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HomeMy WebLinkAboutCRC-04-15-98CARMEL REDEVELOPMENT COMMISSION April 15, 1998 Minutes The meeting was called to order at 5:40 p.m. by President Rick Roesch. Members present were Amy Boldt and Ron Carter, constituting a quorum. Also in attendance were Craig Hessee of the Linder Co, Beth Young of Bose McKinney Evans, and Loren Rooney of H. J. Umbaugh & Associates. Approval of the March 27 minutes was tabled, due to the fact that one of the three members in attendance at the March meeting is not present this evening. Under Old Business, Ms. Boldt requested a copy of the agreement approved at the March meeting. Mrs. Kelsey will provide same. Mr. Roesch asked Beth Young to explain the procedure on Merchants Square. The TIF bonds are available,only for road acquisition and project costs. Thus TIF bond proceeds are available for purchasing the land and constructing the right of way improvements in the access roads from Carmel Drive, and the ring road. Also included is the relocation of the AAA intersection so that it lines up correctly. Tonight we are proposing that we disperse funds in three different phases; to acquire the land where the improvements are pretty much done (although the intersection is not relocated yet, due to First Indiana Bank plans not being finalized). We are still acquiring rights of way needed to widen the ?. access road. In tonight's appraisals we have the land value only of the ring roads, the widening of 116'' and actual access road leading to it, and the existing 24' road access. Land values of the property total $1,220,742.50, the average of the two appraisals of the land value only. The next phase of the project will be to acquire the widened access roads, and to pay for the completion of all the road construction. The First Indiana road relocation is a separate line item in the appraisals, thus permitting us to break it apart and close whenever we can on First Indiana. We can close whenever on the widening of the road, and close on the ring road, in three separate transactions. The second transaction is going to include widening of roadway, but will include the release of some rights of way, and will pay for construction costs. Keystone Way remains open. Improvements were made where the ring road meets with Keystone way, per Mr. Hessee. The package provided includes all closing documents. The closing checklist lists all the items Ms. Young must pay attention to during the closing. The title commitment was just Redev. Comm. Minutes 4/15/98 Page 2 Received, has been reviewed and sent to Jeff Hern, Attorney for Linder. Mr. Hem is proceeding to have released the things we need released before we can accept the roads. The mortgage on the property includes covenants that apply to all of the shopping center. It may take time to get the Marsh released, but he has agreed to do that. We may go ahead with closing, and have a second closing contingent on the release, with an agreement that we obtain the title insurance endorsement when it is released. Marsh has been cooperative. There is a mortgage on the property showing he cannot get a release to borrow, so closing will be put off until he can get the mortgage released. The title company will insure over it. Ms. Young pointed out the deed does not say Redevelopment Commission. Statute requires that the city take title as City of Carmel, Indiana for the use and benefit of its Dept. of Redevelopment. Ms. Boldt wondered if it will need to be re-deeded. Ms. Young explained that is not necessary, even after the time, period of redevelopment expires. The city will just own it. Continuing through the checklist, the vendors affidavit is standard, and the FIlLPTA affidavit is a non-foreign affidavit so we don't have to withhold federal tax for an alien conveyance. Ms. Young said an environmental evaluation was not done. They reviewed, and are relying, on Linder's report. Linder indemnifies us, and the Linder report has been reviewed by Counsel for the City. There is a license for Seller's completion of the improvements. There are a few improvements that need to be done on the property the City will now own (ex. The First Indiana area). The license requires that the improvements be complete by a date certain, which right now is October I ' for everything except the First Indiana property. This modification will be made to the document. Rick Roesch noted the bonds are to the Linder Co. Per Ms. Young, the bonds will be endorsed over to the city, or amended to include the city as a benefited parry. A condition of closing is that the bonds will be in our favor. There is a performance bond, a payment bond, and a 3-year maintenance bond after the work is completed. Re: the Certificate of Existence of Seller, the Secretary of State office has been contacted. That office will certify that Ben Mar LLC is in good standing. Changes in the copy and delivery costs have been incorporated into the closing statement. The affidavit for payment includes corresponding changes. Ms. Boldt called attention to totals, and Ms. Young confirmed that the tally on the closing statement is incorrect, but that it will be corrected by closing time. The purchase price is set at $1,222, 742.50. The city is picking up out of TIF money the additional expenses. It will eventually result in a lesser amount that Linder will get at our next closing. We are reserving First IN acquisition and other expenses. None of the costs on the closing statement have been Carmel Redev. Comm. Minutes 4/15/98 Page 3 paid yet. Out of the $1,910,000, $175,000 is being reserved for the First Indiana closing. Karl Haas and Fran Shoup of Baker. & Daniels represent the city in that transaction. That gives us $1,700,000 to disperse. $1,200,000 comes out here, and the agreement with Linder is that they will take whatever is left, and will come out of pocket to pay the remainder. Mr. Hessee said costs have actually exceeded $1,900,000. The city will not come out of pocket, over and above the bond proceeds, to pay for the improvements. There are no required qualifications in statue re: selection of appraisals. Mr. Hessee said the appraisers were hired by the city. One must be an independent appraiser, the other may be by a qualified employee of the'Dept. of Redevelopment. Rick wondered if there would be a problem with the First Indiana. The improvements estimate for contract work has one appraisal for $113,283.06, the second at $130,810. The improvement value plus the land value exceeds $175,000. That transfer will not take place until the improvements are done. Ms. Boldt asked if asphalt is environmentally unsound. Mr. Hessee said it is not. Phase I was done in October 1994, then an update prior to closing on the property done approximately October 1996. The deed will be clean. Attorney for Linder asked for some modifications to documents furnished to Commission, with reference to access easements and utility easements. These will be changed on Exhibit B of the Deed. This is in the nature of being more specific. Discussion ensued regarding approval of the final documents. Ms. Young anticipates closing by the end of next week Mr. Roesch suggested "best effort" to have both President and Secretary review and sign documents. Mr. Young said she could make revisions and red-line changes, then fax those changes. Ms. Boldt said she will stop by if notified when these documents are available. Mr. Roesch asked about. landscape maintenance on the roadways, and whether it is addressed in the documentation. Mr. Hessee indicated a willingness to include this, as it is in his best interests for entrance to the shopping center to be well maintained. Ms. Young suggested putting this in the deed as a deed restriction. Mr. Hessee said the maintenance bond covers maintenance for the roadway for a period of three years, after which the city assumes responsibility. This evening we need to approve the closing of the first phase of the project. Ms. Young said there is no requirement to approve the documents. The documents were provided for members' personal comfort. Commission approval would be with the understanding that L Redev. Commission Minutes 4/15/98 Page 4 the deal is as represented in the documents. What we need to approve is the closing statement and the affidavit for payment. The closing statement needs to be revised to correct the sub-total and total of the purchaser's cost. Total purchasers cost will be $4,686.20, and net purchase price to be paid by purchaser will be $1,225,428.70. Mr. Carter made a motion to approve the closing statement and the affidavit for payment. The closing statementwill be in the amount of $4,686.20 representing the total purchaser's cost, and $1,225,428.70 representing the net purchase price, with these documents to be revised and submitted to both the President and Secretary of the Redevelopment Commission for their best efforts at approval prior to closing. Ms. Boldt seconded. Unanimous approval followed. Construction on AAA Drive should be complete by the end of the month. There is no anticipation of shut-downs in the road system. Work continues on finishing the sidewalk and lighting, and striping. The pylon sign has been ordered, and Mr. Hessee anticipates it will be up and operational between the first and fifteenth of July. Marsh should open by mid-June. Space is gradually being turned over to the tenants, and Linder anticipates a grand opening of the center in mid-August. There will be a family-oriented Italian Restaurant. When the project is finished, they hope to have 6-7 restaurants. Mr. Carter inquired whether the Carmel Fest parade will form up in Merchants Square. Mr. Hessee felt they could be accommodating, and that representatives of Carmel Fest may have contacted Ernie Reno already. Ms. Rooney presented an agreement for consideration, in which H.J. Umbaugh would be authorized to perform advisory services in connection with the City Center project. The Commission requested they be supplied with expenses incurred to-date, and an estimate of additional charges they might anticipate prior to taking action. A meeting was scheduled for Monday, April 20 at 5:30 p.m. to consider the agreement with H.J. Umbaugh. It was suggested that Ms. Rooney advise the Clerk Treasurer of this procedure and also contact either the Mayor or City Attorney to keep them informed. The meeting was adjourned at 7 p.m. after a motion by Mr. Carter and a second by Ms. Boldt.