Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
2002-Economic Development Plan/North Illinois St.
Carmel, Indiana Hamilton County (Final) E conomic D evelopm en t Pl ooGo 000 c0000 w -11© OOV;AP- July 5, 2002 000L0000 000000 �o ©D 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 North Illinois Street Economic Development Area �a��G� Z@a@ueNk, a�c�o Table of Contents The Purpose of the ED Plan 4 The Purpose of the N. Illinois St. ED Area 6 Special Note Regarding the C -210 Annexation 7 Legal Description of the ED Area 8 Land Use within the Proposed ED Area 9 Conclusions Regarding the ED Area 9 Conformity With Other Plans 10 The Fiscal Strategic Plan 11 Creation of an Economic Development Area 11 Statutory Requirements 13 Findings of Fact 14 Finding #1A: promoting opportunities for employment 14 Finding #1B: attracts a major new business enterprise 16 Finding #1C: retains or expands a significant (existing) business 17 Finding #1D: Serves to Protect Property Values 17 Finding #2: the plan...cannot be achieved by regulatory processes or by the ordinary operation of private enterprise.... 18 Finding #2A: lack of local public improvements 19 Finding #2B: The Cost of Infrastructure Prevents Development 20 Finding #2C: Existence of conditions that lower the value of land...21 Finding #3: the public health and welfare will be benefitted 22 Finding #4A: Attraction or Retention of Permanent Jobs 22 Finding #4B: the plan will increase the property tax base 23 Finding #4C: Improved Diversity in the Economic Base 24 Finding #4D: Other Similar Public Benefits... 25 Conclusions 25 Recommendations 26 Economic Development Strategy 26 Proposed Projects 26 List of Parcels 27 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 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. The Purpose of the N. Illinois St. 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 North Illinois Street Economic Development Plan: Carmel, Indiana 5 creation of an ED Area represents a suitable means for 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 North Illinois Street ED Area has one primary purpose to develop new resources and revenue streams necessary to develop and construct the northern segment of the planned and proposed Illinois Street Corridor. The City of Carmel, with the cooperation of the Carmel Clay Plan Commission has clearly and indisputably established the planning basis for a major, new, secondary thoroughfare on the west side of US31, designated as Illinois Street. The provisions for developing the Illinois Street corridor have been formally included in several plans which have been approved by the Plan Commission and the City Council, thereby creating a formal basis for implementation of the project on a long -term basis. In addition to the inclusion of Illinois Street in the community's long -term planning, the Plan Commission and the City have initiated the implementation of the corridor by establishing a policy of collecting commitments of right of way from developers for the future construction of the facility. Development proposals for land located along the west side of US31 have been required to commit right of way for the future construction of Illinois Street, for the overall purpose of facilitating the flow of traffic throughout the Carmel -Clay area. In some limited areas, the corridor pavement has already been constructed to serve existing development. Since the Illinois Street corridor is clearly established in the long -term plan of development for the community, and since the right of way is being assembled, the only remaining issue in the development of the corridor is to identify the financial resources necessary to pay for the construction of the 4 -lane facility. Therefore, the purpose of the North Illinois Street ED Area is to enhance the financial ability of the City to construct the northern portion of the Illinois Street corridor, between 131 and 136 Streets. At this time, development is proposed for much of the undeveloped property in the proposed ED Area, therefore, the Illinois Street ED Area will soon generate property tax increment which can be used to supplement other property tax revenues and grant funds to construct this portion of the corridor. The Economic Development Plan (ED Plan) presented below North Illinois Street Economic Development Plan: Carmel, Indiana 6 will set forth the statutory basis for establishing the ED Area. Special Note Regarding the C -210 Annexation The Illinois Street Corridor is to be developed along with the growth and development of the US31 corridor, as described above. As such, there are various areas already developed, as well as areas currently not developed, thereby leaving the entire corridor at a range of levels of preparedness for future development. In addition, due to the annexation and growth policies of the City and the emphasis placed on attempting to generate voluntary annexation, there are certain portions of the Illinois Street corridor which have dedicated right of way, but which are not a part of the incorporated City of Carmel. As such, the corporate boundaries of the City are irregular in the vicinity of the proposed North Illinois Street ED Area. The City is currently developing Annexation Ordinance C -210, which would annex all property in the proposed North Illinois Street ED Area, however, C -210 has not completed the annexation process at this time, leaving portions of the northern segment of the Illinois Street Corridor outside of the City's corporate limits, and therefore, outside of the jurisdiction of the Carmel Redevelopment Commission (CRC). At the same time, the purpose of the ED Plan and the creation of the ED Area is obvious, regardless of the current technical issues related to annexation. Therefore, it is recommended to the Carmel Redevelopment Commission and the City of Carmel that the proposed ED Area be considered in its entirety, with a legal description of the entire North Illinois Street corridor area, BUT including an exclusion of the unincorporated area, over which the CRC has no jurisdiction. We would propose, for consideration of the CRC Attorney, as well as the other attorneys involved, that the exclusion from the ED Area be conditioned upon the incorporated status of the property within the ED Area in a manner that would simplify the future actions of the CRC to modify the ED Area as a result of the C -210 annexation. Legal Description of the ED Area The boundaries of the proposed Economic Development Area (ED Area) are described as follows, excluding the unincorporated parcel number North Illinois Street Economic Development Plan: Carmel, Indiana 7 17- 09- 26- 00 -00- 003.000, which has petitioned the city of Carmel for annexation, however, said annexation is not yet effective: Beginning at the point of intersection of the north right of way line of 131 Street and the west right of way line of US31, Then north along the western right of way line of US31 to the point of intersection with the south right of way line of 136 Street, Then in a westerly direction along the south right of way line of 136 Street to the point of intersection with the western boundary of parcel number 17- 09- 26- 00 -00- 003.000, which is temporarily excluded from this North Illinois Street ED Area until such time as the annexation is effective. Then south along the western and northern boundaries of parcels 17- 09- 26- 00 -00- 003.000 (temporary excluded), to the point of intersection with the northern right of way line of Meridian Corners Boulevard, Then in a southwesterly direction, along the northern right of way line of Meridian Corners Boulevard, to the point of intersection with the northern right of way line of 131 Street, Then in an easterly direction along the northern right of way line of 131 Street to the point of beginning, HOWEVER, temporarily excluding any unincorporated property and parcels within the area legally described until such time as those parcels are legally incorporated into the boundaries of the City of Carmel. The Map included with this ED Plan shows the distinction between the incorporated and unincorporated portions of the ED Area. Land Use within the Proposed ED Area The zoning within the proposed ED Area is B -5 and S -2. The B -5 portion of the proposed ED Area is located immediately south of 136 Street, and fronts along US31, stretching southwesterly to the approximate point of the end of construction of Meridian Corners Boulevard. The S -2 portion of the proposed ED Area is located at the extreme southern end of the proposed ED Area, north of 131 Street and south of Meridian Corners Boulevard. Land use within the ED Area is generally undeveloped. The only portion of the proposed ED Area which is developed is located at the extreme south end of the ED Area, immediately north of 131 Street. The Carmel Comprehensive Plan is not ambiguous in its intent to allow North Illinois Street Economic Development Plan: Carmel, Indiana 8 the area within the proposed ED Area to be developed commercially. 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 Illinois Street corridor. There can be no question as to these findings. Furthermore, the City and Plan Commission commissioned a special plan for the Meridian Street (US31) corridor and has approved the Plan, as well as an overlay zone for the Meridian Corridor which supports commercial development in this area. These additional, supplemental planning efforts were undertaken to provide the City with a uniform plan of development for the proposed ED Area, as well as the rest of the property along the US31 corridor. Let it be fully understood that this North Illinois Street ED Plan purports in every way to conform with the terms of the previous body of planning for the City of Carmel and for this specific area. CONCLUSIONS REGARDING THE ED AREA The proposed ED Area is appropriately defined and is firmly established for commercial development in the plan of development of the community. Furthermore, the creation of the Illinois Street thoroughfare 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 creation of the 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 Illinois Street corridor. The northern segment of the corridor, from 131 Street to 136 Street, will connect existing roadway corridors at Meridian Corners Boulevard (north of 131 Street) with Road at 136 Street. 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 inj greater detail. The comprehensive plan suggests that the bulk of the area is suited for commercial development, due to its high visibility along US31, and the development of the Illinois Street Corridor is designed to provide an appropriate level of access to the ED Area, as well as providing the community at large with traffic route alternatives which will reduce North Illinois Street Economic Development Plan: Carmel, Indiana 9 congestion on US31 and other north -south corridors. Copies of the zoning map for the ED Area (un- edited to be shown in its original form) are included in Appendix A of this ED Plan. The zoning map will show that the ED Area is predominantly zoned for commercial development, with some areas remaining designated for residential development (S -2). Neither the ED Plan, nor the action of designating the ED Area propose to alter this zoning. By extension, the approval of this ED Plan by the CRC will constitute formal demonstration that the CRC does 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 addition, Appendix B of this ED Plan contains a summary map of the "Meridian Corporate Corridor" which was undertaken as a supplemental planning document related to the future development of the Meridian/US31 corridor. The Meridian Corporate Corridor map clearly shows the ED Area with color designation as "Potential Development," as well as showing a substantial amount of "Existing Commercial Development" in nearby parts of the Meridian Corridors. In addition, the map clearly depicts the Illinois Street corridor from its intersection with Spring Mill Road on the south to its intersection with 136 Street on the north. The segment of the Illinois Street corridor within the proposed ED Area is clearly designated on the map as "Future Illinois Street." 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. 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 North Illinois Street Economic Development Plan: Carmel, Indiana 10 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 North Illinois Street. 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 to the northern segment of the new Illinois Street corridor, regardless of what development is ultimately approved within the ED 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. Much of the proposed North Illinois Street ED Area is already within the city limits of Carmel (with the remainder being annexed at this time) 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 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 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, North Illinois Street Economic Development Plan: Carmel, Indiana 11 and growth in COIT revenues will be restricted, unless the County develops other areas to replace the demand for Carmel land. Consequently, the designation of the proposed North Illinois Street ED Area would enable the City to address its infrastructure needs by initiating the implementation of the Illinois Street Corridor 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 Area, and would otherwise implement the Economic Development Strategy for the 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 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 North Illinois Street 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. 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. 12 North Illinois Street Economic Development Plan: Carmel, Indiana l (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; North Illinois Street Economic Development Plan: Carmel, Indiana 13 (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; (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. North Illinois Street Economic Development Plan: Carmel, Indiana 14 FINDING #1A: PROMOTING OPPORTUNITIES FOR EMPLOYMENT The measurement of new employment opportunities for potential commercial development is complicated. Proposed job creation from potential industrial development is simpler to track because the heavy equipment needs and large scale of industrial operations makes it very difficult for industries to re- locate. Once an industry is in place, it is difficult to move thus simplifying the quantification of new job opportunities to a community. In commercial development situations, however, businesses relocate fairly regularly, and it is difficult to state absolutely whether the businesses locating in an office building are new to the community or whether they simply relocated from another building. The cost of moving an office is cheaper than that of moving an industry. Consequently, it is not uncommon for commercial businesses to change from one Carmel address to another. Because it is difficult to know how much of the office space is occupied by "new" employers, vs. "relocated" employers, it is difficult to specifically quantify "new opportunities for employment." It would not be uncommon for there to be some public debate on such issues from opponents to development proposals. It is appropriate, however, to offer this observation to those whose skepticism would challenge whether a new commercial building actually generates new jobs. The presence of competition in any marketplace forces competing commercial interests to compete, especially with regard to price. Therefore, the presence of new commercial buildings, both for retail and for office uses forces landlords to compete with respect to rent and amenities, thereby making it possible for the businesses in the community -at -large to reduce operating costs. The presence of competition for commercial tenants therefore acts to encourage the creation of new businesses and to have those businesses locate in Carmel. It is a fairly well -known fact that rent rates in Carmel are lower than in downtown Indianapolis. As a result, several major professional firms, including major law and accounting firms have taken addresses in the Carmel area, in part because of the competitive rents. The low rent rates, and the locational presence of upscale market attributes makes Carmel a prime market for commercial development. Furthermore, at this time, it appears that the commercial real estate market in Carmel is so strong that wide -scale redevelopment projects (the most expensive form of retail development) are being considered for prime locations, as well as enabling existing commercial space to consider remodeling and upgrading in order for those buildings to remain competitive. This situation makes it possible for small businesses to compete because North Illinois Street Economic Development Plan: Carmel, Indiana 15 operating costs are reduced. Thus, more small businesses can locate in Carmel and operate profitably. Based on these premises, it is therefore argued that the creation of new commercial space does, in fact, create new jobs and new opportunities for gainful employment of the citizens of Carmel, as well as the north side of Indianapolis. While there could potentially be some argument over precisely how many "new" jobs would be created, as opposed to "relocated" jobs, we find this distinction to be fundamentally academic in this case. In the opinion of Wabash Scientific, inc., any development proposal which conforms to the designated commercial land use for the ED Area will certainly generate more jobs than the jobs currently existing in the tracts of undeveloped land which currently occupy most of the proposed ED Area. In this manner, Wabash Scientific, inc., finds that the requirements of this finding of fact are met. Having stated that caveat, it is clear that the undeveloped land within the proposed ED Area currently provides no employment opportunities, whatsoever. Consequently, while there may be the potential for debate regarding "how many" jobs will be created, it can be stated with substantial certainty that new commercial development will generate more jobs than the jobs currently available at this site. As such, it is the finding of this ED Plan that the designation of the ED Area will certainly and categorically generate new opportunities for gainful employment of the citizens of Carmel and the surrounding areas, which conforms to the required statutory finding of fact. FINDING #1B: ATTRACTS A MAJOR NEW BUSINESS ENTERPRISE At this time, much of the proposed ED Area is undeveloped. A part of the reason for this lack of development is the lack of public thoroughfares to provide access to the proposed commercial sites (which will be more fully discussed below). There are development proposals currently pending however, these proposals are not final at this time. It is believed, however, that the creation of the ED Area and the subsequent completion of the Illinois Street corridor from 131 to 136 Street will attract a major new business enterprise to the area in the form of new commercial development. The CRC, as well as the City Council and the Plan Commission have all entertained various informal inquiries related to development of the parcels within the proposed ED Area. At this time, Wabash Scientific, inc., does not intend to cite specific companies who have committed to relocating to the proposed ED Area, however, Wabash Scientific, inc., North Illinois Street Economic Development Plan: Carmel, Indiana 16 does state for the record that the completion of this portion of the Illinois Street corridor will serve to attract new business enterprise to the undeveloped land in the future. Development pressure along the Meridian Corridor is intense and the need for the Illinois Street corridor has long been acknowledged as a critical facility by the City's leadership at many levels. The profile and visibility of the proposed ED Area are so ideally suited to development that Wabash Scientific, inc., is therefore fully comfortable with the prospect that the commercial development of ED Area will attract one or more major new business enterprises, thereby meeting the statutory requirements of this finding of fact. FINDING #1 C: RETAINS OR EXPANDS A SIGNIFICANT (EXISTING) BUSINESS The City of Carmel has been highly successful in attracting growth- oriented business enterprises at all levels: from very small businesses to regional and national headquarters. In fact, the entire Meridian Corridor currently houses many companies which had moved from another north side location. Carmel is home to literally dozens of such growing companies, and the proposed ED Area is likely to provide flexible space to retain or expand these significant businesses along the Meridian corridor. Since the current and previous development proposals along the entire Meridian Corridor provide for the types of facilities which encourage both the retention and /or expansion of significant business enterprises (as well as the creation and recruitment of new businesses), it is the determination of Wabash Scientific, inc., that the proposed ED Area meets this statutory requirement. FINDING #1D: SERVES TO PROTECT PROPERTY VALUES This assertion is a constant source of public debate. Anyone who regularly attends the meetings of plan commissions anywhere in Indiana becomes painfully aware that opponents to a development virtually always argue that the proposed development will have an adverse impact on the property values of the neighbors to the proposed development. The phenomenon of citizen opposition is so widespread that it has been given acronym names that have become a part of the American vocabulary: "NIMBY" and "CAVE." The term "NIMBY" stands for "not in my back yard" and indicates that neighbors are against a development because they simply don't want it located near to them. The term "CAVE" stands for "citizens against virtually everything," which defines itself. As an example, in a previous case before the Carmel /Clay Plan Commission, North Illinois Street Economic Development Plan: Carmel, Indiana 17 opponents argued that a development proposing homes in excess of $1 million would have an adverse impact on the value of their homes, most of which would be valued at less than half of the new $1 million homes. Similar arguments are made in cases where the development proposal includes business development adjacent to residential areas. It is difficult to substantiate such fears, and it is equally difficult to debate the issue with passionate advocates. It is the conclusion of Wabash Scientific, inc., that the extensive planning processes which have been engaged by the Carmel -Clay Plan Commission and the Carmel City Council have already adequately and favorably addressed the issue of property values. These two entities, acting within their jurisdiction, have found that the Meridian corridor is a proper place for commercial development and that it has minimal adverse impact on residential areas nearby. In every single case, the homes located near the Meridian Corridor were purchased with the full knowledge that US31 was the primary corridor connecting Carmel to downtown Indianapolis. As such, it is no shock to anyone that commercial development along the corridor has been encouraged. There was substantial public input solicited in developing the Comprehensive Plan Update. There was additional input in developing the Meridian Corporate Corridor Plan. There was more public input solicited when developing the overlay zoning parameters for development along the Meridian corridor. In all of these cases, the issue of property values were considered at length and the determination of the Plan Commission was ultimately affirmed by the City Council. Given the careful processes that were employed to obtain public input on this subject, it is the determination of Wabash Scientific, inc., that the requirements of this statutory finding of fact are met by the proposed ED Area, in that the encouragement of new FINDING #2: THE PLAN... CANNOT BE ACHIEVED BY REGULATORY PROCESSES OR BY THE ORDINARY OPERATION OF PRIVATE ENTERPRISE.... The City of Carmel has established a long history of enhancing its regulatory powers with respect to new development. In fact, Carmel is probably the leading community in Indiana with respect to using its regulatory powers in the planning and zoning process to require the developers to bear a substantial portion of the cost of infrastructure support for new development. By pushing infrastructure costs out of the public sector (city) and into the private sector (developers), the City forces the private sector to North Illinois Street Economic Development Plan: Carmel, Indiana 18 acknowledge and bear the initial cost of infrastructure support for their development. This practice of public policy requires that the "ordinary operation of private enterprise" be enhanced in Carmel, because in other cities, similar development would expect some form of public subsidy as a condition of development. The sum of these two considerations is that the development policies of the City of Carmel represent the community's regulatory process, and that, by implementing a regulatory process that actually requires private enterprise to operate at levels above the norm the City fulfills this statutory requirement. The essential result of this combination of regulation and private enterprise is that Carmel attempts to get the developer to pay for the infrastructure to serve the proposed development. In those cases where the infrastructure requirement exceeds the amount that can reasonably be forced onto the development, it then becomes imperative that the City resort to collecting resource opportunities from other parts of the law. As such, the creation of the North Illinois Street ED Area meets this statutory requirement. FINDING #2A: LACK OF LOCAL PUBLIC IMPROVEMENTS The ED Area cannot be developed to its highest and best use as a commercial office development without substantial improvements to the infrastructure systems of the area. It is expected that there will be several types of infrastructure improvements required to support any new development, but the most obvious and the most important is the need for improvement to the Illinois Street corridor along the west side of the US31 corridor. This corridor will have to be sufficiently wide (planned for 4- lanes) with appropriate traffic control at key intersections. Neither regulatory processes or the normal operation of private enterprise can resolve these problems without the investment of public funds. The current traffic situation along US31 is deteriorating to the point that INDOT is considering re- designing the highway as a freeway in the Carmel area. If such a re- design is implemented, regional north/south traffic congestion will be reduced. However, in order for a freeway design to work, Carmel will need to replace the north/south corridor capacity for local traffic with local corridors which would not serve the regional traffic needs, but would serve the local traffic needs of the area. As a result of this phenomenon, the City of Carmel has already implemented a widening of Pennsylvania Street, and has planned for that corridor to be improved to 4 -lanes from 103 Street to 131 Street to serve local traffic on the east side of US31. In conjunction with the North Illinois Street Economic Development Plan: Carmel, Indiana 19 improvements to Pennsylvania, the City has also planned for the creation of the Illinois Street corridor to serve local traffic needs on the west side of US31. The area included in the proposed North Illinois Street ED Area is largely undeveloped at this time, and one of the major reasons for the lack of development is the need for adequate thoroughfare access to the area. Therefore, it is entirely appropriate for the CRC to create an ED Area for the purpose of assembling the financial resources necessary to improve the Illinois Street corridor in this area. At the time that the northern segment of Illinois Street is designed, the City will also consider what forms of other infrastructure improvements would be appropriate and necessary to serve the needs of the ED Area. The conclusion of these considerations is clear. The proposed ED Area will provide the CRC with the potential for TIF financing for public improvements, including thoroughfare improvements as well as various other infrastructure improvements. As such, the proposed North Illinois Street ED Area meets the requirements of this statutory finding of fact. FINDING #2B: THE COST OF INFRASTRUCTURE PREVENTS DEVELOPMENT In addition to the simple lack of public improvements, there is consideration of the cost of providing those public improvements. The City and Plan Commission have enforced the planning for the Illinois Street corridor by requiring developers to commit right of way to the long -term construction of that facility. In most places, the City and Plan Commission have also required the developer to actually build at least a portion of the facility. At this time, there is a legal dispute between one of the property owners in the immediate area (but outside of the corporate limits of the City) in which the property owner alleges that the City and Plan Commission have exceeded their authority with regard to construction of Illinois Street. While this specific case has no immediate bearing on the creation of the proposed ED Area, it does represent a clear indication that the City will have difficulty requiring current developers to build a full, 4 -lane Illinois Street facility up to the standards of the City. For these reasons, the cost of the enhanced Illinois Street facility becomes an issue. Without delving deeply into a series of design technicalities, it is appropriate for the City to consider the impact of new development on the local thoroughfare system and to require developers to compensate the City for that impact. The core of this argument, however, is whether it is fair to ask a developer to build a 4 -lane roadway, with the significant amenities which are characteristic of the Carmel thoroughfare system, as a North Illinois Street Economic Development Plan: Carmel, Indiana 20 result of the impact of that specific development. We cannot reconcile this complex and highly technical argument in this ED Plan. However, it is appropriate to note that the TIF benefits of establishing the ED Area enables the CRC to form and execute appropriate agreements between the CRC and developers where TIF can be dedicated to pay part of the cost of the 4 -lane, enhanced northern segment of the Illinois Street facility. As such, the statutory findings of fact are further upheld by this presentation related to cost. FINDING #2C: EXISTENCE OF CONDITIONS THAT LOWER THE VALUE OF LAND... The land in the area of the proposed ED Area (including land which is currently both inside and outside the corporate limits of Carmel) has remained undeveloped despite substantial development pressure in surrounding areas. The lack of development on this land has a secondary impact of reducing local property tax revenue streams below which they might be if the land in the ED Area were developed. It is clear that the undeveloped land is undeveloped for a number of reasons, but among the top reasons is the lack of adequate infrastructure support, and the need for enhanced infrastructure to serve the larger neighborhood. It is clear, even with the most cursory observation that the value of undeveloped land along the US3 1 corridor is lower than the value of developed land in the same area. It is equally clear that development has occurred all around the proposed ED Area. Therefore, there can be no dispute that the undeveloped land within the proposed ED Area has a lower value than the developed land that surrounds the area. One of the purposes of creating an ED Area in this location is to rectify that situation. As such, the proposed North Illinois Street ED Area meets the requirements of this statutory finding. FINDING #3: THE PUBLIC HEALTH AND WELFARE WILL BE BENEFITTED The issues of health and welfare are fairly easy to define for the proposed ED Area. It is clear that the purpose of the ED Area designation is to promote the development of the area in accordance with the land use parameters of the city's comprehensive plan, which suggests commercial development for the area. It is equally clear that new commercial development will generate new jobs, and the creation of new job opportunities inherently benefits the welfare of the community at large. In addition, the health of the community will be benefitted by the North Illinois Street Economic Development Plan: Carmel, Indiana 21 improvements to the thoroughfare corridors serving the ED Area which will occur in conjunction with new development. The designation of the ED Area is directly intended to assure that the adjacent thoroughfares (as well as other infrastructure) can be improved in conjunction with the development of the ED Area. These improvements will improve traffic safety in the thoroughfare corridors which generates a secondary improvement to the overall health of the community through the reduction in personal injuries resulting from vehicular accidents. Based on these considerations, it is the finding of this ED Plan that the proposed designation of the ED Area will directly benefit the health and welfare of the community. FINDING 1 ATTRACTION OR RETENTION OF PERMANENT JOBS There are several levels of understanding to this finding of fact. On the most general level, research was performed into the Comprehensive Plans of the towns of Westfield and Sheridan (both located north of Carmel and served by the US31 corridor) and the City of Tipton, as well as the Carmel Comprehensive Plan. Each of these plans for nearby communities approaches the issue of development from the individual perspective of that specific community and its needs. However, in all of these plans there is an over riding uniformity of one finding that the City of Carmel has emerged as a regional employment center for high paying jobs. In reaching that conclusion, the developmental patterns of all of these cities were affected. Since Indianapolis was no longer the dominant employment center for the region, locating new jobs in Carmel significantly reduces commuting time for citizens of these nearby communities, thus enabling communities farther from the Indianapolis downtown area (the previous employment center) to potentially attract various forms of new development in support of this employment shift. The Carmel Comprehensive Plan makes several specific citations of the fact that north -bound traffic on US31 was increasing at a significantly higher rate than south bound traffic, which supports the fact that Indianapolis people are increasingly traveling to Carmel to work and that population dynamics are shifting north. The primary location of this new employment is the Meridian (US31) corridor. From 86 Street in Indianapolis to 151 Street in Westfield there is commercial development of substantial intensity along the corridor, including some retail and industrial, but predominantly in the form of office development. Obviously, the proposed ED Area represents a prime location within this corridor. North Illinois Street Economic Development Plan: Carmel, Indiana 22 The proposed creation of the North Illinois Street ED Area will add new development opportunities along the US31 corridor, and the infrastructure to support this new development will be enhanced to carry a substantial portion of the local traffic volume off of US31. By enabling land to be developed for new job creation, and by enhancing infrastructure support to the ED Area Carmel will be able to attract new permanent jobs, thus meeting this statutory requirement. FINDING #4B: THE PLAN WILL INCREASE THE PROPERTY TAX BASE The ED Area currently has only partial development, with a substantial amount of the land in the area undeveloped. This lack of development results in a commensurate lack of property tax base. There have been commercial development proposals for the proposed ED Area, however, those developments have not been implemented. Obviously, the successful development of these tracts would add significantly to the property tax base, as well as adding diversity to the economic base of the community. If the ED Area remains undeveloped, the community will not benefit from the increased assessed valuation which would result from development. Thus, the intent of this ED Plan is to encourage the commercial development of the proposed ED Area, thus resulting in an increase in the property tax base as well as an increase in the diversity of the local economy. As such, it is the finding of this ED Plan as described herein, meets the required statutory finding of fact. FINDING #4C: IMPROVED DIVERSITY IN THE ECONOMIC BASE Diversity in the economic base of the community is essential to the fiscal health of the municipality. As a developmental matter, the City of Carmel is primarily served by two major highway corridors: Meridian Street (US31) and Keystone Avenue (US431). The Meridian Corridor has served as the employment center of the community by providing office developments targeting upscale professional office operations. The Keystone Corridor retains some professional office development, as well as the bulk of the city's retail development. Together, these corridors have developed as a major employment center for the central Indiana region. Designation of the proposed ED Area will support the continued diversification of the economic base of the community. These professional office developments house a broad range of business enterprises, ranging from very small operations to national headquarters for major insurance companies, as well as high technology corporations North Illinois Street Economic Development Plan: Carmel, Indiana 23 like Thomson. Collectively, these professional businesses are far more resilient to fluctuations of the local, state and national economies than are industrial operations. For example, the current state of the national economy has caused a number of layoffs and other economic consequences, while the overall collection of businesses located along the Meridian Corridor (with a few exceptions) have not experienced much impact from the recent national economic downturn. By providing upscale commercial office facilities, the local economy is diversified. A single office building or an office building complex could feasibly contain dozens of businesses of all sizes and with an extremely diverse range of products and services. Each of these businesses retains a separate sensitivity to the fluctuations of the overall economy, and therefore, this diversity reduces major fluctuations in employment due to economic conditions. The designation of the proposed ED area will help to further diversify the economic base of the community by providing new facilities in which new and existing businesses can grow and flourish. In the process, some businesses will relocate or cease to exist, as is common in every local economy in the world. This does not in any way diminish the interests of the community at large in the importance of economic diversification. As such, the development of new commercial office space as currently proposed is consistent with the overall need of the City of Carmel to diversify its economic base, and meets the requirements of this statutory finding of fact. FINDING #4D: OTHER SIMILAR PUBLIC BENEFITS... The presentation above generates a series of arguments which can easily be developed in more detail to explain "other similar public benefits." The complex nature of the economy lends itself to the development of such arguments, as secondary or tertiary impacts of creating new economic development opportunities. The bottom line is that Carmel is growing, and that creative people willing to assume the risk of starting a new business are encouraged to come to Carmel by the existence of reasonably priced office space. 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. In order to avoid redundancy, the extrapolation of "other similar public benefits" and the separate re- presentation of these arguments will not be pursued. If at some point the CRC encounters substantial opposition to North Illinois Street Economic Development Plan: Carmel, Indiana 24 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 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. 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 North Illinois Street 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. Recommendations Based upon the above considerations, it is the recommendation of Wabash Scientific, inc., that the Redevelopment Commission establish the North Illinois Street Economic Development Area as a tax allocation area for purposes of offering economic incentives for infrastructure improvements. 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 takes no formal position with regard to the endorsement or approval of any development proposal. Such decisions are left entirely and respectfully to the plan commission and city council, as authorized by statute. 1. The Redevelopment Commission will consider the use of economic incentives for the purpose of providing the ED Area with infrastructure services sufficient to meet the current and future needs of the ED Area. North Illinois Street Economic Development Plan: Carmel, Indiana 25 1. Consideration of providing economic incentives for the development of infrastructure systems /facilities shall be considered separately from any other decisions, especially those of other duly authorized bodies, such as the plan commission, board of works or city council. 1. Any decision to offer economic incentives as proposed will be undertaken in full cooperation with all appropriate bodies of the City. 1. The decision to offer any TIF incentive may be undertaken based on a specific development proposal. As such, the Redevelopment Commission may choose whether or not a specific development proposal is appropriate for such 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, 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. It is anticipated that such improvements will be needed on Spring Mill Road, north of 96 Street, and on 96 Street west of Meridian, however, other improvement locations may be identified as the Redevelopment Commission considers the future development of the ED Area. 1. 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 utility enhancements. It is anticipated that these enhancements could be necessitated due North Illinois Street Economic Development Plan: Carmel, Indiana 26 to the high profile of this "front door" location, thereby generating an above average need for aesthetic consideration. 1. 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. The precise scope of any public funding should be determined by the CRC in conjunction with the leadership of the City of Carmel. In these discussions, the explicit details of those 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. North Illinois Street Economic Development Plan: Carmel, Indiana 27 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 November, 2000. PARCEL OWNER acres *NAV (as of 02/14/02) 16- 09- 26- 00 -00- 001.000 DePauw University 17.80 $9,000.00 16- 09- 26- 00 -00- 002.000 DePauw University 0.60 $300.00 16- 09- 26- 00 -00- 002.001 Estridge Develop. 24.05 $204,300.00 16- 09- 26- 00 -00- 002.101 Abacus Preschool 1.75 $865,300.00 17- 09- 26- 00- 00- 003.000" Frank Regan 36.54 $109,600.00 17- 09- 25 -00- 00.001.000* Frank Regan 0.71 $1,800.00 17- 09- 25- 00- 00- 001.001` McCordsville Partners 2.35 $105,800.00 17- 09- 25- 00- 00-- 001.101' BP Investments 3.79 $1,319,000.00 *parcels to be added as suitable development proposals are presented, but not included in the ED Area designation. /crc no illst edplan fin North Illinois Street Economic Development Plan: Carmel, Indiana 28