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HomeMy WebLinkAboutCRC-03-10-98CARMEL REDEVELOPMENT COMMISSION March 10, 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. Susan Westermeier arrived later. Also in attendance were Bob Battreall, City Councilor, Craig Hessee of the Linder Cc; and Scott Miley from the Indianapolis Star. Ms. Boldt noted she did not receive attachment referenced in last month's minutes. Ms. Kelsey offered members a copy of the letter from Rick McKinney, and assured members the original will be with the official minutes. Ms. Boldt made a motion to approve the minutes. Following a second by Mr. Carter, the minutes were unanimously approved. Under Old Business. Mr. Roesch confirmed the closing of the Merchants Square Bond issue earlier today, and said the funds are now in the hands of the Trustee. Procedures for paying related bills will be discussed under new business. Mr. Roesch offered some explanation of the concerns of Common Council members regarding the Bond Issue for the City Center, which had been approved by this Commission last month. The Common Council tabled the topic at their last meeting, where the second reading on the Bond Issue was an agenda item. Their action was not C- aimed at the Redevelopment Commission or at contractors hired to work for us. Their concerns were about other issues, particularly about a change order for Hazeldell Parkway (approaching $2.2 million) that was approved by the Mayor and City Engineer, and which provided for acceleration in the parkway construction schedule. Common Council members feel there should be a tri-parry agreement, perhaps similar to one that exists in Noblesville, whereby the Mayor and Common Council must agree on changes before approval can take place. Common Council members voted to hire independent counsel to look at documentation and the possibility of a tri-party agreement. This will delay the project, and it is hoped that the price of bonds will not increase in the interim. Mr. Carter noted that Luci Snyder has been provided with a copy of the Noblesville agreement and wants an attorney to look at it to see it such an agreement might be all right for Carmel. He too indicated their concern is over the Hazeldell situation, not over the City Center project, and he too hopes this delay does not impact the cost of the bonds. Mr. Carter feels any agreement would only affect change orders, but that he can't answer that with 100% certainty. He said some Council members had hoped that with leftover monies, 116`s Street between Range Line Rd. and College Ave. could have been addressed, rather than use the money to speed up Hazeldell construction. Mr. Roesch said there. is generally a 10% figure built into projects to cover contingencies. We will be asked to look at atri-party agreement at some point. He acknowledged that we have tried to be eery open with Council and our citizenry, and to do what is best for the community. Redev. Commission Minutes 3/10/98 Page•2 Ms. Boldt said she would appreciate finding out about such actions from somewhere other than in the newspaper, and it was determined that communication of such delays will be attempted in the, ftiture. Ms. Boldt expressed interest in how, an opinion by the dounsel hired by the Common Council will be disseminated to this membership, since it will impact the commission. Mr..Battreall said the Council had been told prior to passing the earlier bond issue that a_ tri-party agreement "eouldmotbe done." Members were later told an ordinance was. passed in Noblesville giving some such leeway. He spoke with,the,Mayor:today and plans to-get the,two attorneys together. Perhaps those individuals can draw, ,up an agreement-and present it to the Council members, the Mayor, and the Redevelopment Commission for approval. He said Council plans a meeting on SaturdayMarch 21, and Commission members are welcome to attend. This issue i's among"items to:b.e discussed. The Mayor would Eke an agreement,to be drawn up prior to the 21s. Mr. Carter, suggested the Commission may'not,be interested in a tri-party. agreement, inasmuch as the Commission has no input in change orders; however, amagreement could be good forthe,city, and probably would notmatetially affect what this Commission does. Mr. Battreall reiterated that Council is interested in.having some jurisdiction a eirthe Redevelopment Commission has the money. They are. attempting to determine"Can we?" and "How do we?" Ms. 'Boldt said she would "like a copy of the Noblesville agreement, and agreements. from other communities,, if possible. 'Mr. Carter said he would fax a copy of the Noblesville document, and Ms. Kelsey agreed to distribute copies to members when.she receives this. Mr. Battreall stressed that the Council action hastio reflection onthe, bond, issues, that the Redevelopment Commission has done a magnificent job. Mr. Roesch said he plans to attend the March 2I L meeting of Common Council, and invited. Commission members to join:him Mr. BattreA will fiunish an agenda. Mr. Carter suggested having any agreement ready for a,vote an that.date, if possible. He wants to move ahead with the project,.is concerned with interest.rates. Mr. Caner said only one-member of the Common Council is opposed,to_the City Center project. This action (proposed agreement) i±+ill not affect,our group's activities: and may l ensure a better overall situation. Redev. Commission Minutes 3/10/98 Page 3 Mr. Roesch said he will call all members after the next (Council) meeting. Under New Business, Mr. Roesch said some bills have been submitted in connection with the Merchants Square project. In his conversation with City Attorney Doug Haney today, we are not sure of the intracies of the agreement on who is to perform the various functions. Since the bond issue is now complete, there will be some discussion with Ice Miller after more detail is provided, and Mr. Haney will be going over their invoices. We are also in receipt of some invoices from the Linder. Co. Once reviewed, we will need to have a quick meeting to approve payment of the bills. We believe Ice Miller had a negotiated fee of $70,000. When bills are approved for payment, the Commission will submit an affidavit to the Bond Trustee for processing. We will need certification from Engineering on the Linder invoices, and from the Legal Dept. on the legal invoices. Mr. Hessee explained that the invoices presented on behalf of the Linder Co. represent the 75% of road improvements that have been completed by the Linder Co. in anticipation of the bond issuance. Paving, curbing, and underground work is in. The Linder Co. wants to recover the $1.3 million already invested. He offered to meet this week to go over the invoices item by item, and assured the Commission that nothing new ?•. was added to the contramnal obligations, and that no change orders were involved. Someone from the City Engineer's office has been observing the work in progress. The Linder Co. will be conveying the land to the city and will finish the ornamental lights and landscape sniping in the spring. Mr. Hessee said he is learning from this process, and wants it done right, too. He said that an appraisal is being done for the City on the value of the construction, including an assessment of the appraised value on the roads themselves. This should be complete within 2 weeks. Mr. Hessee suggested the bills could be approved subject to the appraisal numbers being in line with construction. Costs above $1.9 million will be paid by the Linder Co. A meeting was scheduled for Monday, March 16 at 5:30 p.m. The meeting was adjourned at 7:10 p.m. l