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HomeMy WebLinkAboutCRC-10-05-04CRC Meeting, October 5, 2004 1 CARMEL REDEVELOPMENT COMMISSION Meeting, Tuesday, October 5, 2004 Vice President Ron Carter called the meeting to order at 7:08 p.m. Commission members present were Bob Battreall, William Hammer and Rick Sharp, constituting a quorum. Also present were Mayor Brainard, Les Olds, Karl Haas, Tim Ochs, Chris McComas, Steve Sturtz, Bruce Cordingley, Steve Brown, and David and Barbara Horner (owners of rental property at 241 West Main Street). Phyllis Morrissey and Sherry Mielke as support staff. Approval of Minutes Mr. Battreall moved for approval of the minutes of the August 17, 2004, meeting. Following a second by Mr. Hammer, the motion was approved with three in favor. Mr. Carter abstained. Mr. Battreall moved for approval of the minutes of the September 21, 2004, meeting. Following a second by Mr. Sharp, the motion was unanimously approved. Parcel #10 Update Chris McComas gave a brief history of the project by SOM, LLC. The first building, Flagstar Bank, is complete. They are committed to build the second building, retail on the ground floor with office above. He distributed a site plan. Mr. Battreall asked when the second building would be started. Mr. McComas could not give an exact date. On further questioning he said he anticipated being underway by spring. In response to a question from Mr. Olds, Mr. McComas said items which would be helpful to have in place are the completion of the sidewalk connection to the Monon, the power lines, the connection of Veterans Drive through behind the fire station, decision about where Monon Green is going to be, whether we’re going to get a signal at Monon Green and Range Line. These things would be helpful to answer our questions said Mr. McComas, “…but I’m not looking for a commitment on anything.” Mr. Olds asked Mr. McComas to draft a letter outlining their intentions and also listing all their concerns. Further discussion followed. Mr. McComas agreed to come to the November meeting with some more information and a start date decided. Mr. Ochs said they were close to a commitment from a tenant for part of the ground floor. Mr. McComas was asked to keep the CRC better informed of progress from now on and he agreed. CRC Meeting, October 5, 2004 2 Pedcor Presentation City Center Bruce Cordingley brought the Commission up to date on their City Center project. He distributed a chart demonstrating what funds would have to be distributed and the timing of such by the CRC. He also distributed a chart showing the probable time frame for the project. They hope to have the schematic phase done by the end of December and will make another presentation at that time. Mr. Evan Lurie will also be working with Pedcor. Mr. Cordingley said they have received many phone calls from prospective tenants. Some have offered to sign leases, but it is too early for that. Parcel 2 Mr. Cordingley said they anticipated started building #4 in spring of 2005 with completion by spring of 2006. A fifth building has been suggested, but additional underground parking (two levels) would be needed then under that building and building #4. Proposed site plans were distributed. Mr. Cordingley said he thought that if the CRC could allow Pedcor to use the TIF revenue from the fifth building, without putting the Commission at risk [CRC not responsible for the second level construction cost] then we could then buy a bond issue so we could justify the cost of installing the second level of parking under buildings four and five and the area between them. Mr. Sturtz showed the site plan boards and explained the designs of buildings four and five. Their current parking lots have never been more than 67% full when they’ve checked. Putting two levels under buildings four and five will increase parking by nearly sixty spaces. That parking could also be used for the Performing Arts Center events. Discussion followed. Mr. Sharp asked when the rooftop mechanicals would be disguised. Mr. Cordingley said they were working on it and had ordered sample panels which were overdue. Mr. Sharp asked Mr. Cordingley what he would need from the CRC tonight. Mr. Haas suggested the following: That the CRC pass a resolution stating that in exchange for construction of building #5 and two underground levels of parking under buildings four and five, the CRC would be willing to commit the TIF from the fifth building to support the bond to help pay for the underground parking of the two buildings. [Mr. Cordingley assured the CRC they would not be liable.] CRC Meeting, October 5, 2004 3 So moved by Mr. Battreall. Following a second by Mr. Sharp, the motion was unanimously approved. Mr. Hammer suggested better signage for the underground parking. Mr. Cordingley said a sign package is being completed. Financial Matters Cash Flow Report Ms. Mielke reported that the total resources available were $6,648,402. Invoices Mr. Battreall moved for approval of the invoices in the amount of $156,439.68 from the operating fund and $130,362.34 from the bond proceeds. Brief discussion followed about some of the invoices. Call for the question. Following a second by Mr. Sharp, the motion was unanimously approved. Other/Bond Counsel Scott Peck, from Baker & Daniels, sent a transcript of proceedings for the $9,500,000 City of Carmel Redevelopment District Tax Increment Revenue Bonds, Series 2004A (Illinois Street Project). This will be placed in the CRC files. Update on Properties Parcel #2 Pedcor is still interested in purchasing the liquor license. Kosene’s project is progressing well. They are still trying to purchase some of the property to the south. Veterans Plaza Project was scheduled to be completed October 31, but that has been delayed due to brick delivery for the restrooms. Wiring is in place so surveillance cameras could be placed on the exterior doors of the restrooms. Veterans were to supply all the light fixtures. However, they do not have the funds right now. Mr. Olds asked the Commission to authorize a change order to get the fixtures on order because the contractor needs the inserts now. The Veterans are committed to pay for them later. Mr. Olds noted they also owe CRC $18,000 for the sculpture base. Discussion followed about the Veterans’ group’s fundraising needs. They have hired a professional fundraiser. They will need to raise $700,000 - $800,000. Concern was expressed about the Commission having to pay the major part of the memorial. Mr. Olds will ask the Veterans’ representatives to be at the October 26th meeting to give an update on their project. Further discussion followed. Mayor Brainard said some corporations were interested in contributing. CRC Meeting, October 5, 2004 4 Mr. Olds said a change order will be prepared for signature to keep the project moving forward. Parcel #5 Mr. Olds said he had an ALTA survey completed and it was delivered to Pedcor. A meeting was held with Cinergy about the power poles relocation and the desire to take all the lines underground. Pedcor has agreed to provide space to run a concrete duct from one end of their project to the other end through their building. That ductwork would also be big enough to handle all communication, cable and data lines for that area. Another possibility would be the re-routing of the lines. If we have to buy new cable, there is a 12 to 15 month delivery time because the product is only made in Finland, Germany and Japan. Pedcor needs to have the lines out of the way by May or June 2005. The amphitheater is now under the design influence of Pedcor which will greatly reduce the cost. A lot of it will end up in Pedcor’s project. They will provide us all the vertical transportation, restrooms, ramping, storage, staging area, so the true amphitheater will be the stage, the grass level seating and the light bars. Three sides of the amphitheater are now hotel and garages (which will make it more affordable for the Rotary). In conjunction with Parcel #7 and Parcel #5, Mr. Olds noted the interface between the two is very important. According to the project agreement, CRC will be responsible for all the engineering, site, civil, structural, foundations, garage design, utilities which represents a total estimated cost of $957,000. Mr. Olds asked for approval from the CRC to expend $155,000 from this year’s money for engineering and architectural work, based on the chart that the developer submitted during his presentation, with the various costs broken down. Mr. Olds will ask for approval of the remainder in January from 2005 funds. Mr. Haas said if the CRC approves the project agreement, then they are also committing to do the engineering work which was outlined in the Pedcor proposal. It does not obligate the CRC to spend the money at any particular time but it does obligate the CRC to do the engineering work as necessary for the design and construction of the project. Mr. Olds noted we (he and CRC) have design oversight of all the engineering. Pedcor would have responsibility for the design including the engineering so if there is a defect or deficiency in the design or in the engineering, Pedcor is responsible. Mr. Olds said we want oversight because some of what they are working on, we may want that same engineer to do some work on Parcel #7 that we may have to have done to make sure Parcel #7 ties back to Parcel #5 again. Mr. Hammer asked Mr. Haas to insert in the project agreement that CRC will own the plans. Agreed. CRC Meeting, October 5, 2004 5 After further discussion, Mr. Sharp moved the CRC authorize an expenditure of $957,000 in engineering fees [for the Pedcor project on Parcel #5]. Seconded by Mr. Hammer. Mr. Sharp refined his motion to authorize the $957,000 in fees as outlined on the schedule presented to us by Pedcor entitled Parking and Street Engineering Fee Analysis and Completion Schedule and the subcategories that are outlined therein. Mr. Hammer seconded the refined motion and it was unanimously approved. Mr. Haas asked for a resolution approving the project agreement in substantially final form as distributed and it would include the revision suggested by Bill [Hammer]. It would include the authority of the Executive Director to approve revisions and exhibits consistent with the economics outlined and the elevations and site plan that have been presented to the Commission, provided that Pedcor will need to get Commission approval of the schematic design and the budget at that stage. So moved by Mr. Sharp. Following a second by Mr. Hammer, the motion was unanimously approved. Mr. Haas asked for a resolution approving the offering of Parcels 5b and 5c in the form distributed. So moved by Mr. Sharp. Following a second by Mr. Hammer, the motion was unanimously approved. Parcel #7 Barbizon Art Collection Mr. Haas said he and Mayor Brainard have been negotiating for the past several months with Steven and Sherry Eros, owners of a Barbizon Art Collection, to bring the collection to the City. Mr. Haas said they were close to an agreement. He said “as a gesture of good faith”, the Eros have requested the expenditure of up to $15,000 for expenses in accordance with a budget which Mr. Olds would approve. The funds would primarily be for legal fees for services of their attorney. The collection would be housed at an interim location in the City until a museum could be built for it. The City would pay rent for the collection until such time as it could purchase it, after a fundraising campaign. The rental fees would go toward the purchase price. Estimated value of the collection is $6,000,000- $10,000,000. It has not been currently appraised. The Eros have volunteered to act as trustees of the collection and the rental fees would include their services. A local art foundation would be formed to be the recipient of the art. This would be the entity that actually does the fundraising, using a professional fundraiser. In response to a question about insuring the art, Mr. Haas said the foundation would be set up which would immediately begin fundraising. The first purpose of the fundraising would be to defray the costs of housing the art on a temporary basis. Under the agreement which is being negotiated, the CRC would agree, in the event of any shortfall for the first three years, to provide a grant to the foundation to make up that shortfall. So the foundation would be responsible for insuring the art. Mayor Brainard said this is going to draw a lot of attention to the City. He informed the group about the Barbizon School of Art. CRC Meeting, October 5, 2004 6 Initially any agreement will be between the Eros’ foundation and the CRC, until a museum foundation is formed here. When the museum foundation is formed then the CRC would step out of the first agreement and have an agreement with the Carmel museum foundation to fund grants and cover shortfalls for three years. In response to a question, Mr. Haas agreed the CRC could be responsible for up to $2,000,000 but he said it could be a lot less than that. Mr. Haas said if the Eros and they reach an agreement, then the $15,000 comes out of the first payment to the Eros. Mr. Hammer asked who would decide how the art was displayed. He also asked about claims from World War II and how that would be addressed if the issue came up. One of the issues will be that they are required to establish ownership of the art. Mr. Battreall moved the CRC pay $15,000 for the Eros’ expenses. Following a second by Mr. Sharp, the motion was unanimously approved. Parcel #8 No change from last month; still waiting for the contractor close-out information. Parcel #9 Chris Reid’s office building moving along. Parcel #10 Mr. McComas appeared at the meeting earlier as reported. Mr. Battreall asked what the cut-off date was for the remaining construction. After discussion it was decided that another letter will be sent to SOM if no definite answer is received from Mr. McComas at the November meeting. Parcel #11 No activity at this time. Parcel #12 O’Malia Property Mr. Olds asked the low bidder, Casey-Bertram, in for a meeting. He stands behind his bid for the demolition of the O’Malia’s and Goodyear buildings. Based on this, Mr. Olds recommended the CRC award him the contract in the amount of $64,699.00 which includes the performance bond, noting the environmental issues were stated in the bid packet. So moved by Mr. Sharp. Following a second by Mr. Hammer, the motion was unanimously approved. Payless Liquors Property Mr. Haas requested a resolution to approve the commencement of condemnation action as contemplated by the prior resolution to acquire the Payless property (Parcel 12b) by CRC Meeting, October 5, 2004 7 imminent domain. So moved by Mr. Battreall. Following a second by Mr. Sharp, the motion was unanimously approved. Amoco Property Mr. Haas asked for a resolution to approve the commencement of condemnation action as contemplated by the prior resolution to acquire the Amoco property (Parcel 12c). So moved by Mr. Battreall. Seconded by Mr. Hammer. Mr. Sharp asked for an amendment to the motion to cap it at $220,000 minus the cleanup costs. Seconded by Mr. Hammer. Unanimous approval to add the amendment to the motion. The motion itself was then unanimously approved. Parcel #13 Mr. Olds stated in the packets there was a draft of the proposed offering to the development community for the property. The package included conceptual ideas for live/work units with a minimum of three-story buildings on Range Line and on Main Street. The minimum price for the land is $750,000. The package also states the CRC will build the infrastructure, streetscape on the public right of way of the property on Range Line, Main Street and the two dedicated alley ways that run north/south and east/west. Mr. Hammer moved the CRC approve the offering materials for Parcel #13. Following a second by Mr. Sharp, the motion was unanimously approved. Mr. Olds said we would normally be prepared for demolition of the property once ownership was established. However, the florist has asked to stay through the end of the year. CRC agreed, provided the florist keeps their insurance in place. Mr. Haas will prepare a document for them to sign, acknowledging that if something breaks they would be responsible for fixing it. Demolition could start in January. Mr. and Mrs. Horner, co-owners of property 241 West Main, asked what was proposed for that area. Mayor Brainard explained about the townhomes proposed for the area to the north and the proposed roundabout for 4th Avenue and Main. Old Business Arts District Gateways Mr. Olds said gateway surveys are to be completed tomorrow. Performing Arts Center Mayor Brainard recently participated in a panel discussion for the magazine, Bond Buyer, in New York, about performing arts centers. Cost estimates have been received from the Donnell Company. We are getting very close to a report from Mr. Brans, hopefully in the next two weeks. Mr. Haas will bring a resolution to the next meeting which will outline proposed efforts by the Commission and the Arts District. CRC Meeting, October 5, 2004 8 Old Town Grants Mr. Olds recommended the following grants: $5000 Tom McHaffey, 14-20 West Main, The Breakfast Club $1500 Greg Mink, 38 West Main $2500 Bob Weese, Integrity Auto, 40 S Range Line Rd $1000 Bart Poer, 110 N Range Line Rd This expends the remaining $10,000 of the $25,000 for grants. Brief discussion about Greg Mink’s building. It was recommended not to give him any grant money until he agrees to paint his building. Two were denied because their projects don’t meet the criteria: Carmel Florist and Advertising Agency/Aquarium on North Range Line. The CRC will likely continue the grant program in 2005. The program could be promoted even more next year. Suggestion was made that Mr. Olds contact those who were denied with suggestions more in keeping with the design criteria. New Business None Next Meeting will be Tuesday, October 26, 2004, 6:30 Executive Session, 7 p.m. regular meeting. Adjournment Motion made, seconded, and approved for adjournment at 9:40 p.m.