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HomeMy WebLinkAboutCRC-03-21-06 CRC Minutes. March 21. 2006 CARMEL REDEVELOPMENT COMMISSION Meeting, Tuesday, March 21, 2006 President Ron Carter called the meeting to order at 7: 16 p.m. Commission members Rick Sharp, William Hammer and Jerry Heniser were present, constituting a quorum. Also present were Mayor Brainard, Les aIds, Karl Haas, Sherry Mielke, Dan Moriarity, Lesley Rogers Barrett, Dennis Otten,. from Bose McKinney & Evans, Jon Isaacs from Centex, Buzz Krohn, Loren Matthes and Bruce Donaldson. Approval of Minutes Mr. Sharp moved for approval of the minutes from February 21,2006, meeting. Following a second by Mr. Hammer, the motion was unanimously approved. Public Hearing for Resolution. Parcel 12 The Public Hearing was opened at 7: 18 p.m. There was no one present to speak in favor or in opposition ofthe Resolution. The Public Hearing was closed at 7: 19 p.m. Mr. Sharp moved for approval of Resolution 9-2006. (the Confirmatory'Resolution for Parcel 12). Following a second by Mr. Hammer, the motion was unanimously approved. Mr. Hammer moved for approval of Resolution 10-2006, pledging TIF revenues to Carmel Economic Development Commission bonds' for Parcel 12. Following a second by Mr. Heniser, the motion was unanimously approved. Presentation Mr. aIds pointed out the Centex brochure included in the CRC packets. Dennis Otten, an attorney from Bose McKinney & Evans, stated ltis law firm is representing Centex Homes and has been working with them on the Mid Town Village project. Mr. Otten said they are proposing a TIF district for this projecuo help finance some of the infrastructure improvements which will be needed for this project. Jon Isaacs, the land entitlement manager for Centex Homes in Indianapolis, stated they have been working with various City departments for several months to put this mixed use project together. He pointed out the location of the site and the various parcels involved and site constraints. Luxury townhomes would face the Monon. Mr. Isaacs described the other parts of the project. Buzz Krohn, a financial consultant, from O. W. Krohn & Associates, explained. the financial implications of the proje<<t. Mr. Krohn said the estimated cost of the project is $7.5 to $8 million. They are requesting participation from the CRC in the amount of $3,000,000. He distributed a preliminary financial viability analysis showinghow this couldwork by using cash flow generated by the tax increment financing to payoff the $3,000,000 in bonds that would come from the City. They would work with the City's financial advisors to determine the financial details. CRC MinUles, March 21, 2006 Mr. Sharp asked what happens in a TIF if there are excess funds. Mr. Donaldson stated if there is more than needed it can be passed back to the overlapping taxing units, or you could go ahead and capture the surplus and put it in reserve funds and use it to fund other projects that are either in or directly benefit that same area. Ms. Matthes said some of that could. be decided when you are putting together the financing plan. Decision will need to be made as to what type of area this will be [Economic Development Area, etc.]. Mr. Krohn said he felt this will be a viable project in the short run and in the long run. Question was asked if there was a list of what the $3,000,000 would be allocated for. Response was that the list is in the project binder. Mr. Sharp said he felnhat a lot of what was listed would be ordinary expenses that any developer would incur trying to build a project of this scope in the City. "The difference is you're asking us to give you public dollars to do it with. So, what am I getting to commit $3,000,000 in tax revenues assuming that the economics of this project are such that you're going to build it? What do I lose if you don't get the $3,000,000? Mr. Krohn said he couldn't speak for Centex and say that they're definitely going to build the project, "but I think by doing this one of the advantages is that if we can go ahead and do the TIF financing now we can realize all the benefit of the increase in assessed value." Mr. Sharp then asked the Centex representatives the same question. Mr. Isaacs responded that it comes out of the viability of the project. There are several unknowns in the project at this time, for instance, land values. Mr. Sharp: What are your projections for the total. cost of the project? Mr. Isaacs: I will have to get back to you with that answer. Mr. Sharp pointed out that TIF issues are very sensitive. Mr. Sharp said he believes "we have reached a point of maturation in the Arts & Design District and that the market should be able to carry it."The CRC "should be there to guide and to assist, bun don't know that I need to assist at the level of $3,000,000. I'm spending tax dollars. What do I lose if you don 't have the$3,000,000?" This is what needs to be determined. Mr. Haas stated this is a question, not so much what you would spend $3,000,000 on as what won't be in the rest of your project if you don't have $3,000,000 to spend on infrastmcture and other public improvements. Mr. Isaacs said most of whal'the $3,000,000 would be spent on would be the Third Avenue project and some of the features that would be in there. Mr. Sharp: I need to be convinced that I am making an investment that is necessary'with tax dollars and that out of that I'm getting a real tangible benefit. 1 have colleagues that are going to criticize otherwise if you're not prepared With those answers and if those 2 CRC Minutes. March 2 I. 2006 answers don't sell, don't have real validity to them, then you're going to open yourselves up, and this commission up, to the criticism that all we are doing is subsidizing private development with taxpayer dollars. And I'm not willing to do that. Mr. Isaacs: The primary advantage is accelerating getting rid of a blighted area and stimulating a $60,000,000 investment in that blighted area. Further discussion followed. Exit Mr. Sharp at 7: 45 p.m. Mayor Brainard noted how helpful Centex has been in working with the architect, David Oliver. Mr. Carter stated that thereis a call for an overlay zone on the Monon so that buildings are not right up to the Monon. He noted this will not be permitted if this project goes through. There will be setbacks. Exact distance has not been decided. Discussion followed. Mr. Isaacs said they would come back to the CRC with additional information. They hope to break ground in April 2007. Further discussion. Report fromArchitects/Eneineers Nothing additional to report. Update on Properties Parcel 2 Mr. Olds reported Pedcor will be at the April CRC meeting to present their design concepts on Parcel 2 [formerly Kosene]. Reflecting Pool In response to a request from Mr. Olds, Mark Warner, botanist from I.F. New, reported that there were no native fish that would eat algae. Imported fish cannot be introduced into Indiana. Mr. Warner recommended that a heavy dose of copper sulphate be. added to the pool when it is opened in the spring. The restroom doors have been replaced by the architect because the contractor wouldn't agree it needed to be done. Security cameras will be installed nearby and also by the sculpture plaza in the Arts & Design District. Parcels 4 and 11 Moving towards closing since the land ownership issue has been resolved. Parcel 5 The groundbreaking will be this coming Thursday, March 23. Power on this site will be switched from the overhead to the ground. We need a letter from the CRC regarding an old drainage easement at the north end. The county won'tgive us clearance to abandon it, 3 CRC Minutes. March 2 I. 2006 so we will issue a letter to Cinergy stating CRC will bear the expense if we have to move the poles eventually. Since the utility line will be buried along the Monon Trail, Mr. Carter asked that we have the engineerHeview all the Monon Trail legal descriptions on file so we.don't have to pay twice to do the survey work. Parcel 5 Proiect Agreement Mr. Haas hopes to have it ready by the April meeting. Parcel 7 Mr. OIds reported design work is continuing. We.are bringing together the design architect and the acoustician to common ground on the shape of the inside of the hall. The next team meeting is in Washington on March 30. Parcel 8 Mr. Olds: Part of the agreement with the sale of the property to Barrett-Stokely is that the CRC gets some design control over the property. A study is being done of areas which includes the old utility department on First Avenue SW. John Duffy [Utility Department Director] is asking if the CRC would consider giving the $100,000 saved from the waterline relocation toward construction of a new well. We are laying out First Avenue according to the master plan in conjunction with Pedcor on Parcel 12. Parcel 13 Mr. Olds said we are hopeful the exteriors will be completed and the sidewalks open by May I. There is a delay in getting the limestone for the bases. Parcel 16 Site work has started. Three of the.four units are basically committed. We are finalizing the agreement with HCCVB. Parcel 20. Arts Council Site The CRC authorized $5,000 for paint, materials, etc., to help cover the cost of the work. Question is whether this can be treated as a grant so the CAC can get the money and handle the purchases. Mr. Olds has asked the City Attorney for his opinion. The same is true of the grant of $40,000 to the Fire Buffs. Mayor Brainard said, in researchingfor the International Arts Festival. it was determined that the City has the right to support cultural exhibits under the grant authority. This statute should apply in this case also. Mr. Hammer moved the CRC give a grant of $5,000 to the Carmel Arts Council to cover costs for the mural on the side of the Antique Mall. Seconded by Mr. Heniser. Mr. Hammer asked what sort of accountability there would be. Mr. Olds replied that the CAC would give us a written report outlining all expenses, a total breakdown of how the funds were expended. Mr. Hammer amended his motion to include this accountability and that 4 CRC Millules. March 21. 2006 the grant be subject to a favorable opinion from the City Attorney's office. The amended motion was seconded by Mr. Heniser and then unanimously approved. Fire Buffs This same thing needs to be done for the Fire Buffs. Mr. aIds reporte.d $6,000:00 has been paid to the architect and that amount should be deducted from the $40,000 originally approved to go towards the renovation. Mr. Hammer moved the CRC give a grant of $34,000 to the Fire Buffs with the stipulation that (I.) they provide us with complete documentation of all expenditures involved with the renovation and (2.) contingent upon a mling from the City Attorney that it is appropriate under state law. Following a second by Mr. Heniser, the motion was unanimously approved. Parcel 21 Mr. Haas stated a.resolution was needed approving the project agreement with Mr. Stenz as being in substantially final form and authorizing the President of the CRC to execute the project agreement when it is complete with satisfactory exhibits attached. So moved by Mr. Hammer. Seconded by Mr. Heniser. The motion was unanimously approved. Parcel 54. Communication Center Site Mr. aids presented a proposal to reconfigure the parking area on the site, noting that the current layout with eighteen parking spaces doesn't work well. Part of that parking area would be taken and transferred to right-of-way which would provide diagonal street parking on the adjacent street. By reconfiguring this site, we can create a total of 36 parking spaces. Building the Lurie building will takeaway 18-20 spaces. This helps to replace that parking and adds the diagonal street parking. Mr. Hammer moved the Director have the authority to move ahead with the planning for reconfiguring the site so that it is changed from 18 to approximately 36 [parking spaces]. Seconded by Mr. Heniser. Motion passed unanimously. . Financial Matters Ms. Mielke reported the Febmary ehd-of-month operating balance was $2,883,622. Invoices CRC operating funds invoices in the amount of $240,713.32 were submitted. Mr. Hammer asked about the travel invoice which was questioned last month. Ms. Mielke said parameters to tickets need to be discussed. Mr. aIds stated the issue can be resolved by having all travel reimbursement be economy class air fare only. This will be a standard set forth for all consultants and all projects. This can be issued as a mandate. This shoul(i' be attached as an amendment to everybody's contract. The invoice in question was for regular CRC long range planning. It had nothing to do with the PAC. 5 CRC Minutes, March 21, 2006 Ms. Mielke stated the revised invoice would then be for $5,978.36 which changes the total invoices submitted to $241,241,34. Mr. Olds said he wasn't aware the City Council approved all invoices. Mr. Carter replied that City Council looks at the claims. In response to a question from Mayor Brainard, Mr. Haas said the CRC has the final say on approving a CRC invoice, whether or not the City Council approves it. Discussion followed. Mayor Brainard noted that all claims are available for review since they are public information. Mr. Carter'asked that Mr. Olds or Ms. Mielke, along with the CRC Attorney, put together a statement for the Clerk- Treasurer. about this issue and then he (Mr. Carter) would sign it. Mr. Hammer moved the CRC approve the invoices to be paid from the operating fund in the amount of $241 ,241.34. Following a second by Mr. Heniser, the motion. was unanimously approved. Ms. Mielke requested approval for disbursement offunds from the PAC construction fund for requisition #3, for $135,345.30. Mr. Carter asked about the outstanding invoices from Artec from November and December, 2005. Ms. Mielke said she thought those had been paid. She will confirm. Mr. Hammer moved for approval of the PAC requisition #3 invoices in the amount of $135,345.30 (from the lease/rental revenue bonds of2005,schedu'te A). Seconded by Mr. Heniser. The motion passed unanimously. Carmel Economic Development Commission Mayor Brainard said Luci Snyder, a member of the EDC, had a meeting with him. The EDC will contribute $50,000 toward another Seward Johnson sculpture, "Street Musician", which will be placed near the music store on Main Street. Mayor Brainard asked if the CRC would contribute the remaining $27,00.0 plus shipping toward this piece. So moved by Mr. Hammer. Following a second by Mr. Heniser, the motion was unanimously approved. Unveiling is planned for April 20. Old Business The site of the north gateway has been changed to 4th Street North rather than further north at Smoky Row (8th Street). New Business Mr. Oldsasked for a motion to approve the contract with Phyllis Morrissey. Mr. Hammer moved the CRC authorize the President to sign the contract for Phyllis Morrissey for part time work for the CRC. Seconded by Mr. Heniser and unanimously approved. Purchasing Agent Mr. Olds stated that Ms, Mielke needs to be given approval to sign the warrants (claims) up to $5,000.00. 1\11'. Hammer made the following motion: 6 CRC Minutes, March 21, 2006 That the City Carmel Redevelopment Commission appoint Ms, Sherry Mielke as a "purchasing agent" ofCRC under IC 5-22 with the authority to make "purchases" with CRC's "public funds" and, in the absence of the Director,sign and submit claims applications in the approved or contracted amounts; provided that (a) aU such "purchases" are made in compliance with (i) IC 5-22 and all other applicable provisions of Indiana law; and (ii) any applicable mles, resolutions, directives, or instructions as CRC may adopt, pass, make, or give; and (b) the amount of no such single or individual "purchase" shall exceed $5,000,00 in amount. The motion was seconded by Mr. Hammer. By a vote of three to zero, the motion was passed. Skateboard Issue Ms. Mielke will be working with the City Attorrieyupdating the ordinance about skateboard restrictions in City Center, Tourist Attraction Signs Ms. Mielke reported these signs can have permanent information for directional purposes, such as the Arts & Design District and HCCVB. They also include space that can be used for other permanent or seasonal events, Ms. Mielke will complete the application process. Plaque A plaque needs to be ordered for Bob Battreall, thanking him for his service on the CRC. Next Meeting will be Tuesday, April 18, Adiournment Mr, Heniser moved the meeting be adjourned, Following a second by Mr. Hammer, the motion was unanimously approved and the meeting adjourned at 8:54 p.m. 7