No preview available
HomeMy WebLinkAboutCC-11-20-00-03 Fiscal Plan C-203 RESOLUTION NO. ~.-,&- I I-2..-D- C)O- ADOPTING A FISCAL PLAN FOR TItE ANNEXATION PROPERTY CONTIGUOUS TO THE CITY OF CARMEL, INDIANA WHEREAS, Woodland Country Club, Inc., has filed with the City of Carmel, Indiana (hereafter "City"), a Petition For Annexation requesting annexation to the City of Carmel, Indiana of the 14.378 acre parcel of real estate legally described in Exhibit 'A' hereto (hereafter "Real Estate"); WHEREAS, Woodland Country Club, Inc., is the sole owner of the Real Estate; WHEREAS, the Real Estate is "contiguous" to the corporate boundaries of the City. WHEREAS, the Common Council of the City of Carmel, Indiana (hereafter "Council") is desirous of adopting a written fiscal plan for the Real Estate; NOW THEREFORE, BE IT RESOLVED by the Council that: Section One: The Council adopts the Fiscal Plan (hereafter "Plan") prior to the adoption of the annexation ordinance for the Real Estate, a copy of which is attached hereto, made a pan hereof, and marked Exhibit 'B'. Section Two: The purpose of the Plan is to confirm that the City is physically and financially able to provide municipal services to the Real Estate. Section Three: The basic services described in the Plan becomes effective upon adoption of Annexation Ordinance C-203. Section Four: The City will provide a copy of the Plan immediately at~er adoption to any landowner in the annexed territory who requests a copy from the Clerk/Treasurer of City. Section Five: This Resolution shall be in full force and effect from date of passage, and its publication, as provided by law. PASSED by the Common Council of the City of Cannel, Indiana this ;~/~' day of ~,~'ll~-~3~r ,2000~ by a vote of ;5" ayes and O nays. P/idling Officerf ~.L. ~undle, P ' Robert Battreall Ronald E. Carter R. Koven Wayne A Wilson J~es~rainard, Mayor ATTEST' ~ E~u Diana L. Cordray, I~ , rer This Document Prepared By: James J. Nelson, NELSON & FRANKENBERGER, 3021 E. 98t~ Street, Suite 220, Indianapolis, IN 46280 EXHIBIT 'A' LEGAL DESCRIPTION Part of the North Half of Section 6, Township 17 North, Range 4 East in Clay Township, Hamilton County, Indiana, described as follows: Commencing at the Northwest corner of Section 6, Township 17 North, Range 4 East; thence South 89 degrees 53 minutes 03 seconds East (assumed bearing) on the North line of said Section 6, (being a straight line between said Northwest comer and the Southeast comer of Section 3 I, Township 18 North, Range 4 East as said corners were monumented with Harrisan Workers on September 23, 1999) a distance of 2265.00 feet to the Northeast comer of WOODLAND GOLF CLUB SUBDIVISION, a subdivision in Hamilton County, Indiana, the plat of which is recorded on pages 545 and 546 of Deed Record 136 in the Office of the Recorder of Hamilton County, Indiana, said comer being the PLACE OF BEGINNING of the within described real estate; thence continuing South 89 degrees, 53 minutes, 03 seconds East on said Noah line of section 6, a distance of 581.41 feet to a point that is 750.00 feet West of the centerline of Indiana State Road 431, (designated as line "E" on I.S.HC plans for Project Number S-165 (13), dated 1959 and revised August 3, 1964); thence South 00 degrees 04 minutes 33 seconds West, passing through a I.S.H.C. Right of Way Marker, a distance of 18.01 feet to the Southerly fight-of-way line of 116th Street at point that is 20.00 feet South 00 degrees 04 minutes 33 West of survey line "5-6-E" on said I.S.H.C. plans; (the following three courses are on said Southerly right-of-way line) 1 .) thence South 75 degrees 53 minutes 16 seconds East 103.08 feet to a point that is 45.00 feet South of said survey line "5-6-E"; 2.) thence South 89 degrees 06 minutes 20 seconds East 350.04 feet to a point that is 50.00 seconds feet South of said survey line; 3.) thence South 87 degrees 03 minutes 42 seconds East 100.13 feet to a point that is 55.00 feet South of said survey line, said point being on the Westerly limited access right-of-way line of said Indiana State Road 431, per the aforesaid I.S.H.C. plans; thence South 48 degrees 51 minutes 27 seconds East on said fight-of-way line 126.28 feet to a point that is 105.00 feet west of line "E" on said plans; thence South 02 degrees 52 minutes 32 seconds East on right-of- way line 200.25 feet; thence South 00 degrees 42 minutes 11 seconds West on said fight-of-way line 347.17 feet; thence North 79 degrees 19 minutes 04 seconds West 1002.87 feet; thence North 33 degrees 33 minutes 52 seconds West 446.74 feet to the Southeast comer of Lot Number 33 in the aforesaid WOODLAND GOLF CLUB SUBDIVISION; thence North 00 degrees 06 minutes 57 seconds East on the East line of said subdivision 127.00 feet to the place of beginning, containing 14.378 acres, more or less. Carmel, Indiana Hamilton County Merchant's Pointe Annexation Fiscal Plan amended (11-22-00) November 7, 2000 Michael R. Shaver, President 4742 Bluffwood North Drive Indianapolis, IN 46228 (voice) 317~299-9529 (fax) 317/329-9885 (e-mail) wabsci@aol.com Detailed Summary of the Fiscal Plan Nature of the Annexation Action The direct purpose of this proposed annexation of the Merchant' s Pointe Annexation Area is to accommodate the voluntary annexation (IC36-4-3- 5) of this new commercial development in conjunction with the provision of city services to that development. The Fiscal Plan summarized in this report examines the technical parameters and considerations for annexation of the proposed territory, as required by Indiana statute. This annexation complies with the annexation policies of the City of Cannel, as approved. With these considerations, it is appropriate for the City of Cannel to undertake the annexation of the Merehant's Pointe development for the following reasons: The new development is contiguous with the boundaries of the City of Carreel, as defined in statute. The new development will be connected to Carmel's infrastructure systems, including sewers and water utilities. The new development may request economic incentives to support the development. General Description of the Annexation Territory The Merchant's Pointe Annexation Area contains approximately 14.4 acres of land, 100% of which is dedicated to use as commercial/business, and which was previously a part of the Woodland Country Club golf course. The annexation territory was previously re-zoned for development as a commercial area by both the Cannel City Council and the Plan Commission. The annexation action is undertaken for the purpose of incorporating the proposed development into the city of Cannel. Location of the Annexation Territory The Merchants Pointe Annexation territory is located on the south side of 116th Street, immediately west of Keystone Avenue. The primary transportation access to the proposed commercial development is provided from 116th Street. The area is located at the extreme north end of the Woodland Country Club golf course and is to be subdivided from the Woodland Country Club golf course, as considered and approved by the Carreel/Clay Plan Commission and the Carmel City Council. According to the records of the Hamilton County Recorder and the Hamilton County Auditor, such subdivision has not yet formally taken place, but is imminent. Therefore, the proposed annexation territory represents a portion of what is currently recorded as said golf course. Summary of Estimated Costs & Revenues The following table summarizes the estimated costs of providing municipal services to the Merchants Pointe Annexation Area, along with the projected property tax revenues resulting from the development. The projections indicate that the City is expected to receive a revenue surplus from this annexation action. Cost/Revenue Summary Non-Capital Municipal Services Police Protection by City police Fire Protection by City of Carmel Emergency Medical Assistance by City Non-Capital Street Department Services by City of Carmel Administrative Services by City of Carrnel Municipal Courts Department of Community Services Animal Control by City of Carreel Parks Services (joinder, by Township) Health Department Services (by County) Sub-Total Cost of Non-Capital Services Capital Municipal Services Capital Street Department Services by City of Carmel Capital Fire Facilities by City of Carmel Capital Fire Hydrants by City of Carmel Sewer & Water Utilities from City of Carreel Capital Drainage Services by developer Capital Street Lights by developer Sub-Total Cost of Capital Services Projected Property Tax Revenues ~ Net Revenue/(De~cit) I < $5,000 1 < $2,000 I < $6,000 I < $1,000 1 < $1,000 I < $2,000 I < $2,000 I < $500 n/a n/a n/a n/a $19,500 1 $0 1 $0 I $0 I $0 n/a n/a n/a n/a $0 $119,500 Legal Description of the Proposed Annexation Territory Part of the North Half of Section 6, Township 17 North, Range 4 East in Clay Township, Hamilton County, Indiana, described as follows: Commencing at the Northwest corner of Section 6, Township 17 North, Range 4 East; thence South 89 degrees 53 minutes 03 second East (assumed bearing) on the North line of said Section 6, (being a straight line between said Northwest corner and the Southeast corner of Section 31, Township 18 north, Range 4 East as said corners were monumented with Harrisan Workers on September 23, 1999) a distance of 2265.00 feet to the Northeast corner of WOODLAND GOLF CLUB SUBDIVISION, a subdivision in Hamilton County, Indiana the plat of which is recorded on pages 545 and 546 of Deed Record 136 in the Office of the Recorder of Hamilton County, Indiana, said corner being the PLACE OF BEGINNING of the within described real estate; hence continuing South 89 degrees, 53 minutes, 03 seconds East on said North line of section 6, a distance of 58.41 feet to a point that is 750.00 feet West of the centerline of Indiana State Road 431, (designated as line "E" on I.S.H.C. plans for Project Number S-165 (13), dated 1959 and revised August 3, 1964); thence South 00 degrees 04 minutes 33 second West, passing through a I.S.H.C. Right of Way Marker, a distance of 18.01 feet to the Southerly right-of-way line of 116~h Street at point that is 20.00 feet South 00 degrees 04 minutes 33 West of survey line "5-6-E" on said I.S.H.C. plans; (the following three courses are on said Southerly right-of-way line) 1 .) thence South 75 degrees 53 minutes 16 seconds East 103.08 feet to a point that is 45.00 feet South of said survey line "5-6-E"; 2.) thence South 89 degrees 06 minutes 20 second East 350.04 feet to a point that is 50.00 seconds feet South of said survey line, 3,) thence 87 degrees 03 minutes 42 second East 100.13 feet to a point that is 55.00 feet South of said survey line, said point being on the Westerly limited access right-of-way line of said Indiana State Road 431, per the aforesaid I.S.H.C, plans; thence South 48 degrees 51 minutes 27 seconds East on said right-of-way line 126,28 feet to a point that is 105.00 feet west of line "E" on said plans, thence South 02 degrees 52 minutes 32 seconds East on right-of-way line 200.35 feet, thence South 00 degrees 42 minutes 11 second West on said right-of-way line 347.17 feet; thence North 79 degrees 19 minutes 04 seconds West 1002.87 feet; thence North 33 degrees 33 minutes 52 second West 446.74 feet to the Southeast corner of Lot Number 33 in the aforesaid WOODLAND GOLF CLUB SUBDIVISION, thence North 00 degrees 06 minutes 57 seconds East on the East line of said subdivision 127.00 feet to the place of beginning, containing 14,378 acres, more or less. Other Annexation Factors The following table summarizes other factors with regard to the proposed annexation and indicates that the proposed annexation complies in all respects with the requirements of Indiana statute (IC36-4-3). Existing Land Use golf course Approved Redevelopment Use 100% commercial/business Contiguity with City Boundaries ยท 25% Population Density 0.0 persons/acre Width of the Proposed Annexation Territory >, 150 feet Proposed Utility Service city water &sewer Is the Area needed & can it be used by the City yes Percent Subdivided 100% Existing Fire Service Provider City of Carmel Existing Street/Road Maintenance (116t~ St.) City of Carmel Number of Property Owners in Territory 1 Property Owners Requesting Annexation 100% Amount Net Assessed Value Requesting Annexation 100% Location for Inspection of the Full Fiscal Plan This Summary document is prepared in accordance with IC36-4-3-2.2. The full Fiscal Plan document can be reviewed at the offices of the Department of Law of the City of Cannel, located on the 3rd floor of the City Government Center. The City of Carmel will provide a full copy of the Fiscal Plan after the Fiscal Plan is adopted, immediately to any landowner in the annexed territory who requests a copy, subject to the reasonable cost of copying said document. Contact Person for Further Information Further information regarding this proposed annexation can be obtained by contacting either Mr. Douglas Haney, City Attomey, or Ms. Nancy Heck in the City's Administrative Offices. The general telephone number for City Offices is 317-571-2400. In order to assure a complete understanding of the request for information and the accuracy of the response, the City reserves the right to request that any complicated inquiries be submitted in writing to the City Attomey. The City Attorney shall be the sole and final judge of what questions, requests or inquiries must be submitted in writing. The City Attomey's office shall keep a log of inquiries received relative to this annexation. Description of the Annexation Area The area proposed for annexation lies at the southwest comer of 116th Street and Keystone Avenue, directly south of the Merchants Square commercial plaza. The site is currently being used as a golf course, and the petition for re-zoning the land has been approved by the City. The parcel is approximately 14.4 acres in size and is more than 25% contiguous to the City and is 100% zoned for business use in accordance with IC36-4-3-13(b)(1) and (2)(C). The site consists of one re-subdivided parcel. Informal Description of the Annexation Area The annexation area is generally described as an irregular polygon (roughly rectangular in shape) adjacent to the southwest comer of 116th Street and Keystone Avenue. (See Map #1 and oblique aerial photo in front of this report.) The site is noted as being 14.378 acres in size, according to documentation filed with DOCS. The site was re-zoned during the year 2000 at the request of the developer/ owner. It is further understood that the developer/owner has filed a petition for annexation in accordance with IC36-4-3-5. The site fronts on 116th Street and will receive its primary thoroughfare access from the 116th Street Corridor. The City has planned improvements to 116th Street in this location to increase traffic flows through the intersection. Development/Land Use in the Area The "Merchant's Pointe" (Annexation Area) is currently 100% developed as a portion of the Woodland Country Club golf course. As a result of the re-zoning, the current land use has been changed to 100% commercial/ business zoning within the boundaries of the site. A legal description of the site is presented in Appendix A of this Fiscal Plan, and both an aerial photo and a drawing of the site is included in the front of this report, as noted above. There is no other development within the Merchant' s Pointe Area. The traffic volumes on the adjacent conidors is very heavy, as is common with local arterial roadways (116th Street) and US highway corridors (US431 a.k.a. Keystone Avenue). Merchant's Pointe Corridor Annexation Area: Fiscal Plan6 Annexation Policies The City of Carmel undertook the specific task of developing formal annexation policies by executing a contract for consulting assistance in July, 2000, and the City Council has formally approved the Annexation Policies by separate resolution, as of November, 2000. These Annexation Policies are on file as public documents with the City and are available for review at the offices of the Department of Community Services and at the offices of the City Attorney in City Hall. The proposed annexation complies in all respects with the Annexation Policies of the City of Carmel, as approved. Statutory Considerations The following discussion is directed toward the statutory parameters of annexation as it relates to the Merchant's Pointe Annexation Area CMerchant's Pointe.") Contiguity The Merchant's Pointe is greater than 25% contiguous to the corporate limits of the City, in accordance with IC36-4-3-13(b) and (c). Population Density Since the Merchant' s Pointe is 100% dedicated to use as a commercial development, the population density of the Merchant' s Pointe is 0.0 persons per acre. Width of Merchant's Pointe Area The Merchant's Pointe Area is greater than 150 feet wide, in accordance with IC36-4-3-1.5. Area Zoned for Commercial, Business or Industrial Uses The Merchant's Pointe Area meets the statutory definition of "zoned for commercial, business or industrial use" in accordance with IC36-4-3-13 (b)(2)(C). Further documentation of this designation can be found at the offices of the Department of Community Services (DOCS) at City Hall. "Needed & Can Be Used" Merchant's Pointe Corridor Annexation Area: Fiscal Plan 7 The Merchant' s Pointe Area meets the definition of "needed and can be used by the m unicipality for its development in the reasonably near future,, as specified in IC36-4-3-13(c)(2). The area was re-zoned for the purpose of redevelopment as a commercial area, to meet the increasing commercial needs of a city which is growing dramatically. The Memhant's Square shopping area was recently redeveloped, remodeled and modernized to meet the market demands of the community. The Memhant's Pointe commercial development is intended to supplement and augment the Merchant's Square facility by offering additional retail and commercial opportunities to Carmel residents. The increasing population of the city, as well as the developed metropolitan area of Carreel (including currently unincorporated areas) requires additional retail development to support the needs of the residents. The City of Carmel has used its ongoing Comprehensive Planning efforts to control the location of retail/commercial operations, with the Comprehensive Plan consistently identifying the vicinity of 116th Street and Keystone Avenue as a primary commercial service area. This development plan is entirely harmonious with the long term development plan for the commtmity at large. The developer has indicated that the redevelopment of the site is imminent, thereby meeting the statutory parameter "in the reasonably near future, " as noted. If the Merchant's Pointe development were not undertaken, the city would be under pressure to allow the development of scattered commercial development, which would be contrary to the developmental intent of the comprehensive plan. Consequently, as a restfit of these considerations, this Fiscal Plan finds that the annexation of the Merchant' s Pointe Area meets the statutory definition of "needed and can be used by the municipality for its development in the reasonably near future," in accordance with statute. The land use of the Merehant's Pointe is 100% dedicated to redevelopmerit as a commercial/retail area. The property was submitted for re-zoning and considered at length by the city's various agencies and leadership, and the result was approval of the redevelopment proposal. It is anticipated that the owner will submit a formal petition for voluntary annexation as a condition for connecting the proposed development to the utility systems of the City. Merchant's Pointe Corridor Annexation Area: Fiscal Plan8 Conclusions Regarding Statutory Issues The information presented above shows conclusively that the Merchant's Pointe Annexation Area meets and exceeds all of the necessary statutory tests for annexation under IC36-4-3. The provisions of statute allow for several possible configurations to meet the statutory intent. In fact, the proposed annexation of the Merehant's Pointe Area meets these tests at multiple statutory levels, including both IC36-4-3-13(b) and IB36~4-3- 13(c). The statute requires that the area meet the conditions of only one of those statutory sub-sections. In addition, upon receipt of the voluntary annexation petition from the developer in accordance with IC36-4~3-5, creating yet a third means of meeting the statutory tests. In conclusion, it is clear that the statutory parameters are met with respect to the proposed annexation of Merchant' s Pointe. Providing Municipal Services The specific developmental parameters associated with the Merchant' s Pointe territory and its development proposal essentially reduces any question regarding provision of municipal services to a purely technical argument - generated primarily to satisfy statutory requirements. Since the Merchant's Pointe Annexation Area is 100% commercial, its requirement for mtmicipal services is limited. The following presentation is made for the purpose of satisfying statutory requirements. Non-Capital Services All non-capital services are to be provided within one year of the effective date of this annexation. By adopting this Fiscal Plan, the City hereby agrees and commits to offering all non-capital municipal services as itemized below no later than one year after the approval of the annexation, as provided in statute. Non-capital services are itemized as follows: POLICE PROTECTION The Merchant' s Pointe territory is currently under the specific jurisdiction of the County Sheriff for police protection services. This distinction is less than specific, however, due to the limited need for police protection of a gold course. In such case as police protection were needed at the golf course (such as vandalism), it has been common procedure for Carrnel Police to respond to such calls in support of county officials. This is due to the close proximity of the Carreel Police to the area, and due to the comparatively limited number of County Sheriff officers, in comparison to Merchant's Pointe Corridor Annexation Area: Fiscal Plan9 City Police. This jurisdiction will change as a result of the annexation, and the Carreel City Police will provide police protection to the proposed commercial development. It is projected that the potential for police calls to the commercial area will be greater than the potential police calls to the existing area, due to the change in land use. Furthermore, the character of the occupancy of the retail space will have a substantial impact on the number of police calls to the site (tavems would likely generate the greatest number of such calls). Based on the crime rates of the City of Carmel, and the adjacent unincorporated areas (such as the Woodland Country Club and golf course) the projected fiscal impact of the proposed annexation on police services is therefore projected to be less than $5,000 per year. FIRE PROTECTION Fire protection in Cannel/Clay Township is provided under a j oinder agreement between the two governmental entities, which obscures the issue of estimated cost. In most cases, it would be assumed that the budgetary reduction in the need for fire protection by the Township would be precisely offset by the increased responsibility for fire protection by the City. This may or may not be the case, but it is likely that the same equipment and personnel would respond to a fire call in either case, including traffic accident calls along 116th Street. In the case of Merchants Pointe, however, there is a significant change in land use which accompanies the annexation, thereby complicating the analysis somewhat. The potential for a fire call to the golf course (which currently occupies the territory) is minuscule. The potential for a fire call to the proposed commercial development is substantially higher. Therefore, the presentation below will attempt to reflect that reality. The fire protection facilities for the area will not change substantially as a result of the proposed annexation of the Merchant's Pointe development, as noted above. The annexation area is not currently populated, and will not become populated as a result of development. The proposed commercial development, however, would require fire protection for the proposed commercial improvements. To the extent that such commercial space is occupied by commercial enterprises - including restaurants - it would be possible to speculate that there would be an increased potential Merchant's Pointe Corridor Annexation Area: Fiscal Plan] for fire, and thereby an increased need/cost for fire protection. Upon closer examination, however, it is expected that the commemial development would be required to have on-site fire prevention/protection facilities, including smoke detectors and sprinkler systems. Therefore, such on-site fire protection facilities are judged to offset the majority of any increase in the need/cost for fire protection services. For the purpose of this Fiscal Plan and in consideration of the forgoing analysis, the estimated cost of additional fire protection services for the proposed commercial development are estimated to be less than $2,000 per year. EMERGENCY MEDICAL SERVICES Emergency calls for the area are handled in much the same manner as fire protection, and are also included in a j oinder agreement between the City and Township. Currently, the city responds to accident calls on 116th Street, however, the joinder agreement (as noted above) reduces the clarity of this assertion. After the annexation, emergency rtms would be made for accidents, personal emergencies and vehicle fires at the Merchant's Pointe commercial development. It could be projected that such emergency calls would be substantially higher than such calls made in service to the existing land use, again as noted above. Therefore, the question of "cost" is more a matter of budgetary issues than of specific responsibility. The same equipment and personnel are likely to respond to an emergency call to this location. However, the ehange in land use will generate two changes in the emergency service configuration: a minor reduction in the assessed value of the unincorporated township, thus reducing the fiscal budgetary cost of emergency services to the township under the joinder a very small amount; with an increase in the future assessed value of the City, due to the proposed commercial improvements. These two budgetary adjustments are projected to be very small, however, the increase in the potential number of calls to the proposed commercial development will fall more squarely on the City. It is estimated that some calls are likely to occur, with additional calls being in response to personal injuries/illnesses on the commercial site, depending upon the commercial occupants of the space. (Taverns and restaurants could be expected to generate more calls than retail establishments, for example.) Since one cannot know what sorts of commercial establishments will occupy the Merchant's Pointe Corridor Annexation Area: Fiscal Plan/~ ir proposed space, a precise estimate of potential cost of service isn't possible. However, in this case, and considering the upscale nature of proposal, we are estimating less than 3 minor calls per year to the site, with a resulting estimated cost of less than $6,000 per year. NON-CAHTAL STREET DEPARTMENT SERVICES The normal operations of the Carreel Street Department would include such things as street repairs, leaf collection, snow removal, mowing and tree trimming (within public rights of way) and traffic control. The nature of the Merchant' s Pointe, however, is such that the annexation territory contains 0 lineal feet of additional local streets requiring repair, maintenance, traffic control, snow removal, mowing or tree trimming services, and 0 resident population requiring other city services. This is due to the fact that the City is already responsible for all Street Department services along 116th Street. Snow removal, maintenance, repairs, traffic control, etc., within the Merchant' s Pointe area will not change substantially as a result of the proposed annexation. The proposed development may add a small mount of street right of way for snow removal as well as a few hundred feet of travel lanes, primarily for turning onto Keystone Avenue. These responsibilities will add a very small amount to the cost of operating the Carmel Street Department and therefore the projected annual cost of the services afforded by the Carreel Street Department is projected to be less than $1,000. Any required services of the Carreel Street Department will be provided within one year of the effective date of the annexation. ANIMAL CONTROL SERVICES The need for animal control within the Mcrchant's Pointc annexation territory is generally acknowledged to bc limited to the removal of the carcasses of animals killed in vehicular accidents. Within local highway right of way, these animal carcasses arc removal by Cannel City pcrsouneI, either directly or by contract. As noted previously, 116t~ Street is already within the City's jurisdiction for these services, and the annexation of the 14 acres of the proposed commercial development constitntcs the only increase in animal control jurisdiction. Based on these parameters, the projected increase in animal control service cost resulting from the proposed annexation is projected to be less than $500 per year, based almost entirely on the annexation of 14 acres of new commercial development. Merchant's Pointe Corridor Annexation Area: Fiscal Plan/r2 HEAL TH DEPARTMENT SERVICES Health Department services in the area are handled by Hamilton County, and arc not municipal services, per se. The nature of the Mcrchant's Pointe as a commercial development precludes the necessity of providing health department services within the proposed annexation area, except in the unlikely case that some form of food-related issue were to arise at the proposed development. Obviously, it is not possible to know when and where such a demand for service could arise, and such a need is extremely unlikely, given the overall character of the proposed development. At the same time, it is possible that some restaurant which might occupy the commercial space could be reported to have some form of health standard violation which wold require the services of the health dcpartment. As stated multiple times in previous paragraphs, the Merchant' s Pointc has no private development, no population and is 100% commercial development. These factors combine to indicate that no services of the health department would be required (except the minute possibility that there would be an accident involving a vehicle can'ying passengers suffering from a contagious disease). There being no demonstrable need for the addition of municipal health department services except in the most unlikely of situations, the projected annual cost of municipal health department services resulting from this annexation is $0. Such services will continue to be provided by the County. PARKS DEPARTMENT The Mcrchant's Pointe is 100% commercial development, however, the proposed development actually reduces the amount of recreational land available in the Township by 14 acres. If this were not confusing enough, the parks service is also administered through a joinder agreement with the Township, similar to the other joindcr agreements explained above, however, the parks service is primarily administered by the Township, with the fiscal support of the City. Given that the reduction in recreational acreage resulting from the proposed commercial development amounts to only 14 acres, and given that the development standards of the Cannel/Clay Plan Commission require new developments (especially residential) to allocate new recreational and open space, and given that the Woodland Country Club is expected to re-design the golf course to permit continued play, the assessment of the impact on public Parks services is estimated to be minimal. As such, there are no additional demands on parks services Merchant's Pointe Corridor Annexation Area: Fiscal Plan/3 projected due to the proposed annexation, however, even if such parks services were required, they would reside primarily with the Township, under the current joinder agreement. Therefore, the projected cost to the City for additional parks services resulting from annexation is $0 per year. DEPARTMENT OF COMMUNITY SERVICES: PLANNING d: ZONING The services of DOCS are also handled through a j oindcr agreement with the Township. DOCS was responsible for review, approval and administration of the planning and zoning of the proposed Merchant' s Pointc development. As such, DOCS will continue to have jurisdiction over the Merchant' s Pointc development with respect to building permits, land use, development standards and other administrative details. The addition of one commercial development to the City's share of the j oindcr responsibility is almost insignificant, however, it would be difficult to state that such responsibility had no fiscal/service impact at all. Therefore, the projected cost of providing DOCS services to the annexation area is projected to be no more than $2,000 annually. ADMINISTRATIVE SERVICES B Y THE CITY The Mcrchant's Pointe contains commercial property that would come under the operative jurisdiction of the City of Carmcl. In the event that complaints emanate from the proposed development for whatever reason, or that neighbors complain about the conduct/behavior of potential patrons of the commercial enterprises to be housed Merchants Pointe, such service costs would accrue to the City as a result of the armcxation. The truth, however, is that the city is probably receiving such complaints already, despite the fact that there is no legal obligation to provide such services. As is the case of many of the other non-capital services discussed above, the projected cost of such services is expected to be minimal, but they cannot be completely eliminated. The regulations of the City of Carmel will become enforceable when the annexation is effective, therefore, some nominal cost projection is appropriate. For these reasons, the projected cost of municipal Administration services resulting from the annexation of the Merchant' s Pointe is projected to be less than $1,000 per year, mostly due to the necessity for fielding complaints and other matters. MUNICIPAL COURT The proposed annexation will have minimal impact on the operation of the Merchant's Pointe Corridor Annexation Area: Fiscal Plan] municipal court. Current traffic violations in the area are already heard at the Municipal Court, however, court cases resulting from city police calls to the newly developed commercial center will nominally increase the load on the Court. Estimating the increase is difficult, but it is safe to suggest that the addition of only 14 acres of upscale commercial land and the equivalent reduction in recreational land would have a similar service impact to the other mtmicipal services of the City. Minor cases such as shoplifting, petty theft, vandalism, etc., could be expected to occur at the proposed commercial center. Based on these parameters, the cost of Municipal Court services is therefore estimated to be less than $2,000 per year. Capital Services Indiana statute provides that municipal capital services be provided within 3 years of the annexation action. Commercial development is proposed for the annexation area, which is the primary reason for the annexation action. As such, the developer is generally expected to provide any capital services to be offered within the Merchant's Pointe commercial development, and which are directly related to the proposed development. It is possible, however, that the city could determine - through separate consideration by the Redevelopment Commission and the City Council - that the impact of the Merchants Pointe development, in addition to the existing commercial development along the I 16t~ Street Corridor, could require improvements to the 116th Street thoroughfare. CLARIF1CA TiON REGARDING SER VICES: Please note that any required improvements would certainly not result from the traffic impact of a single, 14-acre commercial center. The 116th Street corridor is more than 4 lanes wide in the vicinity of the proposed Merchants Pointe development, which is more than sufficient to handle any projected traffic to such a small development. Instead, what is being suggested here is that the combined impact of this small commercial development, along with adjacent commercial developments, and the fact that 116th Street is already a major thoroughfare for the community, may be determined to result in the need for an enhancement to the corridor at this location. Such an enhancement would be for the purpose of improving the level of traff'~c service to the general population at this location. If such improvements are deemed necessary, the City will consider the cost of any proposed improvements and determine the most Merchant's Pointe Corridor Annexation Area: Fiscal Plan/r.~ ~scally effective manner of financing said costs. This could include appropriations from the General Fund, impoundments of property taxes from the annexed area, Tax Increment Financing, or other fiscal alternatives. Please note the distinction made here, however. The cost of capital improvements determined to be necessary as a result of accumulated development impact cannot be legitimately blamed on the simple annexation of 14 acres contained in the Merchants Pointe annexation. Instead, these costs are more legitimately necessitated by the cumulative growth of the City of Carmel, and as such are separated, both procedurally and riseally, from the annexation action. Therefore, only the costs specifically related to the annexation of Merchants Pointe are to be considered as capital services in this Fiscal Plan, as presented below. CAPITAL STREET DEPARTMENT SER VICES Since 100% of the roads within the proposed annexation area are to be private commercial roadways and corridors, the City of Cannel will be required to undertake $0 in the cost of developing these new roads and corridors within the Merchant' s Pointc development. It is the sole responsibility of the developer to fund all such capital roadway improvements. Therefore, the projected capital cost of providing new or improved roadways within the proposed annexation area is $0. CAPITAL FIRE FACILITIES Although fire services are considered to be non-capital municipal services, it is clear that the development of new fire stations is a capital cost which must be borne by the municipality. Merchant's Pointe, however, will be adequately served by the existing City fire protection facilities, and the development will not necessitate the construction of any additional fire stations, nor will it require the acquisition of any new equipment to serve special needs of this specific development. As such, the proposed annexation would result in $0 in capital cost for fire protection. FIRE HYDRANTS The Mcrchant's Pointe will have any necessary fire hydrants installed by the developer for the purpose of fighting fires within the proposed annexation area. At this time, and in the future, any fires to be fought within the Mcrehant's Pointc may utilize fire hydrants located in the neighborhoods and commercial developments adjoining Merchant' s Merchant's Pointe Corridor Annexation Area: Fiscal Plan] Pointe. Therefore, the capital cost of providing fire hydrants within the Merchant' s Pointe annexation territory is projected to be $0. CAHTAL WATER SERVICES The Merehant's Pointe development will be provided with specific water service at the expense of the developer. Existing water lines run along the 116th Street corridor for use by the proposed development. Due to these considerations, the projected capital cost of providing water service to the Merchant' s Pointe Annexation Area is $0. CAPITAL SEWER SERVICES The Merchant' s Pointe Annexation Area has access to city sewer lines. Connections to these sewer lines will be accomplished at the expense of the developer, and the City Sewer Utility will be paid for such connections in accordance with the system of rates and charges applicable under the City's Sewer Rate Ordinance. The City will provide no sewer service to the proposed annexation territory that is not paid by the developer through this system of rates and charges. Therefore, the projected capital cost to the City of Carreel for providing sewer service within the Merchant's Pointe Annexation Area is $0. CAHTAL DRAINAGE FACILITIES Drainage facilities within the Merchant's Pointe area are designed, constructed and maintained at the expense of the developer in accordance with the development standards of the City, as administered by the Department of Conununity Services (DOCS). These development standards are set to assure that the development prevents and/or minimizes flooding associated with the development, as well as minimizing the pollutants loads from such things as petroleum, grits and road salts associated with the vehicular traffic. As a result of these considerations, and the commitment of the developer with regard to drainage facilities during/he re-zoning process, the projected cost for providing drainage facilities associated with the Merchant' s Pointe Annexation Area is $0. CAPITAL STREET LIGHTS Development, installation and maintenance of street lights for commercial developments is borne entirely by the developer. The proposed Merchant' s Pointe commercial development will be required to install lighting in the parking areas and near the streets, and the annexation action will not generate any demand for street lighting beyond that provided Merchant's Pointe Corridor Annexation Area: Fiscal Plan] 7 through the community's development standards. Therefore, the projected capital cost of providing street light service to the proposed commercial development is $0. Conclusions Regarding Municipal Services The conclusion is redundant. The Merchant's Pointe Annexation Area is important to the future commercial growth of the City of Carmel, and is located adjacent to the City's premier commercial area. Annexation of the development is appropriate as a condition to connection to the City's utility systems, and the annexation is entirely in compliance with the City's annexation policies. The City will not be required to provide any capital municipal services within the Merchant's Pointe commercial development as a result of this annexation, therefore, the capital cost of providing said mtmicipal services is projected to be $0 per year. The estimated cost of additional non-capital services to the Merchants Pointe annexation area is largely speculative. This small commercial development will have virtually no impact on the municipal service matrix of the city, and most of the estimated increase in the cost of municipal services is presented mainly because it would be difficult to defend an estimate of $0. Clearly, the annexation of Merchants Pointe will have only the most nominal impact on non-capital services, and the estimated costs of said non-capital services represents an insignificant amount when compared to the total budget of the City of Carmel. Comparable Service to Comparable Areas The issue of identifying "comparable areas" under the statute was left somewhat unclear by the recent amendments to state statute. In fact, the amended statute states that 'a full range of municipal services are to be afforded the annexed area, regardless of issues of land use, topography, and so forth.' These caveats were added to the state statute because municipalities were using this provision as a loophole to avoid the cost of providing property owners with appropriate and useful municipal services. Unfortunately, the amendment was not clearly worded. At the same time, varying configurations of land use require varying configurations of municipal services. Clearly, mtmicipal services to an industrial park or airport are different in nature and intensity from the municipal service requirement of an apartment complex. As such, it is appropriate to consider "comparable areas" as a means of determining any Merchant's Pointe Corridor Annexation Area: Fiscal Plan/8 municipal services which are required as a result of that land use. The following "comparable areas" are therefore cited. MERCHANT'S SQUARE COMMERCIAL AREA The Merchants Square commercial area, located immediately north of Merchants Pointe, represents a very comparable commercial area, which has coineidently been developer by the same developer (Linder). The Merchants Square commercial area provided lighting, sewer, water and street capital service facilities at its own expense in its original development configuration. More recently, a major commercial redevelopment project was undertaken with the cooperation of the City because the commercial area had been allowed to deteriorate and was on the brink of becoming a blighting influence on the community. In support of the redevelopment project, the City of Carmel provided Tax Increment Financing (TIF) as a means of encouraging the area to be fully developed and commercially viable. The municipal services required to support the original Merchants Square commercial development were generally non-capital in nature, and included nominal police and fire runs in response to various complaints, nominal administrative, court and legal services, nominal services from DOCS with regard to building permits (which are fee services), and nominal animal control services. Virtually no street maintenance services were required, nor was the original commercial development afforded any assistance to provide capital services such as sewer, water, street lights or other capital services (beyond those compensated by the developers through the user charge systems of the City). Therefore, it is projected that the Merchants Pointe development will have a similar impact. TABLE OF COMPARABILITY The following table summarizes the municipal services for the comparable area, as well as for the Merchant' s Pointe. Comparable Services Table Police Protection by City police Fire Protection by City of Carmel Emergency Medical Assistance by City US431 Merchant's Pointe yes yes yes yes yes yes Merchant's Pointe Corridor Annexation Area: Fiscal Plan] 9 Administrative Services by City of Carreel City Attorney City Courts Department of Community Services Snow Plowing by City of Carmel 'Leaf Collection by City of Carmel 'Mowing and Tree Tdmming by City of Carmel Road/Street Maintenance & Repairs by City of Carmel Traffic Control by City of Carreel Animal Control by City of Carmel Parks Services (joinder, under Township) Health Department Services (through County) Sewer & Water Utilities from City of Carmel Capital Drainage Services by developer Capital Street Lights by developer n/a n/a yes yes yes yes yes yes n/a n/a n/a n/a yes yes n/a n/a yes yes yes yes n/a n/a n/a n/a yes yes n/a n/a n/a n/a Plan for Extending Municipal Services The proposed annexation of the Merchant's Pointe Annexation Area will not require the extension of any services which are not already afforded the area.. As such, the cost of said services is projected to be $0. For these reasons, the plan for extending municipal services is that all services required by, and appropriate to, the land use within the proposed annexation area are currently being provided and any other municipal services which are later found to be necessary will be provided by the City from budget sources. Projected Property Tax Revenues The annexation of Merchants Pointe is projected to produce substantial new property tax revenue to the City. It is difficult to estimate the property tax revenue stream resulting from the proposed development, especially considering the current confusion with regard to the State's property tax system. For purposes of this Fiscal Plan, however, the Merchant's Pointe Corridor Annexation Area: Fiscal Plan20 estimated property tax revenues from the proposed commercial development will be generated in accordance with the following computation table: Estimated Property Tax Revenues: Merchants Pointe Commercial Development Estimated Construction Cost = Market Value = Estimated True Tax $23,900,000 Value Net Assessed Value = True Tax Value / 3 $7,966,667 Projected Property Tax Rate = Estimated 2001 City Tax Rate $0.0150 I Eetimated Annual Property Tax Revenues $~ fg, sooI In the interest of disclosure, there are several ways in which the above estimate could prove inaccurate, Certainly, the City' s property tax rate changes every year as a result of the budget process. Second, the State is guaranteed to be required to revise its property assessment procedures in the year 2001 which is guaranteed to change the property tax revenue system, which is virtually guaranteed to change the property taxes levied on every piece of property in the State. Third, the estimated market value of the property could be altered as a result of the assessment process, even though one would assume that the market value bears some resemblance to the construction cost of the development. The sum of these possibilities is that there is not way to know the accuracy of the estimated property tax revenues until some of these factors are clarified. For purposes of this analysis, however, it is believed that the above estimation process is substantially valid for purposes of this Fiscal Plan. Methods of Financing Annexation of the Merehant's Pointe will not generate any substantial demand for municipal services within the area, therefore, the projected cost to the City as a result of the proposed annexation action is believed to be minimal. Based on the projection of costs and revenues, it is unlikely that it will be necessary to finance any capital or non-capital services resulting from the annexation action, because the projected revenues substantially exceed the projected cost of services. FINANCING IN THE EVENT THAT PROJECTIONS ARE INACCURATE The projected cost of services resulting from the armcxation is very Merchant's Pointe Corridor Annexation Area: Fiscal Plan21r nominal, especially in comparison to the potential property tax revenues resulting from the development. If this projection later is found to be inaccurate, and it is determined that additional municipal services must be supplied to Merchant' s Pointe for some reason, such costs will have to be paid from other revenues of the City, potentially including COIT revenue streams, as well as minor revenue streams such as alcohol gallonage taxes, cigarette taxes, and other revenues. Given, however, that the entire annexation area is commercial in nature, and that commercial developments are self-supporting, the likelihood of such an inaccuracy is extremely remote. Cost/Revenue/Service Summary The above narrative details the considerations made in projecting the costs and revenues associated with the annexation of the Memhants Pointe commercial area, as well as the estimated time (number of years from date of annexation) by which such services will be provided to the annexation area. The following summary table shows that the City is projected to experience a net revenue surplus as a result of the annexation of the Merchants Pointe area. CosURevenue Summary Police Protection by City police 1 < $5,000 Fire Protection by City of Carmet I < $2,000 Emergency Medical Assistance by City 1 < $6,000 Non-Capital Street Department Services by City of Carreel 1 < $1,000 Administrative Services by City of Carmel 1 < $1,000 Municipal Courts I < $2,000 Department of Community Services I < $2,000 Animal Control by City of Carmel 1 < $500 Parks Services (joinder, by Township) n/a n/a Health Department Services (by County) n/a n/a Sub-Total Cost of Non-Capital Services $19,500 Merchant's Pointe Corridor Annexation Area: Fiscal Plan22 ~ ~apital Municipal Services Capital Street Department Services by City of Carmel Capita~ Fire Facilities by City of Carmel Capital Fire Hydrants by City of Carmel Sewer & Water Utilities from City of Carmel Capital Drainage Services by developer Capital Street Lights by developer Sub-TOtal Cost of Capital Services Projected Property Tax Revenues Net R~venue/(Deficit) 1 $0 1 $0 1 $0 1 $0 n/a n/a n/a n/a $0 $119,500 $fO0, O00J Conclusions & Recommendations CORCIUSiOHS The analysis of costs and revenues indicates that the annexation of the Merchant's Pointe Annexation Area will have a positive fiscal impact on the City, due to the fact that the proposed development will require only nominal demand for mtmicipal services, while simultaneously adding substantial new assessed value to the property tax base. At the same time, the Merchant' s Pointe Annexation Area does have adequate contiguity with the boundaries of the City of Cannel, and the failure to include this area within the corporate limits of the City would obviate the future capacity of the City to annex and serve any areas contiguous to the Merchants Pointe development. In addition, the secondary impact of the failure to annex the Merchant' s Pointe would be that future development along the thoroughfare corridor could not be annexed to the incorporated mtmicipality because future contiguity would be blocked by Merchant's Pointe (if it was not annexed). The combination of these two impacts suggests the conclusion that the annexation of the Merchant' s Pointe Annexation Area is important to the future growth of the City of Cannel. Recommendations Based on the information presented in the fiscal plan and the conclusions cited above, it is recommended that the City of Carmel begin the statutory Merchant's Pointe Corridor Annexation Area: Fiscal Plan23 process necessary to annex the area referred to herein as the Merehant's Pointe Annexation Area. Employees of Other Government Agencies This annexation action is projected to have no impact on the employees of any other government agency at the township, county or state level. The City is not aware of any employee from any government agency who will lose their jobs because this annexation area is annexed into the incorporated City of Carmel. However, if it is later determined that the annexation of the Merchant' s Pointe Annexation Area by the City of Cannel does have such an impact, the City will consider any displaced person for employment at a comparable position within the city government. This consideration, however, is not to be construed as any commitment to hire any individual, whatsoever. Extending Political Jurisdictions The Merchant' s Pointe contains 0 population, and holds no development or zoning designation which could be expected to later support population. As a result, the annexation of the Merchant' s Pointe will have no impact on political jurisdictions at the local/municipal, county or state levels. The annexation, however, if approved, will require a technical amendment to the map of political districts to include the annexed area in one or more districts for City Council, as well as adjustment of the technical boundaries for certain other elected offices. As stated, however, these adjustments are purely technical in nature and will not affect any voters or other citizen residents of the annexation area. Merchant's Pointe Corridor Annexation Area: Fiscal Plan24