Redevelopment Commission Approves Resolutions For Incentives To Mentor Media
April 10, 2023 at 11:54 p.m.
Redevelopment Commission Approves Resolutions For Incentives To Mentor Media
By David [email protected]
Monday, the Warsaw Redevelopment Commission unanimously approved three resolutions and a memorandum of understanding between the city and Mentor Media for half of the incentives. The city council will be asked to approve the other half at their next meeting, according to Warsaw Community Economic Development Director Jeremy Skinner.
Mentor Media will locate its operations in part of the 101,200-square-foot shell building at 1395 Polk Drive, which is still under development. A groundbreaking ceremony for the facility was held March 15 with representatives of the company, city and West Hill Development present.
The first resolution approved by the Redevelopment Commission on Monday approved the form of the MOU, which was attached to the resolution. The resolution also outlines the incentives offered to Mentor Media, and Skinner said the incentives were similar to what the city offered to Nextremity before that company was purchased by Medartis.
Redevelopment Commission will purchase equipment for Mentor Media for $250,000. The city council will be asked to approve a resolution providing an incentive no-interest loan of $250,000 to Mentor Media, which is forgiveable if Mentor Media meets all the employment requirements outlined in the MOU.
The requirements on Mentor Media are that they must occupy the Warsaw Tech Park building for a minimum of five years, have to make an investment in machinery and equipment of approximately $4.575 million and hire approximately 25 employees over the next five years with the average annual wages of those employees being in the range of $52,000 to $85,000, excluding benefits.
“Assuming that they meet all of these requirements over the next five years, the equipment would be released - so we’ll have a lien on the equipment for the five-year period - after that five-year period is passed, we’ll forgive the lien as will the loans be forgiven on a rolling yearly basis, but that will be for the council to approve. Our portion of this agreement would be $250,000 for equipment purchase,” Skinner explained.
He said they were not giving the $250,000 to Mentor Media, but to the company supplying the equipment. “We are buying that equipment. We will have a lien on that equipment for five years, and then we’ll dispose of that equipment to them for $1,” Skinner said. If Mentor Media fails to hold up their end of the MOU in the next five years, the equipment will be taken back.
The second resolution was for the acquisition of certain equipment relating to the Mentor Media project, while the third resolution was regarding the disposition of certain personal property.
Skinner also updated the commission on a possible retail study to tell city officials where there’s gaps in Warsaw’s retail market. The study was first brought up at the March Redevelopment Commission and that’s also when Skinner presented some information on a consulting company called Retail Strategies.
Since the March meeting, Skinner said he, Commission President Tim Meyer, Councilman Mike Klondaris and Mayor Joe Thallemer met with Retail Strategies.
“My intent would be for you guys to look through this information again and maybe next month we can present an actual contract, if you please, and enter into a contract with them to go forward with the marketing study and recruitment,” Skinner said.
Skinner said they talked about two different focus areas - one would be the entire city and the other would be specific to the downtown. Currently, a Hyatt-Palma study is already looking at downtown Warsaw, but Retail Strategies offered to fill in any gaps after the Hyatt-Palma study is completed. Skinner said as far as the downtown portion, it was probably best for the city to wait until it gets the Hyatt Palma study back first.
The study focusing on the entire city would include marketing, research and recruitment and would not be specific to the downtown though the downtown also wouldn’t be excluded. Retail Strategies recommends a three-year plan, which is $50,000 a year, but at any point in time the city can stop the agreement if they’re not happy.
Klondaris said he thought the meeting with Retail Strategies was a very good meeting and they had a lot of good information. He said he thought it was important they consider the downtown business district and its future.
Thallemer said the Hyatt-Palma study begins May 15-19. It’s scheduled to be completed sometime this fall.
Skinner said a number of people have requested the city do a market research study. It’s not something the city can do in-house, he said, so they have to hire an outside consultant to do it.
“My feelings are pretty simple: You don’t know what you don’t know until you know it,” he said, and having the information is certain worthwhile. “But, having that information and doing something with it are two different things. So, my reservation is only this: Don’t go buying information if you don’t plan to use it, don’t have a strategy to use it.”
He said he brought Retail Strategies to the table because they’re not just going to sell the city data, but also will help create a plan. “This gives us our best chance to go after these industries, these retailers that we know the community wants, that the community needs for growth,” he said.
If they stick to a plan, Skinner said he doesn’t feel like the $150,000 will be a waste of money.
In other business:
• Thallemer gave new commission member Bill Curl the oath of office. Curl replaces Rick Snodgrass, who retired after serving from 2008 to 2022, and is the city council’s appointment to the commission.
• Skinner gave a public report on the Warsaw Redevelopment Commission and Warsaw Redevelopment Authority financial report for 2023. The report is a requirement by the state to all the taxing units within the tax increment financing district area. It also has to be submitted to the state by April 15. All the taxing agencies were invited to the meeting Tuesday.
• All the April claims were approved as presented.
They included $5,160 to Cornerstone for the airport park master plan; $400 to Troy Reith Appraisal Services LLC for an appraisal on Buffalo Street; $518 to Barnes & Thornburg LLP for ongoing legal services; $4,978 to A & Z Engineering LLC for engineering plans for CRs 300N and 200W; $42.81 to The UPS Store for shipping bond documents for a park project; $8,010.55 to Graycraft Signs for the wayfinding sign on U.S. 30 that was destroyed, with about $3,000 of that coming from a reimbursement from insurance; $120 to Skinner for his cell phone allowance; $535 to Home Title Group for title insurance for a property being acquired as part of the Anchorage Road project; $26.45 to Kaylco LLC for a nameplate for Curl; $2,574.69 to Wessler Engineering for ongoing engineering services for two lift stations; $16,000 to ER Engineering Resources Inc. for design on Shelden Street; and $192 to Visa for the commission’s virtual GoTo Meeting service.
Monday, the Warsaw Redevelopment Commission unanimously approved three resolutions and a memorandum of understanding between the city and Mentor Media for half of the incentives. The city council will be asked to approve the other half at their next meeting, according to Warsaw Community Economic Development Director Jeremy Skinner.
Mentor Media will locate its operations in part of the 101,200-square-foot shell building at 1395 Polk Drive, which is still under development. A groundbreaking ceremony for the facility was held March 15 with representatives of the company, city and West Hill Development present.
The first resolution approved by the Redevelopment Commission on Monday approved the form of the MOU, which was attached to the resolution. The resolution also outlines the incentives offered to Mentor Media, and Skinner said the incentives were similar to what the city offered to Nextremity before that company was purchased by Medartis.
Redevelopment Commission will purchase equipment for Mentor Media for $250,000. The city council will be asked to approve a resolution providing an incentive no-interest loan of $250,000 to Mentor Media, which is forgiveable if Mentor Media meets all the employment requirements outlined in the MOU.
The requirements on Mentor Media are that they must occupy the Warsaw Tech Park building for a minimum of five years, have to make an investment in machinery and equipment of approximately $4.575 million and hire approximately 25 employees over the next five years with the average annual wages of those employees being in the range of $52,000 to $85,000, excluding benefits.
“Assuming that they meet all of these requirements over the next five years, the equipment would be released - so we’ll have a lien on the equipment for the five-year period - after that five-year period is passed, we’ll forgive the lien as will the loans be forgiven on a rolling yearly basis, but that will be for the council to approve. Our portion of this agreement would be $250,000 for equipment purchase,” Skinner explained.
He said they were not giving the $250,000 to Mentor Media, but to the company supplying the equipment. “We are buying that equipment. We will have a lien on that equipment for five years, and then we’ll dispose of that equipment to them for $1,” Skinner said. If Mentor Media fails to hold up their end of the MOU in the next five years, the equipment will be taken back.
The second resolution was for the acquisition of certain equipment relating to the Mentor Media project, while the third resolution was regarding the disposition of certain personal property.
Skinner also updated the commission on a possible retail study to tell city officials where there’s gaps in Warsaw’s retail market. The study was first brought up at the March Redevelopment Commission and that’s also when Skinner presented some information on a consulting company called Retail Strategies.
Since the March meeting, Skinner said he, Commission President Tim Meyer, Councilman Mike Klondaris and Mayor Joe Thallemer met with Retail Strategies.
“My intent would be for you guys to look through this information again and maybe next month we can present an actual contract, if you please, and enter into a contract with them to go forward with the marketing study and recruitment,” Skinner said.
Skinner said they talked about two different focus areas - one would be the entire city and the other would be specific to the downtown. Currently, a Hyatt-Palma study is already looking at downtown Warsaw, but Retail Strategies offered to fill in any gaps after the Hyatt-Palma study is completed. Skinner said as far as the downtown portion, it was probably best for the city to wait until it gets the Hyatt Palma study back first.
The study focusing on the entire city would include marketing, research and recruitment and would not be specific to the downtown though the downtown also wouldn’t be excluded. Retail Strategies recommends a three-year plan, which is $50,000 a year, but at any point in time the city can stop the agreement if they’re not happy.
Klondaris said he thought the meeting with Retail Strategies was a very good meeting and they had a lot of good information. He said he thought it was important they consider the downtown business district and its future.
Thallemer said the Hyatt-Palma study begins May 15-19. It’s scheduled to be completed sometime this fall.
Skinner said a number of people have requested the city do a market research study. It’s not something the city can do in-house, he said, so they have to hire an outside consultant to do it.
“My feelings are pretty simple: You don’t know what you don’t know until you know it,” he said, and having the information is certain worthwhile. “But, having that information and doing something with it are two different things. So, my reservation is only this: Don’t go buying information if you don’t plan to use it, don’t have a strategy to use it.”
He said he brought Retail Strategies to the table because they’re not just going to sell the city data, but also will help create a plan. “This gives us our best chance to go after these industries, these retailers that we know the community wants, that the community needs for growth,” he said.
If they stick to a plan, Skinner said he doesn’t feel like the $150,000 will be a waste of money.
In other business:
• Thallemer gave new commission member Bill Curl the oath of office. Curl replaces Rick Snodgrass, who retired after serving from 2008 to 2022, and is the city council’s appointment to the commission.
• Skinner gave a public report on the Warsaw Redevelopment Commission and Warsaw Redevelopment Authority financial report for 2023. The report is a requirement by the state to all the taxing units within the tax increment financing district area. It also has to be submitted to the state by April 15. All the taxing agencies were invited to the meeting Tuesday.
• All the April claims were approved as presented.
They included $5,160 to Cornerstone for the airport park master plan; $400 to Troy Reith Appraisal Services LLC for an appraisal on Buffalo Street; $518 to Barnes & Thornburg LLP for ongoing legal services; $4,978 to A & Z Engineering LLC for engineering plans for CRs 300N and 200W; $42.81 to The UPS Store for shipping bond documents for a park project; $8,010.55 to Graycraft Signs for the wayfinding sign on U.S. 30 that was destroyed, with about $3,000 of that coming from a reimbursement from insurance; $120 to Skinner for his cell phone allowance; $535 to Home Title Group for title insurance for a property being acquired as part of the Anchorage Road project; $26.45 to Kaylco LLC for a nameplate for Curl; $2,574.69 to Wessler Engineering for ongoing engineering services for two lift stations; $16,000 to ER Engineering Resources Inc. for design on Shelden Street; and $192 to Visa for the commission’s virtual GoTo Meeting service.
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