Jessica Kerman
jessica.kerman@heraldbulletin.com
After 3 1/2 hours of debate, Anderson City Council unanimously approved a resolution to help First Realty LLC bring 500 jobs to Anderson.
Originally, the council was set to vote on an ordinance that would allow issuance of a TIF bond to First Realty LLC in the amount of $850,000. The money was to be used to assist the company when preparing for Affiliated Computer Services Inc., which committed 500 jobs to the city.
About $350,000 of that money would be used for tenant improvements, and $500,000 was to be used to fix and add to a parking lot of the property. After the proposed TIF bond had been paid off, the parking lot would have become the property of First Realty LLC.
To compromise and clean up some issues, Mayor Kevin Smith’s administration presented the council with a resolution to give the company $640,000 from the food and beverage fund over a five-year period instead. It would pay the interest on bonds that First Realty takes out to make the upgrades.
The change in resolution came on short notice, said Rick Muir, D-at large. Muir asked several questions during the session.
“I just want to be clear,” he said. “This is no reflection on the company. I just have some questions.”
Muir, as well as the rest of the Democrats on the council, made their intentions clear.
“I’m watching out for the taxpayer,” Muir said.
Muir said he wanted to know that Affiliated Computer Services had some risks involved if it were to not live up to its end of the deal.
According to a news release from Gov. Mitch Daniels’ office, the company committed to bringing in a total of 500 jobs, 200 of which would be in place before Dec. 31. Affiliated said it would hire 200 more before Dec. 1, 2008, and the rest would be hired before the end of 2010.
Chad Pigg, director of community development and long-range planning, said the state had penalties hooked to the company if it did not meet its goals. If it does not hire 200 people before Dec. 31, Affiliated would be penalized $225,000, Pigg said.
By using food and beverage money instead of a TIF bond, the City Council will have the opportunity to review the money’s use each year. Also, the way the deal is arranged, the Anderson Redevelopment Commission could investigate the employment rates of the company to make sure it was hiring the right amount of workers.
Also, the commission can make sure that Affiliated is making an effort to hire at least 75 percent of its workers from Anderson and Madison County, a stipulation added to the incentive letter because of concerns from Rodney Chamberlain, D-at large, and Kato Smith, R-at large.
Muir was also concerned about vague language in the resolution, specifically one line: “The interest payments on the ownership mortgage shall be conditioned on certain job benchmarks to be negotiated between the City of Anderson and First Realty, LLC.”
Pigg said the reason the language was vague was because the negotiation process was not finished and certain details needed to be worked out.
Mayor Kevin Smith said that if the council voted down the resolution, it would be sending a negative message to the business world about Anderson.
After a caucus, Muir introduced an amendment, which required the company have 200 jobs created by Jan. 1 and 250 jobs created by Jan. 1, 2009, to keep the company accountable.
Bill Surbaugh, representative of First Realty LLC, said he did not agree with the amendment, and the deal would be cut short if it was added. The real estate company cannot be responsible for what its tenant does, Surbaugh said.
“That’s the best I can do,” he said.
Chamberlain was the deciding vote in the council to vote down the amendment. After threatening to walk out, Chamberlain decided to vote against the other Democrats on the council, as members of the audience yelled out, “It’s our tax dollars and we say go for it,” “We need these jobs,” “Do what the people want! We’re willing to take the chance.”
Chamberlain agreed with the audience. “I just can’t let a resolution stop 500 jobs from coming to Anderson,” he said.
However, he said, he would keep close watch on the company to make sure it was employing people from Anderson.
The Democratic council members, however, noted that the communication between the administration and the council was horrible.
“And I blame the mayor,” Donna Davis, D-2nd District and council president, said.
