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HomeMy WebLinkAboutCRC-01-21-09CRC Meeting January 21, 2009 1 CARMEL REDEVELOPMENT COMMISSION Meeting, Wednesday, January 21, 2009 Oaths of office were administered prior to the CRC Executive Session at 5:30 p.m. Mayoral appointees: Carolyn Anker, Ron Carter, Jeff Worrell City Council appointees: Bill Hammer, Rick Sharp President Ron Carter called the meeting to order at 6:53 p.m. Commission members Jeff Worrell, Bill Hammer, Carolyn Anker and Rick Sharp were present, constituting a quorum. Also present were Mayor Brainard, Karl Haas, Les Olds, Sherry Mielke, Andrea Stumpf and Matt Worthley. Others present: From Shiel Sexton Co.: Tony Eisenhut, Doug Adams From CSO Architects: Dan Moriarity, Brandon Bogan Others Present: Rick Osborn, Kevin Rider Mr. Carter stated the staff will now notice executive session meetings with the ability to meet both prior to and after the CRC public meetings to ensure a timely start f the CRC public meetings. The Pledge of Allegiance was said. Nomination of Officers Mr. Sharp nominated Carolyn Anker for Secretary of the Commission and seconded by Mr. Worrell. Mr. Sharp moved that nominations be closed, seconded by Mr. Hammer and unanimously approved. Mr. Sharp moved that Ms. Anker be elected by acclamation. The motion passed unanimously. Mr. Sharp nominated Mr. Hammer for Vice President of the Commission and seconded by Mr. Worrell. Mr. Sharp moved that nominations be closed, seconded by Ms. Anker and approved unanimously. Mr. Sharp moved that Mr. Hammer be elected by acclamation. The motion was unanimously approved. Mr. Sharp nominated Mr. Carter for President of the Commission and seconded by Mr. Worrell. Mr. Sharp moved that nominations be closed, seconded by Mr. Hammer and approved unanimously. Mr. Sharp moved that Mr. Carter be elected by acclamation and seconded by Mr. Hammer. The motion passed unanimously. Presentations: Browning Investments Jaime Browning, representative of Browning Associates, LLC, gave an overview of the proposed development project, entitled Meridian and Main, located at the corner of US 31 and 131st Street. The project is a multi-use site for a hotel, office and medical office buildings. He noted this intersection is slated for a new interchange in 2011/2012 as part of the Major Moves project. CRC Meeting January 21, 2009 2 Current homeowners in the area approached Mr. Browning regarding the devaluation of their homes. There is no utility or water/waste water service to this area from the City. The assessed value from 2001 to 2007 declined by an average of $11,000/house. Browning Associates, LLC have assembled approximately 40 of the 48 houses and have obtained commercial zoning on the entire property. Currently, the neighborhood generates property taxes in the amount of $50,000/year. With the full development of the business park tied in with the expansion of the St. Vincent’s Hospital and the extension of Pennsylvania Street, the anticipated tax revenue would be $700,000/year. Mr. Browning has discussed the extension of Pennsylvania Street with the City’s Engineering Department and they are excited about the project and liked the idea of being able to have the additional circulation plan as an ancillary route to US 31. Browning Associates, LLC is looking for financial assistance and funding to demolish the homes, demolish the roads, install the extension of Pennsylvania Street and extend the water sewer lines to the development. The request is approximately $3.5 million. The taxes generated by the project would generate a bonding capacity well in excess of the requested amount. In addition, the Engineering Department requested the extended road be constructed as a public road rather than a private road which is reflected in the funding request. Mr. Hammer asked if the request for Tax Increment Funds includes any plans for the acquisition of the remaining houses. Mr. Browning said the funds would not pay for this nor will they ask to exercise imminent domain. Mr. Sharp clarified that Mr. Browning is not asking to capture the entire TIF revenues, but merely a portion of the revenue. The remaining funds would benefit the City through the resolution and the bond documents, with an allocation of a percentage of the increment or cap. Mr. Browning suggested using the excess funds to improve 131st Street from Old Meridian to the interchange as the new gateway to Carmel from US 31. Mr. Carter questioned the benefits of this project and donating the TIF funds for the City of Carmel that Browning Associates wouldn’t already be doing other than the extension of the Pennsylvania Avenue. Mr. Browning explained it would accelerate the process which would bring more income to the City of Carmel sooner rather than later. With the TIF allocation, Mr. Browning anticipated the start of the project may be delayed seven years. The requested funds would also facilitate the number of contracts executed with each individual homeowner. Currently, homeowners are starting to move out and begin renting their homes, while others are beginning to go into foreclosure. At this time Browning Associates, LLC has not begun acquiring the homes. Discussion ensued. CRC Meeting January 21, 2009 3 Approval of Minutes December 15, 2008: Moved for approval by Mr. Hammer, seconded by Ms. Anker and unanimously approved. December 17, 2008: Moved for approval by Ms. Anker, seconded by Mr. Hammer and unanimously approved. Financial Matters Ms. Mielke announced the December 2008 end of month operating balance for the CRC General Fund is $5,412,736.00. TIF was posted on December 31st in the amount of $5,580,938.00 Ms. Mielke requested the Commission’s approval to pay invoices for the CRC General Fund in the amount of $1,088,491.35. Mr. Hammer moved to approve CRC General Fund claims as submitted. Seconded by Mr. Anker and passed unanimously. Sherry Mielke requested the approval of the Disbursement of Funds from the PAC Construction Fund in the amount of $2,961,326.50. Moved for approval by Mr. Worrell, seconded by Ms. Anker and unanimously approved. Ms. Mielke reported the 2008 budget was $2.7 million under budget. Ms. Mielke also noted the 2009 proposed budget was given to the Commissioners for their review. Mr. Sharp moved to approve the 2009 Budget in the amount of $25,805,337.00, seconded by Mr. Hammer and unanimously approved. Committee Reports Mr. Sharp stated there were no committee reports at this time. Update on Properties Parcel 5 – Carmel City Center Mr. Sharp requested an update in regards to discussions between the trade contractor and the engineer on the project regarding the mill/thickness of the steel for the cladding of the building. Mr. Sharp questioned, with the decision to use the thicker cladding resolved, why the project has not appeared to move forward. Mr. Olds reported the issue of the gauge of the studs has been resolved with installation of the balance of the studs to begin immediately. The architects have completed all the contract documents for the first phase of the project and have gone out for bidding. Contracts have begun to be awarded for the exterior of the building. Plumbing and electrical rough-in work has been on-going. CRC Meeting January 21, 2009 4 Parcel 47 – Arts District Lofts & Shoppes Ms. Anker requested clarification of the contracts that had been awarded for the subsurface hazardous waste removal. Mr. Olds reported the contract has been approved by the CRC and awarded to National Salvage to remove the hazardous subsurface area that has been identified by the environmental engineers. The contract has begun to mobilize to move onto the site, but has not been released to do the work until the project agreement has been signed. The project agreement was signed today and the contractor has been given notice to proceed. Discussion regarding the process of removing the hazardous material ensued. Redevelopment projects in an “old town” area is a lengthy process due to the contaminated materials left on a site, with much underground preparation needed. The CRC has instructed the contractors on the Parcel 47 to keep disruption of area businesses and traffic to a minimum by continually watering down the site, screening the project site and power washing the tires of the trucks. Second Avenue NW will be closed for the duration of the project as an access point to the area from Main Street. Signage will also be in place directing visitors to available parking areas. The CRC has committed to relocate the “Yellow House,” and will move it to a site on North Range Line. CRC staff are working with Duke Energy regarding the logistics of the move. Negotiations with the VFW are on-going regarding their relocation to Main Street and Old Meridian. Work will begin mid-February on the new structure with the VFW relocation taking place within 90-120 days. After the removal of hazardous soils and the relocation of the two buildings, mass excavation will begin on the site. Parcel 7A – Performing Arts Center (PAC) Mike Anderson, Construction Manager with Shiel Sexton, was present to give a year-end report of the status of the PAC and a summary of what occurred in 2008 and projected timeline/schedules for 2009. The construction schedule has been impacted by 164 days of precipitation in 2008. The re-bidding of certain bid packages as well as “late approval” of some contracts has also impacted the schedule. Dan Moriarity with CSO Architects presented the alternate bids for upgrades from PAC Bid Package #5 which are currently outstanding and up before the Commission for either approval/disapproval. In regards to the project budget of $118,000,000, the current costs are at $116,882,535.00. The project is approximately $1.675 million below budget which could be spent on upgrades if so desired. The $116 million current costs include all the bid packages to date including the performance equipment, upgrades approved to date, all professional and Construction Manager fees, as well as a $2 million contingency number for unforeseen conditions. It also includes the completed canopy. Mr. Moriarity gave an overview of each upgrade/alternate. The total cost for the complete list of alternates equals $1.4 million or $1.5 million (depending on which choice of donor room upgrades are selected) which fits into the $1.675 million “excess” of the current $118 million budget. This budget coordinates with the construction budget presented by Mike Anderson and Shiel Sexton. CRC Meeting January 21, 2009 5 Ms. Anker questioned if we have used any of the $2 million contingency funds. Mr. Moriarity reported that we have not used any of those funds and that the approval of the upgrades would not affect the contingency funds either. The $2 million is approximately 2% of the total budget and is should be sufficient for the project. The cost of any upgrade not selected will contribute to the contingency budget. Mr. Worrell questioned if there were any upgrades that could be executed at a later date with reasonable costs. Mr. Moriarity stated that it would cost much more to add any of these upgrades at a later time. Some upgrades cannot be added at a later date such as the stone floor or wood flooring in the auditorium. Mr. Sharp questioned, regardless of available funding, if everything needed for the project in addition to the items up for question that evening were included in the $118 million budget. Mr. Moriarity stated that all costs for the PAC are included. Mr. Olds reported the acoustical canopy is an alternate that has not technically been approved at this time. However, the canopy cost included in the $118 million budget is the glass canopy at a cost of $1.5 million. If this alternate is rejected, there is still a cost of providing rigging and support for lighting, sound and additional equipment, which includes all necessary fittings. Mr. Sharp clarified the bid on the glass canopy is $1.36 million bringing the total cost of upgrades to $2.8 million. Ms. Anker questioned Mr. Moriarity if the cost of the glass canopy was already included in the $116 million current costs for the project and he confirmed that it was. Mr. Moriarity explained, based on the conversation of the past two years between David Schwartz’s design of the hall and ARTEC’s desire for a canopy, there was/is no base bid that did not include a canopy that works acoustically at this time. Mr. Moriarity stated it was a significant cost to redesign the hall without a canopy at this time. Discussion ensued regarding the inclusion of the canopy and available funds for upgrades. Mr. Sharp moved to accept the upgrade bid in the amount of $1,360,000 for the acoustical canopy. Seconded by Ms. Anker and unanimously approved. Mr. Moriarity reported that an action regarding the upgrades needs to be made soon because of a 90 day contractual timeline for the bids they have received. Mr. Olds reported the items on the agenda as action items are to award contracts for PAC Bid Package #5 – Interior Finishes which was a rebid. The Construction Manager has asked the total of the four packages totaling $1,209,700 be approved as base bid materials. If some of the upgrades/alternates were approved as well, those approved amounts would affect the totals of the base bids. Mr. Olds suggested the Commissioners review the overview of proposed upgrades and take action at a later time/future special meeting. CRC Meeting January 21, 2009 6 Mr. Moriarity explained that the upgrades would not need to be rebid because they are already included as possible “additions” to the approved contracts. If certain upgrades are not approved in a timely manner, it will pose problems with the schedule, coordination and lead times of certain materials. Mr. Anderson explained and gave examples of how the approval or non-approval of the upgrades affects the construction timing and schedule regarding the current approved base bid contracts. Regardless of funding, Mr. Anderson stated making a decision would allow them to issue a notice to proceed with certain contracts which would secure their bid cost. Mr. Sharp questioned if the CRC was able to issue a contract without the funds secured. Mr. Haas reported the funds have to be secured for the total amount of the liability the Commission is undertaking. There are a number of contracts that are negotiated with termination clauses so that the maximum liability of the CRC is limited to the termination amount. That is an amount that the Commission is able to pay. Ms. Anker stated the issue of the funding of the $118 million budget would remain regardless of the approval of the upgrades. However, the upgrades would assist the Construction Manager in issuing certain contracts and maintaining the construction schedule. Mr. Worrell moved to vote only on the wood flooring at this time as it is the only upgrade that has substantial benefit to the performance quality of the facility and the only item on the list he feels comfortable voting for. The motion was not seconded. Ms. Anker moved to accept five of the line items including: - Wood flooring for $407,000 - Stained wood for donor amenity room upgrades for $101,751 because there are a couple of spaces in the hall that also may serve to allow the CRC to rent the facility at a higher rental rate and therefore help with operational costs after the building is built - Multi-purpose room upgrades for $19,456 because vinyl floors in the room will be far less attractive to potentially rent that out - Wainscot in auditorium for $72,328 - Wainscot in the lobby for $103,500 The total of which comes to: $704,160, and the remainder of the funds that are under budget be moved into the contingency funds to move it from $2 million to $2.7 million. There was no second for the motion. Mr. Sharp moved to instruct the Construction Manager to move ahead with the base bids received and reject all the alternates presented. The motion was not seconded. Mr. Carter stated he felt that the population of Indianapolis/Carmel and surrounding areas was sufficient to achieve the level of fundraising to contribute to the Performing Arts CRC Meeting January 21, 2009 7 Center. He stated the Commission may be regretful if they don’t step forward and take a leadership position in regards to building the PAC. Old Business Approval of Contracts for PAC Bid Package #5 – Interior Finishes Mr. Carter stated the Commission has nothing further to do with that at this time. Approval of Contracts for the Carmel City Center Phase I Sloped Topping Slab Mr. Olds requested the Commission table that action item until clarification on the funding source is obtained. Mr. Sharp moved to table the agenda item, seconded by Mr. Worrell and unanimously approved. New Business Approval of Purchase of “Nelson Corner Piece” Site Mr. Carter explained the “Nelson Corner Piece” site was a small piece of land at the corner of Old Meridian and Main Street. Mr. Olds stated the piece of property is attached to the piece of property the Commission purchased on December 29, 2008. He would like to include the small piece as it provides complete frontage onto the roundabout and will fit well into the master plan of that corner, which the Commission will be putting up for sale in the future. Mr. Sharp moved to approve the purchase of the Nelson Corner Piece site in the amount of $18,000. Seconded by Mr. Hammer and unanimously approved. Other Business Mr. Olds reported he would like to add the approval of the utility relocation contract for Parcel 47 site to the agenda. The Commission has approved the funding for the relocation of the utilities on that site. The contract from AT&T is for $63,344 which is in excess of what the president is allowed to approve without full Commission action. Mr. Olds questioned if the Commission approves full utility relocation amounts in the budget format, will they allow the president to sign the contracts with the utility companies if they exceed the amount of $35,000, or would they like each one brought back to the Commission for full approval? Mr. Carter expressed that he did not think they should deviate from the current procedure. Mr. Olds then asked if they would add to the agenda as Action Item #5: the approval of utility relocation contract with AT&T for $60,344.85. Mr. Sharp questioned the protocol for adding an item to the agenda. Mr. Haas stated the agendas need to adequately and fairly reflect the action to be taken at the meeting. As there has been approval of a budget for those contracts and this particular contract is under that amount, that it could be fairly characterized as not being a material change to the agenda. CRC Meeting January 21, 2009 8 Mr. Sharp moved that the CRC authorize the president to execute the contract with AT&T for the removal of the utilities for Parcel 47 in the amount of $60,344.85. Seconded by Mr. Hammer and unanimously approved. Announcements Ms. Mielke introduced Don Cleveland, CPA, as the CRC’s new employee acting as Finance Manager. Mr. Sharp requested the staff adopt the Council’s rules for add-ons to the agenda and have it reviewed by Mr. Haas. Ms. Mielke also reported there will be a Valentine’s Day Gallery Walk on Saturday, February 14, 2009. Adjournment Mr. Sharp moved the meeting be adjourned and seconded by Mr. Hammer. The meeting was adjourned at 9:13 p.m.