HomeMy WebLinkAboutCRC-02-22-05CRC Meeting, February 22, 2005
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CARMEL REDEVELOPMENT COMMISSION Meeting, Tuesday,
February 22, 2005
President Ron Carter called the meeting to order at 7 p.m. Commission members Rick
Sharp and William Hammer were present, constituting a quorum. Also present were
Mayor Brainard, Les Olds, Bruce Donaldson, Karl Haas, Jason Semler, Dan Moriarity,
Evan Lurie, Edward and Nellie Pipkin, and Bill Ruthhart from the Indianapolis Star.
Sherry Mielke and Phyllis Morrissey as support staff.
Approval of Minutes
Mr. Hammer moved for approval of the minutes from the meeting of January 25, 2005.
Following a second by Mr. Sharp, the motion was unanimously approved.
Mr. Hammer moved for approval of the minutes from the meeting of February 15, 2005.
Following a second by Mr. Sharp, the motion was unanimously approved.
Award of Bid
Bids were opened on February 15 for moving of the Arts Council building. Mr. Moriarity,
from CSO, after reviewing the bids, recommended the bid be awarded to Smock Fansler
for $193,800. The estimated cost was $175,000. Mr. Moriarity said, after reviewing the
project with representatives from Smock Fansler, several cost savings could be realized,
resulting in an estimated savings of $15,000 that can be taken without altering the quality
of the job. He recommended a change order be created for these savings.
Mr. Sharp moved to award the bid to Smock Fansler for $193,800. Mr. Hammer
seconded but suggested the inclusion that the Director of Redevelopment be charged with
value engineering the project down for savings. Motion amended to include this and then
approved unanimously.
Financial Matters
Mr. Olds presented proposed Resolution # 1-2005.
Mr. Donaldson explained that this was an initial approval of the form of lease for the
performing arts center. The Carmel Redevelopment Authority met earlier and adopted a
resolution approving this form of lease to submit to the CRC. This is step one of a
process that has to occur in order for this lease to become a reality. This resolution states
CRC approves of the form of the lease and then calls for a public hearing on it at the
March meeting. After the Commission has its final approval, the lease then goes to the
City Council for approval.
In response to a question, Mr. Donaldson said the lease technically starts when the
building is complete and ready for use, under Indiana law. Four years has been built in
for a construction period and then we put a maximum of term, twenty-five years.
Umbaugh took the current cost estimates for the facility and then estimated high on
everything including interest rates so we could put a maximum amount. We’ll keep
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backing that down as we hone in on the actual cost of the facility and we sell the bonds
and we know the actual interest rates. At that time we’ll put an addendum to this lease of
a lease rental schedule that actually matches the bond debt service.
Mayor Brainard stated we did estimate high on the original construction costs but then
we had Donnell Consultants Incorporated [Pre-construction Cost Management Services
and Program Analysis and Budget Preparation experts] do a special analysis and the costs
have been reduced to $80,000,000. This is for a world-class concert hall. We will have
fundraisers to raise money for operating endowment and some of the extras that aren’t in
the budget right now.
Mr. Sharp asked about the TIF revenues to support this. Mayor Brainard stated the TIF
revenues are actually better than we had first thought according to Umbaugh.
Mayor Brainard explained the lease. The state constitutional provision states that you
can’t have more than 2% of your assessed value in debt. So you set up a holding
corporation, the Redevelopment Authority, and the City then pays “rent” and the CRA
pays the bonds.
Mr. Sharp moved the CRC approve Resolution #1-2005. Following a second by Mr.
Hammer, the motion was unanimously approved.
Cash Flow Report
Ms. Mielke reported the January 31, 2005, CRC fund balance is $5,245,890. A 2005
budget column has been added to the spreadsheet. A revised budget was distributed.
We have a BAN maturity date on our 2003 BAN for July 18, 2005. We can use a 2005
BAN to replace this 2003 one. Mr. Olds explained how this would affect the budget.
Discussion followed. It was decided to place this on the agenda for the next CRC
meeting. Ms. Mielke will determine what the actual costs would be.
Invoices
Invoices were submitted for payment in the amount of $361,828.41. Following a brief
discussion, Mr. Hammer moved for approval of the invoices as submitted. Following a
second by Mr. Sharp, the motion was unanimously approved.
Mr. Donaldson told Mr. Haas the cost for Barnes & Thornburg and Umbaugh to do
another BAN would be approximately $10,000.
Other
The issue of payment of Evan Lurie’s compensation was brought up. The City Council
feels it should be paid by CRC since most of the work he is doing is for the
redevelopment areas. Discussion followed. Mr. Sharp moved the CRC take over payment
of compensation for Evan Lurie. The contract will be assigned over from the BPW to the
CRC effective today. Following a second by Mr. Hammer, the motion was unanimously
approved.
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Update on Properties
Parcel #2, Pedcor, planning to begin construction on building #4 this spring.
Parcel #2, Kosene, making every effort to clean up their site so it is more inviting to
prospective purchasers. Mr. Olds suggested we have them come to the next meeting or
else issue a report on the status of their project.
Veterans Plaza is up and running. The official flag-raising ceremony at the plaza will be
at 2 p.m. tomorrow [February 23].
The doors to the restrooms need to be changed. They were to be paneled doors.
Streetscape work is being wrapped up. Pedcor’s share of the cost on the screen wall is
$80,000. They will be asked to perform a final inspection and approval of the work
before we invoice them.
Parcel #4 and #11.
Mr. Olds said a motion is needed to begin preparation of an offering for Parcel #4 and
Parcel #11 and part of Parcel #7 and #5, not including the performing arts site. Appraisals
are needed for the balance of Parcel #7 and #5, all the land that’s left between City
Center Drive, Third Avenue, Monon Green and Range Line Road.
Mr. Sharp moved the CRC authorize the Director to offer Parcel #4 at its average
appraised value of $417,500, Parcel #11 at its average appraised value of $250,000, and
additionally he is authorized to seek appraisals for the balance of Parcel #7, less the land
for the performing arts center, and the remaining portion of Parcel #5, and then provide
an offering of those parcels for the average appraised value. Following a second by Mr.
Hammer, the motion was unanimously approved.
Parcel #5
Goodyear demolition work is still not complete. SESCO is rechecking everything on the
site in conjunction with the other environmental company which carried out the original
inspection of Parcel #5 and #7. That environmental company is getting a release from
IDEM for all of Parcel #5 and Parcel #7 and SESCO is getting a release from IDEM for
just the Goodyear site. Pedcor is paying for the Phase II environmental engineer.
Mr. Carter noted the barricades off of City Center Drive need to be replaced. Mr. Olds
will follow up with the Street Department.
Mr. Hammer pointed out the importance of restoring the Monon Trail to its original
location as soon as possible and not wait until all the construction on Parcel #5 is
complete.
Parcel #7
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Mr. Olds stated the infrastructure work needs to be started: relocation of the power lines
($1.8 million), stormwater detention package ($1.3 million), temporary relocation of the
Monon Trail, and the sanitary sewer that runs down the middle of Parcel #5. Mr.
Moriarity stated the combined costs for the temporary relocation of the Monon Trail, the
site preparation work for Cinergy, and the relocation of the sanitary sewers is $450,000.
Discussion followed at length about stormwater detention. If underground detention was
put in place with the idea of putting garages over the area later, foundation work would
need to be done now and that could cost as much as an additional $1,000,000.
After further discussion, Mr. Sharp moved the CRC authorize up to $50,000 to be spent
for architectural/engineering design for the sanitary sewer relocation, the relocation of the
Monon, the grading site work for Cinergy. Following a second by Mr. Hammer, the
motion was unanimously approved.
Mr. Sharp moved the CRC authorize up to $450,000 for the construction on the
relocation of the Monon Trail, the relocation of the sanitary sewer and the grading site
preparation for Cinergy power line corridor. Following a second by Mr. Hammer, the
motion was unanimously approved.
Parcel #8
We will begin receiving a monthly report from AMLI about the status of the leasing and
activities on the project. AMLI has assigned a new representative to the Old Towne
project.
Parcel #12
O’Malia’s demolition is nearly complete.
No change with Payless Liquors.
Parcel #13
Mr. Sharp moved the CRC contract for purchase of the Foreman property for a price not
to exceed $230,000.00. Following a second by Mr. Hammer, the motion was
unanimously approved.
Another letter of intent has been signed for the retail/housing spaces.
Mr. Olds and Mr. Lurie are working on a sign package for the Arts District. Mr. Carter
said the bike racks being ordered have a space for signage on them.
Old Town renovation grants are available again this year. There are still some outstanding
from 2004 for which work has not been completed. We need to emphasize that work
must be completed in a certain period of time.
Survey work is being done, taking a look at the sculpture plaza and the parking lot on the
northeast corner of Main and Range Line. It was discovered that two feet of the television
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shop on Range Line is sitting on the right of way. At this time they have been told to keep
the television sets off the right of way.
Mayor Brainard suggested including a covenant in the agreements between the City and
business owners and also in the grant applications that if an Old Towne business owner
accepts City benefits of any sort, then for period of time, perhaps 100 years they agree to
pay so much money ($100-$300?) per year towards joint marketing, like a merchants
association. Mr. Haas said it could be done. Mr. Carter asked if CRC could fund
promotional activities on an ongoing basis. Mr. Haas said not very easily; because it
doesn’t fit the rules of a redevelopment commission. Mr. Carter noted it would be
important for an association to be properly structured to be viable.
Next Meeting, Tuesday, March 15, with an Executive Session at 6:30 p.m., regular
meeting at 7 p.m.
Adjournment
Mr. Sharp moved, Mr. Hammer seconded, unanimous vote for adjournment at 8:37 p.m.