Anderson gives $100,000 for Wigwam project

After a lengthy discussion, the council on Thursday passed an ordinance to redistribute the funds that were allocated in 2012 for Impact Container that decided not to open Anderson operations.

Local business owner Ken Kocinski, the campaign manager for Democrat Kris Ockomon’s mayoral campaign, raised several questions pertaining to the city’s $100,000 contribution for the Wigwam.

Kocinski said there was no start or end date for the project, and no criteria for how Wigwam developers BWI LLC would receive the funds. He asked how much the private investors were putting into the project.

He also asked, if the project fails in the future, who would be responsible for maintaining the facility at a cost of $340,000 per year.

Councilman Russ Willis said the city will not be responsible for maintaining the Wigwam if the project is not successful.

Greg Winkler, director of the Anderson Economic Development Department, said the investors are committed to investing $5 million in the rehabilitation project.

He said with the $100,000 investment the city in return will be able to use the Wigwam complex 20 times over the next 20 years. He said it’s similar to the agreement reached by the Anderson Community Schools for their contribution of $630,000 to the project.

“I’m more concerned about the city’s ability to use the facility,” Winkler said.

Gary Hobbs, with BWI, said he understands the concerns and can’t predict the future.

“I’m confident we will be successful,” he said.

Hobbs said the plan is to convert the existing classroom space into 60 apartments and to leverage the auditorium for community use.

Regarding the Wigwam gym, he said there have been discussions with the Indiana Pacers Foundation and the Tamika Catchings Foundation about basketball camps in Anderson.

“There is a lot of excitement outside of Anderson for the project,” Hobbs said.

He said BWI intends to invest between $15 and $20 million in the project, adding their reputation is on the line.

Hobbs said they will apply for Indiana Housing and Community Development Authority tax credits in November and should know if they are awarded in February.

“It will take six to seven months to close on our finances,” he said. “Work will start next August or September.

“Every project we have submitted for tax credits, we have been successful,” Hobbs said. “We have investors lined up ready to buy the tax credits.”

He said the $100,000 from the city is important to help secure the tax credits from the state.

“Our success is more than bricks and mortar,” Hobbs said. “We want to have a positive impact on the community. The Wigwam can be a gathering place for the community.”

Kocinski continued to raise questions about the city providing the funding.

“Thanks for taking a chance on Anderson,” Councilman David Eicks said. “I can’t think of a better project to spend $100,000 on. This is an investment in our future.”

Local resident Randy Willis said he was at first opposed to the city providing $100,000, but had changed his mind.

Willis then said each resident would have to provide $2 to raise the $100,000 for the Wigwam and waved two $1 bills to signify his contribution.