HomeMy WebLinkAboutReport of Economic Dev CommissionREPORT OF THE CITY OF CARMEL
ECONOMIC DEVELOPMENT COMMISSION CONCERNING
THE PROPOSED FINANCING OF ECONOMIC DEVELOPMENT
FACILITIES FOR ONE ONE SIX COLLEGE APARTMENTS, LLC
The City of Carmel Economic Development Commission (the "Commission proposes to
recommend to the Common Council of the City of Carmel, Indiana (the "City that it loan the proceeds
of certain taxable economic development revenue bonds to One One Six College Apartments, LLC (the
"Applicant for the financing of certain economic development facilities in the City.
In connection therewith, the Commission hereby reports as follows:
A. The proposed economic development facilities consist of the projects listed in
Exhibit A hereto which are located in the 126' Street Economic Development Area (the
"Projects which will support the Applicant's proposed mixed use development in the City (the
"Facilities
B. The Commission estimates that no public works or services, including public
ways, schools, water, sewer, street lights and fire protection, will be made necessary or desirable
by the Projects, because any such works or services already exist or will be provided by the
Projects themselves or by Applicant or other parties.
C. The Commission estimates that the total costs of financing the Projects will be
approximately $19,500,000, of which the City's portion will not exceed $2,400,000 million.
D. The Commission estimates that the Projects will create approximately 4 direct
jobs with an annual payroll of approximately $150,000, and will have the additional benefits
described in Exhibit B hereto.
E. The Commission finds that the Facilities and the Projects will not have a material
adverse competitive effect on similar facilities already constructed or operating in the City of
Carmel, Indiana.
Adopted this 16' day of March, 2011.
Attest:
resi City of el
conomic Development ommission
Secretary, City armel
Economic Development Commission
EXHIBIT A
DESCRIPTION OF INFRASTRUCTURE IMPROVEMENTS
Proposed Infrastructure Improvements
Infrastructure and hardscape including earthwork, sanitary sewers, storm sewers and
underground detention, water mains, College Avenue reconstruction including demolition, line
stabilization, paving and curbs, and construction of the east/west service drive coming off of
College Avenue, building footings and foundations, concrete slabs, site engineering, general
requirements and contractor overhead.
EXHIBIT B
Additional Benefits of the Proiects
The National Assoc. of Home Builders "The Metro Area Impact of Home Building In Indianapolis, IN"
report is a comprehensive report measuring the income, jobs and taxes generated by the home building
industry. The report measured the local impact of building 4,460 single family homes. The report
measured the economic impact of single family homes, not multifamily homes. While there are a
variety of ways to interpolate this data and apply to apartments, perhaps the most logical method is to
treat apartments in the same method the City of Carmel treats apartments for sewer and water
connection fee purposes. Carmel treats the average single family home as 1 Equivalent Dwelling Unit
and an apartment unit as 70% of 1 "equivalent" dwelling unit.
Using such, below is the summarized impact of ONE YEAR building 191 apartment units on the local
area:
Local Income: $15,634,800
Business Owners' Income: $4,374,400
Local Taxes: $1,243,740*
Local Jobs Supported: 334
*Local taxes are the culmination of a variety of real estate taxes, business sales taxes, income taxes,
license taxes, and excise taxes; also of note is that the real estate taxes assumes a 1% tax cap for single
family homes and the apartment homes would be treated at the 2% tax cap this increasing this number
accordingly.
There is of course a ripple effect of spending the income and taxes generated from above. According
the NAHB and using the 70% ratio for apartments, the one year ripple effect would be:
Local Income: $7,288,630
Business Owners' Income: $2,461,339
Local Taxes: $943,180
Local Jobs Supported: 117
It is important to note that these figures are the summarized impact of one year and the subject
development is expect to take 20 months to complete. There are many local suppliers, contractors,
subcontractors, servicers, professionals, inspectors and other related workers involved with the
construction of a multimillion dollar apartment community. The cumulative effect on the local
community for the direct costs of building the project and the indirect and ripple effect of those
businesses and employees working and spending in the area for close to a two year period has a very
large economic impact.
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