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Warsaw Redevelopment Commission approved an increase in city funds toward the Millworks mixed-used building to go toward an unnamed commercial space in the building.
Warsaw Community and Economic Development Director Jeremy Skinner presented to the Warsaw Redevelopment Commission the amendment to the original economic development agreement with AP Development LLC for the Millworks 85-unit housing and retail building at the intersection of West Market and South Columbia streets.
“The amendment does a couple of things: The amendment increases the original dollar amount that was approved. Originally, we had an agreement for $1 million of city funds. This (requests) to increase that to $1,340,343. And the increase has to do with the commercial space. We’ve been working with a tenant to occupy that commercial space,” Skinner told the commission at their meeting Monday. “And, rather than entering into multiple agreements with different entities, it made more sense to just deal with Millworks, AP Anderson. So this would whitebox that space, basically build out that space to the tenant’s needs so they can come in and set up their equipment and open up their operation.”
At the same time, Skinner continued, “It makes available the $1 million to go towards the project. So the $1 million is for the streetscape. They’re working on that design. Once we have that approved design from AP, we’ll be able to release those funds to them because at this point, they will be constructing those improvements as part of their project, rather than us having to enter into another agreement.”
Skinner said AP won’t get the additional $340,343 until a lease has been signed between AP and the commercial space tenant. He said he hasn’t seen the lease yet.
Councilman Mike Klondaris asked if the commercial space of the building was the cement block portion that he can see from the roadway. Skinner said yes, it’s about 2,500 square feet and there will be a rooftop balcony where people can go out on the patio.
After some discussion by the commission on the lease of the commercial space - which will be between AP and the tenant and not involve the city or Redevelopment Commission - the commission approved the amendment, “subject to insertion of the language that requires an acceptable lease to be signed before the money is dispersed.”
The commission also approved on Monday a first lease amendment, effective 12:01 a.m. May 1, 2026, between the Warsaw Redevelopment Commission and Warsaw Chemical Holdings LLC.
“As you are aware, we purchased the Warsaw Chemical properties. This does two things: It terminates their use of the south building, south property, and then enters into a six-month lease on the north portion of the property. The lease rate is $1,000 and they are to pay for continuing maintenance on the building and any utility cost, as part of the agreement. We will revisit this in six months as they continue to relocate their business,” Skinner explained.
The properties are at 390 and 402 Argonne Road and 2325 E. Durbin St.
Skinner said he thought the north property was going to be mostly used for warehousing while their operations continue to be moved to their new facility.
In other business, the commission also approved:
• An excess assessed value letter, as presented by Skinner. He said every year they have to send the letter to all the taxing agencies within the commission’s jurisdiction claiming whether or not the commission to pass through any TIF (tax increment financing).
“As I have recommended in the past, and in your recent financial report, my recommendation is to not pass any excess valuation through,” he said
• To extend the Redevelopment Commission’s contract with Retail Strategies LLC, Alabama, for one year for professional consulting services for $45,000. The commission previously had a three-year contract with Retail Strategies for $45,000 per year, which expired recently.
“They have continued to act on our behalf for marketing Warsaw to commercial businesses, and I have looked at a couple other options. We have a lot of things going on right now, it doesn’t make a lot of sense to try to switch midstream at this point. But I also wasn’t willing to commit to them for three more years, so what I suggested to them was that we extend the agreement for an additional year and give them a chance to improve upon what they’ve done,” Skinner said.
He said they’ll see how this year goes.
“I do strongly believe that it’s in our best interest to continue to have a marketing firm that is marketing Warsaw to get interest from these different commercial entities, but there has to be some value there, too, and they’re aware of that,” Skinner said.
• Claims, which included $71.69 from NIPSCO and $111.85 from Indiana American Water for the Marsh property; $5,229.85 from Kosciusko County treasurer for taxes for the Bowen Health parcel; $5,677.32 from Kosciusko County treasurer for taxes for the Polk parking lot; $14,460 from Anderson & Bohlander LLC for the festival street project; $7,500 from Anderson & Bohlander LLC for the Gateway Sculpture Play Park, the park downtown Warsaw; $38,628.22 from American Structurepoint for Anchorage Road construction inspection; and $7,751 from Barnes & Thornburg for legal services for Scooters, Millworks, the Veteran Administration clinic and Warsaw Chemical.
Two additional claims were reinvestments as part of the commission’s bonds. One was for $500,000 and the other was for $124,400.
