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HomeMy WebLinkAboutCRC-12-20-05CRC Minutes, December 20, 2005 CARMEL REDEVELOPMENT COMMISSION Meeting, Tuesday, December 20, 2005 The meeting was called to order at 7:00 p.m. by President Ron Carter. Commission members Jerry Heniser, Rick Sharp and Bill Hammer were present, constituting a quorum. Also present were Les Olds, Karl Haas, Loren Mathes, Bruce Donaldson, Blair Carmosino, Jennifer Burk, Tom Pitman, Lesley Rogers Barrett, Lynn Wall (from Shiel Sexton Company). Steve Pittman arrived at 7:17 p.m. Sherry Mielke and Phyllis Morrissey as support staff. Mr. Carter noted this will be an abbreviated meeting and another meeting will occur in early January. Mr. Carter announced that he had received a letter of resignation from Bob Battreall because he is moving his residency to Florida. Mayor Brainard will be making another appointment to the Commission. Approval of Minutes Mr. Hammer moved for approval of the November 15, 2005, minutes. Following a second by Mr. Sharp, the motion was unanimously approved. Mr. Hammer moved for approval of the November 22, 2005, minutes. Following a second by Mr. Sharp, the motion was unanimously approved. Resolution 13-2005 Resolution of the City of Carmel Redevelopment Commission Setting a Public Hearing on the Proposed Amendments to the Declaratory Resolution Establishing the Parkwood Economic Development Area and the Economic Development Plan for Such Area and Authorizing Publication of Notice of the Public Hearing Ms. Mathes gave a brief explanation of the project and its history. The CRC agreed in 2001 that the TIF could be captured to fund off-site public improvements. An exception was made for Parkwood East because it involved some demolition and some environmental remediation so some of those costs were covered. The first bond issue would cover Parkwood East and some of the roadwork on 96th Street. Duke agreed to guarantee the bonds if the TIF could be pledged. The actual structure that was used was an economic development revenue bond. Those are issued through the City. Duke has a loan agreement and they agree to repay the bonds. The TIF is pledged by the Redevelopment Commission to help with the payments. If the TIF revenue covers the payments, then Duke does not have to make any payments. Duke guarantees them because they are responsible for the ultimate payments. The bonds have a taxable interest rate because of that structure for both bond issues. In October 2002, bonds were issued in the amount of $3.56 million dollars. The TIF for 2006 is estimated to be $524,000. When Parkwood East gets finished the TIF will be about $780,000 [in 2008]. When the next part of Parkwood West, including the restaurant, gets finished the TIF will be over a million dollars and that will be in 2012. Duke representatives are hoping to fund about $4.6 million in costs and have gone over those costs with Mayor Brainard. CRC Minutes, December 20, 2005 2 The bond issue will be for $4.950 million at 7.5% taxable interest rates. City Securities is expected to underwrite the bonds. Bond coverage is about 118% so there’s an annual surplus estimated at $160,000. The total bonds to be issued will be about $8.5 million. TIF has a thirty-year life. The bonds will be for twenty years. Mr. Carmosino distributed site plans for the project. Discussion followed. Mr. Donaldson pointed out that there is no City liability on these bonds. If the TIF doesn’t cover the bond payments, Duke will make up the difference. Mr. Pitman explained it is a taxable bond because of two criteria: a particular developer has unusual benefit from the improvements, more than the typical average public and that developer commits to paying off the bonds. Mr. Sharp moved for approval of Resolution 13-2005. Following a second by Mr. Hammer, the motion was unanimously approved. The public hearing for this will be at the CRC meeting on January 17, 2005. Public Hearing on Amendment to the Declaratory Resolution and the Amended Redevelopment Plan for the City Center Redevelopment Area. Mr. Carter opened the public hearing on this resolution at 7:24 p.m. There was no one present to speak for or against the resolution so the public hearing was closed at 7:26 p.m. Mr. Donaldson explained that with Resolutions 14 and 15, Parcel 12 would be removed from the City Center Redevelopment Area and placed in a new Economic Development Area / TIF Area for the Pedcor project. Bonds will be issued for Pedcor to purchase to help finance the construction of the underground garage. If there is excess TIF from Parcel 12 it can be funneled back to Parcel 5. Resolution 14-2005 Amending Boundaries of the City Center Redevelopment Area Mr. Sharp moved for approval of Resolution 14-2005. Following a second by Mr. Hammer, the motion was unanimously approved. Resolution 15-2005 Establishing the CRC Parcel #12 Economic Development Area Mr. Donaldson explained that since this area had just been removed from the CRC Redevelopment Area, it was eligible to be declared as its own separate economic development area and TIF area to support this Pedcor project. Mr. Sharp moved for approval of Resolution 15-2005. Following a second by Mr. Hammer, the motion was unanimously approved. Approval of Invoices Ms. Mielke stated invoices were submitted in the amount of $979,595.17. CRC Minutes, December 20, 2005 3 In response to a question, Mr. Olds said PSI utility relocation of ahead of schedule and should be totally completed by January 31, 2006. He is hopeful this will save some money. Mr. Hammer moved the CRC approved payment of the invoices as submitted. Following a second by Mr. Sharp, the motion was unanimously approved. Next Meeting will be Wednesday, January 4, 2006, 5:30 p.m. Executive Session and 7 p.m. public meeting. [Mr. Hammer will not be in attendance.] Mr. Olds announced the Performing Arts Center bond closing will be tomorrow (December 21, 2005). Ms. Mathes distributed bond closing papers. Mr. Carter thanked Ms. Mathes and Mr. Donaldson for all the work they’ve done on the bond project. Adjournment Mr. Sharp moved the meeting be adjourned. Following a second by Mr. Hammer, the motion was unanimously approved and the meeting adjourned at 7:35 p.m. Z:\redev comm\2005 Dec 20 Minutes