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Home My WebLink AboutCRC-04-18-06 CRC Minutes April 18. 2006 CARMEL REDEVELOPMENT COMMISSION Meeting, Wednesday, April 18, 2006 The meeting was called to order at 7: 10 p.m. by President Ron Carter. Commission members Jerry Heniser, William Hammer and Rick Sharp were presentconstituting a quorum. Alsopresenl were Mayor Brainard, Karl Haas, Les Olds, Sherry Mielke. Others present were Lucy Emison and Philip Genetas, from Ice Miller, Loren Matthes and Jason Semler from Umbaugh, Dan Moriarity, David Leazenby, Sara Nusch, Brad Chambers from Buckingham, Willem Brans, Darrell Norris, Dennis Otten, Rosy Oshry, Jon Isaacs, Buzz Krohn, David Arrensen from Baker & Daniels. Approval of Minutes Mr. Hammer moved for approval of the minutes from the CRC March 21, 2006, meeting. Following a second by Mr. Heniser, the motion was unanimously approved. Resolutions Resolution fl-2006 Resolution of the City of Carmel, Indiana Redevelopment Commission preliminarily approving the form of a proposed lease between the Redevelopment Commission and the City of Carmel Redevelopment Authority for certain land and public improvements, approving preliminary plans, specificiltionsand cost estimates, setting a public hearing on the proposed lease pursuant to Indiana Code 36'7-14-25.2, and authorizing publication of notice of the public hearing. Mr. Olds stated the draft agreement has been prepared and distributed to the CRC members for review. Mr. Sharp moved for approval of Resolution 11-2006. Following a second by Mr. Hammer the motion was unanimously approved. Resolution 12-2006 Resolution of the City of Carmel redevelopment Commission regarding the reimbursement of certain preliminary expenditures from'proceeds of a proposed issue of bonds. Mr. Olds stated this is for a public hearing regarding bonds for various projects (listed in appendix). The resolutions are for approval to hold a publiC hearing in May. Mr. Olds recommended the CRC members review the information. Discussion followed about when the meeting should be held. It was decided to have a special meeting for this public hearing on Wednesday, May 3 at6 p.m. Mr. Arrensen will have the notices published in the newspapers. Mr. Sharp moved for approval of Resolution 12-2006. Following a second .by Mr. Hammer the motion was unanimously approved. CRC Minutes April 18, 2006 Mr. An'ensen noted the Redevelopment Authority needs. to meet before May 3. Additions to the Al!enda Mr. Sharp moved, and Mr. Heniser seconded, that Ms. Matthes' report and Mr. Brans' report be added to the agenda. Unanimously approved. Loren Matthes, Umbaugh Ms. Matthes distributed reports which were prepared in response to some questions from the CRC members. They summarize the financing. and the assumptions made about the financing and the amoUnt of TIF which will.be generated. Ms. Matthes suggested the information needs to be updated and she will meet with Mr. Olds and then come back to the next regular meeting with further information. Ms. Matthes noted they (Umbaugh) monitor the TIF closely to make sure everything is being counted correctly. Discussion followed noting how critical the calculations are. Willem Brans. Artec Consultinl! Group. Inc. Mr. Brans reported that.he is working on the private sector fundraising for the Performing Arts Center Foundation. He has worked closely with Mayor Brainard in compiling the contact list There is a list of name/gift opportunities for this building. Naming the PAC would be $25,000,000. The concert hall itself is $10,000,000. Box seat sections could also be named. Mr. Brans stated he has two firm commitments at this time at a substantial level. He is encouraged by the interest and is forming a committee to help contact community members. Presentations Centex Midtown Village Proiect Dennis Otten and Jon Isaacs, returned to the CRC with a briefdescription, a few changes and further infonnation on the project The question asked by the CRC: What would the TIF proceeds be used for? Mr. Isaacs stated it would be used for the reconstruction of Third Avenue SW from City Center Drive to Main Street, making ita boulevard. Mr. Sharp questioned the estimated cost of $3,000,000, stating Centex's estimates were double what it should cost. Mr. Isaacs pointed out the details, noting the actual road constmction would be approximately $750,000bm also included would be utility work and underground detention. Mr. Sharp still questioned the costs. Mr. Sharp asked what assurances the CRC has if something goes wrong. Will Centex "step up the plate"? He stated he is asking this because he knows of people who live in Centex projects and are' disappointed in the final projects. [Haverstick ponds was noted.] Mr. Isaacs will follow up cinthe'Haverstickproblems and get back to Mr. Sharp. Mr. Isaacs stated Centex is willing to back the bonds. It would not go back to the taxpayers. Discussion followed. Mr. Sharp asked if the City puts the road in, will Centex still go forward with the project. Mr. Isaacs responded that timing would be an issue. 2 CRC Minutes April 18. 2006 Storm sewers would also need to be replaced according to John Duffy. Cost of this is not included in the lists. Mr. Olds cautioned that the PSI costs for moving lines is probably more than Centex is estimating. Discussion followed. Mr. Sharp expressed a concern about giving away anticipated development [via TIF]. Further discussion followed. Mr. Carter asked about the setbacks from the Monon. Mr. Isaacs responded that these buildings would beJurther back from the right-of-way than Traditions on the Monon. The Centex buildings have been changed to lower stories in some areas along the Monon. Multiple conneciions to the Monon from the Centex project were suggested by David Oliver, an architectural consultant to the City. Discussion followed.- Centex has agreed to comply with the covenants for the Monon Trail in this area. Mr. Carter suggested Centex have a landscape consultant look at the Monon and set a precedent in its design here. Mr. Carter recommended the CRC ask the Mayor to have the City Engineering Department begin the design work, estimates and time table onThird Avenue SW as depicted in the Centex drawings. Update on Properties Mr. Sharp asked that this be taken out of order because he has to leave in a few minutes. Parcel 14 Concerns the old Street Department site and the need to have a City Council member designated as the lead individual on the Council to craft a public offering for the property owned by the CRC. Mark Rattermann has agreed to represent the Council in this matter. Mr. Olds will get with Mr. Rattermann on this matter. Gramercv Presentation Brad Chambers, President of Buckingham Companies, g~ve an overview of his company and introduced others who are working on the project. Buckingham bought the Mohawk I-Iills property in 2004 and invested $500,000 to stabilize it. There are 165 acres plus another 10 acres near Carmel Drive. After studying the property it was decided that it is a "do-over". It was decided to make an inter- connected grid of urban street ways, with a mixture of uses, offices, retail and residential, including all types of housing. It will have a central plaza for gathering for community spaces, walking paths and several connecting streets to-existing neighborhoods. A virtual tour was given, Mr. Chambers asked for questions and comments, noting they will return to the CRC with more information. 3 CRC MinHles Aprii 18, 2006 Mr. Sharp asked whatwould bedifferentfromtliis,project compared to the ViJlageof West Clay, becau,se VWC ViaS.. l;>llilfwithout using'any TIF money What are we'buying with tax dollars thatwewouldij't g.et otherwise? Mr. Charnbers,resp6ndei:L "This is. au, ej(istihgprojecL This is not vacant land in a suburb. It's au infill site"There,'are real' transitional issues'that,we have.to"address in ordefto densiJY thislocgtion." Mayor Brainard: You've hit on.the very essence of the difference.between redevelopinent and new development and. why we're Yiorkings9 h~fdiri the central core to-recreate our city as opposed.to going out in.the country and cutting' up more green'.fields..This feqliltesa:;publiClprivat~ pwtnersl1ip. Itrequires cr~aiivity and itrequiresthe City to. help. OtherwiwnotBing, Of, rarelY-nothing; in the central citywo\l1d be redeveloped. That's the 15igdifference. In this,projectwedon't have to.rebuiidTowneRoad or 131" S'ireet, Mr. Sharp: The other difference here. is that we areu"r'tuilding.ondirt.'We'waclti.ally "gOingto'rem'ove valuefrpm the tax. roles. We're actually'going.to diminish income tliat. the,City currently receives. It.certainlyisimportant tosee'~hat we wQu)i:l gaili, Lseethat we gain $500,000 ili COlrI would be.interested in seeing ihecontrast<intheproperty taxes tharwe would lose,anctari estimate of thecurrenf COIT' we derive fTom the, rooftops. WI;at are ,~e getting,for the,tuxpayers?- .,' , ,..", Mr. Carter: One afire things\yc'd IiKe'yo~ tolook,!lt; ifit's'po~s\ble: ",hat thee.ffecfon the surrounding property: values. will be'iflhis'is not,redeveloped,. Second thing is, hmv the purchase priCe per acre of the' two properties. (ywc and.Mohawk triils) compare, Mr Stmrp: It's all abouUhe numbers. Mayor Brainard,asked,LorenMatthes, "If M'ilhawk were,toni &own today, w6uld.we:lo~e any revenue given the fac'nhat we;re,'growing at 5 or 6%a year'?" Ms'-Matthes.saidno. It's an assessedvaluething;,so the City doesn"! really lose revenue. The schools potentially loses6metevel1,l!~:'in.theircapiIOLfund.ButJAso wanted to point out, this propertyis.under.appeai right now and'wll1 pY60ably end up at $25;000;000 ill assesseg value" which,i};$150,000 a,year in taxes, That'.s;aU:it genera'iesrigillllOW. $12,000,000 oht is,going.to stayin the base beca~li;e tJlUt's.l"nd.. The COITIlltmbers were:orily baseg on people coming'inJrom otllerCounties, not those who are aiready here; At buildoutthe,assessed, valllc'\.vQllld be $274,0,00,000. Mr. Carter expressed,cqricerna.bollt the. pmposed .fetail and y.rhat affectit might have on other retail nearby, especially'Mercnants Pointe. Mr. Chambers stated they feltit wouldbe'a,bcnefit toMe['Chaht~ Poi rite becaUse gfits pro:>;imity. They have purchased'property so.they can link,to Carmel,Drive. [Exit Mr. Sharp] 4 eRe MiuutcsApril18, 2006 Reports from Architects and Enl!ineers Mr. Moriarityhacl nothing additional to,rep'ort. Update on, Properties (cOiltlf1l1ed) RarceI2A"Pedcor representatives' will come to CRC meetinginMay with;!heirnew site plan, A meetihg will be sched:tiled with the, contrilctor{cir Veteran~: Plaza. Parcel 3,Stairwav, Mr. Olds.rep()rted'\ye,are still iqv'es!igittingw ,deci9~ whichJiPe'.of foulltaiii t().g~t. ,Mr. Olds'~ecohll1]ended t!1eCRC ,'etaih KeystQI1eCon~truc\ion.as an adgiiional construction,managerfor'sinaller projects. Theywoulct, Work under the same, terms as:"all our consn-uctilJl1 managers, 5% fee pIllS ihe cost:of generalconditions.,Mayor.Bniinard noted the o;'liler, Ersal Ozdemif, is a.CafTIlel resident and on.the EccinomicDevelqpment Commission, Mr. Haas:statedlthis would'beno confIict.of interest in responsMoan inquiry from MayorBrajriar\!: Mr,Hammer moved the CRC reuiinKeystoneConstruction as.construction manager under tl1i~ normal terms1md coIiditio.ilsw~ have with otJ1.~rc9flsth1ctionmariagefs,' Seconded by Mr. Heniser. In response to an, inquiryfrofnMr.' Heniser because his' wife. Merrie, had done soine . .' . ,'" -- ',. . .... , " consulting for Keystone Construction previously., Mr., Haas,stated 'lhat-sinceshe ,js'not currently working',foi"th,errLnor,does sh-e anticipat'e doing arjymorework forthel)1, there is no conflict with,Mr. Heniser'voting on-this motion. Call for theiquestion. The moti6nwas imanimoii.sly approved. Mr. Haas Will 'prep.are a contract: Parcels,4and II Mr, Haas reported ,these propeni~s'h,av,eboth closd:land the rhoney'is irnhe [jrink. Parcel 5 Mr. Olds reported that'}ohn Duffy will hive the water lines on Parc,,1.5 relocated, - ,. .. The lasteasemeht is, in placMo Cinergy can ,start removing their oyerhead power lines. Parcel 7 Mayor Brainard reported we,m'e looking'irtreconciling,different d,esires ofthearchitecr and the acoustician. Mayor Brainard directed them.to.collaborateowitheachother.,Jt was no!ed, any delays can.be made up. Mayor'Braimfrd:waritsto'havethe meetings ih Carmd until they come to an agreement 5 CRC MinUles April 18.2006 . Parcel 8 Me. Cii:ir~r,rej:lOrted}hat sOI11e ohhe residents living; above the meatmarket.are being affectedoythe'noise.ot'theJreezersbeneath them, He wanted the CRC to be aware and alert to this happening,in ot\ler%'e'/work units 'weare'blfildiifg. Mr. Olds reported,CSO has hiredan.acoustiCiari for:Pateel 21 tom~ke sure tliereis no Ilclise:iransferepcc'to the uppettloors from the coifuilerCiirfioors. Astatementshou'rd be placed in the condo purchase agreements, noting that'''at times,yoII,may hear you," neighbor" and"'at.times yo~ iTiiiy,lie<iI",s,ffeet [wises", ' Parcen 2 NfL O!d~.stated we arewaitiiIg for the'closirig.datetcibe:setso the environmental work can.begin. ,Johnny Java'has'been warned tliat theirbuilaing.wiJI be'tom down. Parcel 13 Mr. aids'said we have beenpressing,the contractor to'speedup'the masonry work. Parcel 16 Foundations are going in. HCCVB'unit,will.be completed by 'September' 1. All materials hav~ been ,ordered Jor .'the biIilding,.Fiil.al'details' on'Ihe pureha~e agreement,are bein'g worked. out with their attorney, Christine Aitman. Parcel 2] Groundbreaking wiii beApril2Q. A twenty f60t,constmcttbn easement.iJasbeen granled.hY'televisionshop property owner 'as well as an underground easement for new utilities, For the temRor~ry e?SeInent we had to pay $62500, The antique:mall property.line,isactually 2'.5 feeta\vayfrbm their..buil,aiftgwal1. We have a five foot .space betweei{ the builc!ings'[btry to deal with.the.'drippingsituation. The drainageo(thal space must betheresponsibility'ofthe new buildi'ng ownerJin ,Mr. Olds' opinion] Mr. Olds 11<IS askeiI tnern tos~1l but,they haye refused, statiI)geath owner should 'take care bfhis own property. Mr. Olds.has,offered.lTIultiple solutions to no avail. They'haveagreed to let our engineers intotheirbi.1iliIingto}';~t)lhole irithe.ceilingand doa foren,5ic examInation strllcturallyof'their'entiTe wallso we will have a record of everything in.plaee, aXUhe cracks, every thing thatls.noted, incase anything happens. .M r, Olds asked the c:qmmissibnto'consider condemning,that2,S':strip and taking the property by condemnation so. .we.can do the drainage thecorrecewayand r[Hlke"the owners responsible fot' it. Otherwise, the liability.of not controlling'that wouIa haunt us fSJfever. Th'egallery'owrier would beresponsib]e for maintaining; making,sure,the,drains akkeptunplugged, snow removai, etc. . 6 CReMinute, April 18, 2006 Mr, Haas ~tated the CRC does norha\!e the;}lIithotity to condemn property. Discussiqn followed. Motion I\'asmade lJy Mr., Hammer t6~asktlie Gityto acqllire the 2.5' property.by condemnation. EoIlmving,a second by.Mr, Heniser, the motion was unanimously apjJroyed. The.prope,:ty could.be apllblit;Nialk"'(ay. A. nein-locking g~te coijloqe pufateither end. Furthetdiscussion. Mr.,Haas wilPfol1ow up with MayorBrainard.,Mayor.Bnlinard' suggested Mr. r:Iaas ~ontact.Mr. Mink and' have,crossceasementssel,llpinstead of the. conden1na,tion. The agreement will ,State who is r~spciilsible for the' maintenan"e. Mr. aIds said' they wilt:be.applying fora variaj1ce on_ th~ wind,oiys t:-v6 ~stories'a):l6v'e Mink'sbllilding. A sprinkl6r lleadwi1lbe placed 011 each of the Lurie building"s windows. . Parcel 54, Communication Center Site Mr. Olds-reported they are moving,ahead with.contractdo.cUI11entsl!l,get the'Parking. reworked. DiscUssicin'followed. Mr aIds will discuss.this projei;t withtlie President of City C;puhc.il. Mr. Carter asked,if alL new parking layoutseomplied withthe,newbieycle.parking ordinance. Affinnative:. Parcel n.First lndiana Bank An asphalt curb will need.tobeinstalled toprevennhe flooding of;nearby businesses, A new water.linenee(ktobe instaliect..John DuffyiNaking careofcthe water line. Parcel l4, Old StreetDeDartment Site An offerlngneeds'to be made.for the. Harrill propertyand,in,conjunction with"that,the. Street DepaJ!.men.t property ~s ~joiht p~ftner with the eRe, askingf6tPrice,A and Price B. Mr Olds'will contact CounCilor.Rattermann regarding the Street' Department site,. Financial MaUers Ms,MielkNcported.thecashflow balance'March.end of. month was $2,743,867. She distributed a, rev!sedp\1dgetsheet. Disclissionfollowed. Invoices Tnvoices were~Jlbmit.ted totaJihg;$4~4,:?23A3'to he paid from theCRCoperatingfund. Mr. aIds explained that some.new'items, w~re purchased to be used at the reflecting pond and then turned over to the City ,?ecause the eityi~ n?w,rriaihlainihg thepond. Any Ili.aintenance expen~es.:.yili be'Baid lJyiheCity. Mr. Qlds will find out .when it is going to be.turned on. .Mr. Hammer moved:forapproval of the invoices in th~al11ount'of $464,32~.42. Seconded by Mr. Hainmer, 'aIidtmanimouslY approved. 7 CRC Minutes April 18.2006 Requisition for $458,425.27 needs to be approved for the expenditures for the PAC bond fund. Mr. Hammer moved the CRC approve the requisition in this amount. Following a second by Mr. Heniser, the motion was unailirrtously approved. Mr. Hammer asked how the process of moving these PAC expenditures'through the City process was going. Ms. Mielke felt it was approving, although there is an invoice for Mr. Haas that has still not been paid. Mr. Heniser moved the CRC direct through.this resolution that the Clerk Treasurer pay Mr. Haas' remaining invoice. Following a second by Mr. Hammer, the motion was unanimously approved. Mr. Haas stated he had written a letter Of opinion at Mr. Carter and Mr. Sharp's request about whether it could be required thatCRC invoices be submitted to the Council for approval after they've been approved by the CRe. Mr. Haas' letter advised that not only is it not required, but Mr. Haas' interpretation of the statutes is that it is not permissible. The Clerk Treasurer referred that to the State Board of Accounts, who would not be the final arbiter of this matter. The attorney who was assigned to it was Phil McGovern and Mr. Haas spoke with him and "he told me he couldn't see that the Clerk Treasurer had any tenable position. They would probably render some formal opinion soon and he would let" Mr. Haas know if it was different than that. Discussion followed about the Commission versus.a Department of Redevelopment. Mr. Haas said as long as Mr. aIds; Ms. Mielke and Ms. Morrissey are hired as consultants to the Commission, their invoices do not need to be:submitted to the Clerk Treasurer for Council approval. Discussion followed. Old Business Mr. aIds reported more Arts & Design signs have been ordered and recei ved. Poles have been marked for installation. Arts District office is under construction with completion expected in about three weeks. Discussion followed about who is selecting colors fQr the office. Mr. Carter announced the skateboard ordinance has now been expanded to cover more properties. Sculpture pieces are set in place. We will try to have each lighted. New Business Mr. Moriarity said Jim Thomas had contacted him about doing some design work for the Tuesday Morning block. Discussion followed. Adjournment Motion made and seconded and the meeting was adjourned at 10: 12 p.m. 8