Redevelopment Commission 07/12/2018

The Charlestown Redevelopment Commission met for a regularly scheduled meeting on Thursday, July 12 at 9:00am. The following is a summary of this meeting with full audio (16:41) available at the end:

  1. Call to Order/Pledge of Allegiance
  2. Determination of a Quorum and Roll Call: Members present were Ted Little, John Spencer, George Roberts, Eric Vaughn, and Bob Hall. Also in attendance were attorney Michael Gillenwater and Clerk Treasurer Donna Coomer.
  3. Approval of prior meeting’s minutes, current claims, and payroll allowance docket from 06/24/2018 to 07/08/2018 combined into one motion for consideration.
    • Motion to approve made by George Roberts
    • Seconded by John Spencer
    • No Discussion
    • Unanimous approval
  4. Partial Releases from loans granted to Springville Manor, LLC:
    • Mayor Hall explained that loans in the amount of $55,000 per home were originally granted to Springville Manor, LLC from the $2.5 million bond that the City obtained from New Washington State Bank (approved by City Council September 5, 2017, see HERE). The Mayor reminded the commission members that Springville Manor, LLC was the only developer to respond with a bid after the City advertised a need for senior housing. During negotiations the City agreed to invest $800,000 into roads, sewers, water, and site prep for the project. (The City will receive incremental tax revenue into the established TIF fund off of these improvements.) Mayor Hall noted that Springville Manor, LLC has received a loan of $55,000 per house (for a total of $1,760,000) on which they pay 2% monthly interest until each completed house is sold, or after 5 years, whichever comes first. Home construction costs total $69,900 and they are being sold for $65,000. Once the homes are sold, mortgages are assigned to the homeowner and Springville Manor, LLC can be released from their debt to the City for each property. Mayor Hall explained that homeowners sell their Pleasant Ridge properties for $10,000, receive a $20,000 forgivable loan (must live in the home for 3 years and a provision is made for death), and take on a $35,000 loan at 2% simple interest that equates to an additional $700 per year which is applied to the loan amount, for which the owner does not have to pay while living in the home (after 10 years the loan amount will be $42,000). Mayor Hall noted that Springville Manor, LLC does not make money on the houses in Springville Manor but hopes to recoup their expenses one day through their acquisition of property in Pleasant Ridge. The business today releases Springville Manor, LLC from their debt for homes that have been sold and officially transfers the debt to the homeowners.
    • Lot 1 – Hayes
      • motion to approve made by John Spencer
      • seconded by Eric Vaughn
      • Unanimous approval
    • Lot 3 – Wolfe
      • motion to approve made by George Roberts
      • seconded by Ted Little
      • Unanimous approval
    • Lot 7 – Melton
      • motion to approve made by John Spencer
      • seconded by Eric Vaughn
      • Unanimous approval
    • Lot 8 – Pelcer (spelling?)
      • motion to approve made by Ted Little
      • seconded by George Roberts
      • Unanimous approval
    • Lot 13 – Smith
      • motion to approve made by Eric Vaughn
      • seconded by John Spencer
      • Unanimous approval
    • Lot 14 – McBride
      • motion to approve made by John Spencer
      • seconded by George Roberts
      • Unanimous approval
    • Lot 15 – Ottman (spelling?)
      • motion to approve made by George Roberts
      • seconded by John Spencer
      • Unanimous approval
    • Lot 16* – Jackson
      • motion to approve made by John Spencer
      • seconded by Eric Vaughn
      • Unanimous approval
    • After all lots passed Ted Little raised a question about the lot numbers and noted that the Jackson house is not Lot 16. Mayor Hall noted that the correction to lot numbers would have to be made.
  5. Attorney Gillenwater updated the Commission on the police station build and said that all paperwork has been completed. Mayor Hall said that a groundbreaking should be next week.
  6. Adjournment
    • Motion made by Eric Vaughn
    • Seconded by John Spencer
    • Unanimous approval

Audio of meeting (16:41) here: 

City-NEws-e1455073509249

Author: Treva Hodges

Resident of Charlestown, Indiana. Advocate.

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