HomeMy WebLinkAboutCRC-01-20-09 CRC Meeting, January 20, 2009
CARMEL REDEVELOPMENT COMMISSION Meeting, Wednesday,
January 20, 2010
President Ron Carter called the meeting to order at 6:44 p.m. Commission members Bill
Hammer, Carolyn Anker, Tom Crowley, Jeff Worrell and Greg Phillips were present,
constituting a quorum. Also present were Karl Haas, Les Olds, Andrea Stumpf, Sherry
Mielke, Don Cleveland and Matt Worthley.
Others present:
Mike Anderson, Bruce Stauffer, Jaime Browning, Dr. Rick Sasso, Bruce Donaldson,
Chris Sikich, Dan Moriarity, Brandon Bogan
The Pledge of Allegiance was said.
Bid Openings
Parcel 47 Site Backfill
Bruce Stauffer, Construction Manager for Keystone Construction, opened and read aloud
the bids. [Please see attached bid tabulation results]
Parcel 47 Storm Drainage and Site Utilities
Mr. Stauffer opened and read aloud the bids. [Please see attached bid tabulation results]
[Ron Carter leaves at 7:20 pm.]
Presentation by Browning Investments: Meridian Main
Jaime Browning, Browning Investments, gave a presentation regarding the Meridian and
Main project. He asked the Commissions consideration of the establishment of a site
specific TIF district for the project to help cover the cost of all the expected infrastructure
on the project. Mr. Olds noted the project site is a very old residential site with failing
septic tanks and finger systems with many problems that have been presented to the
City's Engineering Department.
Mr. Browning referenced a booklet presented to the Commissioners with a detailed
narrative of the overall scope of the project and included depictions of the proposed
areas. As part of the project, 146 homes were purchased within the Meridian Heights
subdivision, with many of them in states of disrepair. The area contains drainage issues
and property values have declined since the year 2000, by an average appraised value of
$11,000/house.
Plans to extend Pennsylvania Avenue to Old Meridian Street are part of the project. With
the extension, buildings can develop on either side of Pennsylvania Avenue to provide
economic development opportunities for the area.
The 46 homes that were purchased originally generated a tax revenue of approximately
$45,000 /year. When including the Meridian and Main development, the Browning
Investment project for annual tax revenue is estimated at $1.5 million/year. Browning
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CRC Meeting, January 20, 2009
Investments is seeking funds for reimbursement of the demolition of the homes,
extension of Pennsylvania Avenue through the Meridian Heights development which
would be a public road, extension of the water main, extension of a sewer main, and
infrastructure related to new projects.
The total anticipated build out time for the two projects is five years. Mr. Browning noted
that he is seeking half the TIF increment of the project. If funds aren't received, the
project completion will most likely be delayed due to the need of obtaining bank
financing.
Public Hearing: Installment Purchase Contract Financings
Bruce Donaldson with Barnes Thornburg, bond counsel and special tax counsel to the
CRC, was present to give an overview of the process and need for a public hearing
regarding the Installment Purchase Contract Financing program. The public hearing is a
follow up to action taken at the December 16, 2009 CRC meeting when the CRC
authorized the Commission to enter into various installment purchase agreements to
finance a variety of improvements related to the Performing Arts Center. At this time the
Commission is asked to approve a specific installment purchase contract related to
portions of the Parcel 7C site comprised of the 500 -seat theater, garage structure, portion
of the office building with the studio theater and some underground retention
components.
The seller is the Carmel Theater Development Company, LLC who has leveraged their
rite to receive payments under the installment purchase contracts to raise money for
construction which is usually done by bank loans. In this case, the seller is selling its
rights to receive payments to a small number of sophisticated investors who will purchase
the right to receive these installment payments and thereby allow the seller to generate
funds for construction. Oppenheimer Investment Banking firm has secured those
investors.
Because the projects are public in nature, a portion of the financing can be tax exempt.
The interest component on the installment contract will be exempt from income tax for
the lenders or investors. Because of that, the federal tax laws require the Commission to
hold a public hearing regarding these installment purchase contracts. The hearing is
referred to as a TEFRA Hearing (Tax Equity and Fiscal Responsibility Act of 1982).
The public hearing was reconvened at 7:22 pm. No one was present to speak in favor or
in opposition. The public hearing was closed at 7:23 pm.
Approval of Resolution 2010 -1: Installment Purchase Contracts
Resolution 2010 -1 approves the specific installment purchase contract financings related
to the above projects. The payments are anticipated to come from the various TIF
revenue sources.
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CRC Meeting, January 20, 2009
Mr. Worrell moved to approve Resolution 2010 -1 of the City of Carmel Redevelopment
Commission approving the form and authorizing the execution of a proposed installment
purchase agreement between the Carmel Theater Development Company, LLC, and the
City of Carmel Redevelopment Commission, and authorizing certain matters related
thereto. Seconded by Ms. Anker and unanimously approved.
Approval of Minutes
December 16, 2009: Moved for approval by Mr. Worrell, seconded by Ms. Anker and
unanimously approved.
Financial Matters
Ms. Mielke announced the December 2009 end of month operating balance for the CRC
General Fund is $7,757,052. This includes the TIF distribution of $6,834,655, all of
which has not been received. A small portion will be received in January.
Ms. Mielke requested the Commission's approval to pay invoices for the CRC General
Fund in the amount of $315,683.49. Ms. Anker moved to approve CRC General Fund
claims as submitted. Seconded by Mr. Crowley and passed unanimously.
Ms. Mielke requested the approval of PAC invoices for regular construction in the
amount of $3,284,600.53. Ms. Anker moved to approve expenditures in the PAC
Construction fund, seconded by Mr. Crowley and passed unanimously.
Ms. Mielke requested approval from the Commission to pay PAC invoices for emergency
repair for $50,291.07. Moved for approval by Mr. Worrell and seconded by Ms. Anker.
Ms. Mielke requested the motion state "from funds available" rather than "from the PAC
Construction Fund." Mr. Crowley moved to amend the motion and seconded by Mr.
Worrell.
Mr. Olds reported that the Commissioners will be briefed on the legal conditions
regarding the emergency repair at the February 17, 2010 Executive Session. Ms. Anker
questioned an invoice for CSO Architects totaling $19,065 for additional roof problem
design fees. Mr. Moriarity reviewed the invoice and stated it was a mistake and should
not be included in the total for approval. He further explained the possible inclusion of
the claim in the packet. If the fault lies with CSO, then the claim can be worked out at
that time. If, however, the fault lies with the structural engineer or the steel supplier,
neither of whom are under the CSO contract, then a record of what was spent by CSO
needs to be included somewhere. Mr. Moriarity offered to withdraw the invoice from the
list and discuss with legal counsel and the Director of Finance on how to proceed with
payment.
Mr. Haas recommended to accept Mr. Moriarity's offer to withdraw and approve funds in
the amount calculated less the CSO invoice.
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CRC Meeting, January 20, 2009
Mr. Worrell withdrew his original motion to pay PAC invoices for emergency repair in
the amount of $50,291.07.
Mr. Worrell moved to pay funds less the specific invoice to CSO in the total of
$31,226.07 from available funds. Seconded by Mr. Crowley and unanimously approved.
Approval of 2010 Budget
Ms. Mielke requested the approval of the 2010 budget expenditures in the amount of
$24,438,000. Of this amount, debt service and contract payments represent $15,805,280.
The budget contains estimates and a quarterly budget report will be presented to compare
estimated costs versus actual costs.
Ms. Anker moved the CRC approve the 2010 proposed budget for a total dollar amount
of $24,438,000. Seconded by Mr. Crowley and unanimously approved.
Committee Reports
Mr. Worrell reported the Plan Review Panel committee, comprised of Mr. Olds, Mr.
Hammer and Mr. Worrell, met that afternoon to review the preliminary design documents
for the Main Stage Theater and Studio Theater. The "owners sign -off documents" were
approved at the meeting which will then be submitted to final design documents and will
go out for bid. The committee plans to meet weekly.
Mr. Hammer noted the approvals were at the conceptual level and that Steven Libman
had reviewed and was in favor of both sets of plans.
Mr. Olds stated the Plan Review Panel will approve any design concepts, but will bring
any decisions regarding costs outside the original budget to the full Commission for their
comment, review and approval.
Mr. Worrell will be serving as chair of the committee.
Update on Properties
Mr. Anderson with Shiel Sexton, Construction Manager for the PAC, gave an update on
the construction progress.
Arts Design District
Ms. Mielke announced the upcoming Valentine's Day Gallery Walk scheduled for
Saturday, February 13, 2010 from 5 -10 pm.
Old Business
No old business at this time.
New Business
No new business at this time.
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CRC Meeting, January 20, 2009
Other Business
No other business at this time.
Announcements
No announcements at this time.
Adjournment
Mr. Crowley moved the meeting be adjourned and seconded by Ms. Anker. The meeting
was adjourned at 8:05 p.m.
The next regularly scheduled meeting is Wednesday, February 17, 2010 at 6:30 p.m.
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