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HomeMy WebLinkAbout2002-Economic Development Plan/Old Meridian Carmel, Indiana Hamilton County (Draft) E conomic D evelopment Pl ©ll 7 arg@Tficlko Econaao© ®Dopa ®U area February 18, 2002 Walhazf. SedeuDgao Q� @o Michael R. Shaver, President 4742 Bluffwood North Drive Indianapolis, IN 46228 (voice) 317/299 -9529 (fax) 317/329 -9885 (e -mail) wabsci @aol.com Map No. 1 Old Meridian Economic Development Area (faL lln S@Wel 6u Table of Contents The Purpose of the ED Plan 5 The Purpose of the Old Meridian ED Area 7 Recommendation for Phased ED Area 8 Writing the ED Plan to Reflect the Phased ED Area 11 Legal Description of the ED Area 11 Zoning Land Use within the Proposed ED Area 12 The Old Meridian Zoning Category 12 "OM/MF" Zoning in the Base ED Area 12 St. Vincent's Hospital 13 Carmel -Clay Schools inj the Base ED Area 13 Residential Area 13 Church Facilities 14 Impact of the Old Meridian Plan 14 Conclusions Regarding the Overall ED Area 14 Conclusions Regarding the Base ED Area 15 Conformity With Other Plans 15 Summary of the Old Meridian District Plan 16 The Fiscal Strategic Plan 17 Creation of an Economic Development Area 17 Statutory Requirements 19 Findings of Fact 20 Finding #1A: promoting opportunities for employment 20 Employment in the Base ED Area: 20 Employment in the Overall ED Area: 21 Finding #1B: attracts a major new business enterprise 22 New Business Enterprise in the Base ED Area 22 New Business Enterprise in the Overall ED Area 23 Finding #1C: retains or expands a significant business 24 Retaining/Expanding Business in the Base ED Area 24 Retaining /Expanding Business in the Overall ED Area 25 Finding #1D: Serves to Protect Property Values 26 Protecting Property Values in the Base ED Area 26 Protecting Property Values in the Overall ED Area 27 Finding #2: the plan...cannot be achieved by regulatory processes or by the ordinary operation of private enterprise.... 28 Finding #2A: lack of local public improvements 29 Finding #2B: The Cost of Infrastructure Prevents Development 30 Finding #2C: Existence of conditions that lower the value of land... 31 Finding #3: the public health and welfare will be benefitted 31 Health Welfare Benefits for the Base ED Area 32 Health Welfare Benefits for the Overall ED Area 32 Finding #4A: Attraction or Retention of Permanent Jobs 33 Permanent Jobs in the Base ED Area 33 Permanent Jobs in the Overall ED Area 34 Finding #4B: the plan will increase the property tax base 34 Increasing the Property Tax Base in the Base ED Area 35 Increasing the Property Tax Base in the Overall ED Area 36 Finding #4C: Improved Diversity in the Economic Base 36 Finding #4D: Other Similar Public Benefits 37 Conclusions 38 Recommendations 38 Economic Development Strategy 39 Proposed Projects 39 List of Parcels 41 Appendix A: Old Meridian Task Force Report 42 Appendix B: Zoning Map 43 The Purpose of the ED Plan An economic development plan should not be a free standing document, designed and undertaken in isolation from previous planning and development policies. It should, instead, be philosophically and factually linked to the previous and current planning efforts of the community. An economic development plan should build upon the historical perspective of the community, enabling community leaders to consciously connect the proposed economic development activities to the economic development goals and policies which the community has previously endorsed. The strongest economic development plans, therefore, are based on public policy which was initiated before any current project was conceived. Economic development projects which are proposed in areas designated for particular business land uses should be the easiest to defend. In cases where economic development areas are designated for commercial development before any specific project is proposed, the community's leadership should logically feel more comfortable that they have properly planned the development patterns for the community. Public opinion can ebb and flow on a random basis, and opposition often requires only the scantiest factual basis for their challenges. In the face of opposition to economic development projects, the Plan Commission and the community's other leaders can use the Economic Development Plan to examine previous community development policy and determine whether a proposed project fits into the development parameters which had been previously established. At the point where a development project is proposed, it becomes the job of the Economic Development Plan to objectively review the body of previous development policy and determine the extent to which the current project complies with those policies. This Economic Development Plan has been undertaken in the context of a comprehensive and detailed planning effort by the municipality. The local economy must grow in order for the citizenry and the community to prosper, and at the same time municipal leaders seek to preserve the character of the community. Consequently, the community must assure itself that any development proposed will place the community in a better position to implement its long term developmental goals. Second, infrastructure issues must be foreseen many years in the future in order to accommodate growth. Infrastructure problems must be identified and potential solutions developed in order for an Economic Development Old Meridian Economic Development Plan: Carmel, Indiana 5 Area to be successful on a long term basis. This Economic Development Plan attempts to identify the infrastructure improvements required to support growth in the proposed Economic Development Area, as well as offering the community a mechanism to update the needs periodically. Third, any proposed economic development project needs to be well rooted in public consensus. There will always be honest disagreements among good people. Consequently, for projects to be successful, they must be launched from a platform of consensus where people have already had the opportunity to discuss and debate the issues. If that basic consensus is present, the final discussion involves only the negotiation of details. Finally, an Economic Development Plan must meet the requirements of applicable Indiana statutes. If the planning process can provide economic stimulus to existing and /or new businesses and industries, giving those businesses a competitive advantage in the marketplace, then the Plan should address those opportunities and make the analysis necessary to assure that benefits accrue to the community. Public opposition is essentially a random phenomenon. Opinions and tempers often run hot with emotion. The Economic Development Plan provides the rational analytical process by which the community can measure whether a proposed project is consistent with the consensus built through the comprehensive planning process. It is not appropriate for a community to develop planning, land use and zoning recommendations for an area, and then arbitrarily reverse themselves. By virtue of the extensive overall planning effort of the community over the past several years, it is clear that this Economic Development Plan can never be challenged as being incremental, short- sighted, or hastily drawn. An Economic Development Plan, therefore, is an examination of previous economic development policy in light of new proposals. It examines proposed land uses, previous planning for the area, and the qualitative context of the development as a means of either justifying or repudiating any current project proposal. In so doing, the ED Plan re- establishes the public policy basis of economic development for the community, objectively tests the project against that basis, and makes recommendations of an appropriate level of support for the project. Old Meridian Economic Development Plan: Carmel, Indiana 6 The Purpose of the Old Meridian ED Area It is important that the general public be informed of the purpose of creating each, specific Economic Development Area (ED Area), as a means of affording each individual the opportunity to judge whether the creation of an ED Area represents a suitable means of achieving community development goals. By clearly understanding the purpose which the ED Area purports to serve, the public can then elevate their opinions beyond the level of pure political opinions, in order to create an informed opinion. The Old Meridian ED Area has one primary purpose to develop new resources and revenue streams necessary to implement the provisions of the comprehensive plan supplement developed by the Old Meridian Task Force. A summary of that plan is contained in Appendix A of this ED Plan for convenient reference. The City of Carmel, with the cooperation of the Carmel Clay Plan Commission has clearly and indisputably established the planning basis for the future development of the Old Meridian Corridor. The corridor has been officially designated as the portion of Old Meridian running northeastward from US31, south of Carmel Drive, to the re- intersection with US31 at approximately 141 Street (at St. Vincent's Hospital). The Old Meridian Corridor contains older development which had occurred before US31 was re -route d by INDOT to bypass this commercial corridor for widening purposes. For planning purposes, the Old Meridian Corridor area is roughly bounded on the west and north by US31, on the east by Guilford Avenue, and on the south by Carmel Drive. A map of the Old Meridian planning area is contained in Appendix A of this report, as noted above). The provisions for developing the Old Meridian Corridor have been formally included in several plans which have been approved by both the Plan Commission and the City Council, thereby creating a formal basis for implementation of the recommendations of the Task Force on a long -term basis. Therefore, the role of the Carmel Redevelopment Commission (CRC) in this project is to create appropriate Economic Development Areas (ED Areas) for the purposes of supplementing the capacity of the City to implement the development proposals. The Plan Commission and the City have initiated the implementation of the Task Force report by establishing a series of special policies and development standards for the area. The Plan Commission requires certain development amenities for development/redevelopment proposals for the area in order to assure that the future development/redevelopment Old Meridian Economic Development Plan: Carmel, Indiana 7 of the area conforms to the expectations of the community. Since the Old Meridian Corridor is clearly established in the long -term plan of development for the community, and since the enhanced development standards have been in place for some time, it is appropriate for the CRC to consider the creation of an ED Area for the purpose of supporting the investment of public sector dollars into the overall, long- term development of the area. The purpose of creating the Old Meridian ED Area is to enhance the financial ability of the City to develop this portion of the city in accordance with the standards and expectations of the community, as expressed in the Task Force report. Please note, however, that the creation of the proposed Old Meridian ED Area does not guarantee the investment of any funds in any portion of the project, or on any parcel of land. Any specific decisions as to the investment of any public funds is specifically reserved to the City of Carmel and the boards and agencies thereof. Therefore, any funding decisions to be made as a result of the creation of any proposed ED Area must be reached through the process defined by those agencies and the elected officials responsible for governing those activities. At this time, development is proposed for a portion of the total area designated by the Task Force report. In addition, a portion of the Old Meridian Area was previously designated to be a part of the Integrated 126` Street Economic Development Area (the Gibraltar development), as noted on Map #1 (above). This ED Plan should not be interpreted as any endorsement of any development proposal or of any funding proposal /request. The Economic Development Plan (ED Plan) presented below will set forth the statutory basis for establishing the ED Area. Recommendation for Phased ED Area After substantial study and discussion with DOCS it was determined that the designation of the Old Meridian ED Area might be best undertaken in phases, due largely to the existence of older development. Since one of the primary economic benefits of creating an ED Area is the opportunity to generate TIF revenues, it is important that the CRC understand and manage its activity in a manner that optimizes the TIF potential of an ED Area. Where there is "redevelopment" (removal of old development and replacement with new development), the management of TIF is much more complex than in ED Areas which are currently undeveloped. Old Meridian Economic Development Plan: Carmel, Indiana 8 When existing development is in place, the TIF opportunities becomes extremely complex. TIF revenues are calculated on the basis of the assessed value of the property within the ED Area on the effective date of the designation. The premise of TIF is that all taxing units continue to receive the full amount of their previous property tax revenue from the property within the ED Area. Consequently, the TIF revenue is based solely on the increases in the assessed value of property within the ED Area. When there is already existing development in place, therefore, the new property tax increment is based on the assessed value of the new improvements which exceed the previous assessed value. Therefore, if a building burns down, the TIF result is that the ED Area actually generates a negative property tax increment, which must be offset by other improvements in the ED Area. In cases where old development is to be replaced with new development), the computation of tax increment becomes extremely complex because existing assessed value is being removed and new assessed value is being constructed. In cases where the redevelopment entity is a government or other non profit (tax exempt) entity, the complications are magnified yet again. The Old Meridian area is largely an area of redevelopment. In redevelopment situations, it is very common that assessed value temporarily goes down for the ED Area before it goes back up to previous levels. Obviously, this fiscal impact must be carefully managed by the CRC, especially in situations requiring redevelopment of property. Since the Old Meridian plan is largely a redevelopment effort, Wabash Scientific, inc., recommends that the CRC exercise extreme caution to protect its own fiscal health with regard to setting the boundaries of an ED Area by phasing the designation of the ED Area. In the case of the Old Meridian ED Area, Wabash Scientific, inc., recommends that the CRC use a phased approach in which a base ED Area is established and then the ED Area is amended to include new projects as they arise. This phased approach allows the CRC to carefully review each development proposal as it is reviewed /approved by the Plan Commission and to determine whether CRC participation is appropriate in that project. If the CRC determines that the project is not an appropriate investment of TIF funds, then that amendment to the ED Area simply does not occur. If the CRC determines that the investment of TIF funds is appropriate, then the ED Area can be simply amended. This strategy gives the CRC maximum flexibility and control over the TIF process and the distribution of TIF funds. Old Meridian Economic Development Plan: Carmel, Indiana 9 In addition to considerations related to the redevelopment aspects of the proposed ED Area, there is the additional complication of the presence of a major non profit entity in the overall area. The dominant single corporate presence in the overall ED Area is St. Vincent's Hospital. If St. Vincent's expands its presence in the area, there will be obvious complications in the development proposal related to the taxable status of St. Vincent's. The CRC must consider such issues carefully because the financial participation of the CRC in any project is largely based on the amount of property tax revenues generated by the proposed development. Map #1 reflects this recommendation. The base ED Area proposed to be created at this time is a smaller area including the elementary and junior high schools and the southwest quadrant of the intersection of Guilford Avenue and 131" Street. Obviously, the schools have no net assessed value which could complicate the redevelopment situation. At the same time, the property in the southwest quadrant of 131 Guilford Avenue has a current development proposal which is being reviewed by the Plan Commission and DOCS staff. By creating an ED Area which includes only this small portion of the entire Old Meridian planning area, the CRC will know the TIF implications of the ED Area designation exactly, enabling the CRC to make the best possible decision relative to TIF. At the same time, Map #1 also shows the entire expanse of the Old Meridian planning area and clearly shows that the future of the ED Area could include the entire Old Meridian planning area, or some portion thereof By clearly showing the entire Old Meridian planning area as being the potential future boundaries of the ED area, the CRC provides the public with a clear indication of its long -term intent with regard to the implementation of the Old Meridian redevelopment strategy. At the same time, using the phased approach to this ED area designation, the CRC is not committed to supporting any project within the ED Area. This is expected to have the impact of encouraging the prospective developer to comply /conform to the high standards which the Plan Commission has set for this area. As future development takes place, the CRC can consider each project separately and finance those where the parameters meet the developmental goals of the City, as prescribed in the Old Meridian planning documents. Wabash Scientific, inc., considers this to be the most effective means of achieving the developmental goals of the city for this critical development area. Old Meridian Economic Development Plan: Carmel, Indiana 10 Writing the ED Plan to Reflect the Phased ED Area Commensurate with the recommendation for a phased approach to creation of the Old Meridian ED Area, Wabash Scientific, inc., will develop the ED Plan in a manner that supports both the initial creation of the base ED Area and the future opportunities for expansion of the ED Area. This will be accomplished by addressing the findings of fact in the ED Plan to the entire Old Meridian planning area and then to specifically address the same findings to the base ED Area, as recommended. In pursuing this approach, Wabash Scientific, inc., enables the CRC to review the large picture alongside the smaller picture and then make its final decision, either endorsing the phased approach, or simply designating the entire Old Meridian ED Area at this time, based on its own best judgment and weighting of the various pieces of the information provided. Legal Description of the ED Area The boundaries of the overall Old Meridian Economic Development Area are described as follows: Beginning at the point of intersection of the southern right of way line of 131s Street and the western right of way line of Guilford Avenue, then proceeding westward, along the south right of way line of 131s Street to the point of intersection with the western boundary of parcel number 16-09-25-03-00- 01- 003.000, then southward along the western boundary line of parcel number 16- 09- 25 -03- 01- 003.000 to the point of intersection with the northern property boundary of parcel number 16- 09- 25 -00 -00 -019, then westward along the northern property boundary of parcel number 16- 09 -25- 00 -00 -019 to the northwest corner of said parcel, then southward, along the western boundary of said parcel 16- 09- 25 -00 -00 -019 to the point of intersection with the northern boundary of parcel number 16- 09 -26- 00 -00 -012 (at the northeast corner of parcel 16- 09- 26 -00 -00 -012), then westward, along the northern boundary of parcel number 16-09-26-00-00- 012 to the northwest corner of said parcel, then southward, along the western boundary of parcel 16- 09- 26 -00 -00 -012 to the southwest corner of said parcel, Old Meridian Economic Development Plan: Carmel, Indiana 11 then eastward, along the southern boundary of parcel 16- 09- 26 -00 -00 -012 to the southeast corner of said parcel, which coincides with the southwest corner of parcel number 16- 09- 25 -00 -00 -019, then continuing eastward, along the southern boundary of parcel number 16 -09- 25 -00 -00 -019 to the point of intersection with the western right of way line of Guilford Avenue, then northward, along the western right of way line of Guilford Avenue to the point of beginning. Map #1, included with this ED Plan, shows the boundaries of the proposed base Old Meridian ED Area, as well as showing the entire Old Meridian area, as designated by the Plan Commission. Zoning Land Use within the Proposed ED Area The zoning within the proposed ED Area is a rather bizarre mixture, which is common in areas of older commercial and residential development. The Zoning Map of the Area is included as Appendix B to this report. THE OLD MERIDIAN ZONING CA TEGOR Y It is easy to see the impact of the Task Force's work on the zoning of the proposed ED Area, because those zoning designations which were changed as a result of the Old Meridian Task Force study are designated on the map legend with the prefix "OM There are 8 separate "OM" zoning designations, ranging from open space to multi- family, to multiple use, to special use, as well as others. These areas are designated in green on the Zoning map and comprise the majority of the overall ED Area. The "OM" zoning areas are expected to generate the greatest potential for development/redevelopment, in multiple forms. Each of these forms must be examined separately and independently by the CRC before committing to participating in any proposed project in these areas. "OM/MF" ZONING IN THE BASE ED AREA The southwest quadrant of the intersection of Guilford Avenue and 131' Street is proposed to be included in the base Old Meridian ED Area. This area is zoned "OM /MF" which, if carefully managed by the CRC and its attorneys, could qualify to contribute to the property tax increment of the base ED Area. The "OM /MF" area is shown on Map #1 as part of the base ED Area, while the zoning is shown on the Zoning map contained in Appendix B. Old Meridian Economic Development Plan: Carmel, Indiana 12 ST. VINCENT'S HOSPITAL In addition, the Zoning map shows a dark blue area, in the extreme northern portion of the overall ED Area, which is occupied by St. Vincent's Hospital, and is designated as B -6 zoning. This area presents the greatest potential for confusion with respect to the future activities of the CRC, due to the tax status of the St. Vincent's facility. It should be expected that at least a portion of the redevelopment of the Old Meridian area will be implemented through expansion of the St. Vincent's facilities. Although the CRC is fully supportive of the expansion of St. Vincent's presence in the area, it is obvious that their taxable status will have an impact on the type and amount of assistance which the CRC might offer. CARMEL -CLAY SCHOOLS INJ THE BASE ED AREA The proposed base ED Area also retains the significant presence of two school facilities (shown in beige on the Zoning map), including the junior high school and an elementary school. Obviously, these two facilities are tax exempt, which would have an obvious impact on the ability of such property to generate tax increment. It is possible that the schools would be expanded, which would generate no new property taxes for the City or the CRC, and which might actually reduce property tax revenues, if the expansion of the school causes the removal of taxable property from the base assessed value of the ED Area. This represents further reason for the incremental or phased approach to the creation/designation of the Old Meridian ED Area as the most flexible and beneficial approach to the long term redevelopment of the area. RESIDENTIAL AREA The area shown in yellow on the Zoning map is a residential area, zoned S -2, and located north of 131 Street between Penn and Old Meridian. The area has four streets: Lynne; Sonna; Vivian and Catherine Drives, and represents the only traditional residential subdivision in the overall ED Area. The presence of this residential subdivision also has TIF consequences, because traditional single family development cannot participate in property tax increment, under the statute. As such, this represents another issue which the CRC should examine closely in future TIF decisions, and another reason for the phased /incremental ED Area designation strategy. CHURCH FACILITIES A church is located in the extreme northwest corner of the overall Old Meridian ED Area. Obviously, this property also raises substantial Old Meridian Economic Development Plan: Carmel, Indiana 13 questions with regard to property tax increment impact. Since it is a church, the property is obviously tax exempt, however, the amount of property owned by the church, and the obvious advantages of its location, it is possible that additional development could be proposed. This is another reason in support of the phased /incremental designation strategy. IMPACT OF THE OLD MERIDIAN PLAN The Carmel Comprehensive Plan is not ambiguous in its intent to allow the area within the proposed ED Area to be developed with multiple forms of new development. The provisions of the Old Meridian plan await the arrival of developers willing to make the necessary investment to implement the proposed development/redevelopment projects. The Comprehensive Plan and established zoning clearly set forth the future development expectations of the land in the ED Area, and the Thoroughfare Plan is equally clear in setting forth the need for developing the various internal transportation corridors. The City and Plan Commission commissioned a special plan for the Old Meridian corridor and has approved the Plan, as well as an overlay zone for the area, as shown on the maps attached in the appendix. These additional, supplemental planning efforts were undertaken to provide the City with a uniform plan of development for the proposed overall ED Area. Let it be fully understood that this Old Meridian ED Plan purports in every way to conform with the terms of the previous body ofplanning for the City of Carmel and for this specific area. CONCLUSIONS REGARDING THE O VERALL ED AREA The proposed overall ED Area is appropriately defined and is firmly established for development in the plan of development of the community. Furthermore, the creation of the Old Meridian plan has also been well established through painstaking planning and public review on the part of the City and the Plan Commission. There can be no reasonable question of these facts. The preliminary designation of the overall ED Area will support the long- term development goals of the community by providing the community with the opportunity to capture TIF revenues to supplement other funding for construction of the various improvements necessary to support the development /redevelopment of the Old Meridian area. CONCLUSIONS REGARDING THE BASE ED AREA The proposed base ED Area is simply a sub -part of the proposed overall Old Meridian ED Area. While the proposed overall ED Area represents Old Meridian Economic Development Plan: Carmel, Indiana 14 the area included in the Old Meridian Task Force Study, the proposed base ED Area includes only the school property and the area zoned "OM /MF" located at the southwest quadrant of the intersection of Guilford and 131St Street. By designating only this smaller section of the ED Area, the CRC will retain greater flexibility and management control over the long term participation of TIF in the future development of the overall ED Area. Conformity With Other Plans The designation of the proposed ED Area conforms in all respects with the overall plan of development of the community because it is proposed for the specific purpose of implementing the recommendations of the comprehensive plan, including all special district planning which has been undertaken to study various development issues in greater detail. In this case, the Old Meridian corridor has special zoning and development standards which were defined through an extensive planning and public input process. The Old Meridian plan was developed in sufficient detail to generate specific zoning for individual tracts of land within the planning /study area, and the purpose of creating the proposed ED Area is to facilitate the development of the property in accordance with the supplemented standards. The zoning map for the ED Area (un- edited to be shown in its original form) is included in Appendix B of this ED Plan. The zoning map shows that the previous zoning for the area has been revised to retain special zoning designation as "OM" zoning, as a result of the work of the Old Meridian Task Force. Neither the ED Plan, nor the action of designating the ED Area proposes to alter this zoning. By extension, the approval of this ED Plan by the CRC will constitute formal demonstration that the CRC does not intend to alter or affect the decisions of the Plan Commission or the City with regard to future land use and zoning decisions related to future development in the ED Area. In fact, the main purpose of creating the proposed ED Area is to facilitate redevelopment in accordance with these enhanced community expectations by enabling the CRC to participate economically in some of the projects. In addition, Appendix A of this ED Plan contains a summary map of the "Old Meridian Task Force" map /plan summary which further illustrates the intent of the Plan Commission with regard to the proposed development in the area. It is the intent of the CRC, in designating the Old Meridian Economic Development Plan: Carmel, Indiana 15 proposed ED Area, to facilitate the development in the area which is approved by the Plan commission and the City as conforming to the overall plan of development of the community. These maps clearly demonstrate the planning background and conformity of this ED Plan with the overall plan of development of the community. A more detailed review of the body of documents comprising the Carmel Clay comprehensive plan will generate even greater substantiation of these assertions. For these reasons, the proposed overall ED Area is found to comply with the statutory requirements related to conformity with the plan of development. Summary of the Old Meridian District Plan A printed summary of the Old Meridian Task Force report is attached in Appendix A. A brief summary of that document is presented below. The Old Meridian Task Force has been working for more than a yaer to plan for the development of the northeast area of Carmel between Old Meridian Street and the US 31 Corridor. Approximately 300 acres comprise the area to be developed. The vision of the Task Force is to create a different kind of environment that is more like an old- fashioned village or Main Street. The Old Meridian Village will be a walkable place where shops are lined up along a sidewalk. Sidewalk cafes will offer shoppers a place to meet neighbors while nearly apartments, condominiumss and single family homes will offer convenient housing.. Old Meridian Street will be the central focus of the plan., with new retail activity being concentrated a few blocks north of Carmel Drive. Old Meridian Street offers high visibility for the new Village district but no so much traffic that it overwhelms pedestrian activity. The second major feature of the plan is the creation of radical boulevards that connect through the site. The Grand Boulevard is the widest, offering a park -like median that will allow walking and biking trails. Smaller boulevards will also connect across the area, providing multiple access points that are important in supporting pedestrian traffic and low volume street traffic. Outside the central retail and residential area, new office development is anticipated on the north and south areas of the site. The character of the Old Meridian Economic Development Plan: Carmel, Indiana 16 district will be more urban than suburban and an eclectic mix of architecture is expected. Most buildings will be multi -story with single story, single use buildings being discouraged. The Fiscal Strategic Plan In 2000, the City completed a Fiscal Strategic Plan covering the portion of Clay Township east of Spring Mill Road. That analysis demonstrated conclusively that the City's growth east of Spring Mill Road will be limited to an average of about 1% per year over the next 20 years, as the area east of Spring Mill becomes more developed, and less land is available. In recent years, the City has grown at a rate of 5% to 10% annually. These growth limitations forecast an economic scenario which requires that the City begin to address immediate infrastructure needs without relying on the revenue growth generated by new development. The Fiscal Strategic Plan has two outcomes which lend themselves to the designation of the Old Meridian ED Area. First, the designation of the ED area would enable the City to capture TIF revenues to pay for at least part of the needed improvements in the Old Meridian area. Second, the Fiscal Strategic Plan's findings underscore the importance of assuring that infrastructure needs of areas currently within the city limits will be addressed before revenue growth becomes severely restricted. Virtually all of the proposed Old Meridian ED Area is already within the city limits of Carmel and the area is in need of such improvements. Creation of an Economic Development Area A community may choose to create an Economic Development Area (ED Area) to implement an economic development strategy within an area, as well as for the purpose of achieving other community development goals in the area. As provided in Indiana law, the community can use a number of economic incentives to recruit new business, develop new public infrastructure, encourage new development or create new economic opportunities for its citizens, including various forms of public financing such as the use of the County Option Income Tax (COIT) bonds, and tax increment financing (TIF). The creation of an ED Area is part of an overall strategy for implementing a community's economic development plan and for achieving its developmental goals. This matter is of particular importance with regard to the City of Carmel. The Carmel Comprehensive Plan has noted for some time that the Old Meridian Economic Development Plan: Carmel, Indiana 1 planning area will be fully developed by the year 2020. At such time as full development is achieved, the fiscal growth parameters of the City will be substantially curtailed, which will directly affect property tax revenues. The City completed a Fiscal Strategic Plan in 2000 which showed that the amount of undeveloped land east of Spring Mill Road in Clay Township would add less than 20% to the overall development of the City. The impact of this finding especially taken in conjunction with the comprehensive plan finding that the City of Carmel will be built out by the year 2020 is that the City must take extreme care to make certain that its infrastructure needs are well planned and methodically addressed, prior to reaching "build out." Once the City has achieved full development and there is no more open land for development municipal revenue growth from property taxes will be essentially halted, and growth in COIT revenues will be restricted, unless the County develops other areas to replace the market for Carmel land. Consequently, the designation of the proposed Old Meridian ED Area would enable the City to address infrastructure needs in this area by initiating the implementation of the various infrastructure and other improvements in the area at this time. The proposed ED Area will be administered by the Redevelopment Commission. The Economic Development Area must be created through approval actions by the Redevelopment Commission, the Plan Commission and the City Council, following the statutory process in IC 36 -7 -14. Creation of an Economic Development Area does not directly result in the issuance of any municipal debt in any form. It does, however, enable the community to issue tax exempt municipal bonds (payable from a number of revenue streams) to pay for those public improvements which would generate and shape economic growth in the ED Area, and would otherwise implement the Economic Development Strategy for the ED Area. Any decision on financing, however, is separate from the decision to establish an economic development area. It is important to note that the designation of an Economic Development Area includes no powers of eminent domain accruing to the Carmel Redevelopment Commission (CRC) within the proposed ED Area. The City, of course, retains the power of eminent domain for public purposes, however, the CRC's power of eminent domain can be exerted only in areas designated as "redevelopment areas." The proposed Old Meridian ED Area does not include such powers. Therefore, the Redevelopment Commission will have no power of eminent domain in the proposed ED Area, and may not acquire land without the owner's consent under Indiana law (IC 36- 7- 14 -43). Voluntary acquisition of land, however, is allowable under these provisions. Old Meridian Economic Development Plan: Carmel, Indiana 18 Statutory Requirements The minimum contents of an Economic Development Plan (ED Plan) are set forth in Indiana Code. IC 36 -7 -14 through 41 states that: "The (redevelopment) commission may, by following the procedures set forth in sections 15 through 17 of this chapter, approve a plan for and determine that a geographic area in the redevelopment district is an economic development area. Designation of an economic development area is subject to judicial review in the manner prescribed in section 18 of this chapter. (b) The commission may determine that a geographic area is an economic development area if it finds that: (1) the plan for the economic development area: (A) promotes significant opportunities for the gainful employment of its citizens; (B) attracts a major new business enterprise to the unit; (C) retains or expands a significant business enterprise existing in the boundaries of the unit; or (D) meets other purposes of this section and sections 2.5 and 43 of this chapter; (2) the plan for the economic development area cannot be achieved by regulatory processes or by the ordinary operation of private enterprise without resort to the powers allowed under this section and sections 2.5 and 43 of this chapter because of (A) lack of local public improvement; (B) existence of improvements or conditions that lower the value of the land below that of nearby land; (C) multiple ownership of land; or (D) other similar conditions; (3) the public health and welfare will be benefitted by accomplishment of the plan for the economic development area; (4) the accomplishment of the plan for the economic development area will be a public utility and benefit as measured by: (A) the attraction or retention of permanent jobs; (B) an increase in the property tax base; Old Meridian Economic Development Plan: Carmel, Indiana 19 (C) improved diversity of the economic base; or (D) other similar public benefits; and (5) the plan for the economic development area conforms to other development and redevelopment plans for the unit. (c) The determination that a geographic area is an economic development area must be approved by the unit's legislative body. The approval may be given either before or after judicial review is requested. The requirement that the unit's legislative body approve economic development areas does not prevent the commission from amending the plan for the economic development area. However, the enlargement of any boundary in the economic development area must be approved by the unit's legislative body." Findings of Fact This Economic Development Plan will directly address the statutory requirements of 36- 7- 14 -41, as stated previously through explanation of the following findings of fact. FINDING 141A: PROMOTING OPPORTUNITIES FOR EMPLOYMENT The measurement of new employment opportunities for potential commercial and multi family development is complicated, but the jobs exist, nonetheless. The property proposed for the base ED Area includes the schools and the tract on the southwest corner of Guilford and 131st Street, which is zoned OM -MF (multi family). Employment in the Base ED Area: It is clear that the school locations were determined long before Carmel experienced its explosive growth in western Clay Township, and both of the school buildings in the base ED Area are older facilities. Both schools are located in solid, established neighborhoods, and the Old Meridian plan is to reinforce those neighborhoods with planned development, which therefore, would further secure the role of the schools in the Old Meridian area. Obviously, the schools employ teachers, administrators, and support personnel, and the goal of the Old Meridian plan is to assure that urban blight does not take over this neighborhood. The CRC's role in designating an ED Area can be both promotional and preventive. A promotional role is taken when the Old Meridian Economic Development Plan: Carmel, Indiana 20 CRC can offer benefits accruing to the property within an ED Area. A preventive role can be taken when the CRC is trying to protect a neighborhood from deterioration and blight, as is the case in the Old Meridian area. In the case of the base ED Area, the CRC promotes opportunities for employment by providing incentives for managed growth in an existing neighborhood, and stabilizing the neighborhood. By stabilizing the neighborhood, the jobs in the schools are protected and opportunities for employment are promoted, thus meeting the statutory requirement of this finding of fact. In addition, the development proposed for the southwest corner of 131 Guilford will also promote employment opportunities in the form of construction jobs, as well as permanent jobs in maintenance and management of the proposed facility. While these opportunities are not yet quantified, they are nonetheless very real and legitimate, thus further meeting the statutory requirements of this finding. Employment in the Overall ED Area: The Old Meridian plan which was presented by the Task Force and approved by the Plan Commission and the City calls for the development and or redevelopment of an existing area which was originally developed more or less as a strip commercial area along the old US31 alignment. This aging development substantially under utilized the land and did not provide for suitable infrastructure. As Carmel grew around this area, the area became less and less responsive to the new and growing community thus exhibiting the early signs of urban blight. The Old Meridian plan sought to curtail these influences and provide positive direction for new development. The designation of the overall Old Meridian ED Area is the CRC's affirmation of the work of the Plan Commission and the City in this area. FINDING #1B: ATTRACTS A MAJOR NEW BUSINESS ENTERPRISE The Old Meridian plan was formed for the specific purpose of bringing major new business enterprises to the area. The planning area was about 300 acres in size with intermittent existing development, and the plan contains four stated goals (see Appendix A: "Old Meridian Task Force Report"), as follows (condensed, with emphasis added): Old Meridian Economic Development Plan: Carmel, Indiana 21 1. A plan that provides...higher density, mixed use lifestyle. Unique, pedestrian friendly, with day and night activity. 2. A plan that can be implemented as the area is developed. It responds to market forces, and the willingness of the City to provide infrastructure.... 3. A plan that uses the City's planning authority in creative ways, but is easily understood.... 4. A plan that will provide for Carmel's unmet needs for housing, special and service retail, and entertainment uses. The Old Meridian District plan is succinct and straightforward, it seeks to create an old- fashioned, Main Street type atmosphere, supported by higher density housing. The plan states, "The Old Meridian Village, which contains retail stores, will be a walkable place where shops are lined up along a sidewalk, rather than suspended in a sea of parking. Sidewalk cafes will offer shoppers a place to stop and meet neighbors...at night, restaurants and other entertainment venues will light up, creating a lively place for all of Carmel's residents to stroll down Old Meridian...." The plan clearly states both its development intent and the expected role of the City. In developing this ED Plan and designating the proposed ED Area, the CRC is taking the first steps toward filling its expected role. As such, the ED Area will play a specific role in attracting major new business enterprises to the Old Meridian area, thus meeting the statutory requirements of this finding of fact. New Business Enterprise in the Base ED Area The plan shows two retail area: the main retail area concentrated on Old Meridian, north of Carmel Drive, and a second, smaller area located on the southwest corner of 131" Guilford. The Base ED Area contains this secondary retail area, while the 126th Street ED Area (previously designated) contains the primary retail site. It is clearly the goal of the Old Meridian plan to create neighborhood centers which possess a small amount of retail space to support the immediate neighborhood. While these neighborhood retail spaces are generally small, especially when compared to the "big box" retail which dominates the retail landscape. Despite the small size, however, these retail spaces are of "major" importance to the success and convenience of the surrounding neighborhood. The plan clearly set forth its expectations with regard to the future development of the Old Meridian area that the area will be developed in an intense but low -key fashion, with well planned amenities and convenience for Old Meridian Economic Development Plan: Carmel, Indiana 22 the community at large. In designating the Base ED Area, the CRC will take its first step in not only endorsing the approved plan, but in beginning the CRC's active participation in implementing the work of the Plan Commission. Based on these considerations, the statutory requirements of this finding are fulfilled by the Base ED Area. New Business Enterprise in the Overall ED Area In addition to the small retail area included in the Base ED Area, the Old Meridian District includes two major concentrations of office development, both centered on Old Meridian, with one at the north end, near St. Vincent's, and the second located south of 131S` Street. Obviously, the intent of these office developments is to attract major new business enterprise, and the subsequent employment that results therefrom. These provisions are clearly shown in the maps located in Appendix A. As in the case of the Base ED Area, the plan does not seek to attract huge corporate office headquarters, but instead is expected to contain low- to mid -rise office space, which is usually designed for smaller users and small, independent businesses. Again, despite the fact that the plan does not designate its intent to attract mega -space users to the Old Meridian District, the plan's meaning and intent are clear. It is the position of Wabash Scientific, inc., that the statutory meaning of "major business enterprise" is validly met by the fulfillment of the intent of the Plan Commission to fill such office space with smaller users, to compile a "major" business impact on the community at large. Further, the office area at the north end, near St. Vincent's Hospital is likely to be developed to contain various forms of health -care and medical support facilities. Such facilities are routinely located near hospitals, for the convenience of both patients and medical professionals, and the functions performed in such facilities parallel the work of the hospital in many ways. As such, the ability of the overall ED Area to meet the statutory requirements of `attracting major new business enterprise' is further substantiated by the likelihood that a substantial portion of this northern office area will be filled by functions affiliated with the `major business enterprise' located at St.Vincent's. In fact, it should be expected that the designation of the overall ED Area will be pursued at some point in the future for the purpose of determining the extent to which the CRC can help the hospital to expand its role in the Old Meridian Economic Development Plan: Carmel, Indiana 23 community at this location. The health care industry is in the process of re- inventing itself for a number of reasons. As such, the developmental needs of the health care industry are constantly changing to meet this evolutionary process. We expect St. Vincent's to be on the cutting edge of this evolution and the designation of the overall ED Area will help St. Vincent's to attract new supporting, complimentary and ancillary business functions to the Old Meridian District. For these reasons, it is the determination of Wabash Scientific, inc., that the overall ED Area meets the statutory requirements of the `attracting new business enterprise' to the area. FINDING #1 C: RETAINS OR EXPANDS A SIGNIFICANT BUSINESS The development plan for the proposed ED Area recognizes that existing businesses are already located in the area, and gives those businesses the opportunity to remain in the area, and hopefully to expand their operation, in accordance with the design standards of the Old Meridian District. Recently, for example, there was a fire in one of these buildings, which could present an opportunity for that business location to redevelop itself to conform to the new standards. While the Task Force recognized the presence of these existing businesses and provided for them to remain in the Old Meridian area, it was made equally clear that their future growth would not be allowed to occur in as haphazard a fashion as it was originally. As such, the statutory requirements of this finding are considered fulfilled. Retaining /Expanding Business in the Base ED Area The Base ED Area is deliberately proposed for designation as a small, confined area, where the land use issues are simple and constrained. The dominant occupant of the base ED Area is the school corporation, which has two schools and a woodland in the ED Area. It is not anticipated that the schools' role in the neighborhood will change, however, it is recognized that the growth in school district population will have an impact on the demand on all of its facilities. Since the schools are property tax exempt, it is difficult to know whether the CRC can offer any realistic benefit which would assist the schools in any reconfiguration of facilities, but as noted in the plan (Appendix B and stated above), the City and CRC could potentially use the benefits of the ED Area "in creative ways" to help all parties meet constructive ends. Old Meridian Economic Development Plan: Carmel, Indiana 24 It is clear that the presence of a neighborhood school is a major stabilizing factor in local property values. As such, the school's presence is currently believed to be important to the Old Meridian area. In the future, it is also possible that the strength of the local, neighborhood economy may become so strong that the school real estate has greater value for redevelopment as a business -use than as a school facility, which can easily be accommodated by the CRC for economic benefits. Base on this evidence, it is the determination of Wabash Scientific, inc., that the Base ED Area fulfills the requirements of this statutory finding. Retaining /Expanding Business in the Overall ED Area The Old Meridian plan provides for two possible developmental outcomes. First, the possibility that existing businesses will be encouraged to expand their businesses in accordance with the enhanced standards set forth in the district's special zoning. Second, the plan provides for the possibility that some tracts of land will be purchased and redeveloped by various business entities, including both private users and developers. The CRC is agreeable to any development or redevelopment proposal from an existing business, so long as the Plan Commission determines that the proposal meets the appropriate development standards and zoning requirements. As such, this statutory requirement is fulfilled in the provision of possible benefits to existing businesses. The overall ED Area has one very major business, located at the north end of Old Meridian (as noted above) St. Vincent's Hospital. The community at large acknowledges the importance of St. Vincent's Hospital as a major benefit to the community's health care. The hospital routinely performs such services as various forms of low -cost or free health care screening, including such things as skin cancer, which are staffed by top quality medical personnel. Such tremendous benefits accrue to the community because of the presence of St. Vincent's, and it is in the best interests of the City to retain St. Vincent's and to facilitate its expansion. By designating the overall ED Area, the CRC facilitates the retention and /or expansion of St. Vincent's, thereby fulfilling this statutory requirement. It is recognized that the property tax status of St. Vincent's will affect the final outcome of any such facilitation, however the designation of the overall ED Area will certainly provide potential benefits which could be Old Meridian Economic Development Plan: Carmel, Indiana 25 valuable to the retention or expansion of St. Vincent's operations, if used "in creative ways," as provided in the plan. FINDING #1D: SERVES TO PROTECT PROPERTY VALUES The Old Meridian plan was painstakingly developed because the current trend in the area was toward deterioration of the existing property. It was the determination of the community, and the response of the Plan Commission, that the area was under developed and that the land was not being fully utilized, and that significant new investment would be necessary to halt the deterioration in the property, as developed. In addition, the Plan Commission and the community acknowledged that development standards for the community had increased since these developments originally occurred, thereby making the Old Meridian area appear out of date and tired. Since the original development standards were no longer applicable, it was necessary for the community to clearly enunciate the development standards which they expected in order to rehabilitate the area. The Old Meridian plan sets new development standards to renew development activity in the area, which will "respond to market forces," as stated in the plan. All of these actions were taken for the purpose of protecting current and future property values in the Old Meridian area, and as such, the proposed ED Area fulfills the requirements of this finding of fact. Protecting Property Values in the Base ED Area The dominant land use in the Base ED Area is the schools. The presence of the neighborhood elementary and middle schools means that neighborhood families can have their children go to a neighborhood school from approximately age 5 (kindergarten) to approximately age 14 (8` grade). The convenience of the school location reduces the number of vehicle trips for school related purposes, increases the relative safety of children traveling to and from school, and reduces the operating transportation cost for the school system by reducing the number and length of bus trips. All of these things are generally viewed as positive amenities with regard to the protection of property values in the area. As such, the intent of the CRC to be supportive of the schools' presence in the Base ED Area is a positive link between the creation of the base ED Area and the protection of neighborhood property values. This argument stands as sufficient to meet the statutory requirement of this finding of fact, with regard to the Base ED Area. Old Meridian Economic Development Plan: Carmel, Indiana 26 Protecting Property Values in the Overall ED Area The Old Meridian Task Force was convened for the specific purpose of developing a development/redevelopment plan which would protect the property values in the Old Meridian area. As such, Wabash Scientific maintains that any activity by the CRC which affirms the conclusions and recommendations of the Task Force report and the affirmation of the Plan Commission can be consequently determined to serve this same goal protection of property values. This argument can also be taken a step farther. Since the CRC has always and judiciously avoided taking any position on any development proposal until that proposal received the approvals necessary for the zoning/development process (either by the Plan Commission or other authority of the City), the CRC has allowed the development review /approval process to work independently of the actions of the CRC. By allowing the approval process to work without CRC intervention, the CRC underscores the jurisdiction of these other authorities in the development process. Therefore, when the CRC considers the creation of an ED Area based on a plan which was independently approved by the Plan Commission, the CRC can rightfully expect that its action in creating the ED Area affirms and supports the goals and objectives of the Plan Commission. Since one of the goals of the Old Meridian Task Force was to protect property values, it can be reasonably concluded that the CRC is supporting those same goals in creating an ED Area to support the development activity recommended in the approved plan. The Old Meridian plan was clearly set forth in simple language. Its intent was to create a developmental basis for rehabilitating an area of tired, underdeveloped real estate into a dynamic new neighborhood which would meet the long -term needs of the City. The CRC hereby affirms the Old Meridian plan, and creates the proposed overall Old Meridian ED Area for the purpose of joining the Plan Commission and the City in partnership to achieve the goals set forth in that plan. As such, the statutory requirements of this finding appear to be fulfilled. FINDING #2: THE PLAN... CANNOT BE ACHIEVED BY REGULATORY PROCESSES OR BY THE ORDINARY OPERATION OF PRIVATE ENTERPRISE.... In crafting the statute, the Legislature sought to insure that the benefit of ED Area designation would not be abused, and in so doing the language of Old Meridian Economic Development Plan: Carmel, Indiana 27 Finding #2 was crafted. In this case, the purpose of this provision is to require the CRC to determine whether the goals of the Old Meridian plan could be achieved through enhancement of the regulatory (zoning and development standards) process, or by the "ordinary operation of private enterprise" (i.e., the businesses could help themselves through better management or more efficient production techniques). The question is extremely valid, especially when considering the propriety of investing public funds into private sector projects. The Old Meridian Task Force did not seek to simply create economic activity, as might occur in communities starved for growth or neighborhoods victimized by urban blight. If the simple goal was to generate some form of economic activity in the area, Carmel could have done what other communities often do buy the land and give it away as an economic perk to create activity (or the illusion thereof). Carmel does not have these problems to the degree experienced by other communities. The Task Force wanted renewed economic activity in the Old Meridian area, but they also wanted that economic activity to aspire to the highest standards of development. The Task Force carefully considered the attributes of the area and developed a plan to create a very special new neighborhood where the central theme of the development was small business and community interaction. The plan includes very high standards for thoroughfare aesthetics with substantial amounts of green space to co -exist with higher density development. Clearly, the Task Force did not seek to "lower the bar" for developers by making development/redevelopment in the area cheaper or easier. Instead, the Task Force's recommendation was to elevate the development standards (rather than lower them) while offering density incentives to offset a part of the increased cost. By setting enhanced development standards, the Plan Commission promotes neighborhood beauty, but simultaneously creates economic pressure on the developer. Instead of relaxing the regulatory process in order to spur development, the Task Force wanted to limit develop activity to only those developers with the intent and capacity "to do it right." When the Task Force selected this approach, they effectively rejected the possibility of achieving the goals of the plan by either the regulatory process or by the normal operation of private enterprise. Development standards for the Old Meridian area are so unique that they required a special set of zoning categories, as well as special subdivision regulations. The Task Force deemed that these precautions were necessary Old Meridian Economic Development Plan: Carmel, Indiana 28 in order to assure the highest quality development. Since the standards were set so high, it is necessary for the City and the CRC to consider the scope of appropriate public sector activities necessary to get the development /redevelopment process moving forward. One of the primary areas where development standards were set extraordinarily high was in the area of corridor aesthetics. Such amenities as tree lined streets, pleasant parks, boulevard streets, pedestrian areas and landscaped medians are expensive. As such, it was anticipated by the Task force and the Plan Commission that public sector incentives would be necessary to implement these enhanced aesthetic standards. The high standards for development actually increased the regulatory burden (rather than lowering the burden) and created a negative development incentive, which the normal operation of private enterprise was unlikely to accept. For these reasons, it is clear that neither regulatory processes nor the normal operation of private enterprise will help to achieve the plan. Because of these considerations, this statutory requirement is met through the proposed designation of the Old Meridian ED Area, in both the base area and the overall area. FINDING #2A: LACK OF LOCAL PUBLIC IMPROVEMENTS Findings #2A and #2B are fundamentally the same argument. The Task Force has determined that high standards for infrastructure (a.k.a., `local public improvements') are necessary in order to meet the developmental goals for the area. A development proposal without such local public improvements as tree lined streets, pleasant parks, boulevard streets, pedestrian areas and landscaped medians would not be approved. Such amenities certainly do not exist at this time, either. Therefore, it was the lack of existing local public improvements which helped to generate the need for the special planning effort for Old Meridian, and the lack of those improvements forms the core of the reasoning for creating the ED Area. The Old Meridian plan calls for local public improvements which do not currently exist and which will be very expensive to install, such as boulevards with landscaped medians, enhanced sidewalks, parks, special street lighting and public spaces. Previous development standards included only strip rural highway business development patterns without sidewalks and other amenities now required in virtually every zoning classification in Carmel. Such conditions exist in various levels throughout the ED Area. Old Meridian Economic Development Plan: Carmel, Indiana 29 Because these public improvements are required for future development, yet they are currently not present in the ED Area, it is appropriate for the CRC to consider creating an ED Area for the purpose of possibly offering enhanced public financing to provide these local public improvements. Therefore, it is the finding of this ED Plan that the proposed ED Area (both the Base area and the Overall area) fulfill the requirements of this statutory finding. FINDING #2B: THE COST OF INFRASTRUCTURE PREVENTS DEVELOPMENT Findings #2A and #2B are fundamentally the same argument. The term "local public improvements" means essentially the same thing as "infrastructure" in modern nomenclature. The information presented above with respect to the Task Force's recommendations for high development standards closely parallels the similar argument related to the high cost of the infrastructure called for in the Old Meridian plan. As noted above, "such amenities as tree lined streets, pleasant parks, boulevard streets, pedestrian areas and landscaped medians are expensive," yet they form the core of the "OM" zoning designation. In order for a developer to undertake any project which would aspire to these high development standards for infrastructure, the cost of these infrastructure amenities would almost certainly be prohibitive, for both the Base ED area and for the Overall ED Area. The CRC acknowledges the costs associated with these high standards for infrastructure development (in part because similar high standards were applied to the Downtown Streetscape project which the CRC helped to fund). In acknowledging that the costs are high, the CRC simultaneously acknowledges that the community should consider the possible investment of public funds which is made possible through the designation of the proposed Old Meridian ED Area. Based on these considerations, it is determined that the proposed Old Meridian ED Area (both the Base area and the Overall area) meet this statutory requirement, because both areas must meet these higher development standards. FINDING #2C: EXISTENCE OF CONDITIONS THAT LOWER THE VALUE OF LAND... At this point in this ED Plan, it should be clear to even the most casual reader that the existing development in the Old Meridian District does not conform to the type of high standards that are common in modern developments in Carmel. The original development standards for the rural highway types of development that currently exist were very lax, compared to current standards. Buildings were placed on large lots to Old Meridian Economic Development Plan: Carmel, Indiana 30 accommodate septic tanks. Ingress /egress to adjacent developments were installed in a manner that created unnecessary traffic conflicts. Setbacks and landscaping plans were random and disconnected. Residential buildings were converted to business uses without the support facilities required to adequately serve business uses. All of these conditions created an aesthetic impression that the area was deeply in need of modernization and reinvestment. To put it bluntly, the Old Meridian area looked very out of place in Carmel. The local demographics and location amenities were strong, however, the lack of reinvestment and consistent development standards caused the value of the underlying raw land to exceed the value of the total land and improvements, in some cases. For example, several properties have only nominal buildings set near the front of a large site (so as to minimize the cost of the driveway). If the building were removed, the site could hold substantially more development, yet still be configured to provide adequate parking, ingress /egress, greenspace, and thoroughfare right of way. In short the land which comprised the back yard of these strip developments was almost totally wasted. Most communities usually simply allow such areas to languish, often deteriorating into blight, before remedial actions are taken. The City of Carmel and the CRC are acting in an anticipatory fashion, seeking to direct the redevelopment effort by setting consistent standards, signaling to subsequent developers that their new investment will be protected by high standards for subsequent developments. It is clear that the proposed Old Meridian ED Area (both the Base area and the Overall area) are subject to conditions that lower the value of the land in the District. As such, this statutory finding is fulfilled by the proposed ED Area. FINDING #3: THE PUBLIC HEALTH AND WELFARE WILL BE BENEFITTED Potential benefits to public health and welfare will accrue to the Old Meridian District as a result of the designation of the ED Area. There will be benefits to the public welfare associated with the redevelopment and reinforcement of strong neighborhoods in this older part of the City. There will be similar benefits to public health associated with the expected development of expanded health care facilities associated with St. Vincent's and ancillary facilities in the Overall ED Area. As such, the creation of the proposed ED area meets the requirements of this statutory Old Meridian Economic Development Plan: Carmel, Indiana 31 finding of fact. Health Welfare Benefits for the Base ED Area The Base ED Area is comprised of two basic elements: the schools and the southwest corner of 131 Guilford. The presence of the schools is a stabilizing force on the neighborhood, thereby benefitting the welfare of the proposed ED Area. In addition, the designation of the proposed Base ED Area will facilitate the development /redevelopment of OM -MF property on the southwest corner, which will also help to stabilize property values as well as generating new investment in the neighborhood, which is also a direct benefit to the ED Area. In addition to benefits to the public welfare, the public health will be benefitted by the development of pedestrian facilities for the Old Meridian area, encouraging local residents to walk to destinations, rather than driving. These health benefits will include benefits to personal health which result from walking, as well as benefits to community health resulting from a reduction in the air pollution caused by reduced vehicle traffic (due to walking). Finally, the public health will also be benefitted by the provision of more greenspace and enhanced tree plantings and landscaping. It is a proven ecological fact that enhanced planting of trees and green materials helps to promote cleaner air and cooler temperatures, both of which result in less strain on personal health. For these reason, it is reasonable to determine that the proposed Base ED area will result in benefits to public health and welfare, thereby meeting the requirements of this statutory finding. Health Welfare Benefits for the Overall ED Area The overall ED Area also provides benefits to public health and welfare. Obviously, in addition to the general health benefits of additional green landscaping, the overall ED Area also enjoys a direct health benefit from the presence of St. Vincent's Hospital and its ancillary facilities. The fact that health care facilities are a benefit to the public health is not disputable. Additionally, the same enhanced landscaping requirements that are present in the Base ED Area are also provided in the overall ED Area, thus creating a second benefit to public health. At the same time, enhancement of new investment in development/ Old Meridian Economic Development Plan: Carmel, Indiana 32 redevelopment is also a benefit to the general welfare of the ED Area. For these reasons, it is determined that the proposed Overall ED Area also meets the statutory requirements of this finding of fact. FINDING #4A: ATTRACTION OR RETENTION OF PERMANENT .LOBS This statutory finding is closely related to Findings #1A, 1 B and 1C, as detailed above, and the arguments here are somewhat redundant of the detailed narrative presentation of those findings. For example, the finding that the ED area will "promote significant opportunities for the gainful employment of its citizens" Finding #1A) is, in practical terms, virtually identical to the finding that the ED Area will `attract or retain permanent jobs. The term "opportunities for gainful employment" is one and the same with "permanent jobs." As such, for the sake of brevity, time and expense, this ED Plan hereby asserts the overlap and redundancy of the two findings and hereby asserts that the arguments presented in support of Findings #1A, 1 B, and 1C are duplicated, as appropriate, for affirmation of Finding #4A, and subsequently, that the proposed ED Area meets the statutory conditions of Finding #4A. Permanent Jobs in the Base ED Area As stated multiple times previously, the Base ED Area is primarily composed of two tracts of land: the schools and the southwest corner of 131" Guilford. Clearly, it is the intent of the Old Meridian plan to stabilize, rehabilitate and revitalize the Old Meridian neighborhood, which should have the impact of stabilizing the need for the schools on a long -term basis, thus preserving those permanent jobs. Schools closures are most common in blighted areas of disinvestment, which is specifically the outcome which the Old Meridian plan seeks to avoid. As such, the reinforcement of the current location of the schools (and the permanent jobs retained at the schools) would support this finding of fact. In addition, the redevelopment of the southwest corner of 131 Guilford will also help to attract permanent jobs to the Base ED Area, in the form of jobs at the multi family housing development, as well as jobs at the proposed small retail area within that development. The attraction of the permanent jobs at the proposed redevelopment site also affirms this statutory finding of fact. Permanent Jobs in the Overall ED Area 33 Old Meridian Economic Development Plan: Carmel, Indiana 3 The Old Meridian plan supports the attraction and retention of permanent jobs in two specific ways. First, the plan supports the attraction of permanent jobs by proposing high- intensity retail and office development along the Old Meridian corridor, as shown in the plan. To a large extent these tracts of land are either undeveloped or under developed tracts which could hold more intense development which would respond to higher development standards. These areas are clearly shown on the Old Meridian plan and the development of these areas in accordance with the plan would indisputably attract new permanent jobs to the area. Second, the Old Meridian plan supports the retention of existing jobs by providing a developmental basis for existing businesses to improve their property and expand their operations. While the Old Meridian plan clearly shows areas of intended new development, the plan also shows areas of existing development which are proposed for re- development, thus retaining existing jobs. Finally, the presence of the St. Vincent Hospital as the major employer in the Old Meridian area also provides the ED Area with the opportunity to attract new jobs, as well as retain existing jobs. Much of the rationale supporting this finding has already been presented with regard to the evolution of the health care industry and the supporting businesses which locate near a hospital facility, and those arguments are hereby incorporated into the arguments for this finding by reference, to avoid redundancy. But it is clear that the preservation of St. Vincent's at its existing location is a goal of the Old Meridian plan, which would retain permanent jobs, while the expansion of health care operations by St. Vincent's as well as other, ancillary service providers, will attract new jobs. These arguments present an indisputable case that the proposed overall ED Area fulfills the statutory requirements of this finding. FINDING #4B: THE PLAN WILL INCREASE THE PROPERTY TAX BASE This statutory finding is closely related to Finding 1D, (above) `protection of property values,' and the arguments related to this finding are so closely related as to be redundant. The primary difference between the two findings is that Finding #1D is directed at "protecting" property values while Finding #4B is directed at "increasing" the property tax base, upon which property tax revenues are based. In practical terms, the difference between the two terms is almost non existent. Old Meridian Economic Development Plan: Carmel, Indiana 34 In an economy where real estate appreciation is expected, the inferred meaning of `protecting property values' effectively means the `protection of increasing or appreciating property values.' For example, if you told a person that their property would be worth exactly the same in 20 years as it is today, they would consider the statement an insult. People expect their property to increase in value, and one of the accepted definitions of "blight" is that property values are not increasing. Therefore, the public policy of "protecting" property values is interpreted by the general public and the professional real estate community to mean that those values will increase over time, not remain the same. At the same time, recent actions by the Indiana Supreme Court have undeniably linked the issue of current property value (i.e., market value) with the property tax base. The Court has effectively mandated that the assessed value of property which is summed into the property tax base must fairly reflect the current market value of the property. Previous to this decision, the market value of property (which people recognize as the real value of their property) and assessed value (which was used to create the property tax base) were not directly related. Now, the law requires that the two be directly linked, which causes these two findings of fact to overlap "protecting the property value" in practical terms will also increase the property tax base of the community. Therefore, for the sake of saving time and expense, this ED Plan hereby cites the narrative of Finding #1D and reiterates the relevant arguments as substantiation of meeting the statutory requirements of Finding #4D. In addition to these overlapping findings, however, the following additional arguments are presented. Increasing the Property Tax Base in the Base ED Area The proposed Base ED Area is dominated by tax exempt property (schools), however, the southwest corner of 131" Guilford is an area in private ownership, with substantial prospects for redevelopment. According to the Old Meridian plan and zoning, the corner is zoned "OM -MF" which includes multi family housing, as well as a small area of neighborhood retail, as shown on the map. Clearly, the redevelopment of the southwest corner will result in an increase in the property tax base, which specifically meets the requirements of this finding of fact. Therefore, the creation of the proposed base ED Area by the CRC will fulfill the requirements of J Old Meridian Economic Development Plan: Carmel, Indiana 35 statute. Increasing the Property Tax Base in the Overall ED Area The fundamental fiscal intent of the original Old Meridian plan was to generate an increase in the property tax base of the community through development/redevelopment of the 300 -acre area. The plan acknowledged that the older development standards were no longer applicable, that the area had suffered from lack of new investment, that the existing development was under utilizing the real estate, and that the location was of high enough quality to support new investment if the City would provide a clear statement of standards and expectations. Therefore, the CRC's action to create the overall ED Area is simply an affirmation of the original intent of the Task Force, which means that the plan fulfills the statutory requirements of this finding. To be more specific, however, the provisions of the Old Meridian plan will increase the property tax base by encouraging higher intensity development, by increasing the accessibility to the area through infrastructure improvements, and by providing developmental amenities such as pedestrian facilities and community gathering places which will increase neighborhood property values and subsequently increase the property tax base. The plan shown in Appendix A, when implemented, will clearly increase the property tax base of the City through the increased developmental intensity which is proposed. The purpose of creating the overall ED Area is to enable the CRC to facilitate the recommended development. Therefore, it is the determination of this ED Plan that the proposed overall ED Area fulfills the requirements of this statutory finding. FINDING #4C: IMPROVED DIVERSITY IN THE ECONOMIC BASE The proposed ED Area will help to improve the diversity in the economic base of the City of Carmel in a number of ways. The Old Meridian plan (see Appendix A) shows that the area has been divided into "development zones" where specific development standards have been designed. The plan shows 8 separate development zones, ranging from open space, to institutional, to office, to mixed use, to high density housing. The mere fact that the Plan Commission separated the 300 -acre Old Meridian area into 8 separate development zones is a clear indication that the intent of the plan was to diversify the local economic base. As such, the statutory requirements of this finding are met. Old Meridian Economic Development Plan: Carmel, Indiana 36 FINDING #4D: OTHER SIMILAR PUBLIC BENEFITS... The presentation above generates a series of arguments which can easily be developed in more detail to separately explain "other similar public benefits." Obviously, statutory wording using terms like "other" and "similar" is vague and leaves the door wide open to broad interpretation. The complex nature of the economy lends itself to the development of such arguments, especially as secondary or tertiary impacts of creating new economic development opportunities. The bottom line is that Carmel is growing, and that creative business people who are willing to assume the risk of starting a new business are encouraged to come to Carmel by the existence of reasonably priced office space, and creatively designed work spaces such as those proposed for the Old Meridian area. Having these creative, adventurous people in the City is a benefit with many spinoff benefits which could be presented here. For example, the "brain drain" which is being experienced at the state level is not severely manifested in Carmel, due in part to the presence of smart people with a new business idea, and due in part to the availability of creatively designed space to house and nurture those operations. In order to avoid redundancy, and in the interest of time and expense, the extrapolation of "other similar public benefits" and the separate re- presentation of these arguments will not be pursued until there is some substantial need to detail such arguments. For example, if at some point the CRC encounters substantial opposition to the creation of the proposed ED Area, Wabash Scientific, inc., will provide specific separation, itemization and restatement of these "similar benefits" for the benefit of those objecting and the general public. At this time, however, it appears sufficient to state that the above text of this ED Plan presents a series of arguments supportive of these "other similar benefits" and as such, it is the opinion of Wabash Scientific, inc., that the proposed ED Area meets this statutory requirement, as well as the others cited. Old Meridian Economic Development Plan: Carmel, Indiana 37 Conclusions The narrative presented above conclusively demonstrates that the proposed ED Area meets all of the statutory requirements of IC36 -7 -14 through 41. For these reasons, Wabash Scientific, inc., concludes that the proposed Old Meridian Economic Development Area complies with the requirements of Indiana statute, and the designation of the ED Area is in the best interests of the community at large. At the same time, the implementation of the Old Meridian plan will require a substantial amount of redevelopment activity, where existing development is replaced by new development. Redevelopment activity requires substantially greater management control by the CRC in order to optimize potential TIF revenues. As a result, it is the conclusion of Wabash Scientific, inc., that the best strategy for implementing the development/redevelopment program described by the Old Meridian planning effort is to phase in the Old Meridian ED Area by designating an original ED Area and incrementally expanding the ED Area as new projects are presented to the Plan Commission. The area which is most likely to create difficulty for the CRC with respect to TIF and other economic incentives is the area of St. Vincent's Hospital. Inasmuch as St. Vincent's is a non profit facility, the potential property tax impacts are likely to be complicated, at best, and any proposal to expand the St. Vincent's facility must be carefully reviewed by the CRC prior to making any commitment of funding. It is clear that St. Vincent's is a dominant citizen in the overall ED Area, and it is equally clear that they are a valuable corporate citizen. However, the obvious questions related to taxable status will have an obvious impact on the decisions of the CRC to participate in any proposed expansion. Recommendations Based upon the above considerations, it is the recommendation of Wabash Scientific, inc., that the Redevelopment Commission establish the first phase of the Old Meridian Economic Development Area as a tax allocation area for purposes of offering economic incentives for infrastructure improvements. In addition, it is recommended that the CRC clearly designate the entire Old Meridian area as being eligible for addition to the phase one, or base, ED Area as future projects are identified and approved by the Plan Commission. In this manner, the Old Meridian Economic Development Plan: Carmel, Indiana 38 CRC can expand the ED Area in the manner most appropriate to the goals of the community at large, and the CRC can maintain optimal control and flexibility in the process. Economic Development Strategy The Strategy for promoting development within the ED Area is straightforward. If the ED Area is established, as recommended, through the sequential approvals of the Plan Commission and the City Council, the strategic elements would be generally suggested as follows: 1. The Redevelopment Commission designates the base Old Meridian ED Area, while also designating the entire Old Meridian area for potential future expansion of the ED Area through the amendment process. 2. The Redevelopment Commission takes no formal position with regard to the endorsement or approval of any development proposal and respectfully relegates such approvals to the statutorily empowered bodies. 3. The Redevelopment Commission will consider the use of economic incentives for the purpose of implementing the provisions of the Old Meridian plan. The CRC anticipates that its predominant participation in such projects will be in providing the ED Area with infrastructure services sufficient to meet the current and future needs of the ED Area. 4. The CRC shall consider providing economic incentives for the development of infrastructure systems /facilities separately from any other decisions, especially those of other duly authorized bodies, such as the plan commission, board of works or city council. 5. The decision to offer any TIF or other economic incentive will be undertaken based on a specific development proposal which has been approved by the appropriate authorities. As such, the Redevelopment Commission may choose whether or not a specific development proposal is appropriate for such economic incentives. Proposed Projects The following is intended to serve as a general list of the types of projects to be considered for funding using the financial incentives afforded through the establishment of an ED Area. In conjunction with the above narrative, these projects are directed primarily toward assuring adequate infrastructure service to the ED Area for the foreseeable future. 1. Thoroughfare improvements (est. cost $2.5 to $3.5 million) Thoroughfare projects are anticipated to include street widening, Old Meridian Economic Development Plan: Carmel, Indiana 39 intersection improvements, traffic control facilities, corridor landscaping/ aesthetic enhancements, curbs, gutters, and other such improvements to the driving pavement, as well as right of way. 2. Utility enhancements (est. cost $2.0 to $3.0 million Utility enhancement projects are anticipated to include such things as utility burial and enhanced utility service (such as increases in sewer and water lines), as well as other possible forms of utility improvements (such as stormwater control). It is anticipated that these enhancements could be necessitated due to the importance of this "front door" location along Old Meridian, thereby generating an above average need for aesthetic consideration. 3. Impact mitigation (est. cost $1.0 to $1.5 million) Impact mitigation projects would be those activities which would mitigate the impact of the proposed development on surrounding neighborhoods. Such projects could include such items as landscaping, screening, earthwork, and other improvements designed for this purpose. At this point, the specific details of such impact mitigation projects is not final, but the CRC should be prepared to consider such requests, if they determine that such requests are reasonable and appropriate to the interests of the community at large. It is expected by the CRC that the projects to be considered for projects will only be those projects approved by the DOCS (City) and Plan Commission as conforming to the development standards prescribed for the Old Meridian area. The precise scope and amount of any public funding for any development proposal will be determined by the CRC in conjunction with the leadership of the City of Carmel. In the discussions based on specific project proposals, the explicit details of the improvements which are appropriate to the public interest should be finalized and presented to the public as part of the financial packaging for the project. Old Meridian Economic Development Plan: Carmel, Indiana 40 List of Parcels The list of parcels presented below represents information taken directly from the property tax assessment cards obtained from the Hamilton County Auditor in February, 2002. PARCEL OWNER acres *NAV (as of 02/14/02) 16- 09- 25- 00 -00- 019.000 Carmel Clay Schools 23.60 $18,495,790.00 16- 09- 25- 00 -00- 019.001 Carmel Clay Schools 20.10 $755,730.00 16- 09- 26- 00 -00- 012.000 Carmel Clay Schools 10.00 $100.00 /crc old mer edplan dra Old Meridian Economic Development Plan: Carmel, Indiana 41 Appendix A: Old Meridian Task Force Report Old Meridian Economic Development Plan: Carmel, Indiana 42 Appendix B: Zoning Map Old Meridian Economic Development Plan: Carmel, Indiana 43