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Home My WebLink AboutCRC-05-22-07 SPECIAL eRe Meeling, May 22, 2001' CARMEL REDEVELOPMENT COMMISSION SpeCial Meeting, TiIesday,,MaY.22,2007 .. . Presidenr'Ron.Carter called the. meeting to order a18:06 a.m. Commission members Rick Sharp, William Hamimirand)effWorrelI were present,. c.onstj~~ting a quorum. Also pres'entwereLesOlds, Kal'fHaas,;ShelTY Mielke, BlUce Ddnaldson;Loren Matthes, Brandon,Bowman'(Cbrrent:in Carmel) and Rick 'bsbom., Phyllis Morrissey as.suppoit staff. .. ApprovalofMinutes . ..' Mr: Sharp moved. fOr approval of:the mimltes.of April 17, 2007. Seconded QY Mr Worre(land lma~imously approved. The May 9,2007, minutes will be'carried over to thelune 19 meeting. PubliC'Hearing Regarding'Approprhition of Bond Antidoation Note Proceeds Mr. Donaldson ga.ve..anintroduction'to the'proposal,statingibis for:$2,995;OOOand is a .short. rermloan 'obligation.repayable primarily f!'dm 'the:issimrice of 'some future bonds, It. is to fund redevelopment coStsin.the.GityCenter and Old Town,areas..The public.hearing was advertisedin:thepapers on May 1'1. . :The Public'Hearing was opened at8: LOa:m. There wasnoonepresenf:tospeak'inJavor or against thebondanticip'ation note.. The Public Healing was:cIosed at 8:11a.m. Resolution 2007-1 Authorizing Issuance of Bonds'and Bond AnHdoation NotesJor Redevelopment Proiects Mr.~harp (for tne record) asked' if this'w6uld De the last BAN that. we would issue and, then'the next:note will be a "take'clown where we'll c1eanit.and wrap everything up".. Affirmative. Ms. Matthes: TheTate'is,el\pec:ted;t9 bearoundA.7% 105%, j?a.ft of the timirigof;tnis was expedit~d because'of"the late distrihution,of jJtoperty'taxes. Mr.Sharp: Given all the scare lac::ticsused'in 'the last campa,ign. regaxdingae~t:aridits' relative impact on properyytax'ratedn the City o(Carmel,it',s worth:noting ihis paragraph'io theofferihg: "The 2007 notes are'noFageneral obligation ofHhecityor the district.'The districtsl1all not be obhgated :to, pay the 2007 .notes or the interest thereon except froih,the taJ[ inc~eme.rit or from pr,oceeas dft~e future,bonds"and,th,e 2007 notes shall hot,constltute,an indebtedness'of the.district or.any municipal corporation or political subdivision:ofthe State of Indiana." ,Mr. Sharp: Fonhe'record,as our"burgeoningCity debt grows, ,we should be very aware thaUhisisnottelated to,thaf ' . . CRC Meeting. May 22, 2007 Ms. Matthes distributed a Tax Increment Update and gave a brief explanation of it. Discussion followed about the impact of the appeals. Mr. Carter stated we should vigorously oppose the appeals. Ms. Matthes suggested someone with assessment experience be hired to investigate the significant. appeals. Discussion continued. Ms. Matthes will get some infonnation to Mr. Carter. Mr. Haas pointed out that for those developers who have a single project TlF, their appeals only reduce their ability to pay their own bonds. We have a limited number of projects outstanding right now where an appeal would actually affectthe TlF that comes to the CRC. Ms. Matthes said what they are working on rightnow, in addition to detennining how much to set aside for the appeals, is making sure that all future developmentis what we anticipated, refining that projection. Mr. Sharp moved for approval of Resolution 2007 -1. Seconded byMr. Worrell and unanimously approved. Approval of Modifications to Lurie Operatinl! Covenant with Respect to the Carmel Arts Buildinl!(Parcel 21) Mr. Haas stated that in the original covenant, Evan Lurie was to operate a first class art gallery for five years. His lender became concerned about the length of that operating covenant and asked for a reduction of two years. Mr. Haas explained the proposed resolution. Discussion followed. Restrictions can be placed on the property for a subsequent user (no restaurant, for example, because of the condos above). A sustained market downturn would be detennined by some sort of national market, tied to some index. This will be detailed in the revised operating covenant. Further discussion followed. Mr. Carter read the proposed motion: That, with respect to: (a) the purchase by Lurie, LLC, of the first two floors of the Project on Parcel 2\; and (b) the operation by Evan Lurie on the first floor of a first-class art gallery; and in order to: (a) satisfy the requirements of Symphony Bank, mortgage lender to Lurie, LLC; and (b) facilitate the financing of the purchase by Lurie, LLC, of the first two floors; the Commission hereby: (a) approve: (i) a reduction from 5 years to 3 years in the period during which Lurie, LLC, covenants to operate a first-class art gallery on the first floor; and (ii) an exception from the operating covenant in the event of a substantial terrorist attack on United States soil that results in a major sustained downturn in the market for fine art ; and (b) authorize the President to execute documents and instruments that incorporate and reflect the. foregoing; all conditioned and contingent upon: (a) such documents and instruments being in fonn and substance satisfactory to the President in his judgment; and (b) Lurie, LLC, satisfying its obligations under all agreements and contracts to which it is a party with respect to the purchase of the first two floors of the Project on Parcel 21. 2 CRC Meeting, May 22, 2007 Mr. Haas stated the final document will have all the terms defined at length and Mr. Caner will have final approval. Mr. Sharp moved for approval of the. motion as read by Mr. Caner. Seconded by Mr. Worrell and unanimously approved, Other Business None Adjournment Mr. Sharp moved for'adjournment. Seconded by Mr. Worrell, unanimously approved and the meeting was adjourned at 8:42 a.m, 3