HomeMy WebLinkAboutCRC-11-08-00CARMEL REDEVELOPMENT COMMISSION
Wednesday, November 8, 2000
Caucus Rooms, Carmel City Hall
7:00 p.m.
AGENDA
1. Call to Order
2. Approval of Minutes from September 13 (omitted previously) and October 11, 2000 meeting
3. Report from Mayor
4. Report from Director
5. Financial Report
6. Report from Attorney
7. Report from Architect
8. Approval of Invoices (List included in packet)
9. Old Business
A; Bid Opening, Site Preparation, Parcel #3
B. Beth Young, Bose McKinney & Evans, Affidavit for Payment re: Merchant Square
acquisitions
10. New Business
A. Duke-Weeks Realty Corporation's proposal for Parkwood West, New Economic
Development Area
11. Signing of Documents (if any)
12. Schedule Next Meeting (December 13, 7 p.m., Caucus Room)
A. Discussion about starting time of meetings
13. Adjournment
ZAredevcomm\2000 Nov 8 Agenda
CARMEL REDEVELOPMENT COMMISSION Meeting, Wednesday, November 8,
2000
President Rick Roesch called the meeting to order at 7:05 p.m. CRC members present
were Ron Carter, Amy Boldt, Luci Snyder, John Koven. Also present were Mayor
Brainard, Joe Staehler, Les Olds, Kate Weese, Karl Haas, Sherry Mielke, Wayne Wilson,
Paul Reis, Jim Thomas from AMLI, Beth Young from Bose McKinney & Evans, Cris
Johnston from Crowe Chizek, Kim Deremiah from Smock Fansler Corporation, Chad
Bocock, Peter Miller, Chris Seger and Bob Falk from Duke-Weeks, Ernie Reno from
Avatar Communications Group, Mike Shaver from Wabash Scientific Inc., Bob Doster,
CSO. Phyllis Morrissey present as support staff.
Minutes
John Koven asked for a correction on the October 11 minutes, page nine, paragraph
six-, second line, which should read "contract that's not even with CRC" (instead of
CSO). Mr. Koven moved the minutes from September 13 and October fl be approved
with the correction noted. Following a second by Ms. Snyder the motion was approved
with Mr. Roesch and Ms. Boldt voting aye. Mr. Carter abstained since he was not in
attendance on October 11.
Agenda Chanoe
Mr. Roesch asked for a motion to change the agenda. So moved by Ms. Boldt, seconded
by Ms. Snyder and unanimously approved.
Bid Opening
Only one bid was received for the site work on parcel #3. It was from Smock Fansler and
was for $322,016.00. Alternate 91: $47,500. Alternate 92: $100,649. Alternate #3:
S23,000. Alternate #4: $13;260. Receipt of the bid was acknowledged.
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Mr. Deremiah from Smock Fansler asked Mr. Olds what CSO's estimate was and Mr.
Olds said it was $183,780 which included the alternates.
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Mr. Koven moved the bid be reviewed before it.is accepted. Following a second by Ms.
Snyder, the motion was unanimously approved.
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Mayor
s Report
Mayor Brainard reported he has been contacted by Allen Goldsticker from Ryland
Homes expressing an interest in Parcel #6 for the townhomes portion and also possibly
the retail area on the northwest comer of Third and City Center Drive. A meeting will
probably occur later this week.
Director's Repoli
Mr. Staehler has been approached by Mrs. SchneppPfister who wants to sell Christmas
trees on Parcel #8. She would'pay $500 and rent the property through January 7, 2001, to
allow time to clean up after the holidays. It was noted the renter would need to provide
liability. insurance and a contract would be signed by the renter and CRC. Mr. Staehler
noted she would have to get permits also.
Mr. Koven moved this rental agreement be approved. Following a second by Ms. Snyder,
the motion was unanimously approved.
Mr. Winston Long, who is producing promotional videos for the City, is using the
Sitzmark Building for some temporary storage. The building is unheated. Mr. Long will
be charged.a nominal fee. Mr. Haas noted he would need a license agreement also and
would have to provide liability "insurance and agree to vacate when we ask. This was
approved.
Mr. Staehler notedwe need a wage board determination because of the large projects the
CRC is bidding. Mr. Staehler has a call into Brian Burdick, the attorney who usually
handles this matter for the City. Mr. Staehler would like permission to continue the
discussions so something can be worked out which has a little more programmed
durability.
Ms. Boldt asked for clarification.
Mr. Staeliler: In order to do a contract in excess of $150,000 we have to have a wage
board determination, a board which consists of a state department of labor, the union's
management and a county appointee. They determine what wages we have to pay as part
of the contract. That becomes a part of the contract package. If we don't-have that, then
we have to wait until we get it and those can't be scheduled overnight. The attorney will
charge us for these services but there is no estimate of the cost at this time. Each
jurisdiction has to make their own arrangements.
Ms. Weese: There are actually five members on the board: The state labor representative,
the union representative; then there are three others: one member of the industry, one
member appointed by the agency that's doing the project, and one appointed by the
county that agency falls within. That board meets and sets wages for projects specific, not
for all projects during the year. We have to forecast what projects we're going to be
doing which cost over $150,000 in the next six months. I think they're only good for six
months. The board sets the wages for skilled, semi-skilled, unskilled, all the different
craftspeople.
Mr. Staehler requested guidance. It was decided that he should contact Mr. Burdick and
get an estimate of the cost involved to arrange the wage board meeting, then contact Mr.
Haas to see if it seems reasonable.
Ms. Boldt moved the CRC approve the licensing agreement written by Mr. Haas for
Winston Long's temporary rental of the Sitzmark Building. Following a second by Ms.
Snyder, the motion was approved unanimously.
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Ms. Boldt moved the CRC approve Mr. Staehler following through with Brian Burdick
for the wage board determination. Following a second by Mr. Carter the motion was
unanimously approved.
Financial Report
A new format Financial Report was distributed. Mr! Staehler explained the black figures
on the form are actual and the green figures are projections. He and Mr. Roesch met
earlier to decide this format, but CRC members can also request changes in the format.
Mr. Koven requested that another item be included regularly on the agenda: Continents
from CRC Members. He continued: The question I wanted to bring up is when we first
started with the Old Town parcel it was with the understanding that the Utility
Department and Street Department were going to lease space in the yellow building from
us. My understanding is that we got a payment or two and then it just "died". What
happened to that?
Mr. Staehler: I think when the CRC took control those entities stopped paying.
Brief discussion followed. Mr. Staehler was asked to check into the rental payments from
the two departments. He said if they have not been paying, they should be billed for
missed payments and in that case they might just move out.
Mayor Brainard suggested the agreement be checked and see if the leases were
assignable.
Further discussion followed. Mr. Haas said he was unaware of any agreement between
the CRC and the BPW as to what was supposed to happen after the closing. Mr. Staehler
will follow through, checking the agreement.
Referring back to the Financial Reports, Mr. Staehler noted if the CRC members do not
like the old format, these can be discontinued.
Mr. Roesch said the new report shows projections of sources and uses and includes
Pentamation report which supports the figures.
The balance includes the Build Indiana grant money. Ms. Mielke told the CRC members
the two reports they would want to refer to specifically are the Periodic Expenditure
Audit Trail and the Periodic Revenue Audit Trail. Discussion followed. The reports will
be sent out in advance of the meetings to give CRC members time to review them.
Attomev's Report
Mr. Haas was complimented on his helpful emai Is. CRC members asked that they be sent
in Microsoft Word and that Ms. Morrissey be including in the mailings.
Mr. Haas reported the Kestner project is moving forward. The lease summaries were sent
out via email.
Mr. Haas continued: Sherwin Williams' condemnation litigation is proceeding slowly.
There has been no negotiation to speak of. We have not heard anything from them in
terms of a proposal although I think they are concerned that they're going to have to
relocate on a short term basis. I would expect as we move through that we would hear
from them.
On Huffer, I have a meeting set up with their counsel on Monday to discuss that
acquisition.
Mr. Haas confirmed with Mr. Staehler that the Helsel Christmas tree sale license has been
signed.
"On the AMLI multi family project in the City Center, we have some action items
tonight. Most of these relate to the conditions for the release of the AMMLI escrow.
Tonight we need to approve an amendment to the contract with J. F. New for the
wetlands mitigation."
Mr. Haas distributed a copy of a cover letter from David Hatchett, from Baker and
Daniels, explaining the two changes to the contract: to reflect that part of the price of the
contract had been paid, and to reflect the contracting party is CRC instead of the City of
Carmel.
Ms. Boldt moved the CRC approve execution of the amended contract with J. F. New.
Ms. Snyder seconded the motion. Discussion followed. Mr. Haas-was asked what the
amount was. He responded the original amount was $307,400 and that has been reduced
to $289,502. It was approved by the BPW required as part of the mitigation plan
submitted to the Army Corps of Engineers. Mr. Roesch noted this was done with our
knowledge.
Mr. Haas noted the motion should make this contract conditioned upon the release of the
AMLI money.
Ms. Boldt restated her motion to include this. Following a second by Ms. Snyder, the
motion was unanimously approved.
Mr. Haas presented a third amendment to the AMLI Project Agreement which updates it
to reflect delays resulting,from the wetlands permit. The time tables are updated, it makes
a. Few changes to the work which needs to be done, permits AMLI to use the, office parcel
for a staging area, and now includes a provision clarifying that if there is another delay in
CRC finishing its work, that CRC will be responsible for the actual costs incurred by
AMLI in connection with that delay.
Mr. Haas asked the CRC members to approve the amendment subject to the exhibits
being prepared and reviewed by CRC and coordinated with the bid for site work. The
exhibits include the construction schedule for CRC's work, which will include the dates
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which.determine whether or not you have to pay damages if you can't get the
performance on time. Nlr. Roesch asked if there would be a delay getting the project
agreement done while waiting on the exhibits. Mr. Haas said it is one of the final items
required for the escrow to be released.
CSO is preparing the exhibits. Mr. Olds noted the exhibits have been prepared but have
not yet been reviewed and accepted by the CRC. Mr. Haas noted they also need to be
coordinated with the bid for the site work. Mr. Roesch wanted two members of the CRC
to review the exhibits.
Discussion followed about the critical timing involved. It was decided the CRC }vill have
another meeting on Monday, November 13, 7 p.m. Ms-'Morrissey will get the meeting
noticed. The information will be distributed beforehand to CRC members for,their review
and approval. Contract will be signed at the meeting.
Mr. Haas: The next item for AMLI is an agreement to a change order. The items that are
on this change order are ones that the Commission had previously approved in
conjunction with the coordination of the City Center project and the Old Town project.
Mr. Thomas has prepared a memo to this effect and we have reached an agreement. Mr.
Haas requested a motion authorizing the execution of the change order consistent with
what the Commission previously approved.
Ms. Boldt so moved this be authorized. Following a second by Ms. Snyder, the motion
was unanimously approved.
Mr. Haas: The next item is execution of the AMLI Declaration of the Covenants and
Easements. This is a document ties together the. entire project in a fairly technical legal
way, making sure there is coordination for utility easements, drainage, and that the
Commission retains control over architectural changes. There are also covenants
regarding maintenance so the Commission retains some ability to make sure the projects
are properly maintained. I propose this document be approved for execution.
Mr. Roesch asked if all the things in the document were within our power to guarantee.
Mr. Haas responded affirmatively.
Ms. Snyder moved the CRC approve the Declaration of Covenants and Easements for the
AMLI project as distributed. Following a second by Ms. Boldt, the motion was
unanimously approved.
Mr. Haas: The last item for that project is the outstanding bids for the site work required
for the AMLI project. It is probably time to accept the bid from Poindexter.
Unfortunately, we are in a situation because of [our] delay, that even if we accept the bid
from Poindexter, they would not have to proceed. It is also possible that upon receipt of
the notice to proceed Poindexter might submit some claims for adjustment in the contract
price. Nonetheless, we ought to conditionally accept that bid and authorize someone on
behalf of the Commission to give a notice to proceed presuming that we can adjust the
schedule for the performance of the work so that we can meet the requirements and
coordinate that work with our obligations tinder the third amendment.
Discussion followed. Mr. Koven suggested a motion be made to table this until Monday
night [November 13 meeting] and have Ms. Weese check with Poindexter to see if they
can meet the schedule and what their price would be in writing. Mr. Koven so moved.
Following a second by Ms. Snyder the motion was unanimously approved.
Mr. Haas: On the Old Town project most of the documents have been prepared and
AMLI and their counsel are reviewing those. They hope to be able to meet the schedule
so we can get those signed by the end of the year.
Mr. Haas: The last item is the CSO contract. There is no action tonight, but at the next
regular meeting you should review what I sent by email earlier. The point of that is to
separate CSO's contract so all work which is performed for the Commission is performed
under a contract with the Commission. The remaining work which CSO is performing for
the BPW or other agencies is under another contract. The document that we preparedis
designed to work in the interim. When there are new architectural services required, those
would be under a separate contract. This document is intended to address only ongoing
work in the simplest way without going into a tremendous amount of detail.
Mr. Koven asked Mr. Haas to give the CRC an engagement letter for our records. Mr.
Haas agreed to do that.
Architect's Report
Mr. Olds noted CSO was asked to take another look at the area by Parcel #3 eliminating
the stairs. He.presented two different concepts. One wither stairstep retaining wall with
terraced planter areas for an approximate cost of 585,000. The other is a retaining wall
with large.trees planted in front to soften the wall at an approximate cost of S65,000-
S70,000. These prices include the plaza area. Mr. Olds noted there is a third option but it
would require a change in some of the logistics. "Under the original package we would
be stockpiling dirt, allowing Kestner's contractor, upon finishing the contract, to come in
and move the fill dirt and compact around the building. If we use the concept of a
masonry block retaining wall, unfortunately in building that it has to be built in
conjunction with all the fill at this point because it's built up in layers. If that is an option
it would have to be tied in with Kestner's contractor, even given an allowance to work
something out with him that he would build it when he builds the base building. It's a
sequencing event that has some impact. That of course would be the most economical.
We're trying to keep everything in the brick formal. The block is the lower end of the
spectrum but it is an option."
Discussion followed. Ms. Boldt asked if at one time there was some community interest
in the project. Mr-Olds responded he thought there would be some interest from one of
the civic groups to build the plaza, fountain and benches and there was.money available
for that. Mr. Carter noted one of the civic organizations has quietly talked about this. 11VIr.
Carter will contact the organization.
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Mr. Olds suggested the project be rebid with modifications since we only received one
bid on it (and this seemed very high compared to the estimates). He noted there were four
or five contractors who picked up the bid packets so he was surprised to only get one bid.
He suggested the bid received tonight be rejected. Smock Fansler would be contacted and
given the revised bid package.
Following further discussion, Ms. Boldt moved the CRC approve Scheme B for the
retaining wall. Following a second.by Ms. Snyder, the motion was unanimously
approved.
Approval of Invoices
Updated invoice list was distributed which included add-ons. Mr. Staehler will notify Mr.
Haney, the City Attorney, that if he receives any attorney invoices they should be
immediately forwarded to Mr. Staehler.
Concern was expressed about the number of last minute invoices received from vendors.
Memos will be sent to all vendors notifying them of due dates for invoices. The CRC
members will be copied on this info.
Following discussion, Mr. Koven moved the invoices presented be approved for payment
for a total disbursement of $26,197.70. Following a second by Mr. Carter, the motion was
unanimously approved.
Mr. Koven asked about the earnest money due to Davis Homes. He was told this money
was credited against the closing money from the O1d'Towne project.
Old Business
Beth Young, Bose McKinney and Evans, noted she had presented an affidavit for
payment for the Merchants Square Tax Increment Financing at the last meeting. There
were no questions or comments. Ms. Botch moved the CRC approve the affidavit for
payment. Following a second by Mr. Koven the motion was unanimously approved.
Three copies of the document were signed.
New Business
Chris Seger distributed informational material about the Duke Weeks Realty proposal for
Parkwood West. Mr. Seger noted timing for this project is very crucial so they want to
work on a parallel path on establishing a TIE district at the same time the rezone is being
requested and processed. Duke Weeks has a very high profile client who wants to rent a
majority of the proposed space and they need to be in their new office building by April
2002.
Mr. Seger continued: Duke is going to be willing to guarantee these bonds. It's very
important to get this project done before the reassessment comes up in March so we can
include some of the properties that have not been assessed at the existing Parklwood
development.
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.Mn Seger: The land is 36 acres bounded by 31, 96"' Street,-465, and Springmill.Road. It
is currently owned by NRC Corporation, Steve Valinet,, and wv - Have jt; under contract. In
our zoning; we were at Plan Commission last month and-are-going to-Plan Commission
Special. Studies Committee,this coming-Tuesday [November 14]. Then we'll work
thmughahe process. All things' going well we hope to start itl Mareh.
Mr. Seger displayed the,site plan prepared byCSC)At is three five-story buildings with
two parking structures and two outlots with upscale destination restaurants: Upscale
restaurants,am also`planned for,Building C and B on the`frst floor."Focal point ofentire
project is a courtyard plaza. There will be- 546,000 square feet of office. space. One
building will beibuilt in 2001; and the oihers,annually. Road, improvements planned:
widening of.96th Street, major intersection improvements at 31 and 96`" Street;, widening
of96'h Street to foui lanes; taPering,down to three-lanes at Springinill.and-96`h Street with
a two lane roundabout, there, He noted there are traffic issues inthis,area now which. will
,get,worse. "-This is an opportunity to use.this particular project and"the taxes generated.'
from this project to be proactive. and-go ahead and make,these improvements: We're
going to be very 'sensitive to the public, crcating'a campus style;environrnent; an.office
-park where people can come."
Mr. Seger continued:,We also believe this is,an opportunity to rum,.a cornfield into a
highly viable upscale economic project that %yould be ari.excellent front'doorto the City
of Carmel. The reason we,need the Help on the'fundingris fora number of reasons. One,,
the right-of-way is-very;expensive and-this partic,ular area cannot,be developedwithout
major roadway improvemc its. The onlyway'to do,a project like this is to have the
Cityldeveloper;partttership wiih'the TIF. We're'going-to guarantee these bonds: Duke is
willing to take all the ri'slC..here. Were willingto back.these bonds so that if something
goes wrong, the bond holders corne'to:Duke.and-not the-City-of Carmel. So that.way we
can assure you no public funds:from thc,gencral,fund will.he used;for this particular
project. There•won't be any draindri tiie City borrowing.power or City fimds!.The other
point I make, we believe if-anything is ever going to,get,developed in this particular area,
because of the large amount:of infrastructure,improvements that need ,to,occur, this,is,an
excellent opportunity f6r the City of Carmel to'partnecwith a developer like Duke.whoJs
a.publicly`traded real estate company thaCs•got a.lot of credit. We have one o fthe top.
REITs in the country:
We're looking,to make an-investment between $60,000,000.,and $70,000;000 on thek 36
acres. We project, there-would be 1500-2000 upscale`corporatejobs- Potential COIT and
taz;revenues, looking at conservatively, projected at050,000. Conservative personal
property tax-calculation, about;5200,000 per year. We also believe this will provdea lot
of economic diversity for the City of Carmel. This-will•nothave,any;negative.impacr on
school funding. The school district currently is not eligible for additional' funding
generated,by these' buildings,given"the current formula-so itdoes not,have a negative
impact on the school system-
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The T1F.area we-propose isapproximately100 acres,,going fiom Springm.ill to College"
from, 96`1' to 465. 'Revenues from.theunassessed'buildings in that area would ,,go toward
paying the bonds.
Our proposal to you tonight; should, you choose to•go fonvaTtasa Commission, is to
move,this forward so that this TIF district could, beset,uprbefdre that assessment date:
But the,only buildings;that we could captureis anything which is currently unassessed
(small portion of Building 6 Parkwood Building 7; and there is a,questidii?.about
Parkwood Building 2). These:mouid be,included,inrthe•increment.
Estimated cost of the, public•improvements is SE9 million.
Timeline was discussed by Mr. Miller. "If thisptocess is initiated', today with the
authorization of'experts to•proceed and if the Commissiomwere to set a special meeting
on December 6th to adopt a declarafory resolution„a formal' beginning of the process.
Even is, all the meetings then fell into place aft e hnext: eaeltest•opportuhity,'we then end
up February5'h'with final approval. This:is;as optimistic andas aggressive.as•we can, be.
If we are:to move forward on the schedule-that would capture the March I" assessment
date.,now would be the time to start."
,Mr. Miller thanked the Commission for giving them the opportunity, to start this
discussion on a preliminary basis: "If, tthis, is something you want'to support, could--.you
proceed and authorize your-experts tonight?"
Mayor BfainardAf this Commission or the City Council at some later point something
else changed and the TIF was.not:wanted, my understanding is,the law allows,the,TIF.'to
be;removed pretty much any ttine.:Is that `correct?'
Mr Miller: it.' s correct in a couple of 'senses. If you atithortze,`starting the.process tonight,
it'snot,done .unfil it comes back-to the Comnissiomfor a confirmatory resolution, on
February 5`h on the timeline. Even after that datejf for some reason the deal does not
proceed, those bonds would-not be:jwied.`They arc not issued on thatdate, that would be
closed at some,future time. You could keep,on the books the allocation area and this
Commission could keep that TIF district:sct up so that if fixture development were to
occur,.you.could use that as:a vehicle or yourcould change tt..It's.always going to be,
within the?Commission's control.
Our:request tonight is to'give you the'backgroun&and the information. It's also to ask the
Commission to authorize its experts to proceed.withthe back- otind'-work which needs to
be done..Bond.counsel would need to prepare^a declaratory resolution. Financial analysts
need' to do a preliminary revenue study which-studies the potential tax revenue to be
captured by this and compares it,to the bond.
Finally, havea consultant prepare:qn econonric'de'velopmentplan which reviews-the' 100
area and the surrounding area for. the viability of this economic development,pr_oject.
Those afe the three that are necessary tonight. There's a fourth party?that's,important,and
that is an underwriter. It's less important'that:the underwriter be involved right'now, but
ifyou,were so•inclined we could line somebody up with that role;as well.
The second thing rwould-be to seta call a special meeting-on December 6`h. That date
would' give us time to gettoathe.nekt step which is the laeccmber Plan Commission,
meeting. That is another request.
The third request is to getup _a good,,line'of communication. If there Ksomebody on'the
Commission that you'would Iike.Duke<and Chris to be working with and communicating
with, wejust.wantt_o be sure that we,keep that. communication line open, at all times.
Ms. Snyder:. Why is this time.-line so fight? Why:are-we seeing.it so=late?
Mr. Miller: This=is something thatDuke,has been workhig on for some time, but they
wanted to launch their:zoning case and a lot of things would have to fall together..The
financing, frankly; we've_been working.on,a'.couple ofinonths,'have spoken with City
officials but it's taken until now for us to get in.front of the Commission and,initiate the
process:
Brief' discussion ensued about the timeline.
Mn Haas`. Mr: Miller, some ofthese issues will.be,discussed at the Executive Committee
meeting after this and perhaps addressed at the Monday [November 13] meeting. That
wouldn't cause any of the,other"dates to slide on`the timeline:
Mr, Miller: No, so long as'the people you retain have enough time. The real key.here
would be the economic development plan. That takes some study and some time:
Mr. Roesch asked who the recommended people=[consultants] were and what their
proposed prices would be..l4e noted even though, the.timeline is-tight-he didn't see:a
problem,with it
Mr:-Carter:,Are these costs or these particular advisors, something,that Duke could bear
and'-we could get this moved along?
Mr. Seger:: These costs could be-put into, the;TIF, so the question;is, if the TIF Or the
zomng,isnotapproved, would Duke be willing`to_pick up those costs?. And we'd be able
to move on immediately? The,answer'is yes.
Brief discussion, about the delay in Duke:coming"oeforethe Commission.
Ms. Snyder asked Mr. Haas who would choose'the consultants since-Duke would be
paying for them if the TIF was not approved. Mr. Roesch.asked who the. consultants-
would really be representing.
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Mr- Haas:'-Regardless of who is paying, they are,your counsel and advisors. Even.if Duke
has an agreement•topay them if.the;TfF "goes south" they are still beholden to the
Commission.
Mr. Carter, And ifis.appropriate..
Mr. Haas: Yes, it is appropriate. I don'Tthink there-is°a particular convention.on who
would-choose counsel. I think in this particular-situation where,Duke has offered to'pay
the counsel-in the?evcnt the, payments, are. not available`outof TIF;proceeds,, probably
some deference should be°given•to Duke=.s request because they're taking some.risk-there.,
And'they're.prepared.to recoinm and professionals that they think can get the job done.
But•you're not bound=to accept those'recommendations.
Mr. Roesch asked if Mr. Haas could draft•an',agreement which would.make them liable
for this.,Mn Haas.agreed to do this.
Mr. Roesch said the CRC would need to discuss the project, whether we-want to;support.
it, and if we do decide to proceed we need the list of recommended vendors; so a decision
can be -made on those _as well.- He.then,opened the meeting Tor questions.
Ms. Boldt: Our.regularly scheduled meeting will be December I P. So is a' special.
meeting,really necessary for.December 6'h9
Mr. Miller: We proposed thatso we.could get on,the December,'12th prefiling date,fer the
December 1-9'h Plan"Commission meeting.
Mr: Koven noted Dike could Always file"and then withdraw it if iAoesn't.pass,
Ms-. Snyder"I have;a copy-ofthe infrastructure summaryand the:date onJt,is May 30`h,
revised October?. Does every other person here have that?
Mr. Miller: No. We view the_;improvementsahat need to go into this from our perspective.
That'"s;obviously an issue of discussion that.we'need to arrive at,some•understanding on.
We havean updated,draft proposal that,we can.share with everybody.
Mr. Miller continued: This is our first chance with the Commission. We didn't want to
ovenvhelm,you with information but we have, a lot of it: We view this as just, the
beginning- Mr.-Kovem, we will'be in.the=habit ofproviding`and'prefiling, information.
Mr. Staehler noted the declafatory resol"ution.needs to be submitted to either him or Ms:.
Morrissey, the'secretary for the CRC, not to the'C I crk-Ttea surer.
Ms. Snyder: Are we supposed to authorize these financial, economic development-, and.
bond counsel advisors .here -in this meeting or.in the Executive Session?
Mr:.Rceschi.We need to ask who they areas part of our public; meeting
Ii
Mr., Haas: You can't,take a vote ihthe-Exmutive Sessiori.
Mayor'Brainard: Camtliey'discuss hiriIngprofessionals in Executiue-Session?'
Mr. Haas: Y,es,.you can have "the,discussion but you can't pass any-resolutions in the,
Executive Session.
Mr. Roesch: In4his case,'if it's.your pfefererice to discuss this,in the Executive Session,
we,can do this later in the public meetingythat's coming up Monday [Novetriber [ 3].
Mr. Carter asked'ifthe people were present that Duke was recommending as eonsuttants.
Mr: Miller responded affirmatively. Mr: Carter.then asked ifthey could be asked if the
timeline presented,a problem to them.
Mr: Miller introduced.Mike Shaver, Wabash Scientific, Inc., who explained his
company's part. "There three•separate°,agepcies for three.separate reasons. The,firstone.is ..
zoning approval [from the?lan Commission]:
The second' one is designating an economic development area and in fact the southern
portion of the Meridian Street corridor was discussed as designating an economic
development-area as fatback as two.-yearsago in terms,of supporting,a;range of possible.
TIF financed projects that would'benefit the City in its comprehensive and its longterm
plan. Those discussions two years ago were not.premi'sed upon the Duke development.
They were premised.upon just the longterm development program, for the Meridian
1 .1 Street corridor. In fact, the designation ofan economic. development area can be'done
independently of the.others. You _can designate.the-area and'leave :itas cornfield.
The third issue is the approval of tax •increment financing, That involves a' decision that
,you're.going to do it-and , what you're,goinglo,`agree to pay,for as:pdA of that process,
Attached to that letter are,three-things`:a,proposed contract from Wahash Scientific;
basically the same kind of contract which we have used;in,the past with the,City on other
projects; The Clerk Treasurer asked-that required meetings be included irfthe,, lump suin
of this,so the;costs,would.be controlled.
We would?prcpose to be done with thisIn, about thirtydays.
There ,is•a,letter of engagementtor Bames,and Tfioffibtirg `signed'by Brvice Donaldson
which explains exactly what.they would propose to do:
The third item"is'ai dngagementletter from Crowe Chizek which gives you'their
proposal.
We've tried to pull all this together and make this presentation to you as succinctly'as
possible. Basically, there" have`been,some,meetings heid. I have met with Mr. Miller to
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get a basic understanding of the project, simply for the purpose of making sure we did not
get so behind the eight ball we could not perform."
Ms. Snyder asked what the City's contribution to this, the City's cost would be.
Mr. Miller said the nature of the improvements to be included did not have to be
approved tonight. He noted it would be premature.to have that discussion. Public Hearing
on this does not-occur until February.
Mr. Carter said the documents seem to reflect that the CRC is responsible for the costs.
He asked how that can be changed stating Duke is going to be responsible.
Mr. Haas: Clearly you want it to be that way with your bond counsel [that Duke is
guaranteeing payment]. It's probably less important for Mr. Shaver to have a contract
with the Commission, however, that would be my recommendation. Then you have two
options. One is that the contract will include an obligation to pay or it,can have a
contingent obligation to pay which is contingent on one of two occurrences: the closing
of the bonds or Duke Weeks paying money over. In all cases you're better off owning the
contract and then having a separate agreement with Duke to pay in the event the bond
proceeds aren't available.
Mr. Shaver: The only thing about this situation that I'm sensitive to from an ethical
standpoint is that the contingencies that are based on the success of the bond issue tend to
lead to suggestions that you should do a bond issue. I don't think that's really where you
want to be. If that's what you say you have to have, then that's okay. I just don't think
you should put yourself in that position.
Mr. Haas explained that if there is not a bond issued, Duke Weeks would be paying for
the-services.
Mr. Roesch: We want to make sure the vendors are representing us [CRC] on all
decisions. However, we do not want to bear the cost.
Contracts will be entered into as discussed. Mr. Haas will work out agreements whereby
Duke Weeks would reimburse those costs in the event they were not paid from the
issuance.
Mr. Haas: "The approval of any vendors should be contingent on reaching that agreement
with Duke Weeks." He said he would emails the drafts to CRC members in "Word".
Following further brief discussion, Ms. Boldt moved the CRC approve moving forward
on the TIF proposal. Following a.second by Ms. Snyder, the motion was unanimously
approved.
13
erson. Mr, Roesch said rf there are
and she will see all
r. aas;
It was decided that, Mr; Roesch will be the contact p
items of , generaf interest that they be Forwarded to 1vf . also be y
terns of ers`rece - th e information. Nlr Miller will also beece ber l3`h'
i and riot?meet.
It was decided to stay with the regular CRC meeting,date of D
on December 6t``-
Si in of Documents
Next Meetin
Tile next meeting of the CRC will be Monday
leave the start time at 7 p.m.
November 13,.7 p M. itwas decided to
Adaoumncyll
There being no otherbusiness, before the CRC: Ms.'Snyder moved the meeting be
adjgi,Mdd Followitig.a second by Ms. Boldt, the motion?was unanimously approved:
Meeting was;adjourned,at9:42 p:m•
zlrede111mm\2000.Nov 8 M!nutes.doc
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