Mayor McKean welcomed exchange student Pablo Tavares, from Brazil to the meeting.

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1 May 13, 2013 The Common Council met with Mayor William McKean for a regular meeting on Monday, May 13, 2013 at 7:30 p.m. in the Council Chambers at City Hall according to the posted notice. Councilmen Gregg Sprunger, Curtis Wurster, Ron Dull, and Philip Provost were present along with Attorney James Beitler, Jr. and Clerk-Treasurer Gwen Maller. Councilman Mark Wynn was not present. Mayor McKean welcomed exchange student Pablo Tavares, from Brazil to the meeting. Councilman Gregg Sprunger opened the meeting with the pledge of allegiance and Mayor McKean gave the invocation. On a motion by Phil Provost and a second by Ron Dull, the minutes of the April 22, 2013 meeting were unanimously approved. On a motion by Gregg Sprunger and a second by Curtis Wurster, the claims were unanimously approved for payment. Annual CF-1 Approval FCC-Adams submitted their annual CF-1 forms for tax abatements. The eight CF-1forms included improvements and expansion to existing property, a 35,000 SF addition, and new equipment. The CF-1 forms were reviewed and found to be in compliance. Ron Dull made a motion to approve FCC Adams CF-1 forms and have the Mayor sign them. Phil Provost made the second and the motion was unanimously passed. FCC Adams Declaratory Resolution Mr. Tim Baker and Ms. Sondra Affolder, representing FCC Adams, came before the Council to request establishing an economic revitalization area at 936 Parr Road, waiving noncompliance and granting a tax abatement for a new building addition and new manufacturing equipment. Mr. Baker stated that the building addition is 75,000 square feet with an estimated cost of 6.3 million dollars. The estimated completion date is August The new manufacturing equipment with an estimated cost of 35 million is scheduled to be in place by March This would add approximately 50 new

2 employees with an increase of 1.5 million in annual payroll. Larry Macklin was also present, representing Adams County Economic Development, to lend his support for this project and FCC Adams request for a tax abatement. He stated that FCC Adams has been a positive influence in the City of Berne and this new addition that will greatly benefit the community also demonstrates their commitment to provide quality jobs. Resolution was presented to the Council for approval. On a motion by Gregg Sprunger and a second by Curtis Wurster Resolution was unanimously approved. It is as follows: RESOLUTION SHORT TITLE: A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF BERNE (1) ESTABLISHING AN ECONOMIC REVITALIZATION AREA, (2) WAIVING NONCOMPLIANCE, AND (3) GRANTING TAX ABATEMENT FOR REDEVELOPMENT PROPERTY AND (4) GRANTING TAX ABATEMENT FOR NEW MANUFACTURING EQUIPMENT WHEREAS, the Applicant, FCC (Adams) LLC has prepared and filed a Designation and Deduction Application with the Common Council of City of Berne, the fiscal body of Berne, Indiana for a designation about whether the particular area, as more particularly described in Exhibit A, should be designated as an economic revitalization area, whether a deduction provided by I.C for property, meaning a building or structure should be approved and whether a deduction provided by I.C for new manufacturing equipment pursuant to the definition provided therefore by I.C (3) should be approved and whether an alternative abatement schedule as provided by I.C should be approved and has submitted with its application a Statement of Benefits Form SB-1/RE and a Statement of Benefits Form SB-1/PP; AND WHEREAS, the area s location is annexed in the City of Berne, Adams County, Indiana and which mailing address is 936 Parr Road, Berne, IN 46711; AND WHEREAS, the Common Council of the City of Berne has considered the area described in Exhibit "A" attached hereto and made a part hereof as an area which has become undesirable for, or impossible of, normal development and occupancy because of a lack of development, cessation of growth, deterioration of improvements or character of occupancy, age, obsolescence, substandard buildings, or other factors which

3 have impaired or prevent a normal development of property or use of property, or an area where a facility or a group of facilities are technologically, economically, or energy obsolete are located and where the obsolescence may lead to a decline in employment and tax revenues, and AND WHEREAS, the area described in Exhibit "A" attached hereto is within the City of Berne, Adams County, Indiana. AND WHEREAS, the applicant desires to obtain a deduction under Section 3 of I.C AND WHEREAS, the applicant desires to obtain a deduction under Section 4.5 of I.C AND WHEREAS, whether an alternative abatement schedule as provided by I.C should be approved; AND WHEREAS, the Common Council may consider adopting a waiver pursuant to I.C waiving by resolution noncompliance with the following: 1. The failure to provide the completed statement of benefits form to the designating body before the hearing required by I.C ; 2. The failure to submit the completed statement of benefits form to the designating body before the installation of the new manufacturing equipment for which the person desires to claim a deduction; 3. The failure to designate an area as an Economic Revitalization Area before the installation of the new manufacturing equipment; 4. The failure to make the required findings of fact before designating an area as an economic revitalization area. 5. The failure to file a timely or complete deduction application under I.C or I.C hereby: BE IT RESOLVED, that the Common Council of the City of Berne 1. Declares and makes the following findings after review of the Statement of Benefits Form SB-1/RE as submitted by the applicant: (a) The estimate of the cost of the redevelopment is reasonable for projects of that nature.

4 (b) The estimate of the number of individuals who will be employed or whose employment will be retained can be reasonably expected to result from the proposed described redevelopment. (c) The estimate of the annual salaries of those individuals who will be employed or whose employment will be retained can be reasonably expected to result from the proposed described development. (d) Other benefits about which information was requested are benefits that can be reasonably expected to result from the proposed described development. (e) The totality of benefits is sufficient to justify the deductions. 2. Declares and makes the following findings after review of the Statement of Benefits Form SB-1/PP as submitted by the applicant: (a) The estimate of the cost of the new manufacturing equipment is reasonable for equipment of that type. (b) The estimate of the number of individuals who will be employed or whose employment will be retained can be reasonably expected to result from the installation of the new manufacturing equipment. (c) The estimate of the annual salaries of those individuals who will be employed can be reasonably expected to result from the proposed installation of the new manufacturing equipment. (d) Other benefits about which information was requested are benefits that can be reasonably expected to result from the installation of the new manufacturing equipment. (e) The totality of benefits is sufficient to justify the deduction. 3. Finds and declares the area legally described in Exhibit "A" attached hereto and made a part hereof is an Economic Revitalization Area as defined in I.C (1) for the purpose of a deduction from the assessed value of property as defined in I.C (4) pursuant to I.C and for the purpose of a deduction from the assessed value of new manufacturing equipment placed and located within the area pursuant to I.C Hereby determines that the deduction provided in I.C for said area as an Economic Revitalization Area shall be for a period of Ten (10) years pursuant to I.C The deduction provided in I.C may be modified at the confirming resolution public hearing by the grant of an alternative abatement schedule pursuant to I.C in the event applicant qualifies for such alternative abatement schedule pursuant to City of Berne Tax Phase-In Policies.

5 5. Hereby determines that the deduction provided in I.C for said area as an Economic Revitalization Area shall be for a period of Ten (10) years pursuant to I.C (h). The deduction provided in I.C may be modified at the confirming resolution public hearing by the grant of an alternative abatement schedule pursuant to I.C in the event applicant qualifies for such alternative abatement schedule pursuant to City of Berne Tax Phase-In Policies. 6. That the Applicant, to obtain the deduction provided by I.C , shall file certified deduction applications on forms prescribed by the State Board of Tax Commissioners with the Adams County Auditor in accordance with I.C That the Applicant, to obtain the deductions provided by I.C shall file certified deduction applications on forms prescribed by the State Board of Tax Commissioners with the Adams County Auditor in accordance with I.C BE IT FURTHER RESOLVED, that the County Auditor is hereby authorized and directed to file a copy of this Resolution with the Adams County Assessor. BE IT FURTHER RESOLVED, that the Common Council of the City of Berne hereby sets the 10th day of June, 2013, 8:00 P.M. as the date, and City Hall, 158 Franklin St., Berne, IN 46711, as the place where the Common Council will receive and hear all remonstrances and objections from interested persons on the adoption of said Resolution. BE IT FURTHER RESOLVED, that the Clerk-Treasurer of the City of Berne is hereby authorized and directed to publish a notice of the adoption and substance of this Resolution adopted here in accordance with I.C Said notice shall state that a description of the affected area is available and can be inspected in the County Assessor's office and the date of the hearing on remonstrances and objections. BE IT FURTHER RESOLVED that the notice shall further state that the City of Berne shall conduct a public hearing on the waivers of the following requirements pursuant to I.C , to wit: the failure, if any, to provide the completed Statement of Benefits Form SB-1/RE and the Statement of Benefits Form SB-1/PP form to the designating body before the hearing required by I.C ; the failure, if any, to submit the

6 completed Statement of Benefits Form SB-1/RE and Statement of Benefits Form SB-1/PP to the designating body before the initiation of the redevelopment for which the person desires to claim a deduction; the failure, if any, to designate an area as an Economic Revitalization Area before the initiation of the redevelopment; the failure, if any, to make the required findings of fact before designating an area as an economic revitalization area or authorizing a deduction under I.C and I.C or alternatively, under I.C ,; the failure, if any, to make the required findings of fact before designating an area as an economic revitalization area; the failure, if any, to file a timely or complete deduction applications under I.C or I.C ADOPTED BY THE COMMON COUNCIL OF THE CITY OF BERNE, STATE OF INDIANA, THIS 13th day of May, COMMON COUNCIL OF THE CITY OF BERNE APPROVED: William F. McKean, Mayor Gregg A. Sprunger, President Curtis L. Wurster Ronald N. Dull Mark D. Wynn Philip E. Provost ATTEST: Gwen Maller, Clerk-Treasurer EXHIBIT "A" CITY OF BERNE RESOLUTION LEGAL DESCRIPTION FCC (Adams) LLC ECONOMIC REVITALIZATION AREA The Northeast Quarter of the Southeast Quarter of Section 33, Township 26 North, Range 14 East, of the Second Principal Meridian, in Monroe Township, Adams County, Indiana, more particularly described as follows: Beginning at a railroad rail spike found in the intersection of County Road 000 (Tile Mill Road) with County Road 550 South (Parr Road) marking the Northeast corner of said Southeast Quarter; thence South 00 degrees 32

7 minutes 35 seconds West (assumed bearing and basis of bearings to follow), a distance of 1, feet along the East line of said Southeast Quarter and centerline of County Road 000 to a Mag Nail set at the Southeast corner to the Northeast Quarter of said Southeast Quarter; thence South 88 degrees 33 minutes 41 seconds West, a distance of 1, feet along the South line of the Northeast Quarter of said Southeast Quarter to the West line of the Northeast Quarter of said Southeast Quarter, said point referenced by a 5/8 inch rebar found 0.96 feet south and 1.19 feet west of actual; thence North 00 degrees 33 minutes 48 seconds East, a distance of 1, feet along said West line to the North line of said Southeast Quarter, said point referenced by a PK Nail found 0.41 feet north and 0.24 feet west of actual; thence North 88 degrees 32 minutes 42 seconds East, a distance of 1, feet along said North line to the POINT OF BEGINNING, containing acres [1,781, square feet], more or less. Subject to a 30 feet wide right-of-way along County Road 000 and a 20 feet wide right-of-way along Parr Road. Subject to easements of record. Except there from the following: The south 60 feet of the Northeast quarter of the Southeast quarter of Section 33, Township 26 North, Range 14 East of the Second Principal Meridian, Adams County, Indiana, more particularly described as follows: BEGINNING at a Mag Nail found in the center of County Road 000 (Tile Mill Road) marking the Southeast corner of the Northeast Quarter of the Southeast Quarter of said Section 33, thence South 88 degrees 33 minutes 41 seconds West (assumed bearing and basis of bearings to follow), a distance of 1, feet along the South line of the Northeast Quarter of said Southeast Quarter to the West line of the Northeast Quarter of said Southeast Quarter, said point referenced by a 5/8 inch rebar found 0.96 feet south and 1.19 feet west of actual; thence North 00 degrees 33 minutes 48 seconds East, a distance of feet along said West line to a 5/8 inch diameter steel rebar set; thence North 88 degrees 33 minutes 41 seconds East, a distance of 1, feet along a line parallel with and feet north of said South line to the East line of said Southeast Quarter and the centerline of County Road 000; thence South 00 degrees 32 minutes 35 seconds West, a distance of feet along said East line and said centerline to the POINT OF BEGINNING, containing acres [80, square feet], more or less.

8 Annual CF-1 Approval Mr. Bruce Boyce and Mr. Brian Leist, representing FICOSA, submitted their annual CF-1 for Council approval. This is the 10 th and final year for this abatement and while they have just recently announced that they were eliminating 140 local jobs and seeking a buyer for the company, they requested Council approval for the final year. The abatement was for $800,000 in real estate improvements that were made in Mayor McKean stated that he would be in favor of approving the CF-1 for the final year in hopes that that it would send a positive message to a potential buyer that the City is willing to work with them. Phil Provost made a motion to approve the annual CF-1 form and have the Mayor sign it. Ron Dull made the second and the motion was unanimously passed. Public Hearing The regular Council meeting was recessed for a public hearing held at 8:00 p.m. as advertized according to I.C This hearing is to receive public comments on a petition to vacate a portion of Cleveland Street. The portion of Cleveland Street to be vacated is on the east side of Behring Street and dead ends into Smith Brothers Furniture building. Smith Brothers owns all the property surrounding that portion of the street. All public utilities were notified. Indiana Michigan Power Company responded that they do not object to the vacation. NIPSCO also doesn t object, however they have a utility line in a portion of the street and they have requested that if the line has to be retired/removed Smith Brothers would do so at their own expense. NIPSCO is not asking for a utility easement. The City of Berne does not have any utility lines in that area. Dave Burson, Smith Brothers controller, was present to inform the Council that the reason the vacation of the street is necessary is to allow for a new plant addition which would be alongside the original building. The 5 million dollar addition will have two stories with a footprint of 55,000 square feet for a total of 110,784 square foot. They are estimating adding 40 new jobs. No comments from the General Public were made. The public hearing was closed and the regular Council meeting was reconvened. Ordinance to Vacate

9 Ordinance #640 was introduced to Council. This ordinance provides for the vacation of a portion of Cleveland Street in a public way in the City of Berne, Indiana. Gregg Sprunger made a motion to introduce Ordinance #640. Curtis Wurster made the second and the motion was unanimously passed. Phil Provost made a motion to waive the rules and regulations to pass an ordinance on its second reading. Ron Dull seconded the motion and it was unanimously passed. Curtis Wurster made a motion to approve the final adoption of Ordinance #640. Gregg Sprunger made the second and the motion was passed unanimously. Petition for Annexation Attorney Beitler informed the Council that last fall when the council districts were redrawn as required by state statue and established by Ordinance #634 ( ), boundary lines were drawn to have an even population in each district. District III which includes territory lying south of Main Street and west of U.S. Highway 27 that isn t in the second district was recently found not to be contiguous due to the fact that the property that the City owns and where the fire station is located along Parkway Street had never been annexed into the City. Since it is tax exempt property, no revenue stream was lost. In order to correct the situation, a petition for annexation was presented to Council. No official action was taken, but set over to the next meeting on May 28, BZA Meeting Update Mayor McKean reported that the BZA heard a variance request filed by Smith Brothers of Berne, Inc. for the property at 121 Cleveland Street to change it from R-2 Multi-Family to I-1 Industrial. The Board heard another request also filed by Smith Brothers of Berne to change the property at 317 Behring Street zoned from R-2 Multi-Family to I-1 Industrial. Both structures on these properties will be demolished with the property at 121 Cleveland Street being used for a storm runoff pond and 317 Behring Street being used for a new building. The board granted both requests. Plan Commission Meeting Update

10 Plan Commission President Gregg Sprunger updated the Council on the two development plan hearings that were held prior to the Council meeting. The first one was filed by Smith Brother for the 110,000 square foot building expansion that was explained in the public hearing. The second was the 75,000 square foot building addition by FCC Adams that was also explained in the prior minutes. FCC will be working with the City on modifications to their storm water pond. The Board approved both development plans. Mayor Comments Mayor McKean stated that it is very nice to have two companies in our town growing and expanding in spite of the challenging economic times. Mayor McKean reported that the playground equipment is out of the City garage and down at Lehman Park waiting for installation. Council Comments Ron Dull reported that May 17 th and 18 th is the installation of the park playground equipment. He also reported that the fence will be replaced around the minor league field over Memorial Day weekend. The City will be paying for half of the cost and the South Adams Youth League will pay for the rest. Parents and Coaches will provide the work. Mayor McKean recessed the meeting for a 10 minute break. The regular council meeting was reconvened. Super Tax Phase in Plan working Session Discussion was held concerning enacting a new super abatement procedure per the State s recently enacted legislation allowing up to 100 percent tax abatement up to 10 years. Each community has the opportunity to determine what they will offer and establish procedures to evaluate what projects qualify. The super abatement should only be used for high-profile projects that would bring higher paying jobs or large capital investments to the City. No official action was taken. There being no other business to come before the Council and upon a motion duly made to adjourn by Ron Dull and seconded by Phil Provost, adjournment followed.

11 ATTEST: William F. McKean, Mayor Gwen Maller, Clerk-Treasurer