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HomeMy WebLinkAboutResolution 2008-06-17 DRAFTCARMEL CLAY PLAN COMMISSION RESOLUTION NO. 2008 -06 -17 L E c,Li r A RESOLUTION APPROVING A RESOLUTION OF THE CITY OF CARMEL REDEVELOPMENT COMMISSION DESIGNATING AND DECLARING THE LEGACY PROJECT ECONOMIC DEVELOPMENT AREA AND APPROVING AN ECONOMIC DEVELOPMENT PLAN WHEREAS, the Carmel Clay Plan Commission (the "Plan Commission is the body charged with the duty of developing a general plan of development for the City of Carmel, Hamilton County, Indiana (the "City and WHEREAS, the City of Carmel Redevelopment Commission (the "Commission the governing body of the City of Carmel, Indiana, Department of Redevelopment (the "Department did, on the 21st day of May, 2008, approve and adopt a Resolution entitled "A Resolution of the City of Carmel Redevelopment Commission Declaring an Area in the City of Carmel as an Economic Development Area and Approving an Economic Development Plan for said Area" (the "Declaratory Resolution and WHEREAS, the Declaratory Resolution of the Commission designates and declares an area within the City as the Legacy Project Economic Development Area (the "Area and adopts an Economic Development Plan for the Area (the "Economic Development Plan and WHEREAS, the Commission has submitted said Declaratory Resolution and the Economic Development Plan to the Plan Commission for approval pursuant to the provisions of Indiana Code 36 -7 -14, as amended (the "Act which Declaratory Resolution and Economic Development Plan are attached hereto and made a part hereof; and WHEREAS, pursuant to the provisions of the Act, the Plan Commission seeks to issue its written Order approving the Declaratory Resolution and the Economic Development Plan; NOW, THEREFORE, BE IT RESOLVED BY THE CARMEL CLAY PLAN COMMISSION, AS FOLLOWS: 1. That the Declaratory Resolution and the Economic Development Plan conform to the plan of development for the City. and confirmed. 2. That the Economic Development Plan is in all respects approved, ratified 3. That the Declaratory Resolution of the Commission, declaring the Area and adopting an Economic Development Plan is in all respects approved, ratified and confirmed. 4. That there are no residents of the Area who will be displaced by the 6 1 6A economic development of the Area. 5. That this Resolution hereby constitutes the written Order of the Plan Commission approving the Declaratory Resolution and the Economic Development Plan pursuant to Indiana Code 36- 7- 14- 16(a). 6. That the Secretary is hereby directed to file a copy of said Declaratory Resolution and the Economic Development Plan with the minutes of this Public Meeting. 7. That this Resolution shall be in full force and effect from and after its adoption by the Plan Commission. SO RESOLVED BY THE CARMEL CLAY PLAN COMMISSION THIS DAY OF JUNE, 2008. ATTEST: Secretary BDDBO I 5258170v 1 CARMEL CLAY PLAN COMMISSION President 2 WHEREAS, the City of Cannel Redevelopment Commission (the "Commission governing body of the City of Carmel Department of Redevelopment (the "Department pursuant to Indiana Code 36 -7 -14, as amended (the "Act has thoroughly studied that area of the City of Carmel, Indiana (the "City as described on Exhibit A attached hereto and designated as the "Legacy Project Economic Development Area" (the "Economic Development Area and WHEREAS, the existing public infrastructure is inadequate to service anticipated demand in or near the Economic Development Area; and WHEREAS, there has been presented to this meeting for consideration and approval of the Commission an economic development plan (the "Plan for the Economic Development Area and entitled "Legacy Project Economic Development Plan and WHEREAS, the Commission has caused to be prepared maps and plats showing the boundaries of the Economic Development Area, the location of various parcels of property, streets, alleys, and other features affecting the replatting, replanning, rezoning, or redevelopment of the Economic Development Area, and the parts of the Economic Development Area that are to be devoted to public ways, sewerage and other public purposes under the Plan; and WHEREAS, the Commission has caused to be prepared estimates of the costs of the development projects as set forth in the Plan; and WHEREAS, the Plan and supporting data was reviewed and considered at this meeting; and RESOLUTION NO. 0 0 8 3 RESOLUTION OF THE CITY OF CARMEL REDEVELOPMENT COMMISSION DECLARING AN AREA IN THE CITY OF CARMEL AS AN ECONOMIC DEVELOPMENT AREA AND APPROVING AN ECONOMIC DEVELOPMENT PLAN FOR SAID AREA WHEREAS, Section 39 of the Act has been created and amended to permit the creation of "allocation areas" to provide for the allocation and distribution of property taxes for the purposes and in the manner provided in said section; and WHEREAS, Sections 41 and 43 of the Act have been created to permit the creation of "economic development areas" and to provide that all of the rights, powers, privileges and immunities that may be exercised by this Commission in a redevelopment area or urban renewal area may be exercised in an economic development area, subject to the conditions set forth in the Act; and WHEREAS, the Commission deems it advisable to apply the provisions of said Sections 39, 41, and 43 of the Act to the Plan and financing of the Plan. NOW, THEREFORE, BE IT RESOLVED by the City of Carmel Redevelopment Commission, governing body of the City of Carmel Department of Redevelopment, as follows: 1. The Plan for the Economic Development Area promotes significant opportunities for the gainful employment of its citizens, attracts major new business enterprises to the City, may result in the retention or expansion of significant business enterprises existing in -the boundaries of the City, and meets other purposes of Sections 2.5, 41 and 43 of the Act, including without limitation benefiting public health, safety and welfare, increasing the economic well being of the City and the State of Indiana (the "State"), and serving to protect and increase property values in the City and the State. 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 Sections 2.5, 41 and 43 of the Act because of lack of local public improvements, including without limitation the cost of the projects contemplated by the Plan. 3. The public health and welfare will be benefited 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 the attraction or retention of permanent jobs, an increase in the property tax base, improved diversity of the economic base and other similar public benefits. 5. The Plan for the Economic Development Area conforms to other development and redevelopment plans for the City. 6. In support of the findings and determinations set forth in Sections 7 through 5 above, the Commission hereby adopts the specific findings set forth in the Plan. 7. The Department does not at this time propose to acquire any specific parcel of land or interests in land within the boundaries of the Economic Development Area. If and when the Department proposes to acquire specific parcels of land, the required procedures for amending the Plan under the Act will be followed, including notice by publication and to affected property owners and a public hearing. 8. The Commission finds that no residents of the Economic Development Area will be displaced by any project resulting from the Plan, and therefore finds that it does not need to give consideration to transitional and permanent provisions for adequate housing for the residents. 3 9. The Plan is hereby in all respects approved, and the Secretary of the Commission is hereby directed to file a certified copy of the Plan with the minutes of this meeting. The Economic Development Area is hereby designated as an "economic development area" under Section 41 of the Act. 10. The entire Economic Development Area is hereby designated as the "Legacy Project Allocation Area" pursuant to Section 39 of the Act for purposes of the allocation and distribution of property taxes for the purposes and in the manner provided by said Section. Any real property taxes subsequently levied by or for the benefit of any public body entitled to a distribution of property taxes on taxable property in said allocation area shall be allocated and distributed as follows: Except as otherwise provided in said Section 39, the proceeds of taxes attributable to the lesser of the assessed value of the property for the assessment date with respect to which the allocation and distribution is made, or the base assessed value, shall be allocated to and when collected paid into the funds of the respective taxing units. Except as otherwise provided in said Section 39, property tax proceeds in excess of those described in the previous sentence shall be allocated to the redevelopment district and when collected paid into the "Legacy Project Allocation Area Allocation Fund" for said allocation area that may be used by the redevelopment district to do one or more of the things specified in Section 39(b)(2) of the Act, as the same may be amended from time to time. Said allocation fund may not be used for operating expenses of the Commission. Except as otherwise provided in the Act, before July 15 of each year, the Commission shall take the actions set forth in Section 39(b)(3) of the Act. 11. The foregoing allocation provision set forth in Section 10 shall expire on the date that is twenty -five (25) years after the effective date of this resolution. 12. The officers of the Commission are hereby directed to make any and all required filings with the Indiana Department of Local Goverrunent Finance and the Hamilton County Auditor in connection with the creation of the allocation area. 13. The provisions of this Resolution shall be subject in all respects to the Act and any amendments thereto. 4 14. This Resolution, together with any supporting data and together with the Plan, shall be submitted to the Carmel Plan Commission (the "Plan Commission and the Common Council of the City of Carmel (the "Common Council as provided in the Act, and if approved by the Plan Commission and the Common Council shall be submitted to a public hearing and remonstrance as provided by the Act, after public notice as required by the Act. Adopted the 21 day of May, 2008. CIT 5 President F CARMEL REDEVELOPMENT SION Vice President EXHIBIT A Description of the Legacy Project Economic Development Area and Legacy Project Allocation Area INDSOI RCS 1037407v1 6 City of Carmel Hamilton County, Indiana Legacy Project Economic Development Plan May 21, 2008 Michael R. Shaver, President 3799 Steeplechase Drive Carmel, IN 46032 (voice) 317/872 -9529 (fax) 317/872 -9885 (e -mail) wabsci @aol.com Legacy Project Economic Development Plan Carmel, Indiana Purpose of the Economic Development Plan This Economic Development Plan (ED Plan) is being developed for the sole purpose of underwriting and capturing a specific development proposal for the parcel of land identified by the Carmel Development Commission (CRC) as the Legacy project. The area encompassed by the proposed Legacy ED Area is located on the west side of River Road at 146 Street on the far northeast side of Carmel. The Legacy project has been approved by the Carmel Plan Commission (thus assuring that the ED Plan conforms to the Comprehensive Plan) and the development contains substantial amenities which are proposed for finance using TIF. The proposed Legacy project is designed to provide commercial and residential development of currently under developed parcels within the proposed ED Area. The purpose of this Economic Development Plan (ED Plan), therefore, is to present the developer's proposal to capture and utilize TIF for purposes of installing major infrastructure improvements which will serve the community at large beyond the demands of the development, itself. The proposed uses of TIF would include the early development of the Cherry Tree Road connector, as well as the proposed natural area amenities and the development of the educational assets of the development. The TIF generated by the commercial portions of the Legacy development is to be used to accomplish projects identified in the Economic Development Project List which is a part of this ED Plan. While the developer will install the proposed developmental amenities regardless of TIF availability when the development has progressed sufficiently to generate the necessary cash, this ED Plan suggests that the CRC might consider the commitment of TIF for the purpose of advancing the timeline to achieve community -wide benefits at an earlier date than would be otherwise possible. This far northeast portion of the City represents one of the last large undeveloped tracts, and at this time, the thoroughfare system serving the far northeast area is insufficient to serve the demands of growth in the surrounding areas (including development in Westfield and Noblesville). DEVELOPMENT CONSIDERATIONS The proposal to create the Legacy ED Area is offered to the CRC for the purpose of installing major improvements to River Road, as well as constructing the roadway corridor connecting Cherry Tree Road to River Road. The use of TIF would enable these improvements to be undertaken years earlier in the development process, thus serving the surrounding community, prior to the point in time where the Legacy development, itself, would normally require those improvements to be completed. In addition, the developer would possibly propose to use TIF for the full development of the wildlife /natural area and the educational amenities which have been proposed in connection with the school system. 3 Given the current economic conditions, and the potential impact of the national economic slowdown, the developer's proposal to create the Legacy ED Area could advance the availability of these major corridor and other improvements years before those amenities might be available without the commitment of TIF. Description of the Proposed Economic Development Area The proposed Legacy Economic Development Area is generally located on the south side of 146 Street, west of River Road. The legal description of the proposed ED Area will be included in the Declaratory and Confirmatory Resolutions establishing the Legacy ED Area. A list of the parcel identification numbers which have been assembled from the records of the Hamilton County Auditor to comprise the proposed ED Area is presented below: Parcels Included in the Legacy ED Area Parcels newly designated in the Legacy ED Area 17- 10- 23- 00 -00- 001.003 17- 10- 23- 00 -00- 001.103 17- 10- 23- 00 -00- 011.000 Legacy Preliminary Development Proposal The preliminary Legacy development proposal includes a mixed -use retail development with offices and other extremely upscale developmental amenities. The target market is highly discriminating clientele with upscale demographics. The development proposal which was approved by the Carmel Plan Commission is included in this ED Plan for purposes of demonstrating the importance of the Legacy development as an economic benefit to the City, as well as demonstrating that the early completion of certain improvements would benefit the entire northeast side of the City. The Legacy development proposal has been approved by the Plan Commission, thereby enabling the CRC to act on this ED Area proposal without speculation as to conformity with the Comprehensive Plan. Legacy ED Plan to Become a Part of Carmel's Integrated ED Plan The developer proposes to create the Legacy ED Area separately from the Integrated ED Area, as previously developed. However, the developer is open to constructive discussions which would potentially provide synergies for the CRC's overall goals which are not currently contemplated. These adjustments can be made as the ED Plan is being considered by the CRC. Intent of this Economic Development Area Designation By designating a separate Economic Development Area, the Carmel Redevelopment Commission (CRC) can specifically designate that TIF revenues resulting from the proposed development can be captured by the CRC and dedicated to the specific 4 developer of Legacy as a development incentive to support the construction of infrastructure to serve the entire northeast side of Carmel. The existing condition of River Road requires substantial improvement in order to viably serve the growth which has already occurred in this vicinity. In addition the connecting corridor between Cherry Tree Road and River Road would serve the entire community at large, in addition to the Legacy development, itself. The primary motivation for designating the ED Area and enabling the developer to utilize TIF for making the improvements proposed would be to enable those improvements to be made at an earlier date than is currently possible, given the national economic environment, and given the fact that the amenities proposed for TIF funding would not be necessary for several years, based on the Legacy's timeline, alone. Legacy Findings of Fact Indiana statute IC 36 -7 -14 provides for the formation of an Economic Development Area in accordance with the following criteria: 1. The plan for the Economic Development Area: promotes significant opportunities for the gainful employment of its citizens; attracts major new business enterprise to the unit (of government); retains or expands a significant business enterprise existing in the unit, or; meets other purposes of development and economic development. 2. The plan for the Economic Development Area cannot be achieved by regulatory processes, or by the ordinary operation of private enterprise because of: lack of public improvements, existence of improvements or conditions that lower the value of land below that of nearby land; multiple ownership of land; or other similar conditions. 3. The public health and welfare will be benefited by the plan for the economic development of the area. 4. The accomplishment of the plan for the Economic Development Area will be a public utility and benefit as measured by: the attraction or retention of permanent jobs; an increase in the property tax base, or; improve the diversity and economic base or other similar benefits. 5. The plan for the Economic Development area conforms to other Development and Development Plans of the unit. Finding of Fact #1: "...the plan promotes significant opportunities for the gainful employment of its citizens; attract major new business enterprise; ...retains or expands a significant business enterprise existing in the unit...." Designation of the Legacy Economic Development Area is undertaken for the specific purpose of advancing the development schedule for the Legacy development proposal. The Legacy development proposal involves creation of a mixed use retail /office development which is targeted to support and attract an extremely upscale clientele to the area. The ED Area designation, and the potential benefits of TIF which would result from the designation would enable the Legacy development to proceed with certain infrastructure and other projects at an earlier date than would otherwise be necessary or possible, given the current economic circumstances both locally and nationally. 5 The Legacy development will provide direct construction jobs during this economic slowdown. It is noted that many development proposals that were approved before the onset of the economic slowdown have been curtailed. By designating this ED Area, the CRC would help to assure that improvements which are beneficial to the community at large would be less dependent upon the national economic cycles. In addition, it is the developer's stated intent to develop Legacy for the purpose of attracting new business enterprise to the proposed Economic Development Area. The intent to develop commercial business space that will be offered to the business marketplace for the purpose of housing new, existing, relocated and/or expanded commercial businesses in the Legacy ED Area and which will generate new opportunities for gainful employment of Carmel and metropolitan area citizens. The CRC is being asked to respond directly to this development proposal with the full expectation that new employment opportunities will be captured in this ED Area. As such, it is determined that the proposed Economic Development Area meets the statutory finding of fact that the ED Area promotes new opportunities for gainful employment, attracts new business enterprise, and provides for the expansion of existing business in the City. Finding of Fact #2: "the plan... cannot be achieved by regulatory processes or by the ordinary operation of private enterprise because of lack of public improvements...multiple ownership of land... or other similar conditions." The designation of the Legacy ED Area responds to a series of conditions that relate to the development of suburban parcels. The development proposal which has been approved by the Plan Commission will be implemented as promised, but subject to the economic constraints affecting the state, local and national economies at this time. At this time, the regulatory process has performed its full function, and no further exercise of the regulatory process can overcome the economic realities currently in force. Simply put, the proposal to designate the Legacy ED Area is rooted in the question of whether the CRC finds that early completion of certain infrastructure improvements would benefit the community sufficiently to justify the commitment of TIF funding. The infrastructure improvements will be performed as promised. The CRC's commitment of TIF would simply guarantee that those improvements would take place at a substantially earlier point in time than if the same improvements were to be funded by the developer, without TIF. The roadway improvements proposed as part of the Legacy development will clearly benefit the community far beyond the boundaries of Legacy, itself. The question before the CRC is whether there is sufficient public benefit to be derived by committing TIF for the purpose of achieving the infrastructure improvements at an earlier date than would otherwise be possible under current circumstances. Finding of Fact #3: "the public health and welfare will be benefited..." The proposal to create the Legacy Economic Development Area will benefit the public health and welfare in several ways, as follows: 6 1. The public welfare will be benefited by providing new jobs and significant opportunities for employment of the citizens of Carmel, as a result of the proposed commercial development. 2. The public welfare will be benefited by making infrastructure improvements which would have a community -wide impact and benefit at a date /time earlier than would be possible without the commitment of TIF. 3. The public welfare will be benefited through the development and implementation of improved thoroughfare corridors connecting the northeast side of Carmel to major corridors such as 146 Street and by improving River Road. 4. The public welfare will be benefited by creation of new assessed value within the Economic Development Area. 5. The public welfare will be benefited by completing certain infrastructure improvements which will benefit the community at large at an earlier date than would be possible without the commitment of TIF funds to these improvements. 6. The public health will be benefited by improvements to safety features and local transportation and infrastructure which are designed to reduce the incidence of traffic accidents, including pedestrians, joggers and bicyclists struck by vehicles along unimproved roadways, as well as vehicular accidents. 7. The public health will be benefited by infrastructure improvements which reduce traffic congestion and thus improve local air quality. 8. The public health will be benefited by attracting more people to walk, jog or bicycle along the facilities to be completed as part of the Legacy development. 9. The public health will be benefited by developing an area which could possibly have lain fallow due to the high cost of extensive infrastructure improvement needs in this under- developed portion of the city. 10. The public health will be benefited by providing amenities related to the preservation of natural areas as committed in the Legacy development proposal. It has been the CRC's strategy since the beginning to enhance the quality of life in Carmel by requiring developers to provide extraordinary amenities as part of their developments. The Legacy development is one of the highest quality developments in recent memory. The national economic slowdown will have an impact on the development timelines of many developments in central Indiana. The designation of this ED Area and the commitment of TIF funding for certain infrastructure improvements will benefit the public health and welfare by enabling Carmel to capture an upscale clientele which is both economically and socially beneficial to the community at large. Therefore, the CRC hereby asserts that this statutory finding is satisfied. Finding of Fact #4: accomplishment of the plan will be of public utility... as measured by: the attraction or retention a permanent jobs; an increase in the property tax base... or other similar benefits." The proposed Legacy ED Area would be of significant public utility in several ways. The developer has committed to the development of an extremely upscale mixed use development. As part of the overall development, the developer has committed to making a series of infrastructure improvements which will benefit the community art large, with an impact substantially beyond the demands related to Legacy, alone, such as improvements to the under developed River Road corridor, and the roadway connecting River Road to Cherry Tree Road. When these infrastructure improvements are made, the entire northeast side of Carmel will benefit from the public utility afforded by their presence. Trips to /from the local 7 school currently involve accessing 146 Street, but when the connecting corridor is developed, those trips will be removed from 146 Street. Improvements to River Road will increase the traffic safety along the corridor. All of these obviously serve the public utility. And all of these improvements will be made, regardless of this ED Area designation. The central question in this case, however, is whether the CRC determines that there is sufficient public utility to be derived from the early completion of these infrastructure improvements as a result of committing TIF funds via the ED Area designation and the improvement and reconstruction of River Road. If the CRC finds that the public utility of insuring that these infrastructure improvements are made immediately, despite the current economic slowdown, then the ED Area should be designated. At the same time, if the CRC determines that the infrastructure needs are not urgent, then the public utility of the ED Area designation is reduced. The CRC hereby asserts that the accomplishment of this Economic Development Plan, including its goals, objectives, strategies, and projects, will be of public utility, as defined in the statute (above). The development proposal offered as part of the Legacy development is projected to increase the number of permanent jobs in the area, as well as supporting the retention of existing jobs which are already located in Carmel. In addition, it is clear that the proposed development will also increase the property tax base, as well as diversify the economic base of the City of Carmel. The proposed Legacy development will help the city to attract and retain a broad range of new businesses, including small, start -up businesses, as well as relocation opportunities for expanding businesses in the area. Many of these businesses could not be attracted or retained, or otherwise would not be permitted to grow, without developments such as the ones proposed for Legacy. Therefore, it is determined that this Economic Development Plan satisfies this statutory finding of fact. Finding of Fact #5: "the plan for the Economic Development Area conforms to other development and development plans of the unit." The CRC hereby asserts that the Legacy Economic Development Plan is designed to conform in every respect to the other economic development and development plans for the area. As stated previously, the Carmel Plan Commission has already approved the Legacy development as conforming to the Comprehensive Plan. The Plan Commission's approval of the proposed development must be understood as a statement of conformity. The ED Plan is offered as a commitment of TIF toward the completion of certain infrastructure improvements, which, as noted above, can be completed earlier and therefore provide greater benefit to the community at large, if TIF funds are committed. The ED Area designation and the commitment of TIF are, therefore, under the discretion of the CRC. 8 Cost item Estimated cost Improvements to River Road j VA 11 U^ Construction of the River Road /Cherry Tree Road connector -77 Public amenities related to development of the natural area A Preliminary Subtotal of Estimated Costs k,,u tJa' Regardless of the proposed ED Area designation implicit herein, all previous planning documents prepared by the CRC were reviewed in full by the City, as well as the Plan Commission, and were previously found in all cases to conform to the overall plan of development for the area. This Economic Development Plan alters none of the previous findings in this regard. The City and the Plan Commission have worked cooperatively since the inception of economic development and development efforts by the CRC. This Economic Development Plan cannot reasonably be interpreted in any manner that does not conform to the overall plan of development and development for the City of Carmel, and as such, is expected that this statutory finding of fact is satisfied. Economic Development Strategy The CRC seeks to designate the Legacy Economic Development Area for the purpose of promoting the early completion of certain infrastructure and other improvements in order to achieve community -wide benefits at an earlier date than would be possible without the commitment of TIF funds. The developer has committed to making these improvements and will honor that commitment. However, if TIF is committed, the improvements will be completed, and will be in service to the public several years in advance of the time that those improvements will be possible under current economic conditions. The question facing the CRC is whether the benefits of early completion of these improvements is sufficient to justify the commitment of TIF. As stated previously, this Economic Development Area is being designated explicitly for the purpose of supporting the project proposed as part of the Legacy development, and therefore the strategy for this Economic Development Area relies heavily upon the CRC's interpretation of the length and duration of the current economic conditions and the impact of these economic conditions on the Carmel market. Economic Development Projects The CRC's partnership in creating the Legacy ED Area includes the possible use of TIF funds for the following projects in conjunction with the Legacy proposal. BDDBOI 5264335v I 9