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HomeMy WebLinkAboutCRC Resolution No. 2025-02 (Gramercy East Phases 1-3 Declaratory) RESOLUTION NO. 2025-02 RESOLUTION OF THE CITY OF CARMEL REDEVELOPMENT COMMISSION AMENDING THE DECLARATORY RESOLUTION AND THE ECONOMIC DEVELOPMENT PLAN FOR THE GRAMERCY ECONOMIC DEVELOPMENT AREA (Gramercy East – Phases 1–3) WHEREAS, the City of Carmel Redevelopment Commission (the “Commission”) pursuant to IC 36-7-14 (the “Act”) serves as the governing body of the City of Carmel Redevelopment District (the “District”); and WHEREAS, the Commission has previously adopted and confirmed resolutions (collectively, the “Declaratory Resolution”) which established an economic development area known as the “Gramercy Economic Development Area” (the “Area”), designated a portion of the Area as an allocation area known as the “Gramercy Allocation Area” pursuant to Section 39 of the Act (the “Original Allocation Area”), and approved and amended a development plan for the Area (the “Plan”) pursuant to the Act; and WHEREAS, the Commission now desires to amend the Declaratory Resolution and Plan in order to: (i) terminate the allocation provision under the Declaratory Resolution with respect to all parcels in the Original Allocation Area; (ii) designate the territory identified on Exhibit A hereto as a separate allocation area within the Area, pursuant to Section 39 of the Act, to be known as the “Gramercy East – Phase 1 Allocation Area;” (iii) designate the territory identified on Exhibit B hereto as a separate allocation area within the Area, pursuant to Section 39 of the Act, to be known as the “Gramercy East – Phase 2 Allocation Area;” (iv) designate the territory identified on Exhibit C hereto as a separate allocation area within the Area, pursuant to Section 39 of the Act, to be known as the “Gramercy East – Phase 3 Allocation Area;” and (v) adopt a supplement to the Plan attached hereto as Exhibit D (the “2025 Plan Supplement” and, clauses (i) through and including (vi), collectively, the “2025 Amendments”); and WHEREAS, the 2025 Amendments and supporting data were reviewed and considered at this meeting; and WHEREAS, Section 39 of the Act permits the creation of “allocation areas” to provide for the allocation and distribution of property taxes for the purposes and in the manner provided in said section; and WHEREAS, Sections 41 and 43 of the Act permit the creation of “economic development areas” and provide that all of the rights, powers, privileges and immunities that may be exercised by this Commission in a redevelopment area or urban renewal area may be exercised in an economic development area, subject to the conditions set forth in the Act; and WHEREAS, this Commission deems it advisable to apply the provisions of said Sections 15-17, 39, 41 and 43 of the Act to the 2025 Amendments; and 2 WHEREAS, the Commission now desires to approve the 2025 Amendments. NOW, THEREFORE, BE IT RESOLVED by the City of City of Carmel Redevelopment Commission, governing body of the City of Carmel Redevelopment District, as follows: 1. The Commission hereby finds that the 2025 Amendments promote significant opportunities for the gainful employment of the citizens of the City of Carmel, Indiana (the “City”), the attraction of major new business enterprises to the City, the retention and expansion of significant business enterprises existing in the boundaries of the City, and meet other purposes of Sections 2.5, 41 and 43 of the Act, including without limitation benefiting public health, safety and welfare, increasing the economic well-being of the City and the State of Indiana (the “State”), and serving to protect and increase property values in the City and the State. 2. The Commission hereby finds that the Plan, as amended by the 2025 Plan Supplement, cannot be achieved by regulatory processes or by the ordinary operation of private enterprise without resort to the powers allowed under Sections 2.5, 41 and 43 of the Act because of the lack of local public improvements, the existence of improvements or conditions that lower the value of the land below that of nearby land, multiple ownership of land and other similar conditions. 3. The public health and welfare will be benefited by accomplishment of the 2025 Amendments. 4. It will be of public utility and benefit to amend the Declaratory Resolution and the Plan for the Area as provided in the 2025 Amendments and to continue to develop the Area, as amended the 2025 Amendments, under the Act. 5. The accomplishment of the Plan for the Area, as amended by the 2025 Amendments, will be a public utility and benefit as measured by the attraction or retention of permanent jobs, an increase in the property tax base, improved diversity of the economic base and other similar public benefits. 6. The Declaratory Resolution and the Plan, as amended by this Resolution and the 2025 Plan Supplement, conform to the comprehensive plan of development for the City. 7. The 2025 Amendments are reasonable and appropriate when considered in relation to the Declaratory Resolution and Plan and the purposes of the Act. 8. The findings and determinations set forth in the Declaratory Resolution and the Plan are hereby reaffirmed. 9. In support of the findings and determinations set forth in Sections 1 through 7 above, the Commission hereby adopts the specific findings set forth in the Plan, as amended by the 2025 Plan Supplement. 10. The Commission does not at this time propose to acquire any specific parcel of land or interests in land within the boundaries of the Area, as amended by the 2025 Amendments. If at any time the Commission proposes to acquire specific parcels of land, the required procedures for 3 amending the Plan, as amended by the 2025 Plan Supplement, under the Act will be followed, including notice by publication to affected property owners and a public hearing. 11. The Commission finds that no residents of the Area will be displaced by any project resulting from the Plan, as amended by the 2025 Plan Supplement, and therefore finds that it does not need to give consideration to transitional and permanent provision for adequate housing for the residents. 12. The 2025 Amendments are hereby in all respects approved. 13. The area described in Exhibit A is hereby designated as a separate “allocation area” pursuant to Section 39 of the Act to be known as the “Gramercy East – Phase 1 Allocation Area,” for purposes of the allocation and distribution of property taxes for the purposes and in the manner provided by said Section. Any taxes imposed under Ind. Code 6-1.1 on real property subsequently levied by or for the benefit of any public body entitled to a distribution of property taxes on taxable property in said allocation area shall be allocated and distributed as follows: Except as otherwise provided in said Section 39, the proceeds of taxes attributable to the lesser of the assessed value of the property for the assessment date with respect to which the allocation and distribution is made, or the base assessed value, shall be allocated to and when collected paid into the funds of the respective taxing units. Except as otherwise provided in said Section 39, property tax proceeds in excess of those described in the previous sentence shall be allocated to the redevelopment district and when collected paid into an allocation fund for the Gramercy East – Phase 1 Allocation Area hereby designated as the “Gramercy East – Phase 1 Allocation Fund” and may be used by the redevelopment district to do one or more of the things specified in Section 39(b)(4) of the Act, as the same may be amended from time to time. Said allocation fund may not be used for operating expenses of the Commission, except as otherwise permitted by the Act. Except as otherwise provided in the Act, before June 15 of each year, the Commission shall take the actions set forth in Section 39(b)(5) of the Act. 14. The area described in Exhibit B is hereby designated as a separate “allocation area” pursuant to Section 39 of the Act to be known as the “Gramercy East – Phase 2 Allocation Area,” for purposes of the allocation and distribution of property taxes for the purposes and in the manner provided by said Section. Any taxes imposed under Ind. Code 6-1.1 on real property subsequently levied by or for the benefit of any public body entitled to a distribution of property taxes on taxable property in said allocation area shall be allocated and distributed as follows: Except as otherwise provided in said Section 39, the proceeds of taxes attributable to the lesser of the assessed value of the property for the assessment date with respect to which the allocation and distribution is made, or the base assessed value, shall be allocated to and when collected paid into the funds of the respective taxing units. Except as otherwise provided in said Section 39, property tax proceeds in excess of those described in the previous sentence shall be allocated to the redevelopment district and when collected paid into an allocation fund for the Gramercy East – Phase 2 Allocation Area hereby designated as the “Gramercy East 4 – Phase 2 Allocation Fund” and may be used by the redevelopment district to do one or more of the things specified in Section 39(b)(4) of the Act, as the same may be amended from time to time. Said allocation fund may not be used for operating expenses of the Commission, except as otherwise permitted by the Act. Except as otherwise provided in the Act, before June 15 of each year, the Commission shall take the actions set forth in Section 39(b)(5) of the Act. 15. The area described in Exhibit C is hereby designated as a separate “allocation area” pursuant to Section 39 of the Act to be known as the “Gramercy East – Phase 3 Allocation Area,” for purposes of the allocation and distribution of property taxes for the purposes and in the manner provided by said Section. Any taxes imposed under Ind. Code 6-1.1 on real property subsequently levied by or for the benefit of any public body entitled to a distribution of property taxes on taxable property in said allocation area shall be allocated and distributed as follows: Except as otherwise provided in said Section 39, the proceeds of taxes attributable to the lesser of the assessed value of the property for the assessment date with respect to which the allocation and distribution is made, or the base assessed value, shall be allocated to and when collected paid into the funds of the respective taxing units. Except as otherwise provided in said Section 39, property tax proceeds in excess of those described in the previous sentence shall be allocated to the redevelopment district and when collected paid into an allocation fund for the Gramercy East – Phase 3 Allocation Area hereby designated as the “Gramercy East – Phase 3 Allocation Fund” and may be used by the redevelopment district to do one or more of the things specified in Section 39(b)(4) of the Act, as the same may be amended from time to time. Said allocation fund may not be used for operating expenses of the Commission, except as otherwise permitted by the Act. Except as otherwise provided in the Act, before June 15 of each year, the Commission shall take the actions set forth in Section 39(b)(5) of the Act. 16. The foregoing allocation provisions shall apply to the Gramercy East – Phase 1 Allocation Area, the Gramercy East – Phase 2 Allocation Area, and the Gramercy East – Phase 3 Allocation Area, respectively (collectively, the “New Gramercy Allocation Areas”). The Commission hereby finds that the adoption of these allocation provisions will result in new property taxes in each of the New Gramercy Allocation Areas, respectively, that would not have been generated but for the adoption of the allocation provisions, as specifically evidenced by the findings set forth in Exhibit D. The base assessment date for each of the New Gramercy Allocation Areas is January 1, 2025. 17. The provisions of this Resolution shall be subject in all respects to the Act and any amendments thereto, and the allocation provision herein relating to each of the respective New Gramercy Allocation Areas shall expire on the date that is twenty-five (25) years after the date on which the first obligation is incurred to pay principal and interest on bonds or lease rentals on leases payable from tax increment revenues derived from each of the respective New Gramercy Allocation Areas. For the avoidance of doubt, it is to be understood that the twenty-five (25) year expiration date shall be applied independently and separately for each of the New Gramercy Allocation Areas. 5 18. This Resolution, together with any supporting data, shall be submitted to the Carmel Plan Commission (the “Plan Commission”) and the Common Council of the City (the “Council”) as provided in the Act, and if approved by the Plan Commission and the Council, shall be submitted to a public hearing and remonstrance as provided by the Act, after public notice as required by the Act. The officers of the Commission are hereby authorized to make all filings necessary or desirable to carry out the purposes and intent of this Resolution. 19. The provisions of this Resolution shall be subject in all respects to the Act and any amendments thereto. 20. This resolution shall take effect immediately upon its adoption by the Commission. Adopted the 19th day of March, 2025. CITY OF CARMEL REDEVELOPMENT COMMISSION ____________________________________ President ____________________________________ Vice President ____________________________________ Secretary ____________________________________ Member ____________________________________ Member Bill Brooks (Mar 20, 2025 10:04 EDT) ilr loks (Mla 20, 2025 10:10 4E DT ilrok s ( BMa 20, 51l0 :4 ::E DDT) i  ilroks( s (Mlrkka2k 0,ro 51: 515 4ED1)  Charles e schalliol ilrrlok sokk(M a2oM 0,5 010: ,4,, DT) A-1 EXHIBIT A Gramercy East – Phase 1 Allocation Area The Gramercy East – Phase 1 Allocation Area consists of the territory in the light yellow- shaded area shown in the maps below. The parcel identification number or numbers for the Gramercy East – Phase 1 Allocation Area shall be determined and provided to the Hamilton County Auditor’s within thirty (30) days after the Commission takes final action on this resolution. B-1 EXHIBIT B Gramercy East – Phase 2 Allocation Area The Gramercy East – Phase 2 Allocation Area consists of the territory in the light blue- shaded area shown in the maps below. The parcel identification number or numbers for the Gramercy East – Phase 2 Allocation Area shall be determined and provided to the Hamilton County Auditor’s within thirty (30) days after the Commission takes final action on this resolution. C-1 EXHIBIT C Gramercy East – Phase 3 Allocation Area The Gramercy East – Phase 3 Allocation Area consists of the territory in the light red- shaded area shown in the maps below. The parcel identification number or numbers for the Gramercy East – Phase 3 Allocation Area shall be determined and provided to the Hamilton County Auditor’s within thirty (30) days after the Commission takes final action on this resolution. DMS 46681361.1 D-1 EXHIBIT D 2025 Plan Supplement The existing Plan for the Area is hereby supplemented by adding the following project to the Plan: Gramercy East/Marketplace Development and Projects Buckingham Properties, LLC or an affiliate thereof (the “Gramercy Developer”) is proposing to undertake a multi-phase development generally located north of Carmel Drive, south of 126th Street, west of Keystone Parkway and along Kinzer Avenue. Such mixed-use development will occur in phases and will include approximately (i) 342 new garden-style apartments along Kinzer Avenue, (ii) 64 renovated Gramercy apartments, (iii) 167 new for-sale town houses and 24 for-sale condominiums, (iv) a new 2-acre public plaza, (v) 71 surface parking spaces, (vi) 8,000 square feet of retail space (collectively, the “Gramercy East Development”). In addition to the Gramercy East Development, the Gramercy Developer is also proposing to undertake a multi-phase development immediately south of the Gramercy East Development, which will occur in phases and will include approximately (i) 260 apartments, (ii) 105 additional age-restricted apartments, (iii) 40 for-sale town houses, (iv) 20,000 square feet of retail space, (v) a 516-car public parking garage, and (vi) a public plaza about the size of 14,000-square-foot Midtown Plaza (collectively, the “Carmel Marketplace Development” and, together with the Gramercy East Development, the “Gramercy East/Marketplace Development”). The current estimated total development cost of the Gramercy East/Market Place Development is $300,000,000. However, due to the lack of adequate local public improvements serving or benefitting the site of the Gramercy East/Market Place Development, the Commission will undertake all or any portion of the engineering, design, acquisition and/or construction of infrastructure improvements located in or directly benefiting or serving the New Gramercy Allocation Areas (as defined below), including, but not limited to, land acquisition, storm water improvements, utilities relocation, streetscape and plaza improvements, general site improvements, structured parking and/or road, trail and sidewalk or other local public improvements (collectively the “Gramercy East/Marketplace Projects”). The Gramercy East/Marketplace Projects are estimated to cost the Commission approximately $55,000,000; however, such estimated costs will be refined as specific details and timing of the Gramercy East/Marketplace Projects are determined. The Gramercy East/Marketplace Projects will support the Gramercy East/Marketplace Development. To assist and support the necessary local public improvements required for the Gramercy East/Market Place Development, the Commission plans to create the Gramercy East – Phase 1 Allocation Area, the Gramercy East – Phase 2 Allocation Area, and the Gramercy East – Phase 3 Allocation Area, Gramercy East – Phase 4 Allocation Area, Gramercy East – Phase 5 Allocation Area, the Gramercy East – Phase 6 Allocation Area, and the Gramercy East – Phase 7 Allocation Area, respectively (collectively, the “New Gramercy Allocation Areas”). The Commission anticipates capturing tax increment revenues from the respective New Gramercy Allocation Areas, and applying such tax increment revenues, either directly or through bonding, to pay or reimburse DMS 46681361.1 D-2 costs of the Gramercy East/Marketplace Projects. The Commission envisions the possibility of assisting the City in issuing one or more series of bonds payable from tax increment revenues derived from one or more of the New Gramercy Allocation Areas and purchased by the Gramercy Developer (or an affiliate thereof) or a third-party purchaser, including bonds issued by the City upon recommendation by the Carmel Economic Development Commission (pursuant to Indiana Code 36-7-11.9 and Indiana Code 36-7-12) to assist in financing the Gramercy East/Marketplace Projects. Findings of Fact Based on representations of the Gramercy Developer, the Commission has determined that the full development of the New Gramercy Allocation Areas will not proceed along the timeframe or scope as planned without the contribution of tax increment revenues to be derived from the New Gramercy Allocation Areas to the Gramercy East/Marketplace Projects due to the lack of adequate infrastructure and other local public improvements in or serving the New Gramercy Allocation Areas. The establishment of the New Gramercy Allocation Areas is planned as part of the Commission’s strategy to contribute tax increment revenues derived from New Gramercy Allocation Areas to the support the new Gramercy East/Marketplace Development, and is a necessary component to allow the Commission to be reimbursed for a portion of the costs of the Gramercy East/Marketplace Projects, respectively. The private projects, which comprise the Gramercy East/Marketplace Development, will not proceed along the timeframe or anticipated scope as planned without this mechanism in place. The Commission does not have any other method of financing the costs of the Gramercy East/Marketplace Projects, absent issuing bonds payable from a special benefits tax upon all taxable property within the District, without the prospect of replacing the source with tax increment revenues from developments within the New Gramercy Allocation Areas. The Commission hereby finds that designating each of the New Gramercy Allocation Areas as an allocation area will allow for the capture of additional tax increment revenues that will be available to the Commission to finance infrastructure and other improvements (including the Gramercy East/Marketplace Projects) located in or serving or benefitting the New Gramercy Allocation Areas, thereby facilitating new investment in the Area that would otherwise not occur.