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HomeMy WebLinkAboutCRC-02-07-00 CARMEL REDEVELOPMENT COMMISSION Special Meeting Monday, February 7, 2000 Carmel City Hall Caucus Room 5:00 p.m. AGENDA Call to Order 11 2. Public Hearing for proposed amendments to the resolutions and plans for the Amended 126th Street Corridor Economic Development Area, the Pennsylvania Street North Economic Development Area, the Pennsylvania Street South Economic Development Area; the Old Town Economic Development Area and the City Center Redevelopment Area. 3. Approval. of Minutes 1/18/2000 Meeting. 4. Financial Report 5. Old Business 6. New Business A. Approval of Invoices to be paid ' I . Susan M. Neal, Appraiser S 4.500.00 Appraisal services for l l l & 115 W Main St,. 20 1st Ave SW and 110 lstSt SW 2. Robert C. Bommer, Appraiser S 4,500.00 Same properties 3. CSO Architects. Inv. 16166 S 9,500.00 (See invoice copy for detail.) 4. Jeffrey S. Judav,.Appraiser S 3,200.00 1118 S. Rangeline Road 5. Hahn Surveying. Group, Inv. 9911112 S 300.00 Recertification of survey, 215 W. Main Street i B. Other New Business 7. Schedule Next Meeting r v ?4 f?/?6 8. Adjournment - C zVedewomm\21000 February 7 Agenda / C CARMEL REDEVELOPMENT COMMISSION Public Hearing/Meeting Monday, February 7, 2000 The meeting was called to order by President Rick Roesch at 5:04 p.m. Present were members, John Koven, Amy Boldt, Susan Westermeier and Ron Carter constituting a quorum. Also present was Mayor Jim Brainard, Clerk-Treasurer Diana Cordray, Councilors Wayne Wilson, Bob Battreall, Luci Snyder. Also present was Neal Steinbart from Barnes & Thornburg, Jim Higgins and Tamara Gingerich from London Witte Group, Doug Haney, Carmel City Attorney, Mike Hollibaugh from the Department of Community Services, Mike Shaver from Wabash Scientific, Ms. Lenna Ransburg; 616 Ransburg Drive, Carmel. Phyllis Morrissey as staff support. Public Hearing was opened at 5:05 p.m. Mr. Roesch announced the first item on the agenda was the Public Hearing for proposed amendments to the resolutions and plans for the Amended 126th Street Corridor Economic Development Area, the Pennsylvania Street North Economic Development Area, the Pennsylvania Street South Economic Development Area, the Old Town Economic Development Area and the City Center Redevelopment Area. Presentations by Mr. Mike Shaver and Mr. Neal Steinbart, will be followed by comments from the public. Neal Steinbart, who is representing the City of Carmel in connection with the proposed amendments to the City's economic development plans and redevelopment plans, referred those present to the draft of the resolution before them. Mr. Steinbart noted the draft of the resolution distributed today is identical to the one distributed last week except for one of the legal descriptions. In the booklet, the amendments make four important changes to the City's redevelopment plans. Map #1 shows current economic development areas and redevelopment areas in Carmel affected by these amendments. The first important change is shown on Map #2. The amendments would enlarge the boundaries of the currently existing 126th Street corridor economic development area to add expansion areas number one and two. The second important change is shown on Map #3. The amendments would consolidate the currently existing 126th Street corridor economic development area and expansion areas one and two and the Pennsylvania Street North economic development area and the Pennsylvania Street South economic development area into a single integrated economic development area. The fourth important change these amendments would make as shown on Map #4 would enlarge the boundaries of the currently existing 126th Street corridor tax allocation area to add expansion areas 1, 2, the Pennsylvania Street North economic development area and the northernmost portion of the Pennsylvania Street South economic development area. A final important change these, amendments would make, shown on page 29, adds to the list of projects that could be financed to develop these areas. The amendments in no way commits you to financing-any of these projects; rather by adopting.these amendments you'll simply have an option in the future if you so desire to spend your tax increment on any one or more of any of these projects. The resolution before you approves this plan.and these amendments.. There being no questions from those present, Mr. Steinbart then asked Mr. Shaver to present his information. The front part of the book distributed shows the integrated economic development plan and in the appendices is shown all of the economic development plans as originally classed, so the original plots could be followed. This information also shows how much and how well the City is growing. CRC Meeting Minutes of 217/2000 (continued) Page Two Mr. Shaver, using transparencies of the maps Mr. Steinbart referred to, pointed out the proposed changes: The City Center redevelopment area is 112 acres, originally a part of the 126th Street corridor economic development area when it was first created for the purpose of COIT financing. The second area shows Old Towne which was created to support the streetscape improvements which are already in place. The area was primarily done for the 126th Street extension which is now in place. The Pennsylvania Avenue areas north and south (two areas because of the gap in the city's boundaries) for the purpose of supporting the Pennsylvania Avenue corridor widening, project ongoing. We came back then and createdthe City Center redevelopment area by taking it out of the old economic development area and plugging this redevelopment area in (and adding the entirety of the 126th St area as amended. When this grew out to this area, we declared a tax allocation area the second step of this, The first step in creating an economic development area simply sets the stage for economic development in a.particular location to happen. In order to create opportunity for tax increment financing you create a tax allocation area. This was done right after this project was announced and the reason this is called a redevelopment area, not an economic development area, the Redevelopment Commission has the capacity of imminent domain for the purpose of collecting, assembling parcels of land and transferring them potentially from one private owner to another private owner. The City's imminent domain power is limited to public uses, for roads, bridges, city hall, etc. So we now have the redevelopment area to support the city center project. This amended economic development area is now being a tax allocation area which is generating tax increment at this point in time to the City. The action that is being taken today is to add several areas. One piece of the new area was originally not in the incorporated city. The Pennsylvania Street corridor has been added as well as the Duke development on both sides of the street and Buckingham development. In addition across the street we have deleted the US-31 corridor was left out because it's nothing but right-of-way. The total of proposed expansion is 95.6 acres. Map #3 has the integrated economic development area going from 116th Street up to the Duke development (131st Street basically), sweeping through the science and technology park, over to the City Center redevelopment area, about 810 acres altogether. This is the only part 'that's being declared a tax allocation area at this time and that's north of 116th Street. Concerning the 116th Street south on Pennsylvania to the interstate, the City Council has discussed expanding that district on both sides of the road in order to support the US 31 improvements and the transportation improvements that are going along there. The purpose of doing an economic development plan especially in this environment is extremely important. You have a certain fortunate aspect of this that most cities don't have. When Wabash Scientific helped to create the original economic development areas they were fairly widely separated. There was a good distance between the Pennsylvania Avenue as originally done and the original 126th Street and the Old Towne area. The reason that we didn't include all of this to start with is because we weren't sure how fast all of this would close. The City is growing very fast. This is one of the community's most important economic development areas and more importantly than that, with the future development along'US 31 corridor, it's going to become even more complicated to try to get things like infrastructure support across that corridor. In addition the City Center project is one that has the potential to focus the community's attention and direct the community's image toward the old center of the community which is the linkage CRC Meeting Minutes of 2/7/2000 (continued) Page Three between the City Center redevelopment area and the old Town area. The original intent.of the City Center project in the first place. Does any one have any questions about how we-got here or what's in this plan that we should be worried about? Councilor Battreall asked if this automatically makes them TIF areas? Mr. Shaver responded: The declaration of an economic development area does not automatically make it a TIF area. The second step discussed earlier does declare a tax allocation area a TIF area for the area north of 116th Street which includes the redevelopment area. There are two separate and distinct steps in the process. The economic development plan can be approved and not approve the increase in size of the tax allocation area. If you do that, however, you will not get the benefit of the tax increment revenue. Councilor Battreall: What good is it if it's not a TIF Area? Mr. Steinbart: What we're doing is increasing the size of the currently existing allocation areas. The significance of having an economic development area which is not an allocation area (such as the majority of Pennsylvania Street south) is,that'the Redevelopment Commission continues to have the authority to develop that area to put in infrastructure or whatever it wants to. It simply is not going to be able to capture the tax increment from that area. Mr. Shaver: A tax allocation area is the official name of a TIF area. You can create an economic development area which would give the Redevelopment Commission the authority to pursue projects in addition to the City's authority to pursue projects including economic development areas, but you do not have to go the second step to the tax allocation area. Ms. Westetmeiet: Is that the one of the reasons we're not making the area south of 116th Street part of the tax allocation because someday down the road we. might want to make it part of a redevelopment area and we wouldn't be able to? Mr. Shaver: The main reason right now in my understanding is because from 116th Street south all the way down to the interstate and up the other side has the long range plan of supporting two projects: first the Pennsylvania Street corridor improvements and second the potential future development of an Illinois Street corridor in conjunction with the declaration of a US 31 freeway system. So the purpose of leaving this part out at this time, is because we'll try to bring them both in at the same time, and dedicate that one specifically to support transportation infrastructure along that corridor. So while this one is primarily focused at this point in time-on the City Center development projects, this one would be targeted more toward the transportation improvements that would go with the corridor redevelopment which would include such things as putting up the matching money for federal grants. Mr. Battreall: What is the major advantage to the taxpayers, enlarging this area? CRC'Meeting Minutes of 2/712000 (continued)' Page;Four, Mr. Shaver: The advantage to;ihe community is to pick up additional tax increments in order to further'implementthe.City Center project. Mr. Bartreall; You're;not picking up,additional tax;increments; you'rejust moving your tax increments over foruse;on those prajects'alone. You're taking them out of the City tax structure by putting thenrin this area so-they become TIF orientatedJn other words, those; dollars will be used only in that particular area.so you're taking it out of what, would, ordinarily be,goingiinto the total City treasury. Mayor Brainard: Roughly out _of.everyproper[y €ax dollar paid.by the taxpayer, 65 to 70.cents depending on,the year is allocated to the Carmel Clay schools.(therelative percentages,change everyyear), roughly l8% comes-tothe city, township gets,a couple of percentage pdirits, the library district gets a little and the cout tygets a few percentage poinfs. The way state legislature has established the abifity to do economic development areas :m-conjunctiow with the school' fundingformula which gives the lion's share out of every property tax dollar.is. For, instance; let's say the:school,.by?adding this as it exists' m year one it would lake away $500,000, from the schools. The net effectto the:schools'is only about:S2'5),00b,the;state of Indiana then makes up the. difference under the school'funding formula. So by intelligent ways using TIF we can obtain more of our state income tax money back in Carmel'that orhe_rwise we wouldn't receive; without any effect on the, taxpayer. Mr. Shaver:_Ifthere are no.further questions,; I'll turn,itbackto you, Mr_ President. Mr. Roeschs Any questions from the-floor?: ivlr. Steiinbart;: would you explain any changes that are in the resolution before us? Mr. Stembart: The only change in the resolution is thaCthe legal description in.Exhibit F has been corrected. Mr. Carter: Singlefamily'housing proposed-fora sideof 125ih Street extension in conjunction w AMT I project. Can that.be,part of the?economic &,Wopment area? Mr. Steiiibart: It can be part of the area. If itis„single family-housing you are not able to capture the tax increment: You can capture the'tax increment for businesses and multi-family housing;but not for..single;family housing. Multi-,family units.are•those with three or more in Ihe;same structure. Mayor Brainard: We did not anticipate receiving any income on the nbrth.side of 126th. Ms. Westermeier: Anyother. exclusions other-than single family property? Mr. Steinbarv. No,,except for personal property. Mr.-Roeschs; Hearing, no other discussion,.the.Public .Hearing is closed at-5-31 p.m. Call fora motion: CRC Meeting Minutes of 277/2000 (continued) Page'Five Ms. Boldt ribved' we extend,the boundaries'of the economic development area as specified in"the resolution (4-2000). Mr. Carterseconded`the motion. Motion was unanimously a d. The meeting was then recessed.until.6 p:m. At 6'p.m. t€ie,meeting wasireconvened. Approval of Minutes W. Koven moved the minutes of the January 181 2000, meeting",be approved as.distnbuted: After Ms: Boldt seconded'the motion,;it -,vas unanim6asly approved. Financial.Report Clerk_Treasurer Cordray reported ehe closing which was approved at last week'.srmeeting did occur later in the week. Mayor Brainardrepdrted,the final environmental report on the,AMLI property was received and it came out "clean". Everything is ready to goon the-AMLI'clo'sing; which will probably occur in the next-few days. Clerk-Treasurer Cordray will contattKar€ flaas'torcquest!the closing money be wired. Ivlr. Roesch asked her to also find,oui-if theescrow amount+car be put'in an interest bearing account. Ms. Boldt asked if the arbitrage estimates were'known yet. Mr 5teinbart_said'they were still working on.,it. New Business Approval of invoices Ms.. Cordraybriefly explained'the invoices„noting the first two werc?for`appraisals on-downtown properties. The CSO invoice-is for"the Fire'Department Storage and Restroom building,. Ms. Boldt asked if these would•all be paid from the City Center Bond"tissue and:if.:we,should be concerned about'the cash.flow, Ms. Cordray: These are all projects you have voted to support. Mr. Koven noted-even if we end-upclosing on [he-other one, well still hava.S300,000. Mn Rock:h noted this'.points out again the neeTfor.cash flow'statements at each meeting: Mayor Brainard reminded the commission,.that,there isstill.$150,000 coming-from the Build `Indiana Fund. We are getting closer to the time we'd.get those funds. Ms. Cordray noted one other invoice just received.todayiin the amount of $36.04 which was for advertising, tonight ?s public hearing.. Ms. Westermeier'moved we approvet'he five; invoices and the $3604 invoice fdradvertising.i After;being seconded,by.Ms. Boldt, the motion was approved. CRC Meeting Minutes of 2/712000 (continued) Other New Business Mr. Koven: Could we, not give, blanketapprdval to Clerk-Treasurer Cordray?s office authority to pay invoices under4500 such as=furnace repair? We'd still need to'scrxeport§:at.the next meeting. Mr..Roesch noted this could also applyto emergency tepaif"s:.Oiscussiom`followed. Mr: Koven moved that the, Carmel, Redevelopment Commission, as responsible landlords, designate.Ms. Cordray to approve bills fdremergency repairs,.after consulting with a Commission member to'make a"detetatiinatiom Discussion_ followed. It-was decided to, include in the motion ihatthere would.be,a ceiling oC 2,OQ0 or less.for emergency repairs as needed. Motion was'seconded by Mr. Carter and approved by the cotnmission. Mr. Koven rnade;a motion authorizing the Clerk Treasurer to pay any invoices that come im which don't appear to need to be.discussed.afa meeting-and which a're $500 braless and`at the followding meeting thepbe shown'as a prepaid,irivoice'versus one pending for payment. Ms. Boldt seconded the motion,and it was unanimously. approved. Other New business (continued) Mr. Koven asked' for discussion,un a suggestion'he had: Sincewe.have a.liscof projects we're going to be-considering„I would,like to suggest'that we investigate and do some kind of.market. study to see if we in fact wantaperfbrrning-arts center and an arts museum or one or,the; other. That we actually have a survey done.in the community and`if we build•it, they will show:up. Those particular buildings could be=the.lifeblood,of a community but-we want to make sure our cornmunityis going to stand.behind.it, Going forward and;casting those votes,for History and, everything else as asmember;of this;commission.andthe City Council„it would be nice to;know we had a document there,which says we made this decision based on community input. Mr. Roesch: Mr. Kirby al so' suggested' this atla different.meeting.,Itwould help mitigate the naysayers who would-be, perhaps vocal'about it, like`ahe vocal minorttyof the Motion Trail. As we're embarking on this it-would help'take care`.of that. I thinvit's a pruden.tsuggestion. Ms.,Boldt: Should we wait; until we'know What the tax,Impact would be? Mayor Brainard: Alter the tax:inerement'is established the proposal is thattbe City construct the buildings;, possibly get grants (no,guarantees),?and.possibly,some private support for. operating expenses.' Ms. Boldt noted the,confidence level from; a small sample,can be-very low. -Mayor Brainard stated the whole north side,of Indiahapolis`wilI also use it: The poll will have`to be expln;ed at different`levels.,Marketing,t dy is different+than apoll°;,there,;are experts that go out and do this throughout the;community: 'Mi.;Koven: We should do the_poll sepaiately.foi'caclfbuilding CRC Meeting Minutes of 217/2000 (continued) Page Seven Mr. Carter: We have some background as part of the 2020 Comprehensive Plan done a few years ago. We should have it done by an independent firm, taking into consideration all the contingencies... if it costs $50 per year per household, if it costs nothing per year per household, etc., probably talking'$10,000 to do thavat a minimum. Mr. Koven: We could have them come and do a presentation at the next meeting. We should invite two firms to do 45 minute presentations. Hamilton Southeastern school board did a poll regarding one or two high schools. They used Brian Vargas with Indiana University and were very pleased with the results. Mayor Brainard asked what percentage of the population is needed to support a performing arts center. Brief discussion followed. Seeing, favorable consensus, Mr. Roesch asked Mr. Koven to set something up for two presentations at the next meeting. When they have finished their presentations they can leave and we can discuss it to see where we want to go with it. Next Meetine will be March 15, 6 p.m. Adiournment Ms. Boldt moved the meeting be adjourned. Following a second by Mr. Koven the meeting was adjourned.