Loading...
HomeMy WebLinkAboutCRC-10-02-00CARMEL REIJEVELOPiNT: COMMISSION. Monday, October' 2,.2000 Departrrientof Community Services,Conference•Room Carmel City Hall 5:30 p.m. AGENDA, 1. Call to,Order 2. Approval of a.Resolution for, acceptance of;a'bid, 3. Signing of Documents 4. Schedule NextMeeting (October .1.1,.7 p.m'.) 5. Adjournment Z:\rgdevcomm%20U Oct2 Agenda CARMEL REDEVELOPMENT COMMISSION Meeting, Monday, October 2, 2000 The meeting was called to order at 6:30 p.m. by President Rick Roesch. Members present were Ron Carter, Amy Boldt, Luci Snyder, John Koven. Also present were Mayor Jim Brainard, Clerk Treasurer Diana Cordray, Karl Haas, Paul Reis, Jim Thomas from AMLI, Councilor Wayne Wilson. Sherry Mielke and Phyllis Morrissey present as support staff. Mr. Roesch asked Mr. Haas to report on the negotiations with AMLI' for Parcel #8. Mr. Haas: Following negotiations after the September 27`h meeting, AMLI offered to pay $600,000 in cash. Rent payments would be 20% of the net after a $500,000.preference. That was conditioned on Mr. Thomas being able to squeeze $100,000 in savings out of the project. A memo was sent via Paul Reis listing these savings. [This was distributed.] So we're ready to move forward with the deal and I've prepared a resolution for a conditional acceptance of the AMLI bid. Mr.. Haas continued: Mr. Thomas will want to confirm the fact that his cost savings are acceptable to the City. But as we stand right now the AMLI deal will be as follows: $600,000 in cash will be put in escrow when we sign a project agreement. It will be released from escrow when we sign a lease. Then the Commission would be paid 20% of net operating income after debt service reserves and a $500,000 AMLI preference. After the CRC receives rent payments which have a net present value of $600,000, which would be in effect full return of a million two, then the rent payments would be 10% of the net operating income. Then the last point is that AMLI won't seek to cancel or terminate the project agreement for the City Center or seek any compensation for delays to date with respect to that project. We hope to be back to you at the next regular meeting with the project agreement. Mr. Roesch: How quickly can the lease be drawn up? Mr. Haas: I would expect we would be back at the next meeting [October I' I] with the project agreement, although we'd have to have some provisions for exhibits. And then I would like to have at least the form of lease for approval at the following meeting [November 81. Mr. Roesch: Is there anyway we can do a lease before that? Mr. Haas: Yes, but Mr. Thomas probably won't let his money out of escrow any sooner than that because he'll have to do some due diligence on the site and I expect it will probably take a minimum of 45 days anyway. Mr. Roesch gave Mr. Thomas a letter from John Duffy, Director of Carmel Utilities, detailing the availability of sewer and water on the parcel. Brief discussion followed about the projected costs of site development for the City. Mr. Haas: With regard to the site preparation costs, the final project agreement will have to come back to the Commission and it will be that project agreement that has the'site prep obligations in it, so we have until the October meeting to make sure those costs are in line. Mr. Roesch: How does this affect the escrow on.the City Center? Can the escrow on the City Center be released immediately? Mr. Reis said he is preparing a third amendment and one document which still needs to be reviewed. Information is needed from CSO prior to completion. Presumably they have all that ready and just need to sit down with Mr. Thomas and review it. The only other issue: we'll probably put in the third amendmenta time line for the off site sign which was in the project agreement. Mr. Thomas: Assuming we get the information' from CSO and also that the savings issues are satisfactory, barring any unforeseen circumstances, the paperwork will be completed before the CRC October meeting. The title of the property will remain with Carmel Redevelopment Commission. Mr. Haas distributed a copy of the resolution and a copy of the memo Mr. Thomas sent to Mr. Reis listing the savings. Mr. Thomas pointed out that Item 3 on the resolution was incorrect. It should read: Rent payment will be equal to 20% of net operating income after debt service and reserves. An AMLI preference, with the amount of the AMLI preference being $500,000, will be paid from the 20%. Discussion followed about the proposed savings listed on Mr. Thomas' memo Mr. Roesh stated he felt the timing was unfortunate on the downtown project but from his point.of view the sale of this parcel does solve several things. Mr. Carter made a motion that the CRC approve Resolution #15-2000 as amended by Karl Haas. [Mr. Haas will.send the corrected version to Phyllis Morrissey.] Following a second by Ms. Snyder the motion was unanimously approved. There being no other business before the Commission, Mr. Koven moved the meeting be adjourned. Following a second by Mr. Carter, the motion was unanimously approved and the meeting was adjourned at 7:02 p.m. z:Vedevcomm\2000 Oct 2 Minutes.dm