Board of Zoning Appeals - Regular Meeting

meeting to order. I believe we've got the mics on. We're good. The camera's on. Uh again, a matter of housekeeping, we are live streaming. Uh our channel is Salem City Hall at Salem City Hall on the YouTube platform. So, uh as I catch my breath, I was outside unloading a semi. Okay, we will start the agenda tonight. Uh, please with roll call. Dan Dan Lipkkey, board of work, public works and safety. Justin Green, mayor. Sally had all city clerk treasurer. Warren Jones, board of public works and safety. Melissa Cochran with Frost Brown Tide.

Okay, we do have a quorum. All board members are present. Uh, so please, let's start the agenda. Uh minutes of the September 8th meeting are on pages one and two. I will make a motion to accept the minutes from September 8th, 2025. And makes a motion. I'll second. Truck seconds. All in favor say I. I.

I. Post. Same sign. Um please then uh we will go down to the mayor's comments. Got a few to share with you guys. Um we have got obviously some CCMG work ongoing. the community crossing matching grant um program uh is alive and well with us in our project. So, Popler Street is one that we are uh certainly in the midst of. As I shared with you gang last month, we're a little bit of a hiccup and that's not fair. A little bit of a hurdle with a couple of the utilities and trying to figure out some changes there uh that need to be done. And so, uh, we're navigating with two of those utility providers. I think we got a fix for it. Matter of fact, we had crew back on, uh, the project yesterday. So, uh, as the schedule is tomorrow, you should see some curb being poured on Popppler. And so, uh, I think we've got some things navigated that just weren't unexpected, quite frankly. So uh and on that parcel if you look as the crow flies there to the side of uh the u be the south pardon me south uh west quadrant in the u corner there the redevelopment commission is doing one of their projects and uh that was a demolition of an apartment building that has turned in turning into um available parking and so as that project progresses um there's been some nice changes uh to that and they are forming uh some of the uh walls that go along there retaining walls and setting the boundaries for that parking lot. So additional housing downtown is coming and so that's what we all are excited to see uh and some of that elimination. So uh those two there go hand in hand. Um so housing projects board just want to keep you mindful we are uh certainly in

the uh process of working with some developers and having some additional housing projects um quite frankly get started. Uh we've had a few that were in the hopper and so I think you're going to start seeing some announcements soon and uh this board the council uh redevelopment all have been team players here so it's going to be some nice uh additional announcements coming up pretty soon. Um in addition to uh repairs uh the high street intersection guys you may have seen has been uh a little cumbersome at 56. Uh INDOT has been working diligently uh with some of our folks in figuring out the best fit uh for that repair that was not a permanent repair. uh it had uh been addressed a few years ago with some concrete patching that had always been on INDOT's radar to repair and so that has come full circle. Uh making all that timed uh work come together has been a little difficult. Sorry. Um that that was hopefully a little quicker on my end, but um we had some conflicts there. So today they were working and I think tomorrow they'll finish that. So, get that buttoned up for the High Street intersection. Um, and one last thing, uh, on the brick series. Hey, I just want to share with you guys, uh, we're working on another one. So, uh, be mindful. It looks like this month, October, October 24th, we are planning, uh, here again on the bricks. Uh, this will be food truck on the bricks. So, uh, come out and and try some, uh, local food, uh, or local vendors and, uh, take something home maybe by chance or sit and chat with your neighbors. But food truck on the bricks October 24th.

What time does it start, Larry? Uh, that one will start a little earlier. Uh, we plan on starting at 4:00. Thank you. Those who might want to uh, leave work and take food home would have that option. A little little earlier on that one. Okay. Um, can't read that. I can't read that. What is it?

What about the same? No, no, that won't matter.

Okay. Y sorry, we're discussing recipes. She wants allpurpose flour and I say no, that's not that's not necessary. Okay, moving on. Uh we'll leave the mayor's comments and we'll go to reports from departments. Please um wastewater. Uh Brandon has submitted his report to us. Um he had something tonight he was tied up with so he's not in attendance. So please board look at your waste water. As you see in his list, he's been doing a number of camera sites and logging those linear feet of pipe. That's something we're diligently working on to a goal of our large diameter, trying to get the 10 in, 8 in, and even down to the 6 in all cammered and uh and having those current. So, that's part of what his crew has been doing. And that's a twoperson job. Uh, they can't just send one. That takes two to run the truck and the camera simultaneously. Any questions I can answer on Brandon's behalf or something you'd like to relay?

I have nothing. I have nothing. Okay. Please then, if you go to your water uh, Jennifer, please Jennifer tonight. Good. How are you?

Good. Good. September. All monthly monitoring samples were analyzed and approved for the month of September. Lead and copper three-year compliant samples were also analyzed and approved. Uh routine preventative maintenance was done on chemical pumps, clarifiers, towers, and booster stations. Um sludge was hauled eight days in the month and 94,900 gallons. Um, just wanted to mention that Brandon and his crew completed a maintenance cleanout on the old clarifiers at the plant which can now be utilized for storage tanks. Um, a maintenance cleanout of bulk tanks and installed electrical service to a below ground vault. And Ronnie and the distribution t crew modified and put in a bulk tank and a sump pump in the below ground vault and also re repaired some bulk tank mixers. So, um and just uh we had a good month and um we had a very low um uh unaccounted for water loss this month and um just everything's been staying really really steady and it I just think that some of that is due to the upgrades of in the um in the city with the leaks and and with the um infrastructure and all. So again, Jennifer has been very diligent in her duties. Um been a busy month again. She's u actually working towards some goals that we want to get done before cold weather.

Yes. And so we're going to retrofit a couple of valves at at two of the uh well I guess mainly just the west tower but at the west tower tank and change some things so they're not quite exposed to the elements this year. Any questions of Jennifer? I have none. All right. I'm glad to see the 3%. Hey. Yeah. Nice. Fantastic. I've never seen it that low before. That's uh Yeah. Well done. Thank you. Thank you.

Okay. Uh please, board, if you'll go to your utility adjustments on pages three and four. I'll make a motion to accept the utility adjustments as stated truck makes a motion to approve. I will second that motion. 10 seconds. All in favor say I. I.

I. Post. Same sign. Okay, let's move down. Unfinished business, old business. Uh, I gave you most of that in the mayor's comments. Uh, Sally, anything that we omitted that we need to discuss? Nothing. Board, anything on your uh, radar?

Okay, I think we've got everything covered then. Uh, new business kind of hand in hand. I did not have anything new. Um what's pending I guess under CCMG kind of go back to that category. Kimble Boulevard is is still next. I say next I kind of thought we might start yet um for this meeting. So we haven't yet but kind of look for that that that's not a surprise if you see crews out there probably be prepping that road pretty quick in preparation prepping for preparation to get Kimell Boulevard done. Okay. Uh, if you would please, uh, your utility voucher of claims, page 5 through 18. I'll make a motion to accept the utility payable voucher register of claims.

Dan makes the motion to approve. I'll second. Warren second. All in favor say I. I.

I. Post. Same sign. Okay. Uh, one item of miscellaneous. I have a request from Salem Apothecary. Uh Rebecca Marshall has asked us on October 17th to reserve uh three parking spaces. Uh she is celebrating 40th anniversary of the apothecary. So 40 years uh of being in business on the downtown square and so she wants to have a celebration uh board and so uh her request is on page 19. I'd make a motion to allow her to do so.

Okay. Let's not quantify because she she does say several and then she does group it down to maybe three. So, uh let let's say you know if you're willing to shut that part of that quadrant down, we'll just let the street department leave out the barricades and she can have at it. Obviously, you see her times. They're later in the day. So, uh, that should not be an issue. Shouldn't be a problem. Yeah. Okay. Okay. It's on our sidewalk. Okay. Um, I will second. Second. All right. All in favor say I. I. I. Same sign.

Okay. Uh, that brings us to comments by citizens. We did not have anybody to sign in. Uh, so before we get to adjournment, uh, I'll ask our attorney, is there anything you'd like to add? Nothing. Okay. See motion to adjourn. Make a motion for adjournment. Dan makes the motion. 5:14. Uh, we got a few minutes. We will uh start the common council at 5:30.

[Music] Okay, it is 5:30. We'll go ahead and call the common council meeting to order here tonight, October 14th, 2025 in the council chambers. Uh the first order on our agenda is the invocation and the pledge. Um, everybody would stand. Danny, Roger,

all wise and merciful father that is in heaven, we thank you for this day and all the wonderful blessings of life. We thank you for the air that we breathe, the sun, the moon, the stars, everything you created. Lord, sometimes we take that for granted. Too many times we come to you whenever we need support. Whenever we need to return that favor, we kind of shun you. Lord, I pray that you will be with everyone here in attendance tonight. I pray that the decisions that we make will be just and in accordance to your holy and divine word. Be with all those that is our duty to pray for. Forgive us all of our many unforgiven sins that we have committed and save us in the end. These favors and all others we ask in Christ's name. Amen.

Please face the flag. I pledge algiance to the flag of the United States of America and to the republic for which it stands, one nation under God, indivisible, with liberty and justice for all.

Okay. Um, thank you Danny. Thank you, Roger. We'll start next with roll call, please. Dan Libkkey, District 1. Dylan Moore, District Two. Alyssa Cochran, Frost Brown Tide. Justin Green, mayor. Sally Hadabo, city clerk treasurer. Randy Lee, District 4. Roger Pennington at large.

Okay. Uh Diane Armstrong is absent this evening. Uh she sends her regrets, but we do have a forum 405. So, please uh council, we will proceed uh on the agenda. First up tonight, we do have a public hearing that was advertised uh on pages one and two as an additional appropriation. Uh that is the court treasures department. Sally certainly uh explain to us why we do this from time to time. We do this from time to night time because some things don't get budgeted uh as much as we need. So there are monies in the fund that haven't been budgeted. So, we're just moving that money into the budget so we can spend it.

And was there a one or two of these, pardon me, um that actually received some additional monies and so uh that was new money. In other words, that needs to go in that fund. If we receive money in that's not been budgeted, then we have to do an additional appropriation be allowed to spend it. Okay? And so these are all within the fund allowance and this is the uh state board of account process, right?

Okay. Um so is there anybody in the audience tonight to speak on behalf of the additional appropriation going once, twice, three times? Is there anybody in the audience tonight to speak against the additional appropriation? Going once, twice, three times. Okay. Council uh request motion to close public hearing. I'll make a motion to close a public hearing. Dylan makes a motion. I'll second. Roger second. All in favor say I.

I. Same sign. Okay. Uh Sally has prepared then on the following pages three and four the ordinance supporting the same uh hearing. So Sally, anything you want to add to that? No, nothing to add. It's it's exactly the same as the notice of taxpayers. Okay. Council, then you have before you ordinance 2025. Any questions of Sally? I have some questions, Mr. Mayor. So, this is $446,000 that we we did not have budgeted. Correct. And then where did this $446,000 come from?

Part of it was money that was in the fund but was not budgeted originally. Part of it is money that we did receive during the year that we did not have budgeted because it was received in the year. And so that allows us to So, are we using any money from a GO? That go, that one is for the GO payment. Um, that one did not get budgeted this year, so we had to put that in. We have the funds. It just need be put in the appropriation to spend. Clarification there to Roger's question. Uh, Sally, did that not come about because they had now requested payment prior to December 31?

Correct. It's due on the 15th of January, but they prefer it be paid by the end of the year rather than the 15th. So, I guess my question is, is the 233,000 is that coming from an existing GOP bond? It's already existing. So, we're using bond money to pay debt service. No, that's No, that's not bond money. No, it's it's the money already there. We just did not have it set in the 25 budget to make this year's payment because they they they preferred now the payment be received prior to December 31st. It would have been made in 26. I guess I'm just a little confused. I I don't quite understand that last item there. It pays the bond off

and the money the money comes from where does it come from the GOB that the city the tax taxpayer? It's it's it's that tax um fund or tax draw that we get. Okay. It's not the GOB. That's what it says on here. It says the fund name, I'm assuming. Is that what it's coming from or going into? It goes into it. It's the addition to that fund. Okay. But the money is already here. We just did not put it in the 25 budget because prior we are making it in the January time frame. Now they have requested it be paid prior to December 31.

I'll make a motion to accept ordinance number 2025-21. I'll second. Dan makes a motion to approve. Dylan seconds. All in favor say I. I. The same sign. I. Okay. Three, two, one. That carrying. Okay. Uh minutes of uh the meeting September 8th are on pages five and seven. Please review. Make a motion we accept the minutes of the September 8th, 2025 meeting. Roger makes the motion. I'll second. Randy seconds. All in favor say I.

I. Post. Same sign. Okay. Uh heading down the agenda, mayor's comments. Some things I shared with the board of works. Uh again, uh the popular street CCMG, the community crossing matching grant proceeds. Uh hate to sound like a broke record, but the utility hold up uh has went a little longer. So, the tug of war is no pun intended, but yes, uh there has been some issues with um three of the services in that corridor. Uh made some headway last week, thank goodness. So, uh I do think uh that has been resolved moving forward on Popppler. Uh we actually started yesterday back with the crew uh doing some ancillary work and tomorrow supposed to have some curb pores. So, uh, that should be taking shape, uh, in the general vicinity, uh, one block off, if you will, the, um, redevelopment commission's, uh, purchase of the abandoned apartment house that was demolished, uh, that is proceeding with that parking lot with the RDC's blessing. And so, there's actually been some work done there as well and some retaining wall and some site prep. So, that's taking shape uh, and making nice progress. Sally, forgive me. Am I telling it right? Is it 16 spaces that generated?

I believe so.

Dylan, does that sound right? I think it was 16. Um, anyway, so that's that's going to be a nice little change of that southwestern quarter. Uh, some other things, uh, you're going to hear about one tonight, uh, as well, but we have some housing projects that are getting off center and getting started. Uh, couldn't be happier. Uh, we we certainly want the housing development. We want the additional uh, inventory. uh for our realtors, for our residents, uh what have you. The the the need is here. And so, we've got some developers that are ready to go. And so, I think you're going to see some nice announcements and some change uh of some lots. And so, uh here it is October, but there's still some daylight, if you will, before the end of the year. And I think you'll see some uh site prep, uh on those before the end of the year. Uh speaking of of work and construction, the high street approach to U 56 has uh been a little bit uh rough and there's a bump and certainly I addressed that with the board of works. INDOT uh has had some uh say on that obviously it is it is their road their intersection and there's some change of concrete that's happening and they finally got that addressed today and so uh fingers crossed I don't believe there's any rain in the forecast. So tomorrow yes they should pave uh and and button up that High Street 56 interchange. So just to give you an idea that that has been uh certainly in conjunction with INDOT trying to get that put together and and work on their time frame too. Um so those are some items there I just want to share with you. Uh got some more that are um forthcoming for the November. But one last one uh the the on the brick series continues and I shared with uh our board of works members we're going to do food truck on the bricks. So that's next. Uh we have some local food trucks. That's October 24th Friday. This one starts a little sooner because uh hey, you may want to grab something when you get off work. So, it actually starts at four o'clock. So, uh that's Friday here on the bricks and we'll have that

coordinate off just like we have been. So, okay, that's uh that item. Uh we'll drop down reports from departments, please. Your financial statement uh for September. Uh Sally 8 pages 8 through 14. What do you have there? Uh nothing to add. That's your normal signed report for the month. I'll make a motion to approve the financial statement for September. Dylan makes the motion. Second. Randy second. All in favor say I. I. Oppos. Same sign. Excuse me.

Your senior center calendar is in your packet pages 15 and 16. Naomi has included and again she has a very active agenda, plenty of members. It's a good thing. Okay, we're going to pause on the agenda. Uh we have invited some guests uh tonight, some local royalty, if you will. Uh we have the Lady Lions softball team and a handful of coaches and assistants. And uh hey, they had a winning season. Uh so uh gang, please come forward and stand and and uh so we can have some questions and answers. And uh this is a little bit dated uh but better late than never. Yeah, come on up.

So, tell tell us what uh what was our what was our record last year? 189. and we've got how far right? All right. Okay. And so, u all the hard work, all the effort obviously paid off and uh I know these coaches they do a heck of a job. So, ladies, uh but most of the credits to you. So, good job. And so, um hey, honorable number as they say, right? So, how many are still playing? Everybody. Okay. Okay. I thought so. I'll make sure.

Oh, we got we got graduated, but she's she's staying as a assistant. Oh, are you? Okay. Okay. Cool. Cool. That's nice. Okay. Now, everything feel pretty good. Are we on track? Yeah. Yeah. Good deal. We're just missing Justin. We're missing like three or four kids. No freshman. freshman here today, but we're missing

Joie. Josie volleyball.

Well, sure. Sure. Plenty to do and it's busy season. Coach Pennington can tell you that. Everything at once. It is busy, busy, busy. Uh well, I'm so appreciative of for you coming in. Uh we chatted about this. Actually, Roger and I did. You know, hey, we need to recognize them and we don't want to forget anybody and you guys certainly make great strides and did a wonderful job representing Salem last year. So, we're square behind you. Who wants to be the spokesperson? Who wants to tell us anything extra? Any any jokes? you know, some something about one of the coaches. I mean, this is this is all fair game, you know.

Well, so we only have we have a lot that like to talk, but usually it's not stuff that's important that they talk about. I'll introduce the coaches first, please. Yeah. The first one on the left, you're going to know because you were in the same class, also. This is Elena David. She's married now. Okay. Yeah. Yeah. I get assistant coaches when they get married for Tim. Tim was married when he came. This is Kennedy. Kennedy

little Okay. So, our lone senior actually hit a home run, her only home run she was a great great deal. We got a lot of great guys probably, you know, a lot of play travel. Yeah. totally not related to

coaches. You have anything else you want to say? They're a great group of girls. And I would like to add that the team that we lost to was the team that ended up winning state. So sometimes that way, right? We'll talk about that. That won't be this this year. That's different.

Uh well, uh ladies, uh the woman behind you in the green top now, Sally Hatabo is an A softball player. Let me just tell you, if you look at the record books, you're going to find her name four or five places. So, you know, when you're up and down the halls and you you need something to do or you'd like to reference her skills, please call her. Look her up. She's willing to come to the field. Hey, guys, I'm telling you, she is a team player. So ladies, if you want to pick her brain, just just ask her. Sorry girls. Talk about record books. These girls, they are in the record books. They're the first regional champion, first team to win a semi game, right?

Let's give all hands get married. around further back. Yeah, that's

great. Thank you guys.

And don't be strangers anytime you'd like to come.

Sally, which position did you play? I forget she was pitcher. Oh, that's right, Randy. I was going to say catcher. You know, I sometimes I just forget. Okay. Okay. Been easier for you to say what position did you not they moved you around a bit bunch, didn't they? Yeah. Yeah. That's that's that's a good seasoned player. They do that.

Okay. Council. Hey, that was fun. Always enjoy having groups in and uh representing our city and they did very well obviously. So, okay, back to our agenda. Uh, that brought us to uh unfinished and old. Uh, and I think it kind of corresponds with the new and Sally, unless you have something extra. This was it. Okay. Council, please. Then, if you will, ordinance 2025-17 is your second read of the B budget ordinance, pardon me, budget ordinance, pages 17 and 18. Uh, Sally, so we saw this last month. Correct. This was the advertised public hearing uh that we held and then the council with u financial gave their uh update and uh the process of needing to pass uh and have vote and so that happened. Uh we had first read it did pass and so um under your SPOA guidelines this is your second read.

Okay council nothing has changed. Uh it is the same information you had. It's the same data uh just procedurally as uh it needs to be back on the agenda. This is second read. So uh at your pleasure would seek motion to approve 2025-7. We just have one real quick question, Mr. Mayor. Um I I kind of missed this the first time through and I wish I hadn't, but just looking at the adopted tax rate. What was our tax rate for fiscal year 2025? All part compared to the adopted We went so what we're adopting Sally help me I don't want to say this wrong we shaved off three pennies yes so it is less

the number the numbers I had was in 2025 it was 2.05 and it's proposed to go to 2.88 88. No, no, we actually got from I thought Baker Tilly Yeah. Betting that thing even said it went down 23. Yeah. So that So that number I have is not correct. No. Okay. I'll have to I'll have to double check that then. Yeah. Yeah. It it went down for 26. Yeah. And mayor, this this budget that we're approving here gave a what percentage raise for our employees?

Uh yeah. Um um three. Yes. Uh too many numbers. Sorry, I had to think that through before I said for sure. Uh that is all uh employees minus elected officials, Dylan. So to your question, that that is um full-time as well as the parttime. So that 3% then would be January 1. Make a motion to accept ordinance 2025-17. Okay. Council Dan makes a motion to approve second read 2025-7. I'll second that. Dylan seconds. All in favor say I. I. Oppose. Same sign.

Okay. Motion carries. Uh please if you will uh ordinance 2025-18 salary ordinance uh 19 through30. Now Sally tell us what that is. It's every department that's in the city that it's every person um in general termination or terms excuse me of their pay includes longevity. It includes the holidays um and it explains uh vacation and everything like that. So their total compensation. Yeah. PTO longevity. If you look at the whole thing, it tells everything.

All right. And so and this is reflective of Dylan's question. This shows shows a 3% increase. Thank you. Okay. I do see one thing on here that I just have a question about. So, our underneath the uh police department, it's going to be line, it's going to be A1, school resource officer. That's still a question, but we put it in there just in case. Okay. You know,

it is not being funded out of this today. And to Sally's point, um it would behoove the council, I think, Sally thanks and agreed to leave it there as a placeholder. Uh if that money is not spent, certainly then council and Sally would have an option of my chance moving it if needed in the police budget elsewhere in calendar year 26. But there also is a possibility that the school would say we need some other item of assistance and if we take it out then we wouldn't have anything.

But didn't the school take on the responsibility of the SRO position? Correct. as of August and for the foreseeable future, but I don't want to say that's a crystal ball knowing that it's permanent. So there's our cushion, if you will, um I I 27 to your question, Dylan, 27 uh budget proposal may no longer need this.

I would like to look at that. it obviously in the 26 budget when we're planning for 27 because that I mean I understand that money is just holding a place right now not not going to be spent yet um but if the if the possibility is there to use that money to give them a a raise then I think we and Sally that's where you need to clarify it so this is out of um lit dollars this is not out of common counsel this is public safety um G budgets within lit under the public safety line. And so, um, this actually doesn't, um, take away take away. Okay, that makes that makes sense.

It's lit. Okay. And that's designated there says paid from public safety. Sorry, I see it now. Yep. Okay. But nothing less. that that fund could be used for equipment for them and and public safety then could be shifted. Yeah. Okay.

And their overtime uh budget here would did that go up or did that go down from last year? That went up. Okay. Because they had a lot of over a lot of overtime for officers. And the fire departments, did theirs stay the same or theirs? They don't have as much over Yeah. If nothing further, please would consider ordinance 2025-18.

Make a motion to accept ordinance 2025-18. and makes the motion.

Call for a second. I'll second that. Gentle seconds. All in favor say I. I. Post. Same sign. Okay. Uh please, if you will. Now, this one should be an easy one. Uh ordinance 25-9, salaries for elected officials. Uh Sally has to prepare this regardless of change, no change, uh as the case is. And so, pages 31 and 32 are reflective of no change. Uh but nonetheless, it does require uh action. And so, that's what you see on 31 and 32. Make a motion to approve ordinance 2025-9. Gentlemen makes the motion. Second. Randy second. All in favor say I.

I. Post. Same sign. Okay. Uh, ordinance 2025-20. Uh, please car purchase lease. Uh, council. We do this uh very regularly with um again um the LIT in the public safety fund, but it requires uh a ordinance in order to s for Sally to sign the uh lease documents uh on a incoming police car. And so uh Sally, what do you have to add to that? Nothing. You've you explained it.

Well, I stole your thunder. Okay. So uh yes uh through uh the rotation and mileage and time it is u appropriate to look at one more and so this is just as her uh verbiage says it's a lease with a purchase at the end and so we do retain those cars uh after that new Washington State Bank has been very kind in doing those. I'm assuming they'll pick this one up as well. U but anyways that is what you see on page 33 and 3 235 and there's no trade in with this one. We're not getting rid of anything. Correct. No.

So, how many pull cars will that give us? You know, probably I know she Sorry. Pull cars. Um, three. Three. And one count. Correct. Is one still a backup K9 car for a K9 handler or did they revert that car back? Oh, you're testing me now. I don't know if that cage is still in that car. Pardon me. I don't remember. I believe Chad has Okay.

So, I guess moving forward. So, I know this this will be our only police car for 25 here, but looking at 26, obviously, will there be are are we getting rid of something in 26? Uh yes, that Oh, Sally, I I keep asking you because uh I'm I'm I'm looking at the inventory in my mind. Uh don't we have two 2019s that come out? Yes. So, Dylan, to your point, I think ah you know what, I shouldn't say that with certainty. One of them may be a 17, but yes. Uh then we'll probably trade two next year. Okay.

One's at least a 19, but that the other one could be a 17. I'll make a motion to approve ordinance 2025-20. Okay. Dylan makes the motion to proceed with the ordinance for the uh lease/purchase. Randy seconds. All in favor say I. I. I will abstain from that vote due to where the vehicle is going to be purchased.

Okay. Thank you for pointing that out. Didn't catch it at first. Okay. So, we do have one extension. Okay. Okay. Please. Uh, ordinance 2025-22 is a transfer ordinance. So, that is internal. Uh, on pages 36 and 37. Sally, what do we have here? This is money that was budgeted, but we just need to move it from one line to another line to be able to spend it all within that particular uh line. Yeah. Okay. It was budgeted. We just have to move it around. That's what we're doing.

Okay. So, housekeeping item here of transfer ordinance. Please, if you will, 2025-22. This happens every year. We always this time of the year toward the end, you always are moving money. So, make a motion we approve 2025-22. Roger. Makes a motion. I'll second. Seconds. All in favor say I. I.

Post same sign. Okay. Uh next we have an approval of EDC resolution recommended by RDC council. We have a lot of abbreviations in politics and and the world of government. Uh economic development commission EDC economic development commission recommended by RDC which is the redevelopment commission. Uh two separate boards, two separate entities, two separate um uh visions of what they do. And so uh Daveby is here tonight. I'll let Dave come to the podium. Uh we have a project that has been proposed within TIFF 2. Uh our TIFF allocation uh of TIFF 2. That boundary is on the east side of town. And in that we have a housing development uh a very solid, very sound project uh that has been brought to the redevelopment commission. uh and uh in doing so uh we have uh been requested to do some uh on-site uh work with that developer and in that uh we are going to go back in time in history. This is a procedure that the city of Salem did for Cedarwood Development a number of years ago uh prior to the Walmart anchor tenant uh being in that uh area of town in the same TIF district. So, TIFF 2 uh has already had and experienced this once with David's help. Uh he certainly drove and steered us in those years, 2016 goes back a little bit. Uh we did that a number of years ago. Uh Danny and I were sitting at that end of the bench when that happened. And so, uh any wise, fast forward, we have another uh similar proposal. And so, please tell us what we have, David.

Sure. Um thanks a lot. Um again, Dave will be with Taft. um it's kind of basic standard issue lawyer. Another one of them um been working with the redevelopment commission and you may remember this uh last fall, right? We um had you guys approve a resolution that come through the redevelopment commission to carve out a piece of property from what we call tiff 2 here and create a new one that I believe we've called the Mason Manor allocation area. Okay. for the apartment project that's going to take place. So that was sort of the setup uh to create a new allocation area or commonly known as tiff district. Okay. Uh for that maybe what is it? Three parcels of land there. It's the existing apartments and a couple a little bit of green space around it. Okay.

Um so that was done at the fall. You know, as the mayor indicated, the projects kind of they never move as quickly as you think they're going to move and this one was no exception. So, it uh we're finally at a point now where it's time to to bring the thing to a head and actually do the financial closing and start the construction. Um what the redevelopment commission has agreed to with the developers, subject to everybody's approval, is that for the first 10 years after the project starts, uh the real estate taxes that are collected in that tiff district will go back to the developer essentially. For the next five after that, 80% would go to the developer. and then for the next 10 after that it'd be a 50/50 split uh until the tiff district expires in year 25. Okay. So procedurally uh the economic development commission which is kind of the city's lending arm if you will uh goes through a process a public hearing uh and approves uh the financing package which I'll I'll describe here in just a second. Uh then in addition to that, I mentioned the TIFF district is going to pay, you know, kind of some of the debt service on this transaction. So they of course have to approve it and they did that earlier tonight. So those two uh commissions of the city uh have done their approval. So now everything comes to the city council for approval. Uh and ultimately there's an ordinance there that uh kind of lays out what's happened uh and then the terms of the financing uh that is being proposed. and then if you're inclined to do so, there's obviously you approve it and then we would close at some point whenever everybody's ready to close. You know, there's not a magic date on that, but that's what we have. Um, in terms of more substantive issues, I mentioned this tiff split that we were talking about over the next 25 years. The way we do that, um, is essentially the developer will purchase a bond

issued by the city. Uh I think we're using $2 million as the number. So he'll put $2 million into an account uh by purch from purchasing that bond. Then that money is loaned to his project uh that owns the apartments. And then over the next 25 years, as the payments come due on that, that property tax that gets collected off of that new allocation area will go uh toward the interest payments on that. Okay, if there's not enough, then he just has to make up the difference. So, he essentially kind of has to pay himself back from his project. Okay? And then at the end of the term, you know, you guys are out of it. And then he's, you know, his project either owes him money or doesn't or whatever, but that's between him and himself ultimately. So, really, it's just a vehicle to get the tiff stream into the into the project as much as anything. I'll pause. Are there questions on either the process or the substance of it? I'm happy to discuss.

David, why don't you hit on, you know, this is um uh in TIFF 2. Now, these are um under Indiana code dollars as the acronym TIFF, tax increment financing. Those are dollars that are captured uh by the redevelopment commission because it's a tiff district. And so that was set up a number of years ago. So the groundwork's been laid. the groundwork uh and and and mapping out TIFF 2 uh certainly was a thought uh gosh I can't even tell you how far back we did TIFF 2. I mean it's it's been around long time. Um gosh uh well I think the first one was 2010 and then uh

seems like Greg Fitzoff was here for the second one. There you go. So about 201 whatever that was

about 2013 is when tiff 2 boundaries were set and so um the the redevelopment commission then uh that is their job under Indiana code and so they oversee those projects those boundaries and those um requests and so this being a carveout that's what we aptly call it um so it it's just a process of moving forward in the world of economic development. Uh so it's not a uh cut of any revenue from um your common council budget. It was uh already there. The base the base stays. Uh that's one thing uh we always want to uh underscore and remind folks. The base always stays. And so you're always collecting that revenue here. And so moving forward, that's how you get projects off the ground. And uh so that's that's really part and parcel is how uh the Cedarwood development was put together. And this is another example. Uh this is a little smaller scale uh but certainly uh just as important for the end product. So uh David has prepared the ordinance. That's what he has here.

That's what I've given you all before we start council. This this is fresh in the sense um the uh timing is a chained reaction. So Friday was the um EDC economic development commission uh approval. uh this afternoon was the redevelopment commission approval. And so then here it is a a systematic approach. And so David has got that uh before you uh with an ordinance number assigned to it.

Yep. And I think the ordinance, you know, it provides I think the principal amount of the bonds $2 million. The interest rate is up to eight. Those are really just kind of arbitrary numbers. It could be 20 million and 0%. Either way, you're given the same amount of TIFF. Okay. that you capture uh to the developer. So, it's focus more on the dollars uh really than than those numbers. We kind of back into those numbers to get everything to cash flow right. Uh but importantly, it's only that percentage of the allocation area from that specific site that goes to repay that. You know, just because it's a bond there, there are different kinds of bonds and this is what we call a limited obligation. So, the city's not responsible for this in any way. if you know the apartments don't get built or you know if they burn down in year three and nobody builds them back or whatever it's it it doesn't hit anything else involving the city. It's only the property taxes that are on this particular project.

So was part of the financing for this project contingent upon ready funds?

Yes. So let let's pause there. Um thank you Roger for that segment. That's perfect. Uh in the audience um we have Nick Lawrence representing the Wheatley Group and Mr. receiver. And uh those gentlemen both have a world of uh knowledge on this project. Uh either one of you come forward. Uh Nick's probably got uh the uh data memorized, but but Colin, please uh I would like to do some Q&A with you. Let the council know what your project is. Uh certainly shed some more light on it and how it fits in with the city of Salem. Thank you, Mayor and Council. My name is Nick Lawrence. I'm with the Wheatley Group. I've been working with Colin Receiver and Receiver Real Estate on this project for probably about two and a half years. Uh when we got started, uh and engaged with it. Um to the question, um this is uh a ready supported project through Ready 2.0. Uh the project um through the course of ready uh when we started the initial intake for that back in 2023 has grown in scale and size. Now we're a $9 million project. We're a 50 unit uh addition of in total units added. This is a mixture of of uh town homes and one and twobedroom units.

All twos.

All twos. All twos and town homes. So uh these are uh nicesized units. they're offered at a at a really a market price uh for uh for Salem. Um I think are going to be a very attractive option both from a fit and finish perspective. Um again, this is uh the the the capital stack, if you will, in this is developer debt and equity uh plus um ready funds. those uh those funds have been um pre-committed to the project, but we're kind of where we are to use the ready lingo, the IDC's lingo. We've received a commitment and award letter uh for this project in the amount of $1 million. Um as we go through right now, they're in the it's in the project review process. We're providing some of these final details. Uh assuming this is approved this evening, we have to provide these details back uh to the state of Indiana for final approval at which point they would formally obligate the funds for the project and we could move forward and and close uh in conjunction with the the traditional construction financing the bond closing here and have the ready funds in hand.

So if the developer doesn't receive the ready funds, will this project die? Yeah. Yeah. I mean I think effectively if the would it be prudent to wait until you are sure? I know you have I think with the where we are with the pre-commitment I think the risk is is largely minimal because this project has been approved on multiple levels um by the ready board and it's final approvals and checking boxes from a compliance review perspective depending on who you talk to you know some some people say some of the ready 2.0 is not going to happen the governor's obviously pulled the reinss back on that I think Mr. Mayor, would you agree? Yes.

Okay. And I, you know, from a procedural standpoint, I I don't like the way that we do this. I'm not I don't like coming in here and in three minutes having to look at this and say yes or no. I don't think that's a very practical thing to do. It's not a responsible thing to do. And I'm not blaming anybody, but from a procedural standpoint, I think we need to change that. So, Nick hit on um this has taken different routes different ways and and Roger's right. there there's been some um curves thrown from the state

and so uh Mr. receiver on your behalf uh was looking at some uh tax credit changes that the IDC dangled I'll say as a carrot at first thinking this would be an approach uh to to do this project this this multifamily unit on site and uh as that was navigated that changed and so uh Mr. Receiver basically had to punt a little bit.

Yeah, I mean this project has certainly evolved. It was a a smaller project when we first got started. We've been able to expand the site a little bit and and maximize the efficiency at the site, which is which is great. We were able to deliver additional units. Um when this project started, there was a discussion on how do we utilize the tiff. The tiff has always been a component of this. Um but there were several separate tax credit avenues that we did investigate. There's a uh was a program that was recently paused called the redevelopment tax credit that we looked at that avenue and we ran down both paths. Um when we uh discussed this project in early 24 with uh with the IEDC and their program managers, they had encouraged us. I mean we we'd already put in a a uh a presubmitt if you will in the early call for projects in 23 for 2.0. And then 24, uh, we received some positive feedback from both the region and from the IDC program directors that this seemed like a project that aligned with what Ready 2.0 was trying to do and it aligned with the vision of where they were trying to see some of these funds go and to generate housing growth. So, we pursued the Ready 2.0 path um, you know, at that suggestion. Um, would have been quicker potentially to maybe go the other way. Well, neither one were guaranteed, right? Uh that's always a competitive process.

Yeah. And I guess but we've maintained just to backtrack, I'm excited that we have people that want to develop. I appreciate that within our city. I mean, because we definitely need it, but there are things we have to consider as well. And I think Roger's heartburn. Um David, I I didn't mean to send you away. U please, I want you to Goodness. Um I think I want I want to paraphrase for Roger. Th this is something that if um Mr. Receiver gets uh another hurdle or two, there is no uh hook here. Yeah. You just don't close.

Yeah. Ultimately, the mayor will have to sign a bond and you know, we'll issue a bunch of certificates and so forth. And if the thing doesn't get finished for whatever reason, they just don't close that. And so I I think u and and pardon me, this is something we should have started with. Yes, there there is a uh a genuine need now, if you will, a box to check from the IDC. This has been the latest and and uh uh so I want I want to add to what Roger said. There there has been a lot of discussion. My gosh, guys, I my my my phone won't stop ringing some days on what ready is evolving and what's proceeding and and how uh things are moving forward. It is a bit of a whack-a-mole and moving target and uh it's not necessarily a bad thing. There's been some things that needed to be reset. This project uh I'll go on a whim. I I have more than 50% of confidence because this is one that was handpicked and so uh council I I can tell you this there's about five or six in the hopper that make me scratch my head. Uh no, the IDC likes this project. So there is some more insurance that this one is going to move forward. Uh and and knowing uh per our attorney on the redevelopment side, no, there there's not a there's not a downside for us if the IDC just gives him a a complete u uh 180. We just take a pause. But uh it is a box they need to see that's checked from this uh council

that that and I do want to add from the ready process and to provide some additional assurance there. This project was one of the first that received pre-commits from the region. So, we're, you know, we're not far back in the line. We're we're ready to proceed assuming that we can uh get through the local component which is a part of you know getting the final authorization obligation uh as well as uh again getting that final obligation letter and then the subreient agreements that come to follow- without getting into some confidential items. Sorry, I'm I already opened the bag when I say confidential, but Nick, you represent a lot of clients in in this field. I do.

And um can can you say from the Wheatly Group standpoint, you and your colleagues, some probably have more hurdles still looming? Yes. Than this project. Yes. Yes.

Yeah. There are some that are, you know, just going through the TIFF process or still working on local term sheets. So local match is a critical component of the uh of getting the the final approval. Um and being able to showcase and exhibit that that local match exists and is confirmed. Um there are projects that are highly conceptual and that require evolution and I say development not from the idea of like breaking ground and you know building things but development from underwriting uh financial analysis having finding a lender making sure you've got equity um making sure you've got the funds even if it's a local project you have the local funds allocated and they're there and they're budgeted or they're able to be drawn upon. Um, this is not one of those projects. Um, Colin has the equity, the ability to secure the debt.

We have the ready component. We have this component. This is all coming together u in a very um organized fashion. You know, we're following the steps and checking the boxes and not running necessarily out of sequence here. Right. Nick, do you have a site plan with you by chance? I do. Just just pass it if you want to hand it to them guys so they can see down there. Like I' i've seen it a couple hundred times, but I've seen I've seen it too. Thank you.

I've been involved in several projects where they start downced and all those, you know, convention. We started this in the fall and didn't happen in the fall. I would say 95% because suggested path start over. So I wouldn't take the delay as indicative of desire abundant. I think they get a lot of requests and they have limited buckets and then they kind of fill up one bucket and then they start moving move from bucket to bucket to bucket. It's not particularly efficient or pleasant. But Are you ready for action, Mr. Mayor?

Goodness. Uh, council, if there's no further questions to these three gentlemen, u, that'd be fine. I make a motion we approve ordinance 2025-23. I'll second that. Uh, council, you have, uh, Roger, making the motion of 2025-23. Dylan seconds, uh, as it has hit now the third body of compliance and review. All in favor say I. I. Oppos? Same sign. Okay. one and read ordinance. David, tell us and and guide us. Is this to Dylan's question, one read? What's our next steps? Um, well, generally if you if you do an introduction, you got to wait the rules to do it on the first read. So, you got to vote to suspend the rules.

Well, that's our standard practice, but if you would like that formally, uh, council, please, uh, would then sec accept a motion to suspend second read on this ordinance 2025-23. I'll make a motion to suspend the Dylan makes that motion. Randy seconds. All in favor say I. I. Post. Same sign. Okay. So, we have it sealed in one vote, one session. Uh, what would you like us to do moving forward? So, you've already you voted on motion. Technically, you need to suspend the rules, then vote on the Oh, you you you attorneys like to go backwards.

All right. Vote again, council. You have suspended and that carried. Uh, Roger, would you please reintroduce your motion? Make a motion that we approve ordinance 2025-23. Who was his second? I'll be second. Dylan was his second. We're going to cut cut this in and carve it. Perfect. All in favor say I. I. Post. Same sign. I I appreciate that. As sure as we don't do that, someone in my opinion process that came on the minutes. Fair enough. Fair enough. Um, has has uh that made Oh, you guys still looking? Okay. Um, in case Danny and Dylan, I have extras, too. Do you? Okay. Uh, hey,

thank you. Uh, again, uh, I have had several conversations with Mr. Receiver. U, $9 million investment coming to Salem. Thank you. Thank you. As a council president, thank you. U, I will tell you this is not his first rodeo. Uh he has apartment complexes that he has done uh and been very successful with. Um he has are you flirting with 90 plus occupancy 90%. We're well in the we're well above that. Yeah.

You know he so he's hit a home run and and he's he's done a very good model and so I think we're all going to be pleased to have him as a Salem partner and so uh again I can't say enough uh not trying to give him a personal commercial but I guess I am. I I know his work and this is a good fit. Thank you folks. I just on behalf of Colin and our team um I know for this is first time seeing some of you several of you have met on numerous occasions and and talked to and been in meetings and again thank you for the partnership. David, thank you as well for advancing this. This is an exciting project and we're looking forward to get started. I'm sure once we get the ready piece solved, we'll communicate back to everybody and and get going. You bet. Absolutely. Awesome. Thank you all.

Okay. Thank you. Okay, if my glasses are lining up, we are now down to the accounts payable uh register of claims page 38-72. And then I have

two addition additional claims. I'll make a motion to approve the accounts. Yeah, that's what I was going to say. Yeah, I'll make a motion to approve the general accounts payable voucher register claims with the two additional that is printed separately.

Dylan makes a motion to approve claims as presented plus the additional attachment. I'll second sorry Roger seconds. All in favor say I. I Oh, same side. We have a quick question about how you know it's been approved. U the invoice for the demolition of the S pool. Just why are we getting that so late? Yeah, that was part of a their match and so that was by design. Yeah, they can show that now. All right. In calendar year 25. Okay. Yeah. Yeah.

Uh and uh on this addition again to your point already been approved that addition is uh reimbursement money. So this is uh ready dollars that you see in front of you the on the additional. So that's not our money. So that's a good move. Okay. Uh that leaves us comments by citizens. We had none. Uh so uh council uh November give you a little preview. We've got uh several uh endofear things to take care of. Uh Sally's already got her diary uh started and a pretty good list. I don't know that it'll be a long meeting but we just got several items. So a little preview on November. Uh it is back normal time. Correct. Second. Okay. So no no holidays for the month of November. So we're back on schedule.

Okay. See a motion to adjurnn. Make a motion to adjourn. 6:26. Thank you.