  Said notice shall be in compliance with IC 6-1.1-12.1-2.5.

 

Section 7.    This Resolution shall be in full force and effect from and after its passage and action had confirming, modifying and/or rescinding the same. 

 

PASSED this     11th   day of    March   , 2004.

 

WARRICK COUNTY COUNCIL      

 

 

______________________________________________                                     ___________________________________________

Gary Meyer, President                                                                                                        Ray McIntyre, Vice President

 

______________________________________________                                     ___________________________________________

Greg Richmond                                                                                                                     Raymond Bracher

 

______________________________________________                                     ___________________________________________

David Hachmeister                                                                                                              Bob Addington

 

___________________________________________    

Joe Schitter          

 

ATTEST:

 

_____________________________________________

Richard I. Kixmiller, Auditor

Warrick County

 

Gary Meyer: Now the next step is we entertain a confirming resolution.   Do they present that or do you make that?

 

Sue Gibbens: The papers were all submitted in the packets.  You have the Preliminary and the Confirming, it should be in there.  Greg, we can’t do it all tonight?

 

Greg Granger: I don’t think so, for tax abatements it has to be two separate meetings. 

 

Ray McIntyre; We did that with the Apple Center and it required a unanimous vote to declare and I voted against that abatement also.

 

Greg Granger: You did the Apple Center in one night?

 

Gary Meyer: We do have it in the packet, we have the confirming resolution. 

 

Greg Granger: That is my opinion, I don’t remember doing the Apple Center but you said we did.  I know we can except for rezoning ordinances you can suspend the rules and vote on the ordinance on unanimous consent at the same meeting.  

 

Ray McIntyre: I don’t think we can do it because it wasn’t unanimous, we had one vote against it. 

 

Gary Meyer: I don’t think it makes any difference.

 

Gary Meyer: What you are asking is, you passed the preliminary resolution, now if you want to try and pass the confirming tonight, you need everybody to agree first that yes we are going to vote on it tonight, then you take the vote.  But if everybody doesn’t agree that you are going to vote on it tonight, you can’t vote on it tonight.    You don’t need a unanimous consent to approve it, you need an unanimous consent to vote on it.  To suspend the rules.

 

MOTION: Joe Schitter made the motion to suspend the rules.

SECOND: Greg Richmond

VOTE:    7 Ayes   0 Nays

 

Gary Meyer: Now we can vote on the confirming resolution. 

 

Greg Granger: Let me add to that, your confirming resolution does not have to be five years.  You can modify. 

 

Gary Meyer: Why did you say that?

 

Jim Vincent: I did want to ask if again, the property, just the property which is one of our biggest challenges, the infrastructure is going to add to the value of that property, quite a bit higher verses us being able to add some of that infrastructure at our own basis, so we are inheriting some pretty expensive property.  My question again if we can  do the property over ten years and the equipment at five years.

 

MOTION; Joe Schitter made the motion to grant ten years on improvement and five years on equipment.

SECOND: Greg Richmond

 

Gary Meyer: Motion made by Joe and seconded by Greg, this is the confirming resolution, for ten years abatement for the real property and five years for the personal property.  Is that correct?

 

Joe Schitter: That is correct. 

 

Gary Meyer: Any discussion on the motion?

 

Bob Addington: So the equipment manufacturing will have five years and real property will have ten. 

 

Jim Vincent: I will make a comment that if we are successful, there is a good chance that  we will have another business someday down the  road within that period of time where we will be looking at a subsidiary operation focusing on manufacturing and it will be a much simpler discussion.

 

Gary Meyer: Don’t bet on that. 

 

Bob Addington: The manufacturing equipment  part will fluctuate but the real property will stay.

 

Jim Vincent: Based on the way we are structured today, we don’t intend to increase that.  The capacity is what we can produce just simply because it would disrupt the training operation.  It is going to be limited in terms of how much  production output we are going to allow that particular site to do, we just don’t want the traffic, there is a lot of reasons why we would like to minimize that.  So we will limit it to the equipment we have in the proposal. 

 

Gary Meyer: Any further discussion?   Just to repeat the motion so I understand what we are voting on, motion made by Joe and seconded by Greg for a ten year abatement on the real property and a five year abatement on the personal property. 

 

Greg Granger: Resolution 2004-03.

 

VOTE:           2 Ayes  5 Nays   (Bob Addington, Gary Meyer, David Hachmeister, Ray McIntyre, Raymond Bracher)

 

                                                                               WARRICK COUNTY COUNCIL RESOLUTION NO. 2004-03

 

A RESOLUTION CONFIRMING THE DECLARATION OF AN ECONOMIC REVITALIZATION AREA FOR PROPERTY TAX ABATEMENT

 

WHEREAS, Broadway Summitt, LLC has made application for Economic Revitalization Area designation pursuant to IC 6-1.2-12.1 et seq, and Warrick County Council Resolution 2004-02   (The ‘Tax Abatement Resolution’) for the property located at 7190, 7160, 7110 Parker Drive, Newburgh, Warrick County, Indiana and described as:

 

Lots 2, 3, 4, 5, 6, 7, 8 and 9 in Paradise Park Subdivision.  Subdivision of the South  half of the South East quarter, SE quarter Section 14, Township 6 South, Range 9 West, Ohio Township, Warrick County, Indiana

 

WHEREAS, heretofore on the 11th day of March, 2004, under provision or Resolution 2004-02 , the Warrick County Council found the above-described property to meet the requirements of an Economic Revitalization Area pursuant to IC 6-1.1-12.1 et seq and declare said property to be an Economic Revitalization Area; and

 

WHEREAS, notice of the adoption and substance of the above mentioned resolution has been published in accordance with IC 5-3-1 and the Warrick County Council has conducted a public hearing an economic revitalization area have been met;

 

NOW, THEREFORE, BE IT RESOLVED by the Warrick County Council as follows:

 

Section 1.     The property which is located at 7190, 7160, 7110 Parker Drive, Newburgh, Indiana and more particularly described in the attached Exhibit ‘A’ which is made a part hereof.

 

Section 2.    Resolution   2004-02 which was adopted by the County Council on the   11th   day of   March , 2004 is modified as follows: The designation of the Economic Revitalization Area should apply to property tax deductions.

 

Section 3.   This resolution shall be in full force and effect from and after its passage and execution by the county Council for ‘property’ as provided in IC 6-1.1-12.1-3 for five (5) years and ‘personal property’ as described in IC 6-1.1-12.1-4 for ten (10) years beginning with increases in assessed value which are first assessed on March 1, 2004.

 

Passed this   11th   day of   March , 2004.

 

WARRICK COUNTY COUNCIL      

 

 

______________________________________________                                     ___________________________________________

Gary Meyer, President                                                                                                        Ray McIntyre, Vice President

 

______________________________________________                                     ___________________________________________

Greg Richmond                                                                                                                     Raymond Bracher

 

______________________________________________                                     ___________________________________________

David Hachmeister                                                                                                              Bob Addington

 

___________________________________________    

Joe Schitter          

 

ATTEST:

 

 

_____________________________________________

Richard I. Kixmiller, Auditor

Warrick County

 

MOTION: Ray McIntyre made the motion to approve five years on real and ten years on equipment.

SECOND: Greg Richmond

 

Gary Meyer:   Any discussion?  So we are voting for confirming resolution 2004-03 a five year abatement on real property and a ten year abatement on  personal property.  All those in favor of the motion?

VOTE:           5 Ayes   2 Nays (David Hachmeister & Gary Meyer)

Sue Gibbens: Thank you very much.

 

IOP Properties, LLC - SB-1:  (requires Preliminary Resolution # if passed):

 

Sue Gibbens: I would like to say a few words before they start.  EDAC has reviewed the tax abatement request as presented to you on this project and voted to make a favorable recommendation for the maximum allowable tax abatement by law for this project.  We talked about this project in depth too, just like the did the previous one.  New jobs for Warrick County, $60,000 to $65,000 per year wages, no infrastructure is needed, they will be getting the water and sewer from Evansville.  Environmental friendly company and property that they intend to locate on has set idle and we are very much in favor of this project and we do have a representative here from the company to answer questions, Jim Morley. 

 

Jim Morley: I would like to thank you for your time tonight.  Jim Morley, Jr. with Morley & Associates.  We will be the leasing tenant for this building if it gets passed.  We are interested in going into Interstate Office Park which is right on the Vanderburgh Warrick County line.  It is tucked between I-164 and the Vanderburgh line.  We are at a point at our office building where we had to put a freeze on hiring because we don’t have any desks to put people at.  We need to hire more people but have no place for them to sit.  So it is important for us to build a new facility this year and the nature of the work we do, is surveying, engineering, architecture and construction management.  WE have done about every office park on the East side of Evansville and several projects inside of Warrick county.  Therefore, the decision of where we go is pretty tough, because wherever we go, we will make a client mad.   We are looking at this site here and a couple there in Vanderburgh County.  We would like to come into Warrick County.  People of Warrick County have been good to us.    What we are seeking tonight is a ten year tax abatement.  The reason for that, the only true office park that Warrick County has, being where only offices will be located in this area is Interstate Office Park.  However, Interstate Office Park has been platted for four years and in four years time, they have only sold one lot.  The developer has located four buildings in there in hopes to jump start that community and if we move in there, we will be the first of the jump start I guess.    However, the other options we have considered are in areas that are growing at a much faster rate and so I guess we come before you tonight to seek tax abatement to help level that playing field of our different options.    We current employ 45 people, this would be our home office.  We currently employ 45 people out of our home office and we have picked a site of ample size to allow us to expand if our growth follows the projects we have now we will roughly double our size in 20 years.  We have been growing at a consistent rate since we started in 1976.  We manufacture ideas and designs.    We turn out designs for projects in about ten to twelve different states, mainly in the mid-west and south-east United States.  The majority of those come out of our home office.  We try to hire local people and we want to use local contractors including contractors from Warrick County when we build our projects.  We pay high wages, salaries, roughly double what the County average would be and currently we have 45 people, expect to be at 55 people in five years.    We probably will pick up an instant four as soon as we open the doors because we will finally have a desk to put those people that we already need at. 

 

Gary Meyer: I have one question.  On your application you say that you are going to hire four new employees?

 

Jim Morley: We would hire them already but we have no place to put them.

 

Gary Meyer: Our scoring sheet, we have you hiring 25 to 49 new employees. 

 

Jim Morley: I think that is based off of how many new employees will be in Warrick County.  We are currently located in Vanderburgh County.

 

Sue Gibbens: That’s right.  These employees would be for Warrick County.

 

Joe Schitter: You are looking at three and a half lots here, as you said before to reiterate, May 2000 was when this was actually platted.  So we are looking at a four year old subdivision.  Lots are currently assessed at $3,600.    An increase in that area, primary grounds per acre is $45,000, $27,000 for secondary acre, Usable undeveloped is $13,000 and the base rate per front foot is $22.25 per front foot which would be a great increase over the $3,600 that it is currently assessed at.   I again, serve on EDAC, again I voted for this one which may not vote well for you gentlemen but again I believe this is a low impact situation, non-polluter, very little extra increase traffic, we had some concerns with this, one concern which was mention was the infrastructure we just talked about Newburgh and the possible problem with the sewer.  I do believe that this is actually Evansville sewer and water that comes into this park so that wouldn’t be a problem.  The roads are in place.  As he said, one lot has been sold in that four years.  Three of them I think have been developed by the actual owner of the park attempting to get business in.   

 

Greg Richmond: I am impressed with your benefits page. 

 

Jim Morley: We like to think that we have a good benefit package.   Steven Foltz with Harding & Shymanski has come along with me tonight to help out on some of the numbers and stuff like that. 

 

Steven Foltz (?): Just to expand on Joe’s assessed values, I know everybody loves when they talk about taxes, assessed values and true tax values.  I got on the Warrick County Treasurers web page and each one of those lots Joe, and you can correct me if I am wrong, I believe they are $52.00 you get each year.  That is the actual tax.   Over a ten year period that will be about $2100. It is four full lots at $52.00, over ten years you would get about $2100 in tax.  Over the same period, if the ten year tax abatement was granted, we are talking taxes paid of well over $116,000.  So it is a difference of $116,000, if the lots stay as they are,  verses if they are being developed, even with a full ten year tax abatement they would still generate a $116,000 in tax.  Joe can verify those numbers. 

 

Joe Schitter:   Yes, this is ten years on real property only and not asking for any equipment. 

 

Jim Morley: There is $450,000 in estimated equipment that is currently on the personal property tax return, which is not being asked for as tax abatement. 

 

Gary Meyer: Is this property in our proposed T.I.F. District? 

 

 

Joe Schitter:   Yes it is and it is located in that area.  That was one of the things we discussed during REDAC and EDAC and that was definitely one of the, and I want to clear up the comment because I did make it, I want to explain it a little bit.  I did say that I would look very hard at the Councilmen on anything that would be going into one of these T.I.F. Districts.  But, it is not a T.I.F. District right now.  There is a resolution passed concerning the T.I.F. District to set up the boundaries but it is not.  So we have to figure out if we want to treat them as if they are in something that doesn’t officially exist.  WE still have public hearings, probably have three more steps, to go or the Commissioners do.    The other is, and during our meeting, I think Phil brought up a good point, the infrastructure is in this park.  The developer put it in.  The roads are there, the sewer is there, the water is there.  So, we have to look as to whether we are going to look at someone moving in and giving them tax benefit even if it is in a T.I.F. District, and we give an abatement, we still have money coming in if there are T.I.F. funds issued on that.  That is a lot of ‘ifs’.  But if we don’t give abatements within the T.I.F. Districts or we say we are not going to give abatements in these T.I.F. Districts then we run the risk of them not being developed and not having any money to balance. 

 

Gary Meyer: My point about that Joe is, if we give abatements in our T.I.F. District how are we going to pay the T.I.F. bonds off?   

 

Joe Schitter:   If we don’t give abatements, and we don’t have anybody move in, how are we going to pay the T.I.F. bond?

 

Gary Meyer: It is the same thing, I agree. 

 

Joe Schitter: At least we are gaining some amount of money verses nothing.  Immediately the first year we will see an increase in the assessed value due to land going to primary or secondary.  After that, it is a graduated scale up. 

 

Jim Morley: One thing to make a comment on your T.I.F. District, also doing stuff in Vanderburgh County, if you look at every T.I.F. District in Vanderburgh County, the properties that are in a T.I.F. District that are in Vanderburgh County all have tax abatements.   

 

Gary Meyer: How do they pay their bonds off? 

 

Jim Morley: First immediate is land increase.   That is a huge impact right off there.  You take something from a developers lot of agriculture land, then to primary or secondary land that jumps your rates almost ten times as soon as the name changes from that developer to a private owner, that increase the land value ten times.  That is at the low end, fifteen times on the high end.  So your Aztec, your Grand packages, your Vectren building that is just being put downtown, all those T.I.F. Districts are from what I understand working with the auditors office also just fine.  Because your T.I.F. District is only as good as the people that are in it.  If you don’t have anybody in it, your bonds are, I mean this is kind of a poster child if even a t.i.f. District was passed, prior to us, and that is kind of what we thought so would happen at last meeting at EDAC, Mike Schopmeyer got up there and was talking about having us there in a T.I.F. District and I also understand the concerns about granting that.  The one thing, they are in a posted child because, one, you are getting revenue right off of the bat without having to use any of your bonds to get them here.  You don’t have to do any infrastructure, and Warrick County never had to do any infrastructure because it was done by a private development.  Even the utilities are going into Vanderburgh.  It is unique, any body in that park is unique.  By putting that park in a T.I.F. District, it also kind of hinders the developer.  But as an incentive, I think people talk bad about T.I.F. Districts, I think they are a great thing.   I think it is a great way to fund things if it is done properly but this is a poster child.   As far as, you are getting revenue without doing anything.  No money comes out of the County’s pockets.  I don’t know what a better situation is. 

 

Philip Springstun:   Member of EDAC and REDAC.  I made the original motion to grant this abatement for I.O.P. Properties, and made the statement that even though this falls in the proposed and I do agree with Joe, this is a proposed T.I.F. District, that process has only taken the first step.    That is the resolution declaring that area.  It has a lot of steps to go through.  So at this point, it is only a proposed T.I.F. District.  But even if it was a T.I.F. District, the purpose of a T.I.F. District is to get the revenue, take the T.I.F. money for infrastructure and needed improvements.  This property doesn’t require any.  It is all there.  The other thing is, these people have outgrown their facility three times since they became a business.  Their purchase of 2.7 acres which allows them room for more growth.  In other words they don’t plan on going anywhere else.  They plan on growing right there.  They have enough property, they don’t have to move, they are coming out of Vanderburgh County, they are coming into Warrick County.  And they have assured us there are no improvements necessary.  This is just, and there again, we are in competition.  I want to make this comment to Joe, in case I forget to make it next week Joe, as a member of the committee of the council of the EDAC, REDAC to study how these T.I.F. Districts work, and the input that EDAC is going to have, there are eight members present at this meeting and it was eight to zero to support this.   Although the one that didn’t go all the way, previous to this, had the full support of the EDAC board and I think there needs to be some true guidance black and white.  We are spending more time with the gentlemen that was up here earlier than we did here tonight at our meeting.  Going through questions and quizzing him and all that stuff and we make our recommendation, why ask for our recommendation if you don’t want to take it.  Our recommendation for this was eight to zero because there was eight people present at this meeting.  To me this is a no brainer but.

 

MOTION:   Joe Schitter made the motion to accept preliminary resolution ten year tax abatement for real property for I.O.P. Properties LLC.

SECOND: Greg Richmond

 

Gary Meyer: We have a motion made by Joe and seconded by Greg to grant a ten year abatement for I.O.P. Properties LLC, it will be resolution number 2004-04, any discussion?

 

Bob Addington: In the information we received, this abatement scored at 65 points.   65 points gives a three year tax abatement. 

 

Sue Gibbens:  I am going to go back to the previous project in what Joe said about the score sheet, we need to revise that score sheet. 

 

Joe Schitter: We are looking to do that now Bob.  There is a committee set up, I have been looking just personally as one of those members of the committee at other score sheets around the area so we can be competitive at least with surrounding areas.  This is what we had to give you but I go back to the recommendation of EDAC that we grant maximum amount of tax abatement.

 

Bob Addington: This score sheet, Steve, is 70 points.

 

Steve Foltz:   There is some on the back.  That is what Vanderburgh County when they filled, they take the exact same things from what was given to Warrick County, that is what their scoring recommendation is.  95 points, I believe, 91 points is what the cut off amount  is for a ten year tax abatement.  I know you probably don’t care what Vanderburgh County does but as far as, here is what other counties are doing.  So I just kind of compared apples to apples.   I have talked to Joe, I think you also have Gibsons, yours and Vanderburghs and some how a combination of all three take the best parts of all three of them and come up with what would be suitable for the Council.

 

Bob Addington: What we have before us though is what..

 

Gary Meyer: Motion has been made and seconded.  Is there any further discussion?

 

Karan Barnhill: I am the County Surveyor.  I just want to make the statement that this engineering firm offers more to the County than just tax dollars and that type of stuff.  They are very knowledgeable they help us, they are on AD HOC committees, Jim Jr. Is very knowledgeable he helps not only the developers and people coming into the County, he helps us as County officials.  Their firm is very knowledgeable, they know their stuff and I would hate to see that we loose good engineering reputable firms because of little small issues.  So I am supporting them. 

 

Gary Meyer: Anyone else?  Before we vote, I am going to make a statement that is going to sound very negative and I apologize for that up front.  I have a real problem with this when a vendor comes to us for a tax abatement.  Mr. Morley is our Engineer for the North Warrick Industrial Park and the taxpayers of this County have paid him a lot of money to develop that park so far.  It really bothers me that now we are asking the tax payers to subsidize an abatement for ten years.   Or phase in an abatement.  I have a real problem with that and I don’t know how to make that sound any more positive because it is a very negative statement.   But that is really bothersome to me.  Than any vendor, unfortunately you are here, that any vendor that the tax payers have paid money to, how far does the tax payer pay for this?  That is my problem.  With that I won’t say any more.   I’ll call for the vote. 

 

VOTE:           2 Ayes   5 Nays (Bob Addington, David Hachmeister, Ray McIntyre, Raymond Bracher & Gary Meyer)

 

Gary Meyer: Motion fails two to five.

 

Jim Morley: Thank you.

 

Unknown Speaker:  Just as a  representative of multiple taxpayers coming into Vanderburgh , Warrick and Gibson, just for knowledge purposes, what is the definition of a perfect tax abatement application?

 

Gary Meyer: Are you asking me personally?  There is no such thing.

 

Unknown Speaker: Not just you personally because I know you are just one of seven.  Just as an example for future reference, what would the...

 

Gary Meyer: I think one thing is confusing, we are kind of, and you got played into this and so did the previous one, maybe we haven’t gotten our ducks in a row yet as far as our criteria because we are seeing in our criteria a three year, five year abatement and they are asking REDAC and EDAC for the ten year.  It is a little bit confusing to us because right now our system doesn’t call for a ten year.  We are in the process of revising our system and maybe that is our fault that we don’t have it in place yet.  As far as what is the perfect application, I don’t know. 

 

Joe Schitter: Gary that is why I made the comment, because our system is not scoring comparable to others but it is all we have.  That is why I think EDAC decided to vote. 

 

Greg Richmond: I was on the committee that established this system and it was the first in the area.  We had nothing to compare it to and it took many months putting this together and it was basically a preliminary one that needed to be revised. 

 

Jim Morley, Jr.   Is there a different abatement that anyone would feel would be palatable to help even the playing fields? 

 

Ray McIntyre: I may be a little confused on what abatements are based on but I always thought they largely were concerned with manufacturing but this is a leased building to an engineering firm as I understand it therefore it is rental property.  And is rental property in itself abatable?   We did that with the Apple Center but I didn’t vote for it.  I have been asked if I would abate a carpet shop, very recently.  Why would I do that, that is retail merchandising, that is an office building they have their offices there.  I am confused about abating everything that comes down the pipe.  You are a non-pollutant, that is good, you are not currently here and you are going to come here, that is good.  Maybe my problem is, where, as close to anything along these lines that I have voted for myself was the soccer field inside, as close, that didn’t work out.  They asked for ten and they got three and it pass for three by a four to three vote.  I can see some merit to this, non-pollutant, you are going to pay your own way, but maybe I need, and I have asked for this enlightenment from the EDAC board before when I was on the board to bring us new guidelines in. 

 

Steven Foltz:(?)  I know one thing, in looking at your previous application, how you had it set up, the way you have it currently set up, the way you have it currently set up your personal property is eligible for six and ten for three six and ten and then real estate is six and ten.  Those are kind of old guidelines.  The statutes have changed and you can get zero to ten. 

 

Ray McIntyre: Is there any problems with doing office buildings that are rental?  

 

Steven Foltz: (?)  The rental, it is only rental in the form of protection, it is a liability projection.

 

Gary Meyer: You are going to build it own and rent it to yourself.

 

Greg Granger I think where you are getting confused is with the term manufacturing, that is only used in the equipment description. 

 

Ray McIntyre: Is rental property or office property, motels are not abatable are they?

 

Greg Granger: No. 

 

Ray McIntyre: So is this property actually primary? 

 

Joe Schitter: Primary use is within that list.  Those are the only exclusions, and engineering and office building is not listed in that.  They are only asking for real property again, not any personal property concerning any equipment.

 

Greg Richmond: I would like to add it is a misconception in the public that tax abatement is giving away tax dollars to people.  It is not giving away tax dollars.  It is taking something that we already have right now and making it better because over a period of years with the improvement there is more income coming in.  Which in turn, could reflect the rates downward.    That is the way its intended purpose was to be but there is more and more services  demanded of County government, State government, it just never seems to do that but it does not, I am not taking out of my billfold as a homeowner and paying Morley & Associates to come into Warrick County. 

 

Steve Foltz; It is actually costing the tax payers more by not giving it because that $52.00 is what is driving the tax rate which applied to the assessment so there is no subsidy.   To your point, it cost the tax payers money by not bringing it.  Because there is nothing there now.   The dollar today is worth more than hopefully getting a dollar five years form now.  I agree, because it is only helping the tax payer because the more assessed value that is put into the kitty, it lowers your tax rate.  Keeping that tax rate the same or not putting anything into it is going to raise your tax rate which will put the burden on the tax payer so that is a great point.   

 

MOTION: Ray McIntyre made the motion to allow a three year tax abatement.

SECOND: David Hachmeister

 

Bob Addington: We are voting for three years? And you are not asking for equipment?

 

Jim Morley, Jr.: No we are not. 

 

Gary Meyer: Any further discussion on the motion? 

VOTE:           6 Ayes   1 Nay (Gary Meyer)

 

                                                                               WARRICK COUNTY COUNCIL RESOLUTION NO. 2004-04

 

                   A PRELIMINARY RESOLUTION DECLARING AN ECONOMIC REVITALIZATION AREA FOR PROPERTY TAX ABATEMENT

 

WHEREAS, IOP Properties, LLC, (the ‘Applicant’) has submitted a Statement of Benefits and made application for Economic Revitalization Area designation pursuant to IC 6-1.1-12.1 et seq. and Warrick County Council Resolution No. 2004-04 (the ‘Tax Abatement Resolution’) for the real estate located at 4760, 4790, 4820, and part of 4840 Rosebud Lane, Newburgh, Warrick County, Indiana and described as:

 

Lots 14, 13, 12 and part of 11 in Interstate Office Park as recorded in 2000R-004425 in the Warrick county Recorders Office, said lots being in the SW 1/4, of Sec. 29, T6S, R9W.

 

AND WHEREAS, said property meets the criteria for designation as an Economic Revitalization Area pursuant to IC 6-1.1-2.1 et seq; 

 

 

NOW THEREFORE, BE IT RESOLVED by the Warrick County Council as follows:

 

Section 1.    The Warrick County council has reviewed the Statement of Benefits and additional information submitted pursuant to IC 6-1.1-12.1 et seq and the Tax Abatement Resolution, and make the following findings:

 

a.             The estimate of the value for both the redevelopment and or rehabilitation of property and construction of structures to be used for rental and services is reasonable for projects of that type, and

 

b.             The estimate for the number of individuals who will be employed or whose employment will be retained by this project can be reasonably expected to result from the proposed redevelopment and/or rehabilitation, and construction of structures to be used for rental or real estate and services; and

 

c.             The estimated of the annual salaries of those individuals who will be employed or whose employment will be retained can reasonably be expected to result from the proposed redevelopment and/or rehabilitation; and

 

d.             The totality of benefits likely to accrue from this project is sufficient to justify a tax deduction; and

 

e.             The property known as 4760, 4790, 4820, and part of 4840 Rosebud Lane.

 

Has been found to meet the requirements of an Economic Revitalization Area pursuant to IC 6-1.1-12.1

 

Section 2.    Based on this findings, the Warrick county Council has determined that the purposes of IC 6-1.1-12.1 are served aby allowing the deduction and the property described in Section 1.e above is hereby declared to be an Economic Revitalization Area.

 

Section 3.   The designation of this Economic Revitalization Area should apply to property tax deductions for ‘property’ as provide in IC 6-1.1-12.1-3 and ‘personal property’ as described in IC 6-1.1-12.1-4.

 

Section 4.   The designation of this is Economic Revitalization Area should be in effect up to and including 12/31/07.

 

Section 5.   Deductions for redevelopment and/or rehabilitation which takes place with this Economic Revitalization area shall be allowed for a period of three (3) years beginning with increases in assessed value which are first assessed on March 1, 2004.

 

Section 6.   The Warrick County Auditor shall cause to be published notice of the adoption and substance of this resolution in accordance with IC 5-3-1.  Said notice shall be in compliance with IC 6-1.1-12.1-2.5.

 

Section 7.   This Resolution shall be in full force and effect from and after its passage and action had confirming, modifying and/or rescinding the same.

 

PASSED this   11th    Day of   March , 2004.

 

WARRICK COUNTY COUNCIL      

 

 

______________________________________________                                     ___________________________________________

Gary Meyer, President                                                                                                        Ray McIntyre, Vice President

 

______________________________________________                                     ___________________________________________

Greg Richmond                                                                                                                     Raymond Bracher

 

______________________________________________                                     ___________________________________________

David Hachmeister                                                                                                              Bob Addington

 

___________________________________________    

Joe Schitter          

 

ATTEST:

 

_____________________________________________

Richard I. Kixmiller, Auditor

Warrick County

 

MOTION: Joe Schitter made the motion to suspend the rules.

SECOND: Ray McIntyre

VOTE:           7 Ayes   0 Nays

 

Gary Meyer: Okay, you are looking at a confirming resolution which would be 2004-05. 

 

MOTION: Joe Schitter made the motion to accept EDAC’s recommendation for the full ten year tax abatement on real property.

SECOND: Greg Richmond

VOTE:           2 Ayes   5 Nays ( Ray McIntyre, Bob Addington, David Hachmeister, Raymond Bracher & Gary Meyer)

 

MOTION: Greg Richmond made the motion to approve a five year tax abatement.

SECOND: Joe Schitter

 

Gary Meyer: Any discussion on this motion?

 

Unknown Speaker:  The reason we had sought a longer tax abatement, we were just trying to even out the playing field.  Because we only do real property, the dollars in taxes are not as large if we were doing real property and  manufacturing and so on and so forth.  I just wanted to make that statement.

 

Gary Meyer: Any further discussion.  The motion right now is for a five year abatement Confirming Resolution 2004-05.

VOTE:           2 Ayes   5 Nays (Ray McIntyre, Bob Addington, David Hachmeister, Raymond bracher & Gary Meyer)

 

MOTION: Ray McIntyre made the motion to approve a three year tax abatement Resolution Number 2004-05.

SECOND: Raymond Bracher

VOTE:           5 Ayes   2 Nays (Bob Addington & Gary Meyer)

TABLED ITEMS:

 

Spectronics, Inc.  (Increased benefits)

 

Daniel Beane: I am an accountant with Kruse, Dicus & Associates, LLP, and I represent Spectronics.  You probably remember from last month that we got some correspondence from the State Department of Local Government Finance about what they saw as some deficiencies in paperwork about the property tax abatements going back two and three years.  One of the things that they said was that the amount we sought for a deduction was in excess of the amount on the SB-1.  The SB-1 that you file initially telling what new manufacturing equipment you are going to place in service and how much it is going to cost.  You have to do that before you buy the equipment.  So that amount is basically an estimate.  The amount that was on the SB-1 was $319,000 and the grant total what we asked for a deduction on over a two year period was $449,000.  I am here to explain how the $319,000 became $449,000 and the designating body in these property tax abatements have the opportunity to say that they are going to limit the amount of the benefit to the amount that is given in the SB-1.  That wasn’t done but nevertheless, the state Department of Local Government Finance wants to make sure that nothing is being inappropriately added in there.  This was the equipment that was described and contemplated in the beginning and two things happened.  One is that, it is a manufacturing facility and they do plating of small parts and so on and ....chemicals and all that.  They have to treat their waste water before it is discharged and the part of the manufacturing equipment that treats the waste water turned out to be a lot more expensive than was anticipated when the SB-1 was prepared.  So the first year, I think $90,000 additional was sought in deduction over and above the amount in the SB-1 and 80 to 90% of that was on the waste water treatment.  Then the second year the second layer of investment in this equipment that we sought a deduction in the amount of $40,000 was also part of the same original project and part of the system, one of their vendors supply didn’t work as advertised and had to be redone.  The deal they ended up making with the vendor was the vendor would supply all the labor to rework it and get it working right but it was going to require them to use more expensive materials and it was going to cost an additional $40,000 and my client would have to pay for that, which they did.    So that is how the amount became what it ultimately was and because it is a project that was contemplated at the beginning for which the deduction or abatement was requested tonight we are asking you to sign a revised SB-1 with the new higher amounts.  The people at the Indiana Department of Local Government Finance said that they don’t care it has todays date on it, they just want to know that the designating body has had an opportunity to look at the numbers and that we are not piling things on there inappropriately.  So that is the situation. 

 

Gary Meyer: Question Mr. Granger, can we do this, can a company come in after an abatement has been granted and increase their equipment cost and then we go back and grant the abatement on the increase any time during the abatement period?

 

Greg Granger: Yes.  Dan, we discussed this last month.  This is the SB-1 that was not filed?

 

Dan Beane: It was filed, although it lacked a signature and we remedied that last month. 

 

Greg Granger: there is a procedure where the council can delay the late filing and that is because of lack of procedure.  The Local Government Finance says yes you can do that and you can increase the amount as long as the Council is in agreement with it, they can do that.  I think David had a question at last meeting whether it is effective at todays date or if it goes back to the original date of application.  According to local Government Finance person, it is possible to go back to the original date of application if the timing is right and you have complied with the late filing procedure to file in. 

 

Ray McIntyre:   I looked at notes from last month and it says there wouldn’t be a refund because I don’t think the tax has been assessed and paid yet.  What does that mean?  Have they not paid the taxes since the abatement was granted the original abatement? 

 

Dan Beane: They haven’t gotten any abatement, the taxes haven’t been paid, in fact we got the tax bills this week.  Was all tied up in the same procedural thing in Indianapolis but it turned out to be the bill has been sent to the wrong address, and returned to the Treasurer, and we didn’t realize that we didn’t have them until we were here last month and Krystal Powless was asked to look into the status of the personal property taxes and that is what we discovered.  

 

Ray McIntyre: So they haven’t been paid?

 

Dan Beane: That is right.   

 

Ray McIntyre: When was the original abatement granted?

 

Dan Beane:   In 2000. 

 

Ray McIntyre: This is 2004.

 

Dan Beane: Right, the 2001 pay 2002 and the 2002 pay 2003 taxes are delinquent now.    We just got the bills so they will be paid. 

 

Bob Addington: Taxes are usually one year behind?

 

Dan Beane: I am agreeing with you and saying that we are talking two years of taxes.

 

Joe Schitter: Last month when we went over this, we discussed that when you filed this you were in compliance with Warrick County.  It was a late date filing with the state that caused the problem, missing the year.

 

Dan Beane: We are looking into that because and I think that my unsatisfactory vague answers to some of your questions about the late filing didn’t work in our favor last month, naturally, but we are looking into that because from what we can see from our records the thing was prepared on time.  And I finally found out, apparently the only party that actually has copies of documents is a field lawyer from the Indiana Department of Local Government Finance.  It was very hard to track down.  I have gotten answers to questions from him via the people in Indianapolis, and I am actually waiting to hear now whether he has a post mark date.  Because he has a file stamp that shows that the thing was filed on June the 22nd and our records indicate our client signed it and mailed it on the 13th and was due on the 14th an extended due date.   That issue may yet come back but at this point, you have declined to sign the letter saying that the late filing is okay and now we are dealing with the amount.  Which like I said, it isn’t limited by the amount on the SB-1 unless you say it is.  So the Indianapolis people want to be sure you have had a look at this.

 

Bob Addington: I am a little confused , you are talking about the current date that the late filing was made or are you talking about the 2000 when the late filing occurred?

 

Dan Beane: The SB-1 determines the amount of benefit throughout the period so that is what I am talking about. 

 

Bob Addington: The original filing is what you are talking about?

 

Dan Beane: Yes.

 

Gary Meyer: Tell me the numbers again. 

 

Dan Beane:  $319,000 even on the original SB-1.  Then when we filed the 322 ERA, request for the deduction for 2001 pay 2002, we had $409,598.00 invested int hat equipment that was subject to the deduction.  Then in the second year, an additional $40,056 was incurred to go back and revise to make the thing work the way it was supposed to.  So the additional cost is for the same equipment. 

 

Gary Meyer: To make this equipment work like it was supposed to work, is this warranty work that they had to increase the cost to the equipment to make the warranty good?  I am trying to understand.

 

Jim Rine: What we did, we have chemicals, we do electroplating and our contractor recommended a coated PVC type pipe.   What happened, our chemicals just basically ate the coating off of it.  Just plain didn’t work.  So what we agreed as part of warranty, he said we really need to replace this but the material we need to replace it with is more expensive.  So if you guys will pay the difference between the stuff that didn’t work, and the good stuff that will work, they would put in all the labor and installation.   So it was partial warranty but the $40,000 is the part we paid.  The rest was not in there. 

 

Joe Schitter:   And if you would have had those cost at the time you filed this that would have been what you filed upon in the original. 

 

Gary Meyer: Does everybody understand what they are asking for? 

 

Discussion on the figures followed.

 

Dan Beane: I don’t know if there is a way to just blend that in, in mid stream.

 

Ray McIntyre:  I think though, all the assessments that we had taken and what the County set its rates at with the expected incomes and all were based off 2000, 2001, 2002 and 2003.  So even if it hasn’t been paid yet, it has been allowed that the County would have received that income based off those figures that you now want to take down, is that not correct?   So it would be a loss of income below the expected income if we go back to back that out.  I looked at it as a fairly big difference.  Maybe it should have been there in the first place because your expenses ran higher but we can’t retrieve that money as a County any place else. It is gone if we grant that.   We can grant it now and it may go some place else, but to go back, even if it hasn’t been paid it has been expected to be paid , it was part of the tax levy and it will be an income loss for the County.  I would not be interested in doing that at all. 

 

Joe Schitter: One of the situations we were looking at and I think you said you had just received the tax bills, there was some mix up there.  How much of that is that year that we did not sign off on, that we did not allow, is that partial amount of what you have?  They have been granted the tax abatement and that would have been taken into account over that length of time but due to their late filing with the state, they did not receive one year.

 

Jim Rine: We basically didn’t realize that we hadn’t been billed for these until we were at a meeting with our accountant in January.  We had been billed, we have the Rine Enterprises which owns the building and Spectronics.   We process them all together and we have gotten and paid the bills for Rine Enterprises so there is something showing up as property tax and we were going through our property tax bill in January and said that we have never been billed.  Dan started making some inquiries and we now have the bill.  So the bill to answer your question, the bill for 2001 is $4,696.00.  If you applied tax abatement to that it would be $1267.00 after tax abatement.  The bill for 2002, if you apply tax abatement would be $7681.00.  The bill we received is $13,866.00.  I may have rounded that number. 

 

Ray McIntyre:   We did go back and say you could pick up the $319,000 worth of abatement, we did approve that at our last meeting and that was signed off on.   What you are asking us for now is whatever the percentage would be between the 319 and the 450.  So that would be an increase of $130,000 increase retroactive back to three years.  And the original abatement was for five or ten years?

 

Jim Rine: Ten.

 

Ray McIntyre: Since it would appear to me and I have been accused of thinking a little different, I would make a motion that we take the third year of the abatement where that point would be at the higher rate and go from here on but I am not interested at all in going back and picking up the two years.

 

Jim Rine: The third year would be 2003 pay 2004.

 

Joe Schitter: Yes it would be 2003 payable 2004.

 

Ray McIntyre: I think that I would be...

 

Joe Schitter: It would be basically as of this point. 

 

MOTION: Ray McIntyre made the motion to grant the additional $130,000 roughly effect 2003 payable 2004.

 

Ray McIntyre: At the decreased rate it would be.  Only going to have seven years and start at the third year of that. 

 

SECOND: Joe Schitter

 

Bob Addington: 2003 taxes, starting there, we are going to allow the additional amount to be abated ....

 

Gary Meyer: On the third year of the schedule.

 

Bob Addington: That is where we are, you have a ten year abatement and it was granted in 2001.  Then we are going to allow the abatement on the adjusted amount. 

 

Ray McIntyre: They only have it abated for year one and two $319,000.  It wasn’t until three, that moved to the $440,000 but it is at the 70% level and not at the full shot.  They should have came back to us the first year and said we spent more money. 

 

Jim Rine: In our defense, we didn’t wait two years to come ask about this by choice, we heard about this last month from the Indiana Department of Local Government Finance. Although we did request the deduction in the higher amount, I am with you there.

 

Ray McIntyre: I would like to see, help business if at all possible, but I.

 

Gary Meyer: Is there any further discussion on the motion?

 

VOTE:           6 Ayes   1 Nay

 

Dan Beane: Thank you gentlemen.

 

 

Pre-Trial Diversion (Additional Appropriation):

133-000-4364.00                    Equipment                             $25,000.00

 

Todd Corne: I am not here for an abatement.

 

Ray McIntyre: That is good. 

 

Todd Corne: But I would really like for Joe not to make a motion on my request. 

 

Joe Schitter: Sit down Todd.

 

Todd Corne: I was here last month on this request and asked you to table it.  What I am wanting to do is buy a scanner and the document management software that goes along with it, to digitize ultimately, all of our files.  We need to do that for a couple of reasons.  The first and most immediate need is to free up space in the office for an additional personnel and additional needs that we have.  We have four twenty files cabinets that consume an enormous amount of space and that continues to grow year by year and I am hoping that digitizing the files will eliminate the need for those sort of things.  The other issue would be personnel being able to find and locate files.  In digital format it is easier, more quicker and efficient than trying to hunt and search around through the office for the hard copies and so on.   The $25,000 figure is what we got, what we understood that the system used by the Recorders Office cost.  I am looking right now at two different systems.  I have one in place that we are testing this week and they hope to have another system brought in next week to test.  That will hopefully be less than that amount but I am asking for that amount, $25,000.

 

MOTION:   Ray McIntyre made the motion to approve.

SECOND: Bob Addington

VOTE:           7 Ayes   0 Nays

 

Gary Meyer: Don’t you have another one? 

 

Todd Corne: I have two if I could I would appreciate it.  I have an additional appropriation and a transfer.

 

Pre-Trial Diversion:              133-000-4364.00    Equipment             $644.00

 

MOTION:   Bob Addington made the motion to approve.

SECOND: Raymond Bracher

VOTE:           7 Ayes   0 Nays

 

Transfer:       Prosecutor             Transfer from        001-108-4112.00    Deputy Prosecutor              $1,414.00

Transfer to            001-108-4364.00    Equipment

 

Todd Corne: The final item is a transfer, have sone some personnel changing in the office in terms of trying to eliminate some part time positions and create an additional full time positions to better serve the purposes we are trying to accomplish down there.  That involves in this one instance a change in the Deputy Prosecutor position and to pay some of the salary out of pre-trial, some of it out of the general budget.  It was recommended that the Personnel Committee Meeting that instead of giving specific dollar figure that we split that based on percentages, two thirds, one third.   So by doing that, that left $1,414.00 in that one line item for the Deputy Prosecutor Salary as an excess, and I am just simply asking that be transferred over to the equipment line item.

 

MOTION: Ray McIntyre made the motion to approve.

SECOND: Joe Schitter

VOTE:           7 Ayes   0 Nays

 

Todd Corne: Thank you.

 

Surveyor Section Corners (Additional Appropriation):

144-000-4000.10                    Unappropriated Expense    $ 6,038.17

 

Gary Meyer: Before you start, I will tell the Council that...

 

Karan Barnhill: It is on the next page.   This was the one, let me give an explanation real quick before you give an explanation.  This one is on there was advertised for the last meeting and I asked that it be continued. 

 

Gary Meyer: Okay, so this one is okay?

 

Karan Barnhill: No,  I want this one denied because the next one is the one I want you to approve. 

 

MOTION: David Hachmeister made the motion to deny.

SECOND: Bob Addington

VOTE:           7 Ayes   0 Nays

 

Gary Meyer: Do you want to go ahead while you are here?

 

Karan Barnhill: I would love that, thank you.  Do you want to do the additional appropriation first on that same page?

 

Surveyor                001-106-4365.00                    Vehicle                                   $21,515.00

 

David Hachmeister: Mr. President, I need to excuse myself.

 

Gary Meyer: That will be fine, we will come and get you when we are done, maybe.  This is for a vehicle, $21,515.00. 

 

Karan Barnhill: Yes, the green truck that we presently have that has been with the County for ten years is in very poor shape.  The transmission pops loud, it shimmies going down the road, it is unsafe.  I am not comfortable sending my staff out in the truck.  I am afraid it is going to break down so what I have done, is I have asked for an additional appropriation out of County General to replace the truck that was originally purchased out of County General out of Surveyor budget.  That way we can have a new truck and the people will be safe.  I have gotten bids for three people and the low bid came in at $21,515.00 and it is very much needed.  I wouldn’t be here asking for it if it wasn’t. 

 

Gary Meyer:   This is out of County General? 

 

 

Karen Barnhill: The reason I am asking, I will give an explanation why I am doing it out of there, we have bought equipment out of CUM Drain one thing right after another.  That money has set there for maintenance, construction of regulated drains, it is taken from the tax payers and the people out there, the farmers who expect us to do ditch work and I just don’t think it is appropriate to continually purchase equipment when all the other County offices need equipment they come and get it from County General.  That money is not there for us to just purchase everything that we can possibly purchase out of for that purpose.  This line item is in the budget, has been in the budget for, since 1994 and there has just never been any money put in there.  It is the truck that was bought for the County Surveyor, not for the CUM Drain.  It was bought for that office to operate and I think it needs to come out of County General. 

 

Gary Meyer: So you didn’t approach CUM Drain about it?

 

Karan Barnhill: No sir.   I just don’t think it is appropriate to continually drag money out of there. 

 

Ray McIntyre: We make the Prosecutor continually take the money out of Pre-Trial. 

 

Karan Barnhill: In the statue it says, that you are supposed to provide us with the equipment that is necessary to run the office. I need a truck to run my office.  Yes, supplies and equipment.  I need a truck.  We bought one truck, we bought a four wheeler out of there, I have bought equipment after equipment out fo CUM Drain and to go and, State Board of Accounts, red flags would go up if they see another truck coming out of there.  I am not comfortable, I don’t feel good about it, I don’t think you guys should feel good about it.  And I need a truck.   That truck is not safe.

 

Ray McIntyre: I will tell you the Surveyor is going to have a whole lot more to do because I think operating through the Commissioners, and I am not sure where this goes, when we establish the water run off thing, that will be another vehicle we need for whoever does those inspections and whatever.  This is not anything when it comes to water run off, that is not any thing the Surveyor is required to do.  The $7,000 or what we just did, the $7,495.00 is for doing corner marker work which will be something that requires mobility and dependable transportation.  And the vehicle is old.  Which would be brand new for me but most normal people would think, how many miles are on it?

 

Karan Barnhill: 135,000.  It has been a good old truck. 

 

Ray McIntyre: But we still have shortages also, and we are not a rich County when it comes to General Fund.  Last month I made the motion to table some stuff because I was a bit confused about where the Surveyor was going to go and what the Surveyor in the end was going to need to get everything done that the office has undertaken to do, particularly with the water run off problem.  Part of that problem is, I don’t know that the executive branch has done, I suspect it is working on a plan, but I don’t know if they are working on that plan through the Surveyor or not.  I know the Surveyor has offered to assist to do it.  But I am not sure what the Commissioners, what their plans are.  The vehicle is in bad shape, it does have a lot of miles on it.

 

Karan Barnhill: Just to reiterate what he is saying the Storm Water stuff is going to be a big job, I don’t know what the Commissioners are expecting either.  I know that in discussions with them they want me to I think handle the majority of it because it is Storm Water.  Most of the other counties in the state that have been designated as urbanized areas, the Surveyor is undertaking that.   I am willing to do that, I am okay with that.   But everybody needs to realize that it is going to be a big job, it is going to be an expensive job and that I am willing to do what I can with what I have now but the truck needs to be replaced and then we can build from there, if we have to wait another year to see where we are and what we are going to need I am okay with that.   We can build as we go and grow as we go.  My staff if I have meetings that I have to take my truck in, my staff can’t go out and do field work and we have ditch work going out there like crazy.  We have a lot of stuff that needs to be done and they need to have a vehicle to drive.  If we have to share that for now to get the Storm Water stuff going, I am okay with that.  I will make do.  But I have to have another truck, we have to have two.   They sit waiting for me to come back if I have to go somewhere.  That white truck is a two wheel drive and we have to pull it out with the four wheelers sometimes.  So it doesn’t go where we need it to go a lot either.   

 

Bob Addington: Are you getting a four wheel drive pick up?

 

Karan Barnhill: It is an Explorer, it’s a  utility truck so that we have area to put our equipment in without it getting in the weather and getting rained on. It is a Ford Explorer.

 

Joe Schitter: I know the Bronco is in bad shape and if we did have a lot of surplus funds you know this wouldn’t be nearly so painful.

 

Karan Barnhill: I understand that.

 

Joe Schitter: Just getting the budget sheet and looking at what we have in the General budget to work with, tonight, gives me horrible flash backs from last year.   I know you are going to need, there is going to be something that is going to be needed and if you take a direct role in MS-4, which you are  a big part of it now, we are going to have to have some way of doing it. 

 

Ray McIntyre: It wouldn’t be hard for me to do other than the General Fund Karan. 

 

Gary Meyer: Can we ask you to go to the CUM Drain Fund ask them and if you get turned down come back?

 

Karan Barnhill: I will tell you this.  I had a discussion with two of them before and one said I drive a 19 whatever that is red car that I make do in, it doesn’t have to go where we have to go, he doesn’t understand.  The other one is just totally I am not talking about it you a new truck I am not going to get one.  So I need two votes, two votes have basically said ...

 

Gary Meyer: Was that in a public meeting that happened?

 

Karan Barnhill: No it was off to the side.  I wasn’t going to embarrass myself in a public meeting.  The truck has to go off road, it has to go down ditches, it has to get muddy, it has to go places.  We drive a low ditch banks, and I need a truck. 

 

Gary Meyer: I think you do need a truck. The problem we have is where the money is going to come from. 

 

Karan Barnhill; I understand that, but I haven’t come to you guys in the three years that I have held office and asked for anything out of County General, it all came out of CUM Drain.   And this is something that needs to be done.   You know me, I don’t come here unless I need something and I need this truck and this is my only hope of getting it.  I hate to ask you as much as you hate sitting here looking at me begging, but I am begging I need the truck.

 

Greg Richmond: Is it possible that the Council could come to a Commissioners meeting and plead our case about General Fund monies because the Commissioners do want some things themselves and are going to need some things out of this General Fund money that we can’t get anyplace else.  This is an opportunity for us to use some other fund even though we don’t like to it is just, when you look at our bottom line it is scaring me to death.  I have been around for a while, Raymond has been around for awhile.  I have never seen anything like it in all the years I have been on it.  It is just scaring me to death.  So I would be glad to come, I know I am not in great favor with them but I would be glad to argue our point that we don’t have any money in the General Fund and we need to look for other sources.  Unless they had that fund spoken for somewhere. 

 

Karan Barnhill: I am okay with that but my problem is that truck is popping every time it shifts gears, it is about ready to break down, if I have to wait another month and readvertise and wait for you guys to go to the Commissioners that is going to put me another month and a half down and that truck is not going to make it that long.  We are pouring money into it as it is.

 

Ray McIntyre: I look at the world different because for $21,000 we can do a lot of repair work but the truck is not dependable and down time is not dependable.  I will make the motion.

 

 

MOTION: Ray McIntyre made the motion to approve $21, 515.00 for a truck out of County General.  We have got to have our people driving safe trucks.

 

Gary Meyer: We have a motion is there a second?  Is there a second?  Is there a second?

 

SECOND: Bob Addington

 

Gary Meyer: Any discussion?

 

Joe Schitter: Like I say, you realize this is a touchy situation because it is coming out of General Fund.  We will have to be prepared making this as to what we are going to proceed through this next year because we are going to have some really tough decisions to make.

 

Several speaking.

 

Greg Richmond: We have a tremendous need with EMS, I don’t know whether you all have studied that or not?  That is going to hit us next month too.  We have to look at lots of things and weigh lots of things here.

 

Ray McIntyre: I don’t deny that a bit.   But we have a...

 

Greg Richmond: I am sympathetic for the truck but the General Fund is worrying me. 

 

Ray McIntyre: Four wheel drive stuff isn’t much fit for anything past 100,000 miles.  I hated them when the Sheriffs Department bought them, I guess they are dependable.  I won’t drive one myself,  because if it is required, it is required , and it is required but 130,000 miles on a four wheel drive something is like 200,000 on anything else.  

 

Gary Meyer: Any further discussion?

 

Karan Barnhill: Can I add something before you go any further?  The section corner money on the next page, the $10,000 I will not ask for that if I get the truck. 

 

Laughter.

 

Discussion among several.

 

Greg Richmond: Can you not use some of that $19,000 in section corner?

 

Gary Meyer: $19,306.83.

 

Karan Barnhill: When I called over there she told me there was only like six thousand or something.

 

Greg Richmond: That is in the budgeted amount, there has been miscellaneous revenue.

 

Gary Meyer: Let’s get back to our motion there.  Any further discussion on the motion? 

VOTE:           3 Ayes   3 Nays (Gary Meyer, Joe Schitter & Greg Richmond)

 

Gary Meyer: Motion fails, three to three. 

 

Joe Schitter: Sorry Karan but let’s find another way to get the money.

 

Gary Meyer: If you want us to come to the Commissioners we will be glad to do that.

 

Karan Barnhill: I will take any help I can get.

 

001-106-4366.00                           Section Corner Perpetuation              $10,000.00

 

Gary Meyer:     Section Corner Perpetuation $10,000? 

 

Karan Barnhill: I withdraw what I said.

 

Gary Meyer: Is this really what you have $19,000?

 

Karan Barnhill: Wait, let’s bask up.  The $10,000 that I am asking for Section Corner Perpetuation is a line item in the Surveyor Budget.  Two years ago, gave me $35,000 to do Section Corner Project.  I contracted out to a firm to do my Section Corner and they did 36 sections in Ohio Township.  So this $10,000 is coming out of County General to fund another project.  The other thing is the $7495.00 is coming out of the Section Corner Fund that comes from the deeds when people record their deeds.    So that is two separate items. 

 

Ray McIntyre: But a real quick question.  If you have $19,306.83...

 

Karan Barnhill: If I have $19,000...

 

Ray McIntyre: Then the ten could come out of there plus the $7500 for the equipment you need later.  We can’t do the ten today because it wasn’t advertised from there. 

 

Karan Barnhill: What the heck, I am coming back next month anyway, I can just advertise it. 

 

Greg Richmond: What brings me, before you table this, what brings me to this discussion,  I am looking at the budgeted amount.  If you follow the budgeted amount over there, it is $7500 total beginning appropriations.  That is what we have in the Section Corner which is a 144 fund is what I recall.

 

Ray McIntyre: We need to go get David. 

 

Greg Richmond: 144 is Section Corner Perpetuation, we budgeted in there $7500.  And that is what this shows is the budgeted amount.  That is what leads me to this discussion, in the line item that she is speaking of, that she is requesting the $10,000 out of, our budget for 2003 was $6200. And I don’t see the $6200 in this column here.  It starts out appropriation request and then it moves on down, property tax levy, it says zero.  Property tax levy.  Then it comes on down to where it says miscellaneous revenue and that would be the fees you are talking about that you bring in.  Then it has the cash balance as of January 1, total funds available and then the request is subtracted from that we end up with the $19,000.

 

 

Joe Schitter: $19,306.83.

 

Greg Richmond: That is what my question is about that, I just think that there is more money available in Section Corner than the General. 

 

Karan Barnhill: Wait a second because I think I have an explanation for that.  The quote that I got for, wait a second, okay budgeted, make sure this is right, was $7500 is that what you said?  That is what was already budgeted, okay. 

 

Greg Richmond: This column that has the $19,000 balance in it says that is available in there and that would be with the revenue that has come in that has been added to it.  This is a revenue producer where the other is a budgeted general fund item.  I understand why you have the line item also in the Surveyors also.  That is just my question, perhaps this was advertised in the wrong fund and it should be a 144 instead of 106. 

 

Karan Barnhill: No, because whenever I advertised it I called and I asked Sally and Krystal, who told me there was only $13,000 in there.  That is why, when you take the $7500 off it only left $6461 in there.  But it brings in about $1000 a month.  So that was last month when I advertised it. 

 

Greg Richmond: The appropriation ....

 

Karan Barnhill: But I don’t have a problem with readvertising and taking the section corner project out of that if there is enough money there.  I don’t have a problem with that.

 

Greg Richmond: Here is the appropriation request, it says here for some reason, I don’t know why it says, $13,533.34 and that is probably the figure you were read.  Do you show her?  Very top line is appropriation request, go to surveyor section and that may be the figure she read you.  I just have some questions if we can get this again out of some other fund besides general, I would prefer it to be that way.  

 

Karan Barnhill: The $10,000 you are talking about...

 

Greg Richmond: Yes, and then you would get the seven out of there too.  Whatever it is you request the other one.    I don’t want to cause you any distress over this but it...

 

Karan Barnhill: That one doesn’t distress me at all, it is the truck that distresses me.

 

Greg Richmond: Me too.

 

Bob Addington: ...motion to withdraw.

 

Gary Meyer: Withdraw or table?  You can’t withdraw because she has asked for it.

 

Bob Addington:  I know it but I would rather withdraw because this is coming out of general fund ...

 

Gary Meyer: I don’t think you can withdraw, you can table it or you can deny it. 

 

MOTION: Bob Addington made the motion to deny.

SECOND: Raymond Bracher

 

Karan Barnhill:   So actually I should go and check with Krystal and make sure the money is right and try to get it out of..

 

Greg Richmond 144, if we could get it out of 144.

 

Bob Addington: I am not against you having the money, but we don’t have it in General. 

 

Karan Barnhill: That is alright, I understand. 

 

Gary Meyer: Motion has been made and seconded to deny.

VOTE:           7 Ayes   0 Nays

 

Gary Meyer: Do you have one more?

 

 

SURVEYOR SECTION CORNER

144-000-4000.10                           Unappropriated Expense                    $ 7,495.17

 

Karan Barnhill: Yes. Section Corner that is for the equipment

 

MOTION: Ray McIntyre made the motion to approve.

SECOND: Greg Richmond

VOTE: 7 Ayes             0 Nays

 

Karan Barnhill: So you will what, get on the agenda to discuss it with them or are you going to come to Drainage Board meeting?

 

Greg Richmond: It may take both, I  would say we go to Drainage Board first.

 

Karan Barnhill: So are you going to get on the agenda, or do I need to place you on the agenda?

 

Greg Richmond: What time do they meet?

 

Karan Barnhill: 4 o’clock.

 

Greg Richmond: Do you know the next meeting date?

 

Karan Barnhill: Next Wednesday.    Drainage Board meets at three that day and the Commissioners meet at four.

 

Greg Richmond: I can make that if I need to.  Yes, please place us on.

 

Gary Meyer: As many Council members that can make it, it would be good to make it.  If you get turned down come back.  We are trying to help you out here but we know what is coming down the pike and.

 

Karan Barnhill: I understand.

 

 

Gary Meyer: Okay gentlemen, let’s go back to the middle of page two, the next item will be Rainy Day Fund, additional appropriations.

 

Rainy Day Fund (Additional Appropriation):

499-000-4100.00                    Council Administrator         $32,000.00

 

Gary Meyer: I ask for a Personnel Committee Report on this. 

 

Greg Richmond: The personnel committee met and interviewed seven people for this position.  We are very pleased at the response, very qualified people I might add.  Very difficult to process.  As we went through this we asked several questions that were appropriate, a lot of them are general questions you would have in an interview and some others that apply strictly to our own needs.  Out of all these we basically ranked them from 1st to 7th and there wasn’t that many points difference between them but we did come up with a definite one out of all of them.  At this time I would like to recommend that we hire Krystal Powless as Administrative Assistant  in a Special Exempt V classification, initial hire rate of $30,800.  Exempt but entitled to longevity.  It is not an appointed position.  The job description is before most of you and you have seen.

 

Gary Meyer: Is that a motion?

 

MOTION: Greg Richmond made the motion to hire Krystal Powless for the position of Administrative Assistant to the Council. 

SECOND: David Hachmeister

 

Gary Meyer: Any discussion?

 

Ray McIntyre: I was on the personnel committee, I agree that, and I did some of the interviewing, and I believe that she is qualified but I will not vote for this because I still don’t think this is the best way to handle our problem.  We do need help the help and we do have a problem. 

 

Bob Addington: I will also vote against it because I think this is not a necessary position in my estimation.  I would much rather see Human Resource Individual, we can’t hire him but I would much rather see a human resource individual in the County with a combination of a risk management, those people do exist and I think it would be for the County as a whole, it would be better than just an Administrative Assistant.  That is my personal opinion. 

 

Joe Schitter: I believe it is something that we do need.  Of course you can look at it, try to weight the differences and everything and sometime you have to look at what has happened over the last few years, at least for me, only being here my second year.  I can see a great need for this.  I stated before, this isn’t going to mean I am going to do anything less, as a Councilman, it is just enable me to do more in my job with some things being able to be taken care of through one office.  As it stands right now, we do not have a single phone number that you can contact the County Council, you have to contact as many as you can get a hold of.  We have things coming up concerning these tax abatements and other things, I think it would be really good to have an administrator working with Economic Development, so that we have the best feel for what we are doing.  So I am in support of it.

 

Greg Richmond: It will not only benefit the public, it will also benefit the office holders and department heads because they will have a point of contact.

 

Greg Granger: I have a question.  Are you voting on hiring Krystal or are you voting on the appropriation from the Rainy Day Fund or all in one?

 

Gary Meyer: I think it is all in one, is that possible? 

 

Greg Granger: It is probably I guess cleaner to separate them. 

 

Greg Richmond: I want to withdraw my motion.

 

David Hachmeister: I withdraw my second.

 

MOTION: Greg Richmond made the motion to hire Krystal Powless in the position of County Council Administrator.

SECOND: David Hachmeister

VOTE:           5 Ayes   2 Nays (Ray McIntyre and Bob Addington)

 

MOTION: Greg Richmond made the motion to do the additional appropriation from the Rainy Day Fund to pay the initial hire rate Special Exempt V of $30,800.   

SECOND: David Hachmeister

 

Gary Meyer: Any discussion?

 

Bob Addington: I know we are not taking it out of General but it is hard for me to understand that we would spend $30,000 on a new position and we can’t come up with $21,000 for a truck, I know it is coming out of two different funds but it is hard for me to understand that we can find money for this but we can’t find money for ....

 

Joe Schitter: Personally though, I disagree with that.  The request from the surveyors office was specifically for the General Fund, she didn’t ask it out of the Rainy Day, she didn’t ask it of any other fund so how could we give her the money.  You are basically we are not giving her the money for the truck but we are going to fund a position.  We chose not to give money out of the General.

 

Bob Addington: I know it is coming out of two different funds.

 

Joe Schitter: But she can come back and ask. 

 

Gary Meyer: I think if she had asked out of the Rainy Day Fund the Council would have been a little more receptive.   But that was not the request.

 

Joe Schitter; I think so too.

 

Gary Meyer: Any further discussion of the motion? 

VOTE:           5 Ayes   2 Nays (Bob Addington & Ray McIntyre)

 

 

Gary Meyer: Do we need to decide here tonight when this person is going to begin work or does it have to be under a motion?

 

Greg Granger: I don’t think it has to be in a motion.  You can decide.

 

Greg Richmond: I would be happy to authorize our President.

 

MOTION: Greg Richmond made the motion to authorize the President as to the start up of this position. 

SECOND:   Joe Schitter

VOTE:           6 Ayes   1 Nay   (?)

 

AMENDED SALARY ORDINANCES:

 

Building Commission:

Office Manager COMOT II                $28,155.00

 

MOTION: Joe Schitter made the motion to approve

SECOND:  Raymond Bracher

 

VOTE:           7 Ayes   0 Nays

Gary Meyer: Motion carried and Joe made the motion.  That is amazing.    Do you have another one?

 

Peggy Smith: Yes.  Out of Building Commission.  This goes into a general account.   No this is not tax payer money.

 

Gary Meyer: Where are you?

 

Peggy Smith:   On the third page, under Building Commission.  Under Additional Appropriations.

 

BUILDING COMMISSION

132-000-4115.50                           Office Manager                                    $  2,384.00

 

MOTION: Raymond Bracher made the motion to approve.

SECOND: Joe Schitter

VOTE:           7 Ayes   0 Nays

 

132-000-4211.00                           General                                                   $  2,500.00

 

Peggy Smith: This is also still under Building Commission Money.

 

MOTION: Ray McIntyre made the motion to approve.

SECOND: Bob Addington

VOTE:           7 Ayes   0 Nays

 

Linda is going to love how we jump all around.

 

ADDITIONAL APPROPRIATIONS:     COUNTY GENERAL:

 

Jail                          001-114-4311.00                    Inmate Medical                                   $18,042.54

 

MOTION: Ray McIntyre made the motion to approve.

SECOND:   Joe Schitter

VOTE:           7 Ayes   0 Nays

 

Commissioners                     001-116-4120.20                    Employee Benefits/Sick Days            $  2,558.64

 

MOTION: Raymond Bracher made the motion to approve.

SECOND: Joe Schitter

 

Gary Meyer: Any discussion?

 

Greg Richmond: Yes, what is this for?

 

Roger Emmons: Lawsuit settlement.

 

Ray McIntyre: Is this over sick days?

 

Gary Meyer: Is this the Sheriff employee?

 

Roger Emmons: Yes.

 

Gary Meyer: Any further discussion?

VOTE:           7 Ayes   0 Nays

 

Gary Meyer: Are you still up here for something?

 

EDIT CONSTRUCTION

185-000-4397.04                           Paving Projects for ‘04                        $     40,642.29

 

MOTION: Ray McIntyre made the motion to approve.

SECOND: Raymond Bracher

VOTE:           7 Ayes   0 Nays

 

Roger Emmons: Once we get the road list for this year on general paving, we will probably be back in May, this is just to get it established as stated in the letter.

 

185-000-4380.10                           Lincoln Avenue                                   $     75,000.00

 

MOTION: Bob Addington made the motion to approve.

SECOND: Raymond Bracher

VOTE:           7 Ayes   0 Nays

Greg Richmond: This is all in the road side?

 

Gary Meyer: This is the road side of the EDIT.  This next one, Bob has asked to be excused since he has a conflict of interest.

 

 

185-000-4380.20                           Telephone Road                                   $   653,150.00

 

MOTION: Ray McIntyre made the motion to approve.

SECOND: Raymond Bracher

VOTE:           6 Ayes   0 Nays    (Mr. Addington out of the room.)

 

185-000-4380.30                           Epworth Road                                       $     75,000.00

 

Gary Meyer: Is this the Millersburg, Epworth Road?

 

MOTION: Joe Schitter made the motion to approve.

SECOND: Raymond Bracher

VOTE:           5 Ayes   0 Nays    (Mr. Addington and Mr. McIntyre out of the room)

 

185-000-4380.40                           Lynch Road                                          $   424,580.00

 

MOTION: Raymond Bracher made the motion to approve.

SECOND: Joe Schitter

VOTE:           6 Ayes   0 Nays (Mr. Addington out of the room)      

 

Roger Emmons: Can I get one more?  I have a transfer.

 

Commissioners:           Transfer from        001-116-4315.00                                    Juvenile Detention               $24,773.00

Transfer to   001-116-4175.00                                    Workmen’s Comp               

 

Roger Emmons: This is what you asked me to do. 

 

Ray McIntyre: Can we not find that money someplace else other than where we know we will have to put it back, one of the other lines like contractual services or telephone savings or something where we save money?  We know that we have to put that money right back.

 

Joe Schitter: I think because it is Juvenile Detention, Workman’s comp we are going to have to put money in it anyways. 

 

Ray McIntyre: This is almost just a waste of time, because you know we have to put it back and last year we had to put it back, I really don’t want to make this transfer, it needs to come from someplace where there is actual money we don’t have to have.

 

MOTION: Joe Schitter made the motion to transfer $24,773.00 from Juvenile Detention

SECOND: Raymond Bracher

VOTE:           6 Ayes   1 Nay   (Ray McIntyre)

 

Roger Emmons: Thank you gentlemen.

 

VEHICLE INSPECTION FUND

305-000-4445.00                           Equipment                                             $         745.00

 

MOTION: Ray McIntyre made the motion to approve.

SECOND: Joe Schitter

                                                                                                                                                                                VOTE:    7 Ayes   0 Nays

 

CIRCUIT COURT ADULT PROBATION

331-000-4189.20                           Substitute Court Person                     $     10,000.00

 

Greg Richmond: Fund 331, this is a user fee.

 

Bob Addington: This is a part time position as I got it from my reading information. 

 

Ray McIntyre: But it is user fees.

 

MOTION: David Hachmeister

SECOND: Bob Addington

VOTE:    7 Ayes   0 Nays

 

331-000-4443.00                           Office Equipment                 $       6,000.00        

 

Bob Addington: That is out of the same fee isn’t it?

 

Gary Meyer: Yes.

 

MOTION: Bob Addington made the motion to approve.

SECOND: Raymond Bracher

VOTE:    7 Ayes   0 Nays

 

COUNTY COUNCIL

499-000-4112.20                           2004 Employee Compensation           $   310,000.00

 

MOTION: Greg Richmond made the motion to approve.

SECOND: Joe Schitter

 

Gary Meyer: Any discussion?  This is out of the Rainy Day Fund.

 

Greg Granger: Yes, why are we calling it compensation?

 

Gary Meyer: It is supposed to be a bonus, I don’t know.  What did we call it?

 

Joe Schitter: We didn’t call it compensation, we called it something else.

 

Gary Meyer: We called it a bonus before. 

 

Discussion among several.

 

Joe Schitter: This is just the employees not the office holders so there isn’t a situation with the compensation is there?  Just because it says compensation it is a one time event.  A one time check that is going to be given out so do we really need to worry about using the word compensation?

 

Greg Granger: From that distinction, but we never called it compensation before.  We wanted to avoid ...finding it as any increase in salary. 

 

Ray McIntyre: Can we just change the wording on our motion to say bonus? 

 

Greg Granger: I was just wondering why it was called compensation.

 

Gary Meyer: I don’t know, I bet it just came out that way on the agenda.  We never used that terminology.  That was the reason. 

 

Greg Granger: The resolution was passed already, this is just funding for it.   I don’t think it is a big issue I was just wondering.

 

Gary Meyer: Greg would you like to amend your motion to call it a bonus instead?

 

Greg Richmond: Yes.  I don’t like bonus but I will do it.

 

Joe Schitter: I will amend my second too.

 

Gary Meyer: Okay this will be 2004 employee bonus of $310,000.00.  Motion made by Greg and seconded by Joe.  Any further discussions?

 

Joe Edwards: I have question, I heard talking about publishing and notify the public, does that mean you are restricted tonight to this $310,000 figure?

 

Gary Meyer: Yes. That is what we have advertised.  Any further discussion?

VOTE:           7 Ayes   0 nays

 

TRANSFERS:

 

Council:                        Transfer from        001-145-4314.00                                    Contractual Services           $2,000.00

Transfer to            001-145-4211.00                                    Supplies

 

Gary Meyer: Last page. 

 

MOTION: Joe Schitter made the motion to approve

SECOND: David Hachmeister

 

Gary Meyer: Any discussion?

 

Bob Addington: Do we have a contractual services line item now?  I thought we had to dispense with that.

 

Gary Meyer: No it is real small, $5000 I think.  We had a larger one, you were right, we bought an ambulance out of it at one time, but we can’t do that anymore. 

 

VOTE:           5 Ayes   2 Nays    (Bob Addington and Ray McIntyre)

 

SIGN IN SHEET:

 

Gary Meyer: Sherri Sherman, I think she has gone.  Jim Rine, Spectronics is gone, Joe Edwards.

 

Joe Edwards: I am still Joe Edwards, the same loyal County employee who was here last month.  When we talked last month I gave you my appreciation for the $1000 compensation/bonus and I think in my excitement, it escaped me and I am assuming possibly it did you gentlemen too.  There is another class of employees who did not get anything and I know before I over extend myself that that was primarily meant to help us a little bit with the health insurance.  But there is another class of employees who I think maybe deserves some consideration, part time employees were not . I have tried to so some simple math, I don’t know how many part time employees the County has, I am going to ask you for a whole lot less that two or three hundred thousand dollars though.   I know my wife works at Casey Road disposal site, that is where most of my knowledge comes from on the hours , employees and that sort of thing, counting employees I know of part time, including the land fill and other remote sites, I came up with 18 people.  There may be others in the county that I am not aware of.  For math purposes I rounded it up to 20.  I made the assumption, which is not correct that each of these people work half time which will be 1040 hours, most of them do not.  People at Casey Road work Monday, Tuesday and Wednesday work 15 hours per week, people that work Thursday, Friday and Saturday work 18 hours a week.  Again, I am being conservative in what I am saying.  These people I believe most of them do a good job, they get no benefits, they get no holiday pay, they are the cheapest employees the County has.  In fact, holidays cost them money.  People that work at Casey Road over Christmas lost one half their pay check for that Christmas period because it was closed Thursday, Friday and Saturday.  Every Monday holiday, people that work Monday, Tuesday and Wednesday have lost one third of their pay.  These people don’t ask a lot, and I know for an example they do meet the public and I think generally give a good appearance of themselves as employees of the County with most of the people that utilize these sites.  I do know for a fact at Casey Road right now, over this past winter, the only heat they had in there was from an electric heater that belongs to one of the employees.  It was personal property they brought in to keep the chill off the building.  The air conditioner that was supplied by the County went out, one of the other employees brought his own air condition from his house and has not asked anything for it.  Of course it wouldn’t fit in the hole of the one that broke so he and one of the other fellows did the carpenter work and got it mounted.  I commonly go to the store and my wife gives me a list.  Last night in fact, I went to the store and one of the items on the list was a sack of dumb dumb suckers, I don’t eat them and I have never seen her with one and I questioned that, it is not Halloween, come to find out after she has been there several years, she gives away candy to the little kids that come through, with the permission of the parents of course.  I guess the point  I am getting across is these people do a lot that they don’t have to do and I think they represent the County in a pretty good manner.  I have done the math on twenty part time employees, assuming twenty hours per week, if each of those people were given a 20 cent an hour pay raise from the first of the year, that would cost the County $4,160 total.  Seeing as how we are now better than two months into the year if you ... the figures it would be $3,460 if it started March 1st.  That is a pretty small amount I think.  As far as the reason I am here tonight, nobody asked me to come, my wife didn’t know I was coming until she got home from work and I told her.  As far as I know none of these employees other than her know that I am here, I just think it is the right thing to do.  It is not strictly a financial issue, I think it is more of a moral builder and a pat on the back.  If this were in effect from March 1st, my wife would recognize $173.00 in addition to what she is going to get for the rest of this year.  It is not a money issue, I think it is a moral issue for these employees.  I would like to ask the Council to consider that from the Rainy Day Fund, I think it would be less than $3500.  Maybe considerable less if the hours are as conservative as I thought.  I think it will be $3500 well spent for people that represent the County.  Thank you.

 

 

Gary Meyer: Thank you Joe. 

 

Joe Schitter: Thank you Joe. 

 

Gary Meyer: That is all on the sign in sheet.  Anybody else from the public like to address the Council?  Sheriff Heilman.  I’ll be disappointed if you didn’t.

 

Marvin Heilman: Sheriff Heilman, it is not that I need an answer for this but the council brought this up I think last meeting about the public official and I haven’t heard any answer about that.  I don’t have an opinion, public, about the bonus but it was brought up that it would be discussed and I just wanted to know if a decision has been made.

 

Gary Meyer:   Yes and no, the decision has been made by the State Board of Accounts.  We can not do it.  We can not change an elected officials salary once it has been set. 

 

Marvin Heilman: Okay.  As a bonus or compensation either one?

 

Gary Meyer: Right.

 

Marvin Heilman: I wasn’t asking for it, just wasn’t brought up and you said it would be. 

 

Gary Meyer:    It was left off our agenda.  We did table it last time and we investigated it and found out we couldn’t do it. 

 

Marvin Heilman: I should echo what Joe said, I too have  part time employees and I know that was intentionally left off the bonus, if there would be any reconsideration of that, some of the similar things Joe said, I certainly have loyal part time people too.  Similar sentiments that Joe has they are loyal employees and any consideration that could be given them in the future I would certainly echo what he said. 

 

Gary Meyer: Thank you very much.    Anybody else?  Any Council members?  I would just like to publicly thank the personnel committee that reviewed these applicants I know it is a tough job, it is a new position we didn’t really know where we were going or what to expect and I think they did a great job and I would like to publicly say thank you.   Any other Council member have anything?

 

Greg Richmond: The Personnel Committee needs to stick around so we can pick a date to meet on the issue. 

 

MOTION: David Hachmeister made the motion to adjourn.

SECOND: Ray McIntyre

VOTE:           7 Ayes   0 Nays

 

 

 

 

WARRICK COUNTY COUNCIL      

 

 

______________________________________________                                     ___________________________________________

Gary Meyer, President                                                                                                        Ray McIntyre, Vice President

 

______________________________________________                                     ___________________________________________

Greg Richmond                                                                                                                     Raymond Bracher

 

______________________________________________                                     ___________________________________________

David Hachmeister                                                                                                              Bob Addington

 

___________________________________________               

Joe Schitter          

 

ATTEST:

 

_____________________________________________

Richard I. Kixmiller, Auditor

Warrick County