HomeMy WebLinkAboutCC-06-18-01-03 Heart Hospital/MOB/Tax Abatement/ERASponsor: Councilor Snyder
RESOLUTION NO. CC 06-18-01-03
PRELIMINARY RESOLUTION ("RESOLUTION") OF THE
COMMON COUNCIL OF THE CITY OF CARMEL, INDIANA
REGARDING 10580 AND 10590 NORTH MERIDIAN STREET
AS AN ECONOMIC REVITALIZATION AREA
WHEREAS, I.C. 6-1.1-12.1 authorizes partial abatement of real and personal property taxes
attributable to redevelopment of real property and the installation of new research and development
equipment; and
WHEREAS, I.C. 6-1.1-12.1 empowers the Common Council of the City of Camel, Indiana
(the "Council") to designate an area as an Economic Revitalization Area ("ERA"), determine the
duration of the abatement period(s) for such property and impose other reasonable conditions; and
WHEREAS, a Designation Application (as defined in I.C. 6-1.1-12.1-1(9)) has heretofore
been filed with the Council by Meridian 465 Associates, L.P. ("Owner") and CIHS NEWCO, LLC
CCIHS") and such Designation Application requests that the real estate located at 10580 and 10590 N.
Meridian Street, Carmel, Indiana and legally described therein (the "Site") be designated as an ERA;
and
WHEREAS, CIHS has acquired an option to purchase the Site from Owner and is willing to
purchase the Site if CIHS is able to obtain real and personal property tax deductions authorized by I.C.
6-1.1-12.1; and
WHEREAS, Owner and CIHS seek to have the Council authorize real property tax deductions
in connection with the redevelopment of the Site and personal property tax deductions in connection
with qualifying new research and development equipment to be installed in one or more buildings to
be developed on the Site; and
WHEREAS, the Council, on February 5, 2001 adopted Resolution No. CC-02-05-01-02 to
assist the Council in making determinations regarding economic incentives to be extended in
connection with new development in the City of Carmel; and
WHEREAS, the Council has reviewed such Designation Application together with CIHS's
Statement of Benefits (Form SB-1 ) and now desires to take the actions hereinafter set forth.
NOW, THEREFORE, based upon a review of the Designation Application and Statement of
Benefits (Form SB-1) heretofore filed by CIHS, the Council hereby makes the following findings:
FINDING 1.
The Site is or has become undesirable for normal development due to the
following economic conditions:
(a) The Site has been marketed by the owners thereof for thirteen (13)
years.
FINDING 2.
FINDING 3.
FINDING 4.
FINDING 5.
FINDING 6.
FINDING 7.
FINDING 8.
FINDING 9.
(b)
The Site is zoned for and generally suitable for use as an office
development; however, there is a lack of demand for office building
developments in the geographic area where the Site is located (the
"Corridor").
(C)
Vacancy rates for office space in the Corridor and an abundance of
sublease opportunities evidence an oversupply of office space in the
Corridor.
(d)
CIHS's proposed development of the Site as a 167,000 square foot
heart hospital and a 51,000 square foot medical office building is
consistent with the site's existing zoning and represents a use that is
presently more timely than a general office use.
(e)
CIHS's plans to begin construction in the summer of 2001 and
complete construction in the summer of 2002 will result in an
addition to the Corridor's overall assessed value within an
accelerated time period inasmuch as there are no other feasible uses
(presently) of the Site.
The proposed development of the site by CIHS meets all of the parameters
set forth in Council Resolution No. CC-02-05-01-02.
The estimate of the cost and assessed value of CIHS's proposed m-
development of the Site is reasonable for projects of a similar nature.
The estimate of the number of individuals who will be employed (i.e., 291
FTEs over the initial five (5) year period) can be masonably expected to
result from CIHS's proposed re-development of the Site.
The estimate of the annual salaries (i.e., average of $45,000 per annum) of
those individuals who will be employed can be reasonably expected to result
from CIHS's proposed re-development of the Site.
The estimate of the cost and assessed value of the new research and
development equipment is reasonable for equipment of that type.
With respect to the new rosearch and development equipment, the estimate
of the number of individuals who will be employed (i.e., 291 FTEs over the
initial 5 year period) can be reasonably expected to result from the
installation of the new research and development equipment.
The estimate of the annual salaries (i.e., average of $45,000 per annum) of
those individuals who will be employed can be reasonably expected to result
from the proposed installation of new research and development equipment.
Other benefits that can be masonably expected to result from CIHS's
proposed re-development of the site and installation of the new research and
Prepared by Mayor's Office
development equipment include:
(a)
The conduct of substantial research and development activities aimed
at the development of new pharmaceutical products, new cardiac
medical devices as well as the development of new uses of existing
medical devices.
(b)
Total capital investment for the redevelopment is estimated at
$69,111,900.
FINDING 10.
The totality of benefits is sufficient to justify both real and personal property
tax deductions herein described.
NOW, THEREFORE, BE IT RESOLVED THAT, a description of the ERA and has
attached a copy of such description hereto as Exhibit A.
BE IT FURTHER RESOLVED THAT, the Site is hereby declared an ERA for a period of
ten (10) years from the effective date of this Resolution.
BE IT FURTHER RESOLVED THAT, The number of years for which CIHS is entitled to a
deduction for real property taxes pursuant to I.C. 6-1.1-12.1-3 shall be five (5) and the annual dollar
amount of the deduction for real property taxes shall be limited to $27,234,340; provided, however if
CIHS claims a deduction under both I.C. 6-1.1 - 12.1-3 and I.C. 6-1.1 - 12.1-4.5 in the same year, the
combined annual dollar amount of the deduction for both real and personal property taxes shall not
exceed $27,234,340.
BE IT FURTHER RESOLVED THAT, The number of years for which CIHS is entitled to a
deduction for new research and development equipment pursuant to I.C. 6-1.1-12.1-4.5 shall be five
(5) and the annual dollar amount of the deduction for research and development equipment shall be
limited to $7,000,000; provided, however ifCIHS claims a deduction under both I.C. 6-1.1-12.1-3 and
I .C. 6-1.1 - 12.1-4.5 in the same year, the combined annual dollar amount of the deduction for both real
and personal property taxes shall not exceed $27,234,340.
BE IT FURTHER RESOLVED THAT, the deductions authorized herein are contingent upon
the purchase by CIHS of the Site from Owner and the subsequent development of the Site as a heart
hospital.
BE IT FURTHER RESOLVED THAT, the deductions authorized herein are contingent upon
the designation of the ERA prior to the commencement ofredevelopment activity on the Site which is
hereby defined as the issuance of all fonndation permits or releases by all applicable governmental
authorities including without limitation, the State of Indiana and the City of Carmel for one or more
buildings to be constructed on the Site.
BE IT FURTHER RESOLVED THAT, if the Site is located in an allocation area (as defined
in I.C. 36-7-14-39 or I.C. 36-7-15.1-26), an application for the property tax deductions approved
heroin shall also be subject to the approval of the commission that designated the allocation area as
required under I.C. 6-1.1-12.1-2(1)).
Prepared by Mayor's Office
BE IT FURTHER RESOLVED THAT, this Resolution shall be filed with the Hamilton
County Assessor as required by I.C. 6-1.1-12.1-2.5(b).
BE IT FINALLY RESOLVED THAT notice of the adoption of and the substance of this
Resolution shall be published in accordance with I.C. 5-3-1 and that such notice shall be in the form
attached hereto and incorporated herein as Exhibit B..
Adopted by the Common Council of the City of Carmel, Indiana this ]~Y~ day &June 2001,
by a vote of t~ ayes and ~ nays.
a e llso -/t
n er
Diana L. Cordray, , ~a~urer
P esented by me to the Mayor of the ' y , ' ' l~~ y e 2001.
Approved by me, Mayor of the Ci~ of Camel, Indi~a, this ~ day of J~e 2001.
ATTEST: . .~~
Di~a L. Cordray, I~, C -
Received by and filed with me, the Assessor of Hamilton County, Indiana this o? day of
Prepared by:Mayor'c Office
EXHIBIT A
Legal Description
(Page 1 of 2)
Land Description
Land West of Illinois Street
Part of the Northwest Quarter of Section 11, Township 17 North, Range 3 East of the 2nd
Principal Meridian in Hamilton County, Indiana being described as follows:
Commencing at the Northwest comer of said Northwest Quarter; thence on an assumed beating
of North 89 degrees 12 minutes 45 seconds East along the north line thereof a distance of
1320.00 feet; thence South 00 degrees 00 minutes 00 seconds West parallel with the west line of
said quarter section a distance of 65.00 feet to the Point of Beginning; thence North 89 degrees
05 minutes 45 seconds East a distance of 153.82 feet to the northwest comer of the right of way
of Illinois Street per dedication thereof Instrument Number 9202819, Office of Hamilton County
Recorder), said point being on a curve having a radius of 113.00 feet, the radius point of which
bears South 49 degrees 47 minutes 15 seconds West; thence the following seven courses along
said right of way line, Southerly along said curve an arc distance of 77.75 feet to a point bearing
North 89 degrees 12 minutes 45 seconds East from the radius point; thence South 00 degrees 47
minutes 15 seconds East a distance of 85.66 feet to the point of curvature of a curve having a
radius of 185.00 feet, the radius point of which bears bearing South 89 degrees 12 minutes 45
seconds West; thence Southerly along said curve an arc distance of 64.35 feet to a point bearing
South 70 degrees 51 minutes 25 seconds East from the radius point; thence South 20 degrees 02
minutes 19 seconds West a distance of 746.03 feet to the point of curvature of a curve having a
radius of 261.00 feet, the radius point of which bears South 69 degrees 57 minutes 41 seconds
East; thence southerly along said curve an arc distance of 91.28 feet to a point being South 90
degrees 00 minutes 00 seconds West from the radius point; thence South 00 degrees 00 minutes
00 seconds West a distance of 225.46 feet to the point of curvature of a curve having a radius of
185.00 feet; the radius point of which bears South 90 degrees 00 minutes 00 seconds West;
thence southerly along said curve an arc distance of 23.68 feet to a point bearing South 82
degrees 39 minutes 55 seconds East from the radius point; thence South 89 degrees 15 minutes
00 seconds West along the north line of said tract a distance of 30.50 feet to a westerly comer of
the land described in a deed to Meridian Pilgrim Associates, Ltd. (Deed Record 346, Page 649);
thence the following three courses along the west line of said land, North 00 degrees 00 minutes
00 seconds East parallel with the west line of the aforesaid Northwest Quarter a distance of
660.00 feet; thence North 89 degrees 15 minutes 00 seconds East a distance of 131.99 feet;
thence North 00 degrees 00 minutes 00 seconds East a distance of 595.86 feet to the Point of
beginning. Containing 2.830 acres, more or less.
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EXHIBIT A
Legal Description
(Page 2 of 2)
Land Description
Land East of Illinois Street
Part of the Northwest Quarter of Section 11, Township 17 North, Range 3 East in Hamilton
County Indiana, described as follows:
Commencing at the Northwest comer of said quarter section; thence North 89 degrees 12
minutes 45 seconds East (assumed bearing) along the north line of said quarter section a distance
of 1320.00 feet; thence South 00 degrees 00 minutes 00 seconds West parallel with the west line
of said quarter section a distance of 65.00 feet to the south line of a tract of land described in
Instrument Number 90-11037 in the Office of the Recorder of Hamilton County, Indiana (the
following two courses are along the south line of said tract); thence North 89 degrees 05 minutes
48 seconds East a distance of 283.08 feet to the Point of Beginning; thence continuing North 89
degrees 05 minutes 48 seconds East a distance of 314.78 feet to the west right of way line of U.S.
31 (North Meridian Street), and to a point on a curve having a radius of 22773.31 feet, the radius
point of which bears North 89 degrees 48 minutes 01 seconds West; thence southerly along said
curve and said west fight of way line an arc distance of 770.76 feet to a point which bears South
87 degrees 51 minutes 40 seconds East from said radius point; thence South 02 degrees 08
minutes 20 seconds West along said west right of way line a distance of 264.82 feet to the
northeast comer of a tract of land described in Instrument Number 2000-15238 in the Office of
said Recorder; thence North 90 degrees 00 minutes 00 seconds West along the north line of said
tract a distance of 596.12 feet to the east right of way line of Illinois Street per Instrument
Number 92-2818 in said Recorder's Office (the following six courses are along said east right of
way line); (1) thence North 00 degrees 00 minutes 00 seconds East a distance of 17.62 feet to a
point on a curve having a radius of 185.00 feet, the radius point of which bears South 90 degrees
00 minutes 00 seconds East; (2) thence northeasterly along said curve an arc distance of 64.70
feet to a point which bears North 69 degrees 57 minutes 41 seconds West from said radius point;
(3) thence North 20 degrees 02 minutes 19 seconds East a distance of 703.48 feet to a point on a
curve having a radius of 261.00 feet, the radius point of which bears North 69 degrees 57
minutes 41 seconds West; (4) thence northeasterly along said curve an arc distance of 94.87 feet
to a point which bears North 89 degrees 12 minutes 45 seconds East from said radius point; (5)
thence North 00 degrees 47 minutes 15 seconds West a distance of 105.63 feet to a point on a
curve having a radius of 114.99 feet, the radius point of which bears North 88 degrees 56
minutes 02 seconds East; (6) thence northeasterly along said curve an arc distance of 101.65 feet
to the Point of Beginning which bears North 40 degrees 24 minutes 59 seconds West from said
radius point, containing 10.71 acres, more or less.
03646rah
EXHIBIT B
NOTICE OF PUBLIC HEARING
REGARDING 10580 AND 10590 NORTH MERIDIAN STREET
AS AN ECONOMIC REVITALIZATION AREA
Ngtice is hereby given that the Common Council of the City of Carmel, Indiana did on
June 18, 2001 adopt a Preliminary Resolution regarding 10580 and 10590 North Meridian Street
as an Economic Revitalization Area (Resolution No.CC 06-18-01-03). This Resolution, which
affects the following described property located in the City of Carmel, Indiana: 10580 and
10590 North Meridian Street, Clay Township, Parcel No. 16-13-11-00-00-036.000 was adopted
following the filing of an application by the owner and proposed purchaser of the property to
have such property designated as an Economic Revitalization Area for the purpose of securing an
abatement of property taxes pursuant to Indiana Code Section 6-1.1-12.1-3 and Indiana Code
Section 6-1.1-12.1-4.5 relative to the proposed redevelopment on such property ora new 51,000
square foot medical office building and a 167,000 square foot heart hospital and the installation
of new research and development equipment in such hospital and/or medical office building.
Such Resolution preliminarily designated such property as an economic revitalization
area subject to the adoption of a confirming Resolution by the Common Council of the City of
Carmel, Indiana. The Preliminary Resolution states that on July 2, 2001 at p.m. in the
Council Chamber Room located at One Civic Square, Carmel, Indiana 46032, the Common
Council will meet to hear remonstrances and objections from persons interested in these
proceedings and make a determination about designating such property as an Economic
Revitalization Area. A description of such property and a copy of such Resolution are available
for inspection in the Hamilton County Assessor's Office, Suite 214, 33 North 9t~ Street,
Noblesville, Indiana 46060.
03686rah
06/08/01