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HomeMy WebLinkAboutCRC Resolution 2024-11 (Clay Terrace Declaratory Resolution & Plan)ECONOMIC DEVELOPMENT PLAN PAGE 1 City of Carmel Redevelopment Commission Economic Development Plan for the Clay Terrace Economic Development Area Dated: December 18, 2024 PURPOSE AND INTRODUCTION The City of Carmel Redevelopment Commission (the “Commission”), the governing body of the Department of Redevelopment and the Redevelopment District (the “District”) of City of Carmel, Indiana (the “City”), proposes to designate and declare an economic development area within the City to be known as the “Clay Terrace Economic Development Area” (the “Area”) and proposes to designate the entire Area as an allocation area to be known as the “Clay Terrace Allocation Area” (the “Allocation Area”). This document is the plan for the Area (the “Plan”), provided that this Plan may be amended in the future as provided in Indiana Code 36-7-14, as amended from time to time (the “Act”) and in this Plan. Pursuant to Sections 15 and 16 of the Act, the Plan must be approved by the Commission, the City Plan Commission and the Common Council of the City. Upon such approvals, the Commission will hold a public hearing on the Plan as required under Section 17 of the Act, before confirming (or modifying and confirming) the designation of the Area and the approval of the Plan. PROJECT OBJECTIVES This Area has lacked the necessary infrastructure and means to provide the infrastructure necessary in order to attract the private investment needed to spur economic growth within, benefitting or serving the Area. The purposes of the Plan are to benefit the public health, safety, morals and welfare of the citizens of the City; increase the economic well-being of the City and the State of Indiana; and serve to protect and increase property values in the City and the State of Indiana. The Plan is designed to (i) promote significant opportunities for the gainful employment of citizens of the City, (ii) assist in the attraction of major new business enterprises to the City, (iii) retain and expand significant business enterprises existing in the City, (iv) provide for local public improvements in, benefitting or serving the Area, (v) retain and attract permanent jobs, (vi) increase the property tax base, and (vii) improve the diversity of the economic base of the City. DESCRIPTION OF AREA A map identifying the parcels comprising the Area is attached to this Plan as Exhibit A hereto. DESCRIPTION OF PROJECTS In order to accomplish the Plan, the Commission currently estimates that tax increment revenues from the Area or other sources of funds available to the Commission may be used to ECONOMIC DEVELOPMENT PLAN PAGE 2 finance the cost of infrastructure improvements in or serving the Area (as well as demolition, in, serving or benefiting the Area), including without limitation, (1) transportation enhancement projects including, without limitation, curbs, gutters, shoulders, street paving and construction, bridge improvements, rail crossings and spur track improvements, sidewalk and multiuse pathway improvements, street lighting, traffic signals, signage, structured parking and/or surface parking improvements, and site improvements including landscape buffers; (2) utility infrastructure projects including, without limitation, utility relocation, water lines, water wells, water towers, lift stations, waste water lines, storm water lines, retention ponds, ditches, and storm water basin improvements; and (3) all projects related to any of the foregoing projects and all other purposes permitted by law. Although the precise nature of infrastructure that may be necessary from time to time to attract and retain prospective redevelopment and economic development opportunities in the Allocation Area cannot be predicted with certainty, the availability of adequate infrastructure is of fundamental importance in attracting and retaining such opportunities in the Allocation Area. Tax increment revenues from the Area or other sources of funds available to the Commission may also be used for any of the following: • The acquisition or construction of projects to enhance the cultural attractiveness. • Acquisition or construction of projects to enhance the public safety. • Construction and installation of public amenities such as street trees, street furniture and wayfinding signage. • Job training grants and assistance as permitted under I.C. 36‐7‐14‐39(b)(2)(K) and I.C. 36‐7‐25. • Financial incentives to new and existing businesses locating in the Area as permitted by law including targeted incentives to encourage the reuse and redevelopment of commercial structures in the Area. • All other projects and purposes permitted by law. All of the foregoing potential uses of tax increment revenues from the Area or other sources of funds available to the Commission are collectively referred to herein as the “Projects”. Tax increment revenues from the Area or other sources of funds available to the Commission may also be used to finance the cost of the Projects and/or offset payments by developers on promissory notes in connection with economic development revenue bond financings undertaken by the unit, or to pay principal or interest on economic development revenue bonds issued by the unit to provide incentives to developers, in furtherance of the Projects and the economic development or redevelopment purposes of the Area. The provision of incentives by the application of tax increment revenues to offset developer promissory notes that secure economic development revenue bonds, or to pay principal or interest on economic development revenue bonds issued by the unit to provide incentives to developers, in furtherance ECONOMIC DEVELOPMENT PLAN PAGE 3 of the economic development or redevelopment purposes of the Area, has become an established financing tool and an increasingly common form of incentive for attracting economic development and redevelopment. ESTIMATED COSTS OF THE PROJECTS Because the Commission does not intend to acquire any interests in real property for the Project at this time, the Commission will not incur any costs of acquisition. However, the Commission will incur certain costs in connection with the development of the Projects. The estimated cost of the Projects is approximately $5,000,000. However, such estimated costs are simply projections at this time. This plan will be refined as specific details and timing of the Projects are determined. The Commission anticipates paying for such Projects with tax increment revenues derived from the Allocation Area or from bonds or leases of the District payable from such tax increment revenues. Alternatively, the Commission may assist the City in issuing economic development revenue bonds pursuant to I.C. 36-7-12, payable, in whole or in part, from tax increment revenues derived from the Area and purchased by a developer or an affiliate thereof to assist in financing the Projects. ACQUISITION OF PROPERTY In connection with the accomplishment of the Plan, the Commission has no present plans to acquire any interests in real property. In the event the Commission determines to acquire any interests in real property in the future, it shall follow procedures set forth in Section 19 of the Act. The Commission may not exercise the power of eminent domain. DISPOSAL OF PROPERTY The Redevelopment Commission may dispose of any real property acquired in the future by sale or lease to the public pursuant to procedures set forth in Section 22 of the Act. STATUTORY FINDINGS OF FACT A. The Plan for the Area addresses the statutory requirements under Section 41(b) of the Act, as evidenced by the following findings of fact: 1. The Plan for the Area promotes significant opportunities for the gainful employment of the citizens of the City, attracts new business enterprise to the City, retains or expands a business enterprise existing in the City, or meets other purposes of Sections 2.5, 41 and 43 of the Act. The Plan will improve the City’s infrastructure and aesthetics and foster additional economic development in and serving the Area. In addition, the Plan will provide and improve existing infrastructure that is required to attract new commercial, retail and hotel development in the Area and thereby foster additional economic development in and serving the Area. These new business enterprises will provide opportunities for employment for the citizens of the City. ECONOMIC DEVELOPMENT PLAN PAGE 4 2. The Plan for the Area cannot be achieved by regulatory processes or by the ordinary operation of private enterprise without resort to the powers allowed under Sections 2.5, 41 and 43 of the Act because of a lack of local public improvements, the existence of improvements or conditions that lower the value of the land below that of nearby land, multiple ownership of land, or other similar conditions. The implementation of the Plan is necessary because local public improvements are greatly needed and lack thereof is resulting in decreased property values in this area of the City. The Commission’s contribution toward the Projects will pave the way for future growth and development in and serving the Area. The implementation of the Plan will also provide greater accessibility and walkability for residents and commercial entities in the Area. 3. The public health and welfare will be benefited by accomplishment of the Plan for the Area. By creating new opportunities for employment and incentivized adding hotel and lodging options in the City, implementation of the Plan will benefit the public health and welfare for the citizens of the City. Additionally, new or expanded industry and other development will contribute to the overall health of the City by increasing and the diversifying the tax base. The development of road improvements, trails and pathways through the Area further aids in the public health and welfare of the City. 4. The accomplishment of the Plan for the Area will be a public utility and benefit as measured by public benefits similar to the attraction or retention of permanent jobs, an increase in the property tax base, improved diversity of the economic base, or other similar public benefits. The Projects contemplated by the Plan will be of public utility and benefit by putting in place infrastructure and/or other incentives to support future development, thereby retaining or creating new jobs, maintaining the property tax base and allowing for further economic development and improved diversity of the economic base of the City. 5. The Plan for the Area conforms to other development and redevelopment plans for the City, if any. The Plan conforms with the intended plan of development for the area as prescribed by the City of Carmel Plan Commission. The Plan does not provide for any change in use of the property in the Area, but rather better utilization of the Area for the purposes currently contemplated by the intended plan of development for the City. B. The Plan for the Area addresses the statutory requirements under Section 39(b) of the Act, as follows: The Commission hereby makes a specific finding of fact that the adoption of the allocation provision for the Allocation Area will result in new property taxes in the Area that would not have been generated but for the adoption of the allocation provision. After numerous ECONOMIC DEVELOPMENT PLAN PAGE 5 discussions regarding the development of the Area with various stakeholders and potential developers (including Washington Prime), the Commission finds that the ability to maintain and attract new business would not occur but for the availability of tax increment revenues to finance the Projects as contemplated by this Plan. The Commission has determined that the full development of the Area will not proceed as planned without the contribution of tax increment revenues to be derived from the Allocation Area to the Projects described above, due to the lack of adequate infrastructure and other local public improvements in or serving the Area. The Commission does not have any other method of financing the costs of the Projects, absent issuing bonds payable from a special benefits tax upon all taxable property within the District, without the prospect of replacing the source with tax increment revenues from developments within the Area. The Commission hereby finds that designating the Area as an allocation area will allow for the capture of additional tax increment revenues that will be available to the Commission to finance infrastructure and other improvements located in or serving or benefitting the Area, thereby facilitating additional investment in the Allocation Area that would otherwise not occur. AMENDMENT OF THE PLAN This Plan may be amended by following the procedures described in Sections 15 through 17.5 of the Act. EXHIBIT A EXHIBIT A MAP AND DESCRIPTION OF AREA The Clay Terrace Economic Development Area consists of the following parcels depicted in the red-shaded area of the map below. PARCEL ID NUMBERS: 16-09-24-00-00-015.001 16-09-24-00-00-015.101 DMS 45575545.1