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HomeMy WebLinkAbout04.21.25 CC Meeting Minutes 1 City of Carmel CARMEL COMMON COUNCIL MEETING MINUTES MONDAY, APRIL 21, 2025 – 6:00 P.M. COUNCIL CHAMBERS/CITY HALL/ONE CIVIC SQUARE MEETING CALLED TO ORDER Council President Adam Aasen, Council Members: Shannon Minnaar, Ryan Locke, Teresa Ayers, Matthew Snyder, Rich Taylor, Anita Joshi, and Deputy Clerk Jessica Komp were present. Councilor Jeff Worrell was not in attendance and Councilor Anthony Green attended virtually. Council President Aasen called the meeting to order at 6:00 p.m. AGENDA APPROVAL The agenda was approved 8-0. INVOCATION Rabbi Hal Schevitz of Congregation Beth-El Zedeck delivered the invocation. RECOGNITION OF CITY EMPLOYEES AND OUTSTANDING CITIZENS There were none. RECOGNITION OF PERSONS WHO WISH TO ADDRESS THE COUNCIL Jack Russell, President and CEO of OneZone Chamber of Commerce, spoke to Council in support of Ordinance D-2770-25, which will put restrictions on the number of rental properties that can be purchased in the City of Carmel. Recently, OneZone voiced its support of the City of Fishers’ proposed rental ordinance, which included a registration and permitting program for long-term single family rentals and a 10% cap on single family rentals per subdivision. OneZone viewed this ordinance as a proactive and thoughtful step forward, preserving neighborhood integrity, maintaining housing quality, and supporting long-term home ownership opportunities. OneZone appreciates that Carmel is taking a thoughtful deliberate approach to evaluating a similar ordinance. OneZone will be providing feedback to this ordinance once it has gone through the committee process. Mr. Russell thanked the Council for its commitment to policies that ensure Carmel remains a thriving, inclusive and forward-thinking community. Ed Shaughnessy also spoke in favor of the rental caps proposed by Ordinance D-2770-25. As someone who has owned homes in Carmel, been a landlord, and rented himself, Mr. Shaughnessy has seen all sides of this issue. He believes there is a problem with investor-backed buyers overwhelming neighborhoods. Some of the older neighborhoods don’t have HOA’s to help mitigate this problem. Mr. Shaughnessy stated that in his own neighborhood, some of the homes have been purchased by the larger national firms. These homes often are not kept up, and the companies also do not treat the tenants fairly. These companies are also competing Docusign Envelope ID: 73557F05-AF51-4969-BE57-5B081EA56169 2 against first-time home buyers, outbidding them. He believes that this ordinance will go a long way to help those who have not been able to purchase a home to enjoy the benefits of home ownership. Jim Thomas spoke in favor of Ordinance D-2768-25, which will prohibit parking on either side of 1st Avenue S.E. from Main Street south to E. Walnut Street, and on either side of Supply Street, unless the vehicle has a valid resident vehicle sticker, a temporary guest permit, or a merchant vehicle sticker. As a resident of this area, Mr. Thomas spoke on behalf of himself and his neighbors, who have had a very difficult time finding parking around their homes, especially since the 1933 Lounge opened two weeks ago. Scott McLaughlin spoke in opposition to the proposed Autumn Greenway, which would go through his neighborhood. He stated that he has looked into this matter, and in his opinion, the cost benefit is not there. This new path would reduce the distance from point A to point B by only 3/10 of a mile, by cutting through the neighborhood instead of going around it, to connect to the Monon Trail. Further, trees and wetlands would have to be removed, displacing wildlife and reducing green areas. COUNCIL AND MAYORAL COMMENTS/OBSERVATIONS Councilor Locke asked for an update from city staff on a resolution that was passed one year ago, approving the seeking of outside financing for what was known at that time as “The Union”. The Union was presented as a food hall that also encompassed office space and reception space, along with other amenities. This was to be built as part of the Monon Square South redevelopment. Nick Weber, Director of Economic Development, spoke to Council about this project. Mr. Weber stated that the food hall concept is a very complicated one, in terms of trying to make the economics of it work. We did go out and look for other funding, the two primary sources being I.E.D.C.’s READI Fund. We submitted a joint application for both the food hall and the Monon Trail just in front of it. Those dollars are part of READI Round II, and those dollars are not yet being pushed out to the communities until a threshold on READI Round I funds are available. We were awarded funds, but none have been received yet by us or any other applicants. We also sought funding through the Hamilton County Tourism’s BEST Program. We did not quite qualify under the structure of that program. We do have the option of augmenting our project and then reapplying or finding a different project to apply for those funds. Councilor Snyder stated that we probably didn’t qualify for the tourism dollars because this was a joint project with a commercial developer. If we were to develop an iconic civic space, that was a regional destination, we would qualify for those funds. Councilor Snyder had offered the concept of building a proper office facility for our award-winning Parks Department, as they currently operate out of a house. The Parks Department could then operate the food hall. Michael Klitzing, Director of CCPR, has consulted with food hall directors around the country, and he believes that they can achieve a 100% cost recovery model, just as they have done with the Monon Center. Councilor Snyder asked why there was pause in pursuing this version of the project. Nick Weber stated that in terms of the BEST Funds, the formula for granting those funds includes the generation of overnight stays, as in would people come into Carmel specifically for this food hall and then stay the night? Another factor is that we don’t control the entirety of the site, so parking will be a challenge. As far as us landing on a project for a food hall with all of those other pieces still in question, it just hasn’t gelled yet. Councilor Snyder responded that he believes the concept involving CCPR is the answer. He believes we need a parking garage as well. Councilor Minnaar stated that she would not get behind any version of this project that includes apartments. Councilor Ayers asked about hotel capacity and whether we are building hotels that we will not be able to fill. Mr. Weber stated that our hotel market remains very strong. Because we have such a strong business community, Carmel has a seven day hotel utilization, not just primarily on the weekends. Councilor Joshi stated that this food hall project was also supposed to incorporate much needed office space. Additionally, although the food hall might not be a reason on its own for people to come to Carmel, it certainly would fill a need in terms of quick dining near the Palladium and Docusign Envelope ID: 73557F05-AF51-4969-BE57-5B081EA56169 3 the Tarkington for those coming to Carmel to see a performance. Mr. Weber agreed that we do have a need for that type of dining in that area, and we are still looking into concepts to make that happen, whether it be multiple vendors, or one vendor offering different options coming out of one central kitchen. Councilor Locke stated that if we need to pivot to other opportunities for those two specific funding sources, he would like to know that. Mr. Weber stated that the BEST money is still there, and with the right project, he does believe we can receive that funding. We also continue to hope that the state will release those READI dollars to us, and if they do, we think we will be able to use it towards some of the work that we’ve done on the Monon in that area. Councilor Snyder reiterated his desire to keep pushing for this food hall concept, with the Parks Department housed in the building and running it. Council President Aasen stated that the Council was asked to weigh in on this concept, the Council voted in favor of pursuing this project, and then the communication died on any progress that was being made. He stated that constituents are excited about the food hall, and have been asking him for an update on the project. The lack of communication has been frustrating. Council President Aasen also congratulated fellow Councilor, Dr. Anita Joshi, for receiving the 2025 Interfaith Ambassador of the Year award from the Center for Interfaith Cooperation. Councilor Minnaar shared a reminder that the Mayor’s Advisory Commission on Housing will be meeting this Thursday, April 24th, at 9:30 a.m., here in Council Chambers. CONSENT AGENDA Councilor Minnaar moved to approve the consent agenda. Councilor Taylor seconded. There was no discussion. Council President Aasen called for the vote. The consent agenda was approved 8-0. a. Approval of Minutes 1. March 17, 2025 Regular Meeting 2. April 3, 2025 Special Meeting – Claims 3. April 3, 2025 Special Emergency Meeting 4. April 7, 2025 Special Emergency Meeting b. Claims 1. Payroll – $4,225,024.61 2. General Claims – $1,727,617.07 3. Wire Transfer – $4,542,758.00 ACTION ON MAYORAL VETOES There were none. COMMITTEE REPORTS Councilor Taylor reported that the Finance, Utilities and Rules Committee will be meeting on Tuesday, May 13th at 6:00 p.m. in Council Chambers. We will be reviewing Chief Thacker’s presentation on the Ambulance Capital Fund ordinance. Councilor Snyder reported that the Land Use and Special Studies Committee will meet this Wednesday, April 23rd, at 5:30 p.m., at the Carmel Library. We hope to finalize the Group Homes ordinance and send that back to Council, as well as a comprehensive omnibus of the committee’s work for the last year and a half on the UDO. Docusign Envelope ID: 73557F05-AF51-4969-BE57-5B081EA56169 4 OTHER REPORTS – (at the first meeting of the month specified below): Henry Mestetsky, Carmel Redevelopment Director, gave the monthly report to Council. City Center continues to get built out, including the Windsor’s office space along the Monon. The Seward Johnson installment entitled “My Sixteen-Year Old Jazz Dreams” which sits just west of the Palladium is now finalized, including informational plaques for each of the six musicians. There is also a gramophone which will play music by each of the musicians. Monon Square North is under construction. 1st on Main continues with its condo build-out. Magnolia is also continuing its construction. Construction has now begun on Civic Square Condos. The Republic headquarters at Hamilton Crossing continues to get built out. Retail at Proscenium II is filling up. 1933 Lounge is now open on the first floor of 111 S. Rangeline. A lot of progress is being made at Icon on Main. That public plaza will open in early 2027. Lots of progress is going on at the AT&T Site, which is the Merchant’s Bank expansion. Finally, Ardalan Plaza is moving forward. Mr. Mestetsky also called attention to the CRC’s website, choosecarmelin.com, which provides information on CRC projects, both past and present. He specifically noted the recent addition of an interactive map, which allows the viewer to understand where projects are relative to other locations in the city. This new website feature was made possible by GIS specialist, Shane Burnham, of the City’s Engineering Department, with the help of Kelly Douglas and the Marketing and Communications Department. Councilor Taylor asked Director Mestetsky to confirm that the CRC contributed 2 parcels to the Ardalan and that there would not be a TIF bond ordinance brought to Council for the project, that there’s no other source of financing, and that we would be receiving 100% of the increment back. Mr. Mestetsky confirmed that all of that is correct, and in addition to that, due to the contribution of the parcels, the developer is building out the sidewalk grander than they would have otherwise. The developer is also dedicating the alleyway behind the building back to the city, which is about $200,000.00 of land to be used for a future alley. Councilor Locke asked for an update on the sidewalks around Proscenium I becoming ADA compliant, which was discussed a year ago, and also for an update on the Tavern on the Green. Mr. Mestetsky replied that the sidewalks are being addressed by the developer, Tony Birkla, working along with our code enforcement team. The Tavern on the Green was supposed to be a restaurant, but with Wahlburgers closing right there, it gave the developers some pause as to rethink the appropriate timing to bring that. Councilor Minnaar asked about the leasing of the retail spaces at the Muse. Director Mestetsky stated that there will be a nail salon, a Thai restaurant, a sushi place, and a fancy spa. At this point, most of the retail space has been leased. Councilor Snyder asked for an update on the Autumn Trail, which links to the Veterans’ Trail. Jeremy Kashman, Chief Infrastructure Engineer, responded that he just met with Edward Rose development last week, and it looks like we’re going to be able to get the greenway to come along the west side of the property and then point back towards Old Meridian, so as you’re coming north into the site, it will also create a connection over so that you’ll be able to follow their sidewalk into the park. We will have some options in the future so that the Veterans’ trail can also be routed past the American Legion as well. Councilor Snyder also reiterated his frustration at the lane next to Proscenium II being closed for almost two years, and then only that lane was replaced. He shared that construction standards for other municipalities state that whenever a development impacts a road, the road shall be replaced curb to curb. He stated that he would still like to continue the conversation about making that a requirement here in Carmel. He also posed the question, at what point in the process do we tell developers that they may have the opportunity for valet parking? Director Kashman responded that the conversation about road replacement standards will be happening soon. He also responded that the conversation about valet parking does not come up often, but it has become a bit more frequent. Councilor Snyder expressed that there is frustration with valet parking causing traffic issues. Councilor Snyder then asked Director Mestetsky how citizens would know there is a public park within Proscenium I? Where is that on the CRC’s website? Or should that be on CCPR’s website? Mr. Mestetsky stated that he would like to work with Parks’ Director Michael Klitzing so that they could put something together that would share that information. Councilor Locke asked if there was a way Docusign Envelope ID: 73557F05-AF51-4969-BE57-5B081EA56169 5 for the Council to get updated on upcoming projects, and on what is in the pipeline. Director Mestetsky replied that the administration has made a number of statements on its focus being dual – continuing to build out the central core, as well as the U.S. 31 corridor, which is the future of where a lot of redevelopment is going to take place. He stated that he will try to get back to Council regarding what kind of specifics the administration wants to present going forward. He believes we have a fairly robust strategy about continuing the progress we’ve had so far. Councilor Snyder asked about a potential development on the southwest corner of 116th Street and U.S. 31 which might include a hotel, event space, shopping, and high-end restaurants. Director Mestetsky replied that he will defer to the administration on the timing to share that information, but those talks do continue. Council President Aasen shared that he spoke with the Mayor about those specific projects today, and the developer is still working through those plans, so there isn’t anything to present at this time. He also told Director Mestetsky that he does a great job with the monthly updates and handles the Council’s tough questions well. He also echoed Councilor Snyder’s sentiments regarding valet parking, specifically at the newly opened 1933 Lounge. Council President Aasen stated that we should be thoughtful in where we allow valet parking, as it may not always be warranted, especially as it pertains to holding up traffic. Director Mestetsky responded that these decisions are always made with a great deal of planning between multiple city departments. He also stated that the Redevelopment Authority has not met so there is no update from that group at this time. Mark Dollase gave the Carmel Historic Preservation Commission’s quarterly report. The first update was on the Wise House at 10750 Hazel Dell Parkway on Martin Marietta’s property. An agreement is being negotiated between the Parks department, Mr. Crowley, the neighbor to the north, and Martin Marietta that will see the house be moved onto Mr. Crowley’s property. The house will be restored and be landmarked by the commission and brought to the Council for approval. Next, the commission did approve preservation plans for a property on Cherry Tree Road in January, and for the Wilkinson House on Smoky Row in March. Hopefully within the next month we’ll be able to bring those to Council together, rather than one at a time. We did open our spring round for façade grants for property owners. We send letters out to all those homes which are eligible, as well as holding an informational meeting. In this past quarter we also had two new commissioners approved, so we held a training session in February. Councilor Joshi asked what the response typically is to the grant program. Mr. Dollase shared that there are usually between 7 and 15 applicants, and about 550 letters are sent out for each of the spring and late summer rounds. Councilor Snyder commended Mr. Crowley on being such a good steward to the community, by accepting the Wise House onto his property, which will be an expense to him. Mr. Dollase and Council President Aasen then discussed an interest in seeing historical protections put in place along North Rangeline Road, where many older homes are housing businesses. Zac Jackson, CFO and Controller, then gave the Finance Department’s first quarterly budget update. He introduced Kirsten Haney, the city’s Assistant Director for Budget Management. Mr. Jackson made note of some changes in our reporting. The monthly Financial Investment Report will have some enhancements. These monthly reports will be emailed to Council approximately 30-40 days after month end. The reason for this delay is because as revenue comes into the city, it gets deposited into our checking account. Interest accumulates, and we need time to figure out how to disperse that. Our new quarterly budget report was designed to be a variance report on spending and revenue. We’re also including more data to support our claims. There has been an annual General Fund revenue forecast in the past, but there have not been monthly revenue targets to monitor performance throughout the fiscal year. Because we don’t close the books at the end of each month, reported monthly revenues will change. Projected Q1 revenues were $18,847,914. Actual Q1 revenues were $19,474,539. This is a difference of $626,625 or 3.3%. The two largest drivers of this overage were the $284,000 Christkindlmrkt payback, which was not accounted for when the forecast was made last August, and a repayment for the Medicaid population for EMS Services, which is usually done two years in arrears, and arrives in December. We did not receive this repayment in December of 2024, but rather in the first quarter of 2025. As we approve additional appropriations going forward, those will be factored into the projected quarterly numbers. When we received unanticipated revenues, such as those from the Docusign Envelope ID: 73557F05-AF51-4969-BE57-5B081EA56169 6 Christkindlmrkt, those go into the General Fund, they are not appropriated to different funds. Additionally, General Fund spending for Q1 is 1.8% lower than projected for this time of year, and Motor Vehicle Highway Fund spending is 1.2% lower than projected for this time of year. Councilor Minnaar asked if we can see a comparison between last year’s actuals versus this year’s for each time period we are looking at. Mr. Jackson stated that we will be updating our chart of accounts to more accurately track specific expenditures that have been lumped together with other expenses. Councilor Joshi stated that we want to make sure we understand where these changes were made when comparing last year to this year. Councilor Locke asked if they could get the supporting data for the quarterly numbers. Councilor Snyder asked if we could look at sources of revenue that are not taxpayer-funded, such as cigarette or alcohol taxes. He also asked if we have gotten any positive feedback from the insurance company on the 106th Street bridge, which Mr. Jackson did not have an answer for at this time. He then thanked Mr. Jackson for putting together this very informative report. OLD BUSINESS Council President Aasen announced the fifth reading of Ordinance D-2762-25; An Ordinance of the Common Council of the City of Carmel, Indiana, Amending Chapter 8, Article 5, Sections 8-37, 8-47, and 8- 48 of the Carmel City Code; Sponsor: Councilor Aasen. This item remains in the Land Use and Special Studies Committee. Council President Aasen announced Resolution CC-02-03-25-07; A Resolution of the Common Council of the City of Carmel, Indiana, Recommending Consideration of an Amendment to the Unified Development Ordinance for the City and Referring the Same to the Carmel Plan Commission for Recommendation; Sponsor(s): Councilor(s) Aasen, Snyder and Taylor. This item remains in the Land Use and Special Studies Committee. Council President Aasen announced the third reading of Ordinance D-2767-25; An Ordinance of the Common Council of the City of Carmel, Indiana, Amending Chapter 2, Article 4, Section 2-96 of the Carmel City Code; Sponsor(s): Councilor(s) Taylor and Snyder. This remains in the Finance, Utilities and Rules Committee. PUBLIC HEARINGS There were none. NEW BUSINESS Council President Aasen announced the first reading of Ordinance D-2768-25; An Ordinance of the Common Council of the City of Carmel, Indiana, Amending Chapter 8, Article 5, Sections 8-47 and 8-48 of the Carmel City Code; Sponsor(s): Councilor(s) Taylor and Ayers. Councilor Minnaar moved to introduce the item into business. Councilor Taylor seconded. Councilor Ayers presented the item to Council. Councilor Taylor then explained that this ordinance would prohibit parking on both sides of 1st Avenue S.E. and Supply Street, unless the vehicle displays a resident vehicle sticker, a temporary parking permit, or a merchant vehicle Sticker. Councilor Snyder moved to suspend the rules and act on this tonight. Councilor Taylor seconded the motion. There was no discussion. Council President Aasen called for the vote. Motion to Suspend the Rules approved, 7-0. (Councilor Green was no longer in virtual attendance.) Councilor Minnaar then moved to approve the ordinance. Councilor Taylor seconded. There was no discussion. Council President Aasen called for the vote. Ordinance D-2768-25 approved, 7-0. Council President Aasen announced the first reading of Ordinance D-2769-25; An Ordinance of the Common Council of the City of Carmel, Indiana, Amending Chapter 6, Article 4, Section 6-63 of the Carmel Docusign Envelope ID: 73557F05-AF51-4969-BE57-5B081EA56169 7 City Code; Sponsor(s): Taylor and Ayers. Councilor Taylor moved to introduce the item into business. Councilor Minnaar seconded. Councilor Taylor presented the item to Council, explaining that this ordinance would amend the fine for failing to display a permit for motor vehicle parking on a city sidewalk, multi-use path, or bicycle lane. When discussing this with law enforcement, the Council learned that the current fines are too low to be a deterrent. Jeremy Kashman suggested that this issue be discussed in committee, as there may be a way to tie this together with the Right-of-Way permitting process. Various ideas were discussed regarding raising the fines, or applying for a year-long permit at the start of each new year. This ordinance was sent to the Land Use and Special Studies Committee. Council President Aasen announced the first Reading of Ordinance D-2770-25; An Ordinance of the Common Council of the City of Carmel, Indiana, Adopting a New Article 6 Under Chapter 4 of the Carmel City Code; Sponsor(s): Councilor(s) Aasen, Taylor, Snyder and Ayers. Councilor Taylor moved to introduce the item into business. Councilor Minnaar seconded. Councilor Minnaar presented the item to Council. Councilor Taylor shared that one of the key recommendations of the Housing Task Force was to protect our single-family neighborhoods, by preventing large investment groups from buying numerous homes and turning them into rentals. Fishers has recently tackled this issue and there is a great deal of support here in Carmel to do the same, as evidenced by those who spoke earlier tonight. Ted Nolting of Kroger, Gardis & Regas spoke next. He explained that this ordinance creates a registry and permitting program for all single family homes and townhomes that are being let as residential rental dwellings. Before January 1, 2026, this ordinance will require all owners of single-family rentals to obtain a permit from the city’s Department of Community Services. This permit will be granted if the owner does not have any existing ordinance violations, is up to date on utility payments, and if no greater than 10% of the dwellings in that subdivision, or within the city as a whole, are being let as residential rental dwellings. Prior to January 1, 2026 all rental owners will be grandfathered in. After this date, exceptions will be allowed for those who are absent from Carmel for six months or more but intend to return, absent due to military service, relocated for work more than 50 miles away, when there is a life change such as divorce, death, or assisted living, when renting to a legal family member, when the owner received the dwelling as part of an inheritance, any time it’s being offered for sale on the MLS, or if it’s been on the MLS for longer than six months and has not sold. Fines will include $500 for offering a property for rent without obtaining a permit. There will be a $2,500 fine for actually renting a property without a permit, and after 30 days a fine of $100 per day will be assessed for every day a property is rented without a permit. This ordinance will not override any HOA restrictions that are already in place. Councilor Minnaar stated that a registry will be useful in identifying and contacting the actual property owners when there are code enforcement issues. Councilor Snyder confirmed that the registry will not be a publicly posted document - someone would have to proactively request that information. Councilor Taylor encouraged HOA’s to work on putting rental caps into their CCR’s if they have not already done so. Council President Aasen stated that this is not an attempt to ban rentals or to discriminate against renters. The intent is to protect our neighborhoods from being overrun by rentals owned by large corporations that do not maintain the homes, and to prevent prospective first-time home buyers from being outbid by these corporations. This ordinance was sent to the Finance, Utilities and Rules Committee. AGENDA ADD-ON ITEMS There were none. OTHER BUSINESS City Council Appointments Carmel Clay Public Library Board of Trustees (Term expires 06/30/2029, four-year term); One appointment. Councilor Taylor moved to reappoint Xiao Ou Yuan. Councilor Snyder seconded the motion. There was no additional discussion. Council President Aasen called for the vote. Xiao Ou Yuan reappointed, 7-0. Docusign Envelope ID: 73557F05-AF51-4969-BE57-5B081EA56169 8 ANNOUNCEMENTS Fire Chief Joel Thacker gave a brief update on the tornado response. Data has been reported from all of the departments that have provided services and support, and that has totaled over $722,000.00, as of Wednesday last week. These expenses, along with our local and county disaster declarations, qualify Carmel for the state disaster relief fund, which is a dollar per population. Councilor Joshi reminded everyone of the Cherry Blossom Festival, which will take place on Saturday May 3rd. Councilor Snyder again remarked on Dr. Joshi’s Interfaith Award, stating that her poignant speech reminded us of what a community of different faiths and cultures should be. He also thanked Councilor Locke for addressing the food hall project. ADJOURNMENT Council President Aasen adjourned the meeting at 8:17 p.m. Respectfully Submitted, _______________________________ Jacob Quinn, Clerk Approved, ATTEST: _______________________________ Adam Aasen, Council President _______________________________ Jacob Quinn, Clerk Docusign Envelope ID: 73557F05-AF51-4969-BE57-5B081EA56169