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Home My WebLink AboutCCM-09-18-06 City of Carlllel Office of the Clerk-Treasurer COMMON COUNCIL MEETING AGENDA MONDAY, SEPTEMBER 18, 2006 - 6:00 P.M. COUNCIL CHAMBERS/CITY HALL/ONE CIVIC SQUARE MEETING CALLED TO ORDER I. INVOCATION 2. PLEDGE OF ALLEGIANCE 3. RECOGNITION OF CITY EMPLOYEES AND OUTSTANDING CITIZENS 4. APPROVAL OF MINUTES a. August 31, 2006 Special Meeting 5. RECOGNITION OF PERSONS WHO WISH TO ADDRESS THE COUNCIL 6. COUNCIL, MAYORAL AND CLERK-TREASURER COMMENTS/OBSERVATIONS 7. ACTION ON MAYORAL VETOES 8. CLAIMS . Payroll . General Claims . Retirement 9. COMMITTEE REPORTS a. Finance, Administration and Rules Committee b. Land Use, Annexation and Economic Development Committee c. Parks, Recreation and Arts Committee d. Utilities, Transportation and Public Safety Committee ONE CIVIC SQUARE CARMEL. INDIANA 46032 317/571.2414 10. OLD BUSINESS a. Third Read!n!! of Ordinance D-1782-05; An Ordinance of the Common Council of the City of Carmel, Indiana to Vacate a Segment of Right-Of-Way for River Road; Sponsor: Councilor Glaser. b. Second Readin!! of Ordinance D-1822-06; An Ordinance of the Common Council of the City of Carmel, Indiana, Amending Chapter 4, Article 1, Division III, Section 4-26( c )(1) of the Carmel City Code (Door-To-Door Vendors); Sponsor: Councilor Glaser. c. Second Readin!! ofOrd!nance D-1823-06; An Ordinance of the Common Council of the City of Carmel, Indiana, Fixing Salaries of Appointed Officers and Employees of the City of Carmel, Indiana, for the Year 2007; Sponsor: Councilor Sharp. d. Second Readin!! of Ordinance D-1826-06; An Ordinance of the Common Council of the City of Carmel, Indiana, Fixing the Salaries of Appointed Officers and Employees ofthe Clerk-Treasurer, City of Carmel, Indiana, for the Year 2007; Sponsor: Councilor Glaser. e. Second Read!n!! of Ordinance D-1827-06; An Ordinance of the Common Council of the City of Carmel, Indiana, Fixing Salaries of Appointed Officers and Employees of the Carmel City Court for the Year 2007; Sponsor: Councilor Glaser. f. Second Readin!! of Ordinance D-1828-06; An Ordinance of the Common Council of the City of Carmel, Indiana, Establishing the Appropriations for the 2007 Budget ($70,498,879); Sponsor: Councilor Sharp. 11. PUBLIC HEARINGS a. First Readin!! or Ordinance Z-496-06; An Ordinance ofthe Common Council of the City of Carmel, Indiana, Change of Zoning Classification, Rezoning of27+ Acres of Real Estate at Northeast Comer of 122nd Street and Pennsylvania Street from R-1/Residential and M-3/Manufacturing Park to B-3/Business Zoning Classification; Sponsor: Councilor Rattermann. b. Resolution CC-09-18-06-01; A Resolution of the Common Council of the City of Carmel, Indiana, Approving a Ten-Year (10) Real Property Tax Abatement for Lauth Property Group, on behalf of Midwest ISO's New Operations Center Located in Carmel, Indiana; Sponsor(s): Councilor(s) Carter and Sharp. 12. NEW BUSINESS a. First Readin!! of Ordinance D-1830-06; An Ordinance ofthe Common Council of the City of Carmel, Indiana, Authorizing the Issuance of the City of Carmel, Indiana Taxable Economic Development Revenue Bonds, Series 2006 B (Gramercy Development Partners, LLC Project), and the Lending of the Proceeds Thereof to Gramercy Development Partners, LLC ($20,000,000 Tax Increment Financing); Sponsor(s): Councilor(s): Carter and Sharp. 2 b. First Readin!! of Ordinance 0-1831-06; An Ordinance of the Common Council of the City of Carmel, Indiana, Enacting and Adopting a Supplement to the Code of Ordinances of the City of Carmel, Indiana (Second Quarter); Sponsor: Councilor Sharp. c. Resolution CC-09-18-06-02; A Resolution of the Common Council of the City of Carmel, Indiana Approving Certain Matters in Connection with the Gramercy Economic Development Area (EDA); Sponsor(s): Councilor(s) Carter and Sharp. 13. OTHER BUSINESS 14. ANNOUNCEMENTS 15. EXECUTION OF DOCUMENTS 16. ADJOURNMENT 9/1 ~i(j6 CC Ago..:nda 3 I COMMON COUNCIL MEETING MINUTES MONDAY, SEPTEMBER 18,2006 - 6:00 P.M. COUNCIL CHAMBERS/CITY HALL/ONE CIVIC SQUARE MEMBERS PRESENT: Council President Richard L. Sharp, Council Members Kevin Kirby, Brian D. Mayo, Joseph C. Griffiths, Ronald E. Carter, Mark Rattermann, Clerk-Treasurer Diana L. Cordray and Deputy Clerk-Treasurer Lois Fine. Mayor James Brainard and Councilor Glaser were not in attendance. Council President Sharp called the meeting to order at 6:02 p.m. Councilor Mayo pronounced the Invocation. Council President Sharp led the pledge of allegiance. RECOGNITION OF CITY EMPLOYEES AND OUTSTANDING CITIZENS: I There were none. APPROVAL OF MINUTES: Councilor Mayo made a motion to approve the Minutes of the August 31,2006 Special Meeting. Councilor Griffiths seconded. There was no Council discussion. Council President Sharp called for the question. The Minutes were approved 6-0. RECOGNITION OF PERSONS WHO WISH TO ADDRESS THE COUNCIL: The following individuals spoke in opposition to Ordinance D-1830-06 (Gramercy $20,000,000 TIF): Henry Winckler Phil Squire (attachment I) Pat Truelove (attachment 2) Jim Colter Angie Molt Hilary Woodcock Eric Seidensticker 411 Jenny Lane, Carmel, IN 46032 1315 Lawrence Road, Carmel, IN 46032 730 W. Auman Drive, Carmel, IN 46032 1207 Fairbanks Drive, Carmel, IN 46032 740 W. Auman Drive, Carmel, IN 46032 506 Ash Drive, Carmel, IN 46032 612 Ash Drive, Carmel, IN 46032 I The following individual spoke in opposition to Resolution CC-09-18-06-03 (Proposed Modifications to the West Clay village PUD): George Sweet 1100 W. 13151 Street, Carmel, IN The following individual spoke in favor of Resolution CC-09-l8-06-03 (Proposed Modifications to the West Clay village PUD): I Nadine Baker 2495 Durbin Drive, Carmel, IN COUNCIL. MAYORAL AND CLERK-TREASURER COMMENTS/OBSERVATIONS: Council President Sharp informed the Council and viewers that the Council meeting scheduled for Monday, October 2,2006 will be cancelled due to Yom Kippur. The next Council meeting will be held on Tuesday, October 3, 2006 at 6:00 p.m. ACTION ON MAYORAL VETOES: There were none. CLAIMS: Councilor Mayo made a motion to approve the claims in the amount of$I,333,833.31. Councilor Griffiths seconded. There was no Council discussion. Council President Sharp called for the question. Claims were approved 6-0. COMMITTEE REPORTS: I Councilor Rattermann reported that the Finance, Administration and Rules Committee met and discussed Ordinance D-1823-06, Ordinance D-1826-06 and Ordinance D-1827-06. Councilor Rattermann will give his report when the items come up on the agenda. Council President Sharp reported that the Land Use, Annexation and Economic Development Committee had not met. Councilor Carter reported that the Parks, Recreation and Arts Committee had not met. Councilor Kirby reported that the Utilities, Transportation and Public Safety Committee met and discussed Ordinance D-1822-06 which was forwarded to the full Council with a 4-0 favorable recommendation. Councilor Kirby left the chamber. OLD BUSINESS Third Readine of Ordinance 0-1782-05; An Ordinance of the Common Council of the City of Carmel, Indiana to Vacate a Segment of Right-Of-Way for River Road; Sponsor: Councilor Glaser. Council President Sharp reported this item remains in the Land Use Committee. I Council President Sharp announced the Second Readine of Ordinance 0-1822-06; An Ordinance of the Common Council of the City of Carmel, Indiana, Amending Chapter 4, Article I, Division Ul, Section 4-26(c)(l) of the Carmel City Code (Door-To-Door Vendors). There was brief Council discussion. 2 I Councilor Mayo made a motion to approve Ordinance D-1822-06. Councilor Carter seconded. There was no Council discussion. Council President Sharp called for the question. Ordinance 0-1822-06 was adopted 5-0. Council President Sharp announced the Second Readin!! of Ordinance 0-1823-06; An Ordinance of the Common Council of the City of Carmel, Indiana, Fixing Salaries of Appointed Officers and Employees of the City of Carmel, Indiana, for the Year 2007. Councilor Rattermann reported that Ordinance D-1823-06, As Amended VERSION B 9/5/06, was referred to the full Council from the Finance Committee with a 2-0 favorable recommendation. Councilor Kirby returned to the chamber. Councilor Mayo made a motion to approve Ordinance D-1823-06, As Amended VERSION B 9/5/06. Councilor Griffiths seconded. There was no Council discussion. Council President Sharp called for the question. Ordinance D-1823-06, As Amended VERSION B 9/5/06 was adopted 6-0. Council President Sharp announced the Second Readin!! of Ordinance 0-1826-06; An Ordinance ofthe Common Council of the City of Carmel, Indiana, Fixing the Salaries of Appointed Officers and Employees of the Clerk-Treasurer, City of Carmel, Indiana, for the Year 2007. Councilor Rattermann reported that Ordinance D-1826-06 was referred to the full Council from the Finance Committee with a 2-0 favorable recommendation. Councilor Mayo made a motion to approve Ordinance D" 1826-06. Councilor Griffiths seconded. There was no Council discussion. Council President Sharp called for the question. Ordinance D-1826-06 was adopted 6-0. I Council President Sharp announced Second Readin!! of Ordinance 0-1827-06; An Ordinance of the Common Council of the City of Carmel, Indiana, Fixing Salaries of Appointed Officers and Employees of the Carmel City Court for the Year 2007. Councilor Rattermann reported that Ordinance D-1827-06 was referred to the full Council from the Finance Committee with a 2-0 favorable recommendation. Councilor Mayo made a motion to approve Ordinance D-1827-06. Councilor Griffiths seconded. There was no Council discussion. Council President Sharp called for the question. Ordinance 0-1827-06 was adopted 6-0. Council President Sharp announced the Second Readin!! of Ordinance D-1828-06; An Ordinance of the Common Council of the City of Carmel, Indiana, Establishing the Appropriations for the 2007 Budget ($70,498,879). Council President Sharp reported that Ordinance D-1828-06 was referred to the full Council from the Committee of the Whole with a 4-1 favorable recommendation. Councilor Mayo made a motion to approve Ordinance D-1828-06. Councilor Griffiths seconded. There was no Council discussion. Council President Sharp called for the question. Ordinance 0-1828-06 was adopted 5- I (Councilor Rattermann opposed). PUBLIC HEARINGS I Council President Sharp announced the First Readin!! or Ordinance Z-496-06; An Ordinance of the Common Council of the City of Carmel, Indiana, Change of Zoning Classification, Rezoning of27+ Acres of Real Estate at Northeast Comer of 122nd Street and Pennsylvania Street from R-IlResidential and M-3/Manufacturing Park to B-3/Business Zoning Classification. Councilor Kirby made a motion to move this item into business. Councilor Rattermann seconded. Councilor Rattermann referred to Paul Reis, Attorney, Bose McKinney & Evans, 600 E. 96th Street Suite 500, Indianapolis, IN 46240 for a 3 I presentation to Council. Council President Sharp opened the Public Hearing at 7:23 p.m. Seeing no one who wished to speak, Council President Sharp closed the Public Hearing at 7:24 p.m. There was brief Council discussion. Council President Sharp referred Ordinance Z-496-06 to the Land Use, Annexation and Economic Development Committee for further review and consideration. Council President Sharp announced Resolution CC-09-18-06-01; A Resolution of the Common Council of the City of Carmel, Indiana, Approving a Ten-Year (10) Real Property Tax Abatement for Lauth Property Group, on behalf of Midwest ISO's New Operations Center Located in Carmel, Indiana. Councilor Carter made a motion to move this item into business. Councilor Mayo seconded. There was no Council discussion. Council President Sharp opened the Public Hearing at 7:27 p.m. Seeing no one who wished to speak, Council President Sharp closed the Public Hearing at 7:27:30 p.m. Councilor Mayo made a motion to approve Resolution CC-09-18-06-01. Councilor Kirby seconded. There was no Council discussion. Council President Sharp called for the question. Resolution CC-09-18-06-01 was adopted 6-0. Councilor Griffiths made a motion to Add-On Resolution CC-09-18-06-03 to the agenda. Councilor Mayo seconded. There was no Council discussion. Council President Sharp called for the question. The motion to Add-On Resolution CC-09-18-06-03 to the agenda was approved 6-0. NEW BUSINESS I Council President Sharp announced the First Readine: of Ordinance D-1830-06; An Ordinance of the Common Council of the City of Carmel, Indiana, Authorizing the Issuance of the City of Carmel, Indiana Taxable Economic Development Revenue Bonds, Series 2006 B (Gramercy Development Partners, LLC Project), and the Lending of the Proceeds Thereof to Gramercy Development Partners, LLC ($20,000,000 Tax Increment Financing). Councilor Kirby made a motion to move this item into business. Councilor Mayo seconded. Council President Sharp referred to Curt Coonrod for a clarification of Tax Increment Financing. There was extensive Council discussion. Councilor Carter presented this item to Council. There was brief Council discussion. Council President Sharp referred Ordinance D-1830-06 to the Finance, Administration and Rules Committee for further review and consideration. Council President Sharp announced the First Readine: of Ordinance D-1831-06; An Ordinance of the Common Council of the City of Carmel, Indiana, Enacting and Adopting a Supplement to the Code of Ordinances of the City of Carmel, Indiana (Second Quarter). Councilor Kirby made a motion to move this item into business and to suspend the mles and not send this item to committee and vote this evening. Councilor Griffiths seconded. There was no Council discussion. Council President Sharp called for the question. The motion to suspend the rules and not send this item to committee and vote this evening was approved 6-0. Councilor Kirby made a motion to approve Ordinance D-1831-06. Councilor Griffiths seconded. There was no Council discussion. Council President Sharp called for the question. Ordinance D-1831-06 was adopted 6-0. I Council President Sharp announced Resolution CC-09-18-06-02;A Resolution of the Common Council of the City of Carmel, Indiana Approving Certain Matters in Connection with the Gramercy Economic Development Area (EDA). Councilor Mayo made a motion to move this item into business. Councilor Kirby seconded. Councilor Carter presented this item to Council. Councilor Carter made a motion to approve Resolution CC-09-18-06-02. Councilor Griffiths seconded. There was no Council discussion. Council President Sharp called for the question. Resolution CC-09-18-06-02 was adopted 5-1 (Councilor Rattermann opposed). 4 ADD-ON I Council President Sharp announced Resolution CC-09-I8-06-03; A Resolution of the Common Council of the City of Carmel, Indiana, Regarding Proposed Modifications to the West ClayViJlage Planned Unit Development District; Sponsor(s): Councilor(s) Sharp, Griffiths, Mayo and Glaser. Councilor Mayo made a motion to move this item into business. Councilor Griffiths seconded. Council President Sharp passed the gavel to Clerk-Treasurer Diana L. Cordray to present this item to Council. There was brief Council discussion. Councilor Mayo made a motion to approve Resolution CC-09-l8-06-03. Councilor Griffiths seconded. There was no Council discussion. Clerk-Treasurer Diana L. Cordray called for the question. Resolution CC-09-I8-06-03 was adopted 4-2 (Councilors Kirby and Rattermann opposed). Council President Sharp reclaimed the gavel from Clerk-Treasurer Diana L. Cordray. OTHER BUSINESS There was none. ANNOUNCEMENTS There were none. EXECUTION OF DOCUMENTS I Council President Sharp adjourned the meeting at 8:23 p.m. ADJOURNMENT Respectfully submitted, (j)~ .3c/r..t. ~~ ~ Clerk-Treasurer Diana L. ordray, I C Approved, ~ M or J ames Brainard ~ ATTEST: I 9iI8!(j(1 CC Minutes 5 ~ -.'00 Page 1 00 Phil Squier From: To: Sent: Su bleet: "Phil Squie~' <philsquier3@iquestnet> "SQUIER. Phil" <philsquier3@iquest.net> Monday, September 18, 2006 4:54 PM Fw: Council/Monday Sept 18,2006/Gramercy TIF To the Carmel City Council Monday, September 18, 2006 My name is Phil Squier. I have lived at 1315 Lawrence Road in Carmel since 1971. ****************************************************************** TIFs were initially created to alleviate the problems of inner city blight. However, through political creativity, TIFs are now appearing in affluent neighborhoods subsidizing private developers for their own monetary gain at taxpayers expense. Developers have leamed to play the game to bOost the haridoUts they receive simPly to operate profit-making enterprises. Furthermore, although politicians try to portray TIFs as a great way to boost the local economy, there are hidden costs they don't want taxpayers to know about. Cities generally assume they are not really giving anything up because the forgone tax revenue would hOt have been available in the absence of the development generated by the TIP. That assumption is often wrong. TIFs are essentially diverting tax money that otherwise would have been used for government services. There is always this expectation with TIPs that the economic growth is a way to create jobs and grow the economy, but then push the costs across the public spectrutn, but unless spending is cut --(which is a pipe dream in Carmel with this current administration) -- and if a TIP really does generate economic growth, spending is likely to rise, as the local population grows-the burden of paying for these services will be shifted to other taxpayers. Adding insult to injury, those taxpayers may include small businesses facing competition from well-c6fihected businesses that enjoy TIF-related tax breaks. In effect, a TIP subsidizes some businesses at the expense of less politically influential competitors and ordinary citizens." What's almost worse is the shift in tax liability - from wealthy corporations to small businesses and regular people. If you own a small business in Carmel that competes with any of the proposed development by Buckingham, you are essentially paying taxes to a city that's giving tax breaks to an entity that could put you out of business. Small businesses and individuals alike pay taxes into the general fund for services like public safety, building inspections, street maintenance, et al. As the cost of those services increases (which it will with more development), the burden of that cost is ~nc..; I flI+1' 91/ /c 9/18/2006 Illl Op R-7TAC fflYJeJr I (.) Page 2 of3 , .......... shifted to the rest of us. It's a despicable way to treat your taxpaying citizens. It would be wise for this city to look at how TIFs succeed or fail over the long term. In 2002, the Neighborhood Capital Budget Group (NCBG) - a coalition of200 Chicago organizations that studies local public investment -looked at 36 of the city's TIF districts and found that property values had been rising in all of them during the five years before they were designated as TIFs. The NCBG projected that the city of Chicago would capture $1.6 billion in second-stream property tax revenue-used to pay off the bonds that subsidized private businesses-over the 23-year life spans of these TIF districts. But it also found that $1.3 billion of that revenue would have been raised anyway, assuming the areas continued growing at their pre- TIF rates. The experience in Chicago is important. The city invested $1.6. billion in TIFs, even though $1.3 billion in economic development would have occurred anyway. They invested $1.6 billion for $300 million in revenue growth. The upshot is that TIFs are diverting tax money that otherwise would have been used for government services. The NCBG study found, for instance, that the 36 TIF districts would cost Chicago public schools $632 million (based on development that would have occurred anyway) in property tax revenue, because the property tax rates are frozen for schools as well. The cost of teaching the new students will be borne by property owners outside the TIP districts. A few questions: I. I read - in its entirety - the paperless presentation for the Gramercy Economic Development that is available on the Council agenda for this evening - on the City's web site. I believe it is the same presentation - verbatim - that was presented to the Council prior to the supposed compromise between Mayor Brainard and Buckingham Properties regarding density reduction of the project. 2. On page 7 of this paperless presentation: Tax Allocation Areas to be Declared separately- "The CRC reserves the right to designate tax allocation areas for the project in accordance with the criteria of the City and the CRC and as such, specific tax allocations areas may be declared separately on the basis of the sequence of development of the final project, as ultimately approved by the Plan Commission, City of Carmel and CRC." Please explain a 'tax allocation area' and its financial impact on the taxpayers concerned. COunCil mTf. flTTA~H-mENT I (z.) 9/19 ID" 9/18/2006 ~~.., - ,,:. Good evening mayor and council men: The Executive Summary of a report called "Straying from Good intentions" states in the first paragraph "This report examines legislative changes to two geographically targeted economic development programs: Tax increment . financing (TIF) and enterprise zones. It asks the questions: Have the laws governing these programs been weakened to permit the use of these programs in non-blighted or affluent areas? In virtually every state that has weakened its TIF or enterprise zoning program, the answer is "yes." Unfortunately sixteen states have weakened their TIF laws. Indiana being one of these sixteen states. This weakening has occurred through amendments loosening the blight or poverty requirements for TIF districts, by expanding their boundaries, or increasing their size. These changes diminish the way a program is targeted to impoverished areas. The weakening of state TIP laws indicates that the original goals of reducing poverty and blight are being replaced by economic development that benefits wealthier, unrelated interests. These programs were originally intended to provide tax incentive to businesses for locating in impoverished neighborhoods now often end up subsidizing economic development in affluent areas such as Carmel. TIF is divided into two sections. The first is where the amount of tax revenue continues to go to the city, county, school district as before. The second consists of all the increases resulting for the development and higher property values - the so-called "tax increment." This tax is diverted to subsidize the redevelopment in the TIF district. It is dedicated to payoff bonds that are floated to finance their development projects. This continues until the TIP district expires or the TIP bonds are paid off - usually in 7 to 30 years, depending on the nature of the project and the state's rules. One of the most controversial aspects ofTIF is what constitutes blight. TIP laws usually define blighted areas on conditions which endanger public health or welfare, such as overcrowding, dilapidated or deteriorating buildings, etc. This is left up to the interpretations oflocal officials. In the abstract of the report "The Effects of Tax Increment Financing on Economic Development" it states, "In contrast to the conventional wisdom, we find evidence that cities that adopt TIF grow more slowly than those that do not. We test for and reject sample selection bias as an explanation of this COlAnc.i I mfr 9/1 '8 /0(, If rrACHnJEWr z. (.) finding. We argue that our empirical finding is plausible and present a theoretical argument explaining why TIF might reduce municipal growth. I had the pleasure of talking to several of the representatives at the Seaboard meeting outside Fountains. The question that I was asked by these representatives was "what can we do to avoid something like the demonstration and anger in our community?" I said that they should look and listen to the developer, the constituents, be informed, and be willing to make a compromise that suited all people involved not just a few. Thatthree of our objections were the density, traffic and safety of the Gramercy project. fal True./ove. /J. rr"ctl tn6/J{' 2 (a.) COUflC; J ;n+f. 911 V lo~