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HomeMy WebLinkAboutResolution 2018-09 (Amendment to Declaratory Resolution for Carmel Downtown EDA)RESOLUTION NO.2018-09 RESOLUTION OF THE CITY OF CARMEL REDEVELOPMENT COMMISSION AMENDING THE DECLARATORY RESOLUTION AND THE PLAN FOR THE CARMEL DOWNTOWN ECONOMIC DEVELOPMENT AREA (EXPANSION OF MOTOR COURT WEST ALLOCATION AREA AND CARMEL DOWNTOWN ALLOCATION AREA NO. 3) WHEREAS, the City of Carmel Redevelopment Commission (the "Commission"), is the governing body for the City of Carmel Redevelopment Department (the "Department"), pursuant to Indiana Code 36-7-14, as amended (the "Act); and WHEREAS, the Commission has previously adopted and confirmed resolutions, as amended (collectively, the "Declaratory Resolution"), for the purpose of (a) establishing an economic development area known as the "Carmel Downtown Economic Development Area" (the "Economic Development Area"), pursuant to Sections 41 and 43 of the Act, (b) designating certain portions thereof as separate allocation areas pursuant to Section 39 of the Act, one of which is known as the "Motor Court West Allocation Area" (the "MCW Allocation Area"), another of which is known as the "Motor Court East Allocation Area" (the "MCE Allocation Area"), and another of which is known as the Carmel Downtown Allocation Area No. 3 (the "Area 3 Allocation Area"), and (c) approving a development plan for the Economic Development Area (the "Plan") pursuant to the Act; and WHEREAS, the Commission now desires to further amend the Declaratory Resolution and the Plan to (a) adopt a supplement to the Plan in the form attached as Exhibit A hereto (the "Plan Supplement"), (b) dissolve the MCE Allocation Area, (c) expand the boundaries of the MCW Allocation Area as depicted in Exhibit B hereto (the "MCW Expansion Allocation Area"), and (c) expand the boundaries of the Area 3 Allocation Area into the portion of the prior MCE Allocation Area that is not included in the MCW Expansion Allocation Area as depicted in Exhibit B hereto (clauses (a), (b) and (c), collectively, the "2018 Amendments"); and WHEREAS, the Commission has previously caused to be prepared: (a) maps and plats showing the boundaries of the Economic Development Area, the location of the various parcels of property, streets, alleys and other features affecting the acquisition, clearance, replatting, replanning, rezoning or redevelopment of the Economic Development Area, indicating any parcels of property to be excluded from the acquisition, and showing the parts of the Economic Development Area acquired that are to be devoted to public ways, levees, seweiages, parks, playgrounds and other public purposes under the Plan; and (b) an estimate of the costs of the development projects as set forth in the Plan; and WHEREAS, the 2018 Amendments and supporting data were reviewed and considered at this meeting; and WHEREAS, Section 39 of the Act has been created and amended to permit the creation of "allocation areas" to provide for the allocation and distribution of property taxes for the purposes and in the manner provided in said section; and WHEREAS, Sections 41 and 43 of the Act have been created to permit the creation of "economic development areas" and to provide that all of the rights, powers, privileges and immunities that may be exercised by this Commission in a redevelopment area or urban renewal area may be exercised in an economic development area, subject to the conditions set forth in the Act; and WHEREAS, this Commission deems it advisable to apply the provisions of said Sections 41 and 43 of the Act to the 2018 Amendments. NOW, THEREFORE, BE IT RESOLVED by the City of Carmel Redevelopment Commission, as the governing body of the City of Carmel Redevelopment Department, as follows: 1. The Commission hereby finds that the 2018 Amendments promote significant opportunities for the gainful employment of the citizens of the City of Carmel, Indiana (the "City"), attraction of major new business enterprises to the City, retention and expansion of significant business enterprises existing in the boundaries of the City, and meets other purposes of Sections 2.5, 41 and 43 of the Act, including without limitation benefiting public health, safety and welfare, increasing the economic well being of the City and the State of Indiana, and serving to protect and increase property values in the City and the State. 2. The Commission hereby finds that the 2018 Amendments cannot be achieved by regulatory processes or by the ordinary operation of private enterprise without resort to the powers allowed under Sections 2.5, 41 and 43 of the Act because of lack of local public improvement, existence of conditions that lower the value of the land below that of nearby land, multiple ownership of land, and other similar conditions. 3. The Commission hereby finds that the public health and welfare will be benefited by accomplishment of the 2018 Amendments. 4. The Commission hereby finds that the accomplishment of the 2018 Amendments will be a public utility and benefit as measured by the attraction or retention of permanent jobs, an increase in the property tax base, improved diversity of the economic base and other similar public benefits, and therefore it will be of public utility and benefit to amend the Plan to incorporate the Plan Supplement and adopt the 2018 Amendments. 5. The Commission hereby finds that the Plan Supplement conforms to other development and redevelopment plans for the City. 6. In support of the findings and determinations set forth in Sections 1 through 5 above, the Commission hereby adopts the specific findings set forth in the Plan, as supplemented by the Plan Supplement (collectively, the "Plan"), and the Plan Supplement is hereby in all respects approved. 7. While the Plan contemplates the possibility of property acquisition as a part of the economic development strategy, the Department does not at this time propose to acquire any specific parcel of land or interests in land within the boundaries of the Economic Development Area. At the 2 time the Department proposes to acquire specific parcels of land, the required procedures for amending the Plan under the Act will be followed, including notice by publication and to affected property owners and a public hearing. 8. The Commission finds that no residents of the Economic Development Area or the City will be displaced by any project resulting from the Plan Supplement, and therefore finds that it does not need to give consideration to transitional and permanent provisions for adequate housing for the residents. 9. The Commission hereby finds and determines that the 2018 Amendments are reasonable and appropriate when considered in relation to the Plan and the purposes of the Act, and that the Plan Supplement conforms to the comprehensive plan for the City. 10. The MCE Allocation Area is hereby dissolved. The boundaries of the MCW Allocation Area are hereby expanded as depicted in Exhibit B hereto, with such expansion area to be known as the "Motor Court West 2018 Expansion Allocation Area" (and previously defined herein as the "MCW Expansion Allocation Area") pursuant to Section 39 of the Act for purposes of the allocation and distribution of property taxes for the purposes and in the manner provided by said Section 39. Any real property taxes subsequently levied by or for the benefit of any public body entitled to a distribution of property taxes on taxable property in the MCW Expansion Allocation Area shall be allocated and distributed as follows: Except as otherwise provided in said Section 39, the proceeds of taxes attributable to the lesser of (a) the assessed value of the property for the assessment date with respect to which the allocation and distribution is made, or (b) the base assessed value, shall be allocated to and, when collected, paid into the funds of the respective taxing units. Except as otherwise provided in said Section 39, property tax proceeds in excess of those described in the previous sentence shall be allocated to the redevelopment district and, when collected, paid into the allocation fund previously established for the MCW Allocation Area that may be used by the redevelopment district only to do one or more of the things specified in Section 39(b)(3) of the Act, as the same maybe amended from time to time. Said allocation fund may not be used for operating expenses of the Commission. Except as otherwise provided in the Act, before June 15 of each year, the Commission shall take the actions set forth in Section 39(b)(4) of the Act. The foregoing allocation provisions shall apply to all of the MCW Expansion Allocation Area and shall expire on the date that is twenty-five (25) years after the date on which the first obligation is incurred to pay principal and interest on bonds or lease rentals on leases payable from tax increment revenues derived from the MCW Expansion Allocation Area. The base assessment date for the MCW Expansion Allocation Area is January 1, 2018. Tax increment revenues derived from the MCW Expansion Allocation Area may be spent for any of the purposes identified in the Plan, as supplemented by the Plan Supplement. 11. The boundaries of the Area 3 Allocation Area are hereby expanded into the portion of the prior MCE Allocation Area that is not included in the MCW Expansion Allocation Area, as depicted in Exhibit B hereto, with such expansion area to be known as the "Carmel Downtown Allocation Area No. 3 2018 Expansion Area" (the "Area 3 Expansion Allocation Area") pursuant to 3 Section 39 of the Act for purposes of the allocation and distribution of property taxes for the purposes and in the manner provided by said Section 39. Any real property taxes subsequently levied by or for the benefit of any public body entitled to a distribution of property taxes on taxable property in the Area 3 Expansion Allocation Area shall be allocated and distributed as follows: Except as otherwise provided in said Section 39, the proceeds of taxes attributable to the lesser of (a) the assessed value of the property for the assessment date with respect to which the allocation and distribution is made, or (b) the base assessed value, shall be allocated to and, when collected, paid into the funds of the respective taxing units. Except as otherwise provided in said Section 39, property tax proceeds in excess of those described in the previous sentence shall be allocated to the redevelopment district and, when collected, paid into the allocation fund previously established for the Area 3 Allocation Area that may be used by the redevelopment district only to do one or more of the things specified in Section 39(b)(3) of the Act, as the same maybe amended from time to time. Said allocation fund may not be used for operating expenses of the Commission. Except as otherwise provided in the Act, before June 15 of each year, the Commission shall take the actions set forth in Section 39(b)(4) of the Act. The foregoing allocation provisions shall apply to all of the Area 3 Expansion Allocation Area and shall expire on the date that is twenty-five (25) years after the date on which the first obligation is incurred to pay principal and interest on bonds or lease rentals on leases payable from tax increment revenues derived from the Area 3 Expansion Allocation Area. The base assessment date for the Area 3 Expansion Allocation Area is January 1, 2018. Tax increment revenues derived from the Area 3 Expansion tiiiccaticn Area may ve spent for any or the purposes identifiea in the rian, as supplemented by the Plan Supplement. 12. The Commission hereby finds, as supported by evidence set forth in the Plan Supplement, that the adoption of the allocation provisions in Sections 10 and 11 hereof will result in new property taxes in the Economic Development Area that would not have been generated but for the adoption of such allocation provisions. 13. Each officer of the Commission is hereby authorized and directed to make any and all required filings with the Indiana Department of Local Government Finance and the Hamilton County Auditor in connection with the MCW Expansion Allocation Area and the Area 3 Expansion Allocation Area. 14. This Resolution shall be submitted to the Plan Commission and the Common Council as provided in the Act, and if approved by the Plan Commission and the Common Council shall be submitted to a public hearing and remonstrance as provided by the Act, after public notice as required by the Act. 15. The officers of the Commission are hereby authorized to make all filings necessary or desirable to carry out the purposes and intent of this Resolution. 16. The provisions of this Resolution shall be subject in all respects to the Act and any amendments thereto. El Adopted the 15'b day of October, 2018. CITY OF CARMEL REDEVELOPMENT COM SION 3 3 a 1 President mber Member EXHIBIT A Plan Supplement Based upon negotiations with one or more private developers that are considering certain proposed development projects within the Economic Development Area, the Commission believes that there is a substantial likelihood of significant new private investment in the Economic Development Area which will result in major capital improvements to property located in the MCW Expansion Allocation Area and the Area 3 Expansion Allocation Area. As part of such anticipated development, the Commission expects that certain local public improvements will be required to support such new private investment in the MCW Expansion Allocation Area and the Area 3 Expansion Allocation Area. A summary of the proposed additional local public improvement projects and estimated costs thereof are set forth below. Therefore, the Commission reasonably believes that (a) these proposed additional projects are necessary and appropriate in order to help remedy the conditions so identified in the specific findings of fact set forth in the Plan and to further development within the City of Carmel, Indiana, in accordance with the Act, (b) such proposed new private investment will result in new property taxes in the Economic Development Area, and (c) such new property taxes in the Economic Development Area would not be generated but for the establishment of the MCW Expansion Allocation Area and the Area 3 Expansion Allocation Area. Based on representations of the developer of the hotel project, the Commission has determined that the development will not proceed as planned without the contribution of tax increment revenues to be derived from the MCW Expansion Allocation Area and the Area 3 Expansion Allocation Area to the projects described above and other projects in the Economic Development Area. The Plan is hereby supplemented by adding the following projects to the Plan: The design, construction, renovation, improvement and/or equipping of a new hotel and related infrastructure improvements, including, without limitation, (a) any site development costs, and all costs or expenses of acquisition, construction or equipping incurred in connection therewith, (b) landscaping and streetscaping projects, (c) lighting upgrades, (d) roads, streets, sidewalks and other public ways, (e) parking facilities, (f) improvements, upgrades, repairs and/or relocation of water, sewer, drainage or other utility infrastructure, (g) site work and preparation to support a hotel and/or mixed use development generally to be located in the Economic Development Area, and (h) other necessary public infrastructure to be located in the Economic Development Area. The maximum estimated cost of these improvements for the hotel project is $41,000,000. A-1 EXHIBIT B Depiction of Motor Court West 2018 Expansion Allocation Area and Carmel Downtown Allocation Area No. 3 2018 Expansion Area DMS BBINGHAM 13397843v3 IS 2018 Reallocation Request C C C N p woro', k 40 Sk I C P4 k's I t, - CM 14FATIO suits MOTOR COURT 11INTIEVIN T, 0 t bow-#^ -IW t