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HomeMy WebLinkAboutCRC-02-17-98?® Carmel Redevelopment Commission February 17, 1998 MINUTES The meeting was called to order at 5:45 p.m. by President Rick Roesch. Members present were Amy Boldt, Ron Carter, and Susan Westermeier. Mayor Brainard was in attendance, as was Doug Haney, City Attorney. Others attending were Norm Rundle, Councilor; Wendy Phillips of the Carmel/Clay Library; Ronald Ranken; Nicole Farmer, Clay Township Attorney; Bob Book, Secretary to Clay Township Board; Buzz Kizotter, O.W. Krohn & Assoc; Rosemary Hensel, Clay Township Trustee; Rick McKinney and Jean Renbis, citizens; Scott Miley, Star/News; Neal Steinbart, Barnes & Thornburg; Loren Rooney and Elaine Overdorf of H.J. Umbaugh & Assoc; Mike Shaver, Wabash Scientific. Ms. Boldt made a motion to approve the minutes of the February 2°d meeting. Following a second by Ms.. Westermeier, approval was unanimous. It was noted that the Commission will be considering two resolutions this evening. Since they are related, there will be a presentation on both, followed by a public hearing on each. ® Mr. Shaver explained the process which began last summer with the creation of an Economic Development Area. On January 15`h the Commission approved an amendment to the 126`h Street Corridor Economic Development Plan approved last year, which included the area from Range Line Road to Adams Street. We are taking a broader look at the area in light of many internal planning issues in the area of 12e St. The creation of the City Center Redevelopment plan was also explained. Mr. Shaver went onto say the Plan Commission acted on January 20`h to confirm both L plans are in compliance with the overall development plan for the area. The City Council affirmed the action of the Plan Commission on February 2°d. This actions statutorily enable the Redevelopment Commission to schedule a Public Hearing to confirm the projects and to initiate the fiscal process for funding. The City Center has been removed from the original Economic Development Area, while a small area east of Range Line Rd. along Executive Drive has been added, as has most of the Carmel Science & Technology Park. By including those areas rather than adding portions incrementally in the future, and including the City Center as a special project within the 126th Street Corridor, funding can be provided for the City Center and other projects in the area to work together. The entire amended 126th Street Economic Development Area is being designated as a tax allocation area, as is the City Center project, which includes the existing government complex. Build-out for the project is estimated by the year 2020 at which time the population would be anticipated to reach 80,000 - 90,000. The 1264 Street area contains the primary employment center for the city. By configuring the Economic Development Area as proposed, it enables the city to Redevelopment Comnussion Minutes 2/17198 Page 2 consider necessary projects as they arise. (such as traffic issues), and gives the city long= term flexibility in terms of the projeetsit can consider. Mr., Shaver pointed out that as far back as the early 1970s the Comprehensive Plan identified the need to.cominue 126`s Streetwest ofRange ,Line Rd;in.addition to the need to identify, a city center. Ms. Rooney explained the. financial considerations•and.the;proposed.impact to various taxing unify. In a meeting with the-School Board on Pebruary•9,.the.Board seemed`to have a positive impression, and felt the financial -impact of the project was negligible, with an estimated total impact of $557, less-than 1%,of the assessed value, From all indications, if we were not to capture the assessed value from improvements to the designated area, there would be less aid from ,the state to the schools. The reason•for issuing taxable COFT bonds inihe amount of $10,560,000 is to jumpstari the city project, thus'enabiing the city to,purchase certain properties:and to facilitate infrastructiue improvements. The COIT bonds will be on.a parity with last yeaz s bond issuance: The bonds should market well-by having the COLT pledge for- repayment. The dab debt serviceshould be aboiit.$1 million Per year, and it is estimated we-would receive $400,000 in tax increment: funds from improvements'to the amended Economic Development. Area, along with about $785_,000 from-City Center redevelopment., The bond issue is for 20 years- Mr.. Shaver, emphasizedthat.we are basically:trying to put the tools in place to do things in the designated 70 acres of this dynamic community. Ms. Phillips asked f TIF expires. -Mr. Steinbart explained that by state. statute,it lasts for 30 years: Mr. Kizotterasked .ifthere is a cap on TIE., Mr. Roesch indicated there is ,a lot unforseen so we need to,see how things develop, and prefer not to be`handicapped or too limited: in what-we can accomplish. The plans are for allowing 'the, increase in assessed value to be captured to allow growth to occur, which will affect other areas as well. Mr. Steinbart representtng.the""City in &nancing reviewed the passage of,a Declaratory Resolution on January 15, City Council's approval on February 2,•publication of the Notices of public hearings on February 5, filings with the various taxing districts .on February 6, and the voluntary meeting with the•School'Board on February 9,. which was also attended by the Mayor and Ms: Rooney: The two:matters before us tonight are public.hearings on the Economic Development (? Plan and the City Center Redevelopment Plan, •followed by consideration of 2 resolutions Redevelopment Commission Minutes 2/17/98 Page 3 determing the projects to be of public utility, in effect confirming the original declaratory resolutions. The Pubic Hearing opened at 6:45 p.m. Bob Book, Secretary to the Clay Township Board made several statements. He feels that the TIF would impact the computation of the property tax rate, and while he acknowledged that the existing strip mall (site of the old Kroger building) does not enhance the city as it now appears, the building had been offered and sold by the owner prior to the city's involvement. He is troubled by the 126" St. district plans because his understanding is that "the purpose of TIF is to redevelop truly blighted areas. TIF districts are supposed to include land where development is not occurring on its own. The theory behind such financing is that it is fair to all the other taxing entitites for the body creating the TIF district to capture the increment in that district because without the development to be funded by T1F, there would not be any other development in the district and therefore would not.be any tax increment." Mr. Book feels that is not true in the 126d' Street redevelopment area. Mr. Book referred to a finding of fact on page 8 of the amended.pIan for 126 St. district as not true, that conclusion #9 is wrong, that industrial areas in the 126" St area seem to be proceeding very well. What happened to property rights? He also referred to page 5 in the impact summary related to the extent of decline in the proposed city center area. No written submittal of Mr. Book's comments was provided for the record. Mr. Rick McKinney objected to the age referenced for the existing retail development in the redevelopment area, and to the reference to that there is a lack of movie theaters in the Carmel area, and favors a vote against selling bonds. He would prefer to entice developers to do what the city plans to do. A copy of Mr. McKinney's remarks was provided, and is attached for the record. Mr. Ronald Ranker asked if the figures are based on optimum development, and suggested the square footage may be outside of what most businesses can pay. Mr. Roesch acknowledged several good discussion topics have been brought up. The Public Hearing was closed at 6:55 p.m. Mr. Roesch suggested the 12e St. Corridor actually serves other areas, and that these projects would serve the economic development area as well. While some infrastructure would be completed by the city, actual development will be done by individual developers. The city must show the developers what can be done. He also noted that if the TIF does not come in at the expected rate, COIT would be used as security. Redevelopment Commission Minutes 2/17/98 Page 4 Mr. Carter asked Mr. McKinney for some elaboration of his concerns. Mr. McKinney said that while the City Center is a wonderful idea, he thinks it could prove to be a "money pit" for some time. Resolution 9-1998 amending the boundaries (confirming Declaratory Resolution 2-1998) was introduced for discussion. This would approve the amended 12e Street Economic Development Plan and designates an allocation area. Mr. Carter made a motion, which was seconded by Ms. Westermeier. The motion was unanimously approved. Ms. Boldt made a motion to approve Resolution 10-1998 (confirming Declaratory Resolution 3-1998) declaring a City Center Redevelopment Area, approving a plan for the area and designating the area an allocation area. Ms. Westermeier seconded the motion. This motion passed unanimously. Announcement was made that the second reading of the city's COTT funding will occur at City Council on 2/23/98. The next scheduled meeting will be Tuesday, March 10 at 5:30 p.m. in the Caucus Room. The meeting was adjourned at 7:10 p.m. l®