HomeMy WebLinkAboutCRC-05-10-00CARMEL REDEVELOPMENT COMMISSION
Wednesday, May 10, 2000
DOCS Conference Room
6:00 p.m.
AGENDA
Call to Order
2. Approval of Minutes, 4/25/2000 Meeting
3. Financial Report
4. Old Business
A. Discussion about organization and resolutions about payment of invoices and approval of contracts
B. Discussion about Community Survey Proposal
C. Discussion about ARTEC ProposaVAgreement
D. Estimate in the amount of $8,500 for dumpster.used during razing four buildings in Old Town
E. Letter from Mayor Brainard, nominating Joseph Staehler as head of the Department of Redevelopment
5. New Business
A. Opening of Bids for Private Redevelopment of Redevelopment Parcel No. 1 A, Carmel City Center
B. Approval of Invoices
1. Baker & Daniels, Inv. 159955,11/10198 $ 26.95
2. Baker & Daniels, Inv. 159956, 2125/99 $7,132.96-
3. Baker & Daniels, Inv. 163806, 5119/99 $ 250.56 S3
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4. Barnes & Thomburg, Inv. 579351, 12/22/99 $1,407.00
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5. Wallack Somers & Haas, Inv. 4675, 12/23/99 $5,250.00
6. Wallack Somers & Haas. Inv. 4673, 12/23/99 $5,373.25
7. August Mack Environmental, Inc., Inv. 0011651 $1,300.00
8. Daily Ledger $ 59.28
9. Indianapolis Newspapers S 68.13
10. tkfeid Compton Realty Co, 3/13/00 $ 750.00
11. Property Analysts, Inc., Ref #00-008, 3/14/00 $ 750.00
Total $22,368.13
These invoices are to be paid from the 1998 City Center Bond:
6. Discussion of draft of REP from CSO for Parcels 2 and 6.
7. Signing of Documents (if any)
8. Schedule Next Meeting (June 14)
9. Adjournment
Z:kedevconunt2000 May 10 Agenda
CARMEL REDEVELOPMENT COMMISSION Meeting, Wednesday, May 10, 2000
The meeting was called to order by President Rick Roesch at 6:01 p.m. Other
Commission members present were John R. Koven, Amy Boldt, and Susan Westermeier,
constituting a quorum. Also present were Robert Doster and Les Olds from CSO, Mayor
Jim Brainard, City Councilor Wayne Wilson, Joe Staehler, Phil Dunlap from Metro
North, and four bidders: Thomas Dapp, Gradeax, David Belloli, Milestone, Richard
Fletcher, Smock Fansler„and one other who arrived late did not sign in. Phyllis
Morrissey as support staff. Commission member Ron Carter arrived at 6:06 p.m.
Mr. Koven moved we proceed immediately to the bid opening. Ms. Boldt seconded the
motion and it was unanimously approved.
OOpenin¢ of Bids for the site preparation and improvements of City Center, Phase I. The
bids were:
Gradex $698,900.00
Kreager Brothers Excavating, Inc. $691,317.26
Fox Contractors Corp. $693,194.63
Trotter Construction, Inc. $802,703.22
Smock Fansler Corporation $843,346.61
Poindexter Excavating, Inc. $679,019.00
Central Indiana Contracting, Inc. $819,366.40
Atlas Excavating, Inc. $809,832.90
Milestone•Contractors, L.P. $788,000.00
Trainee, Inc. $846,081.00
Site Services and Underground, Inc. $826,817.50
The bids will be reviewed by the City Engineer and a recommendation will be brought to
the next Redevelopment Commission meeting on Wednesday, June 14.
Approval of Minutes
Ms. Boldt made a motion to approve.the minutes of the April 25, 2000, meeting.
Following a second by Mr. Carter the minutes were unanimously approved.
Financial Report
The report was distributed by Mayor Brainard and he explained some details, noting the
bids just received were less than we had projected.
Mayor Brainard noted we were obligated to pay property takes in arrears on some of the
properties we have recently purchased.
Mayor Brainard: On AMLI, there were three things which needed to happen before we
could close. The first thing we needed-was a permit from the Indiana Department of
Environmental Management for our wetlands mitigation. That permit has now been
received. I don't have it in hand, but received a call two days ago from our attorneys,
Baker and Daniels, and they have been notified by IDEM that the permit had been
granted. They do not yet have it in hand either, but they've been notified it's available.
The second thing that had to happen was the City Council had to approve the zoning.for
the City Center site and that's now taken place. The third thing that has to happen is that
we need a permit-from the Army Corps of Engineers. We have now been promised we
will receive it by June 30`h. I'd like to see it sooner, but at least we've been given a date
for the first time. The question revolves around whether we're subject to their jurisdiction
or not.
Mayor Brainard was asked if we would be able to award before we actually get that
permit. He responded, "Legally, we can't obligate ourselves until we have the money
freed up. We can probably award conditional upon getting it out of escrow."
Discussion followed. Bids hold for at least 60 days. Mr. Roesch noted if we run into a
problem we could get with the lowest bidder and ask for an extension.
Mr. Roesch: Of the cash we have right now, S 150,000 is from the Build Indiana Fund.
Can that be usedfor general purposes?
Mayor Brainard said, "Yes, anything dealing with the City Center."
Mr. Koven: According to what I inquired about today, we have $187,000 in cash. I don't
know where we got the $262,000.
Mayor Brainard: Clerk Treasurer told me that regarding the proceeds in the non-bond
account, some of it's invested and some of it's in cash. The $180,000 is in cash. The
other is in a CD or something; but still available.
Discussion followed
Mayor Brainard noted the figures on the financial report are net today prior to the
invoices listed on tonight's agenda.
Mr. Koven: One of the critical things that I think everyone on the Commission should be
aware of is that our bond fund balance as of today is $23,619. When we pay these
invoices totaling $22,368.13, out of the original bond money we're going to have
$1,251.00 remaining. It is correct that the money in the Build Indiana Fund can be used
for anything to do with City Center, but because that's a regular City fund anything we
pass as an expenditure is still subject to City Council approval prior to checks being
issued. The point I'm trying to make is that we're down to $1,251 in bond money which
we had the latitude to do with what we wanted. With the other money we still have the
latitude to do what we want, but the City Council has final say approving those claims.
Mayor Brainard: I asked the Clerk-Treasurer about that, too,, and she thought the Build
Indiana Fund was subject to City Council claims process but not anything else.
Mr. Koven: I don't think that's correct. Any checks that the City writes that are not
coming from a bond issue have to go through the City Council for approval before they
can be issued. She's still receipting money from rents and paying utility expenses and
then she paid 512,000 in property taxes out of there. And she's going to have a fall
installment of that to pay, too.
Mr. Brainard: No, I don't think so. I believe we're set with the property taxes now as a
result of the closings.
Mr. Koven: That was only the spring installment. Are we free for the fall one?
Mayor Brainard: It depends on each individual deal. We'd have to go back and look at
them. I think we're at the end of our obligation to pay the arrearage taxes.
Mr. Roesch: As I recall we paid taxes last fall and most of the property was closed prior
to last fall...
Mayor Brainard: Once the City closes, our obligation
Mr. Koven: That may be the case but I don't know how it could be that way. We're
talking about the two properties on Main Street and we didn't close on those until this
year. The contracts negotiated said we would pay the property taxes due and payable in
2000.
Mr. Roesch: I would guess we'd have to pay the full takes.
It was noted it will beat July I" before we'll have the AMLI escrow released.
Discussion followed about the financial situation and invoices due. It was noted that
some of the items listed on the financial report would not be completed and invoiced until
next month or even later.
Old Business
Mr. Roesch: First item is discussion about organization and resolutions about payment of
invoices, approval of contracts, appointment or confiiming.a director if this resolution is
passed. Questions or suggestions? [Mr. Haas arrived at 6:35 p.m.]
Discussion on Resolution 99-2000 followed.
Ms. Boldt: If the director is appointed to provide the services, do we feel comfortable that
we've fixed the problem that we identified to start the ball rolling and that we're not
putting ourselves in the position where the same set of occurrences could happen again
only with this director being questioned? Have we in fact laid out the authority and the
specific recommendations we have for him at this particular time?
Mr. Roesch: I can address that on my behalf. I think just having a written procedure,
(basically policies are included as well) forms a reference point, something for us to point
to and say, "This is the way it's supposed to work," for. everybody involved. We did not
have anything like that before. It makes us all accountable for what our roles are. If it
doesn't work then we modify this. Will it do what we want it to do? Only time will tell,
but I do feel more comfortable that there is something for all of us (the Commission, the
City Departments)... this can be communicated, this is-the procedure that we go by, this
is the accountability.
Ms. Westermeier: We'll now have a department, and a person, someone that when we
leave these meetings, we'll not be wondering what's supposed.to happen. There is
accountability. There is someone that's taking'information from these meetings
[inaudible] and reporting back. I like that.
Mr. Koven: I.don't mind the director's part; I don't mind the department's part. I still
think there are loopholes in here that allow a director, whoever that person may be, to
incur expenditures, get appraisals and all kinds of things with regard to the acquisition or
disposition of property prior to ever discussing it with the CRC. I think that's part of the
biggest problem why we got where we are.
Mr. Haas: What this says is that you agree on the budget amount. Assuming that Joe
[Staehler] is confirmed as the director, there is an amount which you can set at one dollar,
a thousand dollars or a hundred thousand dollars, from which Joe can draw to make some
preliminary inquiries about property. Because to bring a proposal to the commission for
you to evaluate whether you want to proceed, any further, you need to know something
about the property. Actually I don't think this authorizes anyone to obtain appraisals but
it would authorize someone to obtain valuations. The reason for that is if there is a
proposal to acquire some property the first question asked will be, "What's the property
worth?". And it's hard to address a proposal in a vacuum. Before I authorized someone to
do a lot of work on some property, I'd want to know some parameters, such as, who owns
the property, about what is the property worth. In selling property, maybe there's a
proposal to dispose of property for a purpose, your question would be, "About how much
money can we expect to get from it?". So that when a proposal is brought to you there is
some baseline information upon which you can make a decision whether to continue
exploring the idea.
Mr. Koven: Let me give you an example. We were saddled with appraisal costs on a
property here on Rangeline Road that was not even discussed with the commission any
interest in purchasing this property. What 'I would rather see happen, and maybe this does
it, is before we develop a budget we approve the interest in going forward with a project
in the first place. What I don't want is someone going out and getting appraisals and then
coming back to us and saying, "Look we found a piece of property here. Let's go out and
buy it."
Ms. Westermeier: But Karl is saying we can set it so that no appraisal can be done
because we put a limit on it.
Mr. Koven: But it doesn't say we have to approve the project before we approve the
budget. It doesn't require our approval to approve a project before we can spend money
under the way this is written.
Mr. Haas explained in detail how getting initial proposals would work. He noted the CRC
can set the amount the director can spend at whatever level they feel comfortable. It can
be set so the director would have to come back to the CRC fairly frequently to obtain
more money. If the CRC doesn't approve of the way the money is being spent, the
amount can beset at zero. "This doesn't set a budget tonight. That would have to be done
at some later date."
Mr. Koven: I don't have a problem with approving a budget for a project, but I want to
approve a project before the budget. If I understand what this says, the director can go
spend money and then bring the project to us. I don't want to see that. I don't want the
director out fishing around for projects for us and bringing them to us along with
expenses just because he has a budget to go out and fish. I'd rather he come to us with a
project and say this is something we need to do because it's in line with what we're doing
and I need a budget to work with to get to a point where I bring back a proposal. That, to
me, is the way it's should work.
Mr. Haas: This resolution is set up so you have a basis for setting the economic
parameters on what the director can do.
Ms. Westermeier: What you're trying to say, John, is that you don't the director doing
anything without us knowing about it first. That's really the.bottom line, it's not the
dollar. It's the idea. Because in the past you perceive that there's been things done
without us knowing about them.
Ms: Boldt: We could authorize the director to get an estimate.
Mr. Carter: I would just make two comments. First, the thought that this group did not
know anything about the Main Street projects is absolutely not true. We passed a
resolution showing interest on it in a public meeting. Secondly, I think we're probably
being foolish by looking at constraining the director, whoever it might be, from spending
any money to look at projects ahead of time. And the reason I say that, once the City
started looking at a project, that particular building up there [by Main Street] went up in
value dramatically because the City was looking at it. I think, frankly, it's probably
appropriate for us to be able as a Commission to quietly look at things in the community
to see if they're appropriate for this Commission to work with and do it from a standpoint
of not raising the price artificially. I don't see anything wrong with having a director go
out and bring feasible projects to us. If the intention is to slow the Commission down to a
crawl, we have the power to do that. We can say you can't do anything until we say,
"Here are the things that you can do." Or we can put some confidence into whoever that
director may be and say, "Here's a budget; here are the guidelines we think this ought to
be utilized with." And go ahead and look at that from a standpoint of letting that person
bring to us appropriate projects that we think can be accomplished within the budget
constraints that we've set forth and the budget constraints that we have. So I'm not as
concerned about looking at projects right from the start and saying, "Okay„ go ahead." I
think we ought to have some feasibility built into this at the beginning so that we don't
waste our time looking at projects that are not feasible for us to do.
Mr. Roesch: If the way this thing works, I guess I'm not too uncomfortable with this as
long as we have the ability to limit this. But I also think having the director at every
meeting, one of the things we should charge the director with, within the constraints that
we lay out, is to report to us what he is looking at so we can give him direction.
Mr. Staehler: It seems to me that if there is concern about controlling the director, if I'm
the director, I would certainly consult with the chairman of the CRC before I would
spend any money.
Mr. Roesch: We all know the concerns we have and the organization that we're trying to
put in place and also the spirit of what we're trying to do. For myself, I'm inclined to see
how it works.
Ms. Boldt: If we decide to assign this seed money, what would the City Council's
authority be over that amount of money? I realize the CRC would not have authority over
the expenditure of that money. Would that also mean that the Council would have the
authority? I'm assuming that would have to be unencumbered cash.
Mr. Roesch: That budget has to be approved by the City Council just like all departments
do.
Mayor Brainard: That wasn't the advice we received. Not that it might not be a good idea
but that wasn't the advice we received. This is an independent commission.
It was noted there is still the $75,000 limit for which expenditures (for certain things
only) over that amount need Council approval.
Mr. Koven asked if that wasn't changed now that we actually have a City department.
Mayor Brainard: I can ask Neil Steinbart to put something in writing how he thinks the
law works on that. I can have that done by the next meeting. That has more to do with
the budget process than this particular resolution.
Mr. Carter noted this Commission is akin to an adolescent at this point in time. He noted
we've got to be in a mode that we make decisions to move. forward, get things done, but
do them in a prudent manner. "Putting a director in place, and a department in place is
certainly appropriate. Having that person report back to us on a monthly basis, having
that person available to report to us as needed when we have questions or concerns in
between meetings."
There being no further questions about the proposed resolution, Amy Boldt made a
motion to approve Resolution [This will be number 9-2000 per Clerk-Treasurer.] to
create the director for the CRC; the resolution we've been discussing.
Mt. Haas: Then you need to supercede #6.
Following a second by Ms. Westermeier, the motion was approved unanimously.
Discussion of the Community Survey Proposal and Discussion of the Artec Proposal
Cost of the Community Survey Proposal, will be approximately $12,800. This study will
survey the community and the results will show what the constituency wants and what
type of facility they will support. The Artec Proposal, a marketing.proposal looking more
at the economic feasibility of the project, will be S60,000 plus $16,000-$18,000 for
expenses. These figures sound high but there are multi-million dollar projects so it is
prudent to do the studies beforehand. Mr. Roesch suggested we move forward with both
of these when we have the money. He said it's something we need to do before we spend
money issuing bonds.
Mr. Koven: I agree 100% that we need to do both, of these but I think the time to do them
is not now. They should be tabled until we get our money released from the AMLI
project. I think for the community survey we're looking at September now because
they're already scheduled for the summer. In order to build these projects it's going to
require a bond issue to do it. Until we have some kind of outcome the status of those
business entities that are within our TIF district, where that money's going to.come from,
.I'd be nervous about getting involved in a bond issue until we have some kind of clear
vision what's going to happen there. I don't want to spend the money on these two
proposals and then find out we can't afford to build the center in the first place. So I think
these should be.put on the back burner until we have the funds. I want to build a
performing arts center but I don't want to build it and then have to find alternative ways
to pay for it.
The CRC and Mayor Brainard were all in agreement..
Mr. Carter cautioned that.the community survey not do the polling with a pre-conceived
notion about what will be built. He suggested the Artec study.be done first because
possibly the performing arts center or museum building may not be an economically
feasible approach for this community to take. "If not, since we've still got land here that
we need to develop, what other product do we put on that?" He suggested we develop the
thought of a product or two product, alternatives by doing the Artec study fast and then
giving that item to the IUPUI people so they can present tangible concrete alternatives
and survey towards that.
Discussion followed.
Ms. Boldt noted the importance of identifying the user groups first. She also said she
hoped a survey would be mailed to the community (like the one done prior to the
Farmers' Market). Direct feedback from this would be a good addition to the rest of the
information gathered.
After more discussion, Mr. Koven moved the final decision on the surveys be tabled until
the July meeting. Following a second by Mr. Carter, the motion was unanimously
approved.
Item D, Old Business
Brief discussion about the demolition of four buildings in Old Towne. The demolition
will be done by the City Street Department employees. Dumpsters will be needed to haul
the debris away. The estimated cost for these dumpsters is $8,500, which includes the
hauling services. Two buildings are ready to be demolished at this time, so the costs will
probably be about half the estimation right now. Mr. Carter moved the CRC approve
$8,500 for the dumpsters as needed. Following a second by Ms. Westermeier, the motion
was unanimously approved.
Item E. Old Business
Mayor Brainard has appointed Joe Staehler as director of the CRC.
Sue Westermeier moved the CRC confirm Joe Staehler as director of the CRC. Mr.
Carter seconded the motion which was then unanimously approved.
Approval of Invoices
Brief discussion about the invoices as listed by the Clerk-Treasurer. These are all to be
paid from the City Center bond. Total to be paid is $22,368.13.
Sue Westermeier moved the invoices be approved. Following a second by Ms. Boldt, the
motion was unanimously approved.
Discussion of the draft of RFPs for Parcel 42 and Parcel #6
Mayor Brainard corrected an earlier statement, noting there is a small piece of wetlands
on Parcel #6. The RFP for this parcel notes the wetlands are present and the developer
will have to work around them. They are not to be disturbed which is part of the
commitment we made in mitigating the larger section.on Parcel 41.
Mr. Olds displayed the master plan, showing the "vision" of the larger area. He then
displayed the "working map", explaining the different areas. Parcel 92 is an office
complex with the possibility of eight separate two-story buildings. Parcel #6 is for sale
townhomes and possibly retail on the east end. Mr. Olds noted the RFPs were kept as
general as possible but the architectural standards are outlined thoroughly. Bidders will
be asked to conform in general to the master plan. "Weary to outline what the City is
going to provide and what the developer is going to provide." The project agreement will
pin down all these elements in detail.
Also in the RFP will be the minimum price for the land. The Commission will have the
right to control and approve the final design. The Commission will also set the dates for
when the bids are received.
Discussion followed.
Mr. Haas noted the RFP is designed so the CRC can choose whichever bid they like, even
if it's not the lowest one, but is.the design or idea which the CRC likes best.
The power lines were discussed and the possibility of having those buried by the utility
company. The cost for the reflecting pond is estimated at $1,700,000 which includes the
water portion and the walkways around it. The AMLI contract requires the City to build
the reflecting pond and walkways but these will also benefit the whole project
aesthetically. Mr. Koven asked what the time table was for the reflecting pond's
completion. Mr. Haas said there is a time in the agreement but he didn't remember what
it was.
The bids will be opened at one meeting. Then a.day will be scheduled for the bidders to
come before the CRC and make presentations. The CRC can reject any and all bids
totally at its discretion.
CSO recommended $2,311,000 for Parcel 42. On Parcel,#6, CSO recommended
approximately $710,000. Dates for bid openings were discussed.
There is a possibility that Ms. Boldt and Mr. Koven will not be at the August 91h meeting.
Mayor Brainard noted if a quorum was not going to be present, the CRC could always
delegate the President and City Engineer Kate Boyle Weese to open the bids.
Mr. Haas said following the presentations by the bidders, approximately 2-3 weeks
following the bid opening, the CRC should be able to award the bids in September. The
closing would likely be in November. The money would basically come in at the end of
the year in November or December. Mr. Olds recommended the completion date be set
for-eighteen months from receipt of permits.
Mr. Koven moved the minimum bid price for Parcel 92 be set at 52,500,000 and the
minimum bid price for Parcel #6 be set at 5750,000. Following a second by Ms.
Westermeier, the motion was unanimously approved.
Mr. Koven made a motion that the CRC approve the RFPs for Parcels #2 and #6, the date
for receiving the bids be set for August 9, 2000, at the regularly scheduled CRC meeting.
Following a second by Ms. Westermeier, the motion was unanimously approved. The
bids will be received in the Clerk-Treasurer's office.
Other Business
In response to a question, Mr. Haas verified that Mr. Staehler can be asked to do
something [by the CRC] and this can just be reflected in the minutes; it does not need a
resolution.
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Mr. Roesch talked with Tom Stayer, who called recently. Mr. Roesch told Mr. Stayer the
CRC did not have the money at this time and did not feel it was fair to ask him to tie up
his property at this time. Mr. Roesch said, "I was very noncommittal about when or if
anything would happen on this property."
Adjournment
Ms. Boldt moved the meeting be adjourned. Following a second by Mr. Koven the
motion was unanimously approved and the meeting was adjourned.
Next meeting will be Wednesday, June 14, 6 p.m.
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