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HomeMy WebLinkAboutEconomic Development Plan DRAFT 04-22-10 (Draft) Economic Development Plan: Meridian M Hconornic Development Area Presented to the Carmel Redevelopment Commission Revised April 22, 2010 (p. 6) Presented by: Wabash Scientific, inc. Michael R. Shaver, President 3799 Steeplechase Drive Carmel, IN 46032 317.872.9529 wabsci@aol.com 1 Meridian Main Economic Development Plan (Draft, April 22, 2010) yrcc x ++w+ x 'tom d z s m'M "bz .�f ,tn'Tz i t du y �anss rr r .y 1 r rry� r;r r.. �a4dY t, A S r r r f M AIN a .r r txdr Bax'v wa's" 't� uA B Dev to p t t S ju,. `fGf'N`i m X u.� a a a "+g$ a:' x* 'fia Wi n r Y i., sas+'` "s fAa 2 m'^. q n5'` t r �t� �s+,FV''.,i` i .a, v'�x 't a. yams t4- 's.°tiq' +?a f �ay,' 5 at 9'�:�.k ,£�''"'Gc .!a..r� >r t i a'� �W "`r�`w TM ���..t n 3 fkl"" tx nyst r y� �,7' 'r s a�� a>� tr.s fi. B�a'� ti ~k��.' ',.�"�'�.y�r. "E'.s c}"4��`��3' �triYa m `'rr �t t x v U J C Jt Vincent Carmel r 5. 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'+5 are+. d� S f +y �g,. at {[`r .^Bi' esz r `x ,.j' s5 StC� ,v..a,,�,te=+,.,.o-n'k� �"Cr XS e t' °�N w e�Z J .n ��xd k ,kx'' F� sn" ,S s, �=,i�' �.2^ .F..n- Rd� i r2i� P x ai e z ,e•..�s r.& .'r�"t+ �'"�,t1j"n"�'�° r i ''u';' a s^ s- F m 2 �k M 7T" r u S w• rt'" '.u- sy° AN,.a-_ Map #1: Two Phases of Meridian Main (per Developer) Meridian Main ED Plan: Introduction The Meridian Main ED Plan is developed for the purpose of enabling the Carmel Redevelopment Commission (CRC) and the Carmel City Council to assess and determine the propriety of extending TIF incentives to the development which has been proposed by Browning Investments. It is specifically noted that the Carmel -Clay Plan Commission has already considered and approved a significant portion of the overall project, which is consistent with the past practices of the CRC with respect to the independence of the Plan Commission. The Old Meridian ED Area Was Designated in 2002 The Meridian Main project area was originally designated as an ED Area in February, 2002, as part of the Old Meridian ED Area. The 2002 approval by the CRC was undertaken specifically in support of the Plan Commission's approval of the Old Meridian Task Force report which painstakingly attempted to integrate both new development and redevelopment activities for the purpose of achieving the highest quality development to occur along the Old Meridian corridor. The 2002 ED Plan noted that both new development and redevelopment would be necessary to assure high quality development in these areas. The 2002 ED Plan can be attached as Appendix, if needed, but is hereby incorporated by reference. 2 Meridian Main Economic Development Plan (Draft, April 22, 2010) It is noted that the original Old Meridian ED Plan, as well as the Old Meridian Task Force Report, noted the complexities and sensitivities of the area with specific situation of the need for both new development and urban redevelopment as part of a combined package for the overall area. SITE DATA aHxFi a 4 A bra, `c'V "Y aaic 3 RN a J r "r a a f 1J amu t v ac a4 -,,Xy i ce i 4 na F I r uwa 0; A c N" z i x -a r 2 u s Y xr 3 r tn '4 n r 4,Y.�yy ..i�..y� gnr x� w s,� i t d' I r i c I r 9 .a j' t 1 1 r Y s t f 4 iT .4 r e5 i ib frr,t ti t "g 4 a 5 q :�.v'� r �lsac *'.s.- .-,a ,F^" _aye. :s,. Y/ 'e' E 3Y ,z -1Fi f iWeat A� F s u t 7 4 s '`�a t o t v n u it f y h' i rc ,T �5. r, :is p- t a ',1 5 tt we m t I S s s fi r 4 r To a IL A F 1. ri --rte'_$ S �r t 1 V c -s 4- a r.. Y 't J 5 x3 M 4; r` t,,I r a h w. 1 BR OWNING o re x n o n ,P I Browning 91Prielan itarl:Main Prekrninary.S to flan CI na<; -ur-n, Map #2: Meridian Main's Two Phases Showing Subdivided Lots Site Data Breakdown (per Developer) The Meridian Main Proposal Is Cons With Previous Plann The' Meridian Main development proposal has been determined to conform to the previous ED Plans for the area, as well as other previous planning for the area. This determination is affirmed by the independent public actions of the Plan Commission. The Meridian Main development /redevelopment proposal (both phases) contains a blend of new development and redevelopment activities which is consistent with all previous,planning. The Meridian Main TIF Request is Cons w the 2002 ED Plan In order to assure optimum public transparency, it is noted that the Meridian Main TIF request is also consistent with the 2002 ED Plan, in terms of the amount of the TIF request ($4.9 million), as well as the items requested for funding. This statement should 3 Meridian Main Economic Development Plan (Draft, April 22, 2010) not be interpreted as a cominitment or recommendation for TIF funding, but rather a statement of fact, which will be presented in detail later in this ED Plan. In addition to the fact that the TIF request conforms to the projects identified in the 2002 ED Plan, it is noted that the TIF request represents only -50% of the total property tax revenues projected to be generated by Meridian Main. This factor should be examined and affirmed through any Financial Analysis performed in the event that TIF investment is deemed appropriate by the CRC and/or City Council. It is further noted that the Old Meridian ED Plan contains a provision suggesting that the CRC can consider using TIF revenues for the purpose mitigating the impact of new development on nearby neighborhoods such as "Landscaping, screening, earthwork, and other improvements" designed to mitigate such impact, "if they (the CRC) determine that such requests are reasonable and appropriate to the interests of the community at large." Phases I II of the Meridian Main project are graphically depicted on Maps #1 and #2, including the residential parcels which are proposed to be excluded. Special Note With Regard to the Spine Center Proposal One of the centerpieces of the Meridian Main proposal is the development of a facility referred to as "The Spine Center." This facility is important to the CRC on several levels and deserves special note. First, the Spine Center would serve as an enhancement to the capabilities of the existing St. Vincent's campus. Hospital facilities, as well as professional training and human resource development, must be virtually constantly updated to embrace new technologies. When those new investments do not occur, the facilities become obsolete and eventually become economically unsustainable. Since hospitals are often tax exempt entities, it is difficult for government to provide substantial assistance to such facilities. The Spine Center is a unique blend of for- profit facilities which not only houses highly specialized health care professionals, but also contains high technology professional and skill- development facilities. This training and learning center will enable medical professionals to be trained in the most cutting -edge technologies with regard to spinal injuries and diseases, as well as affording therapy and other training necessary to enable health care professionals to remain current and relevant in a rapidly changing industry. In effect, it is reasonable to state that the development of the Spine Center will serve not only as a high quality professional development for Carmel at- large, but it will also help to sustain, enhance, and extend the effective life of the existing St. Vincent's campus. The long -term economic viability of the St. Vincent's campus was a concern of the community at large as far back as 1980 (when the Comprehensive Plan was updated at that time) and it continues to be a entity in 2010. The Spine Center is projected to be a major benefit to the economic viability of St. Vincent's in the near future. 4 Meridian Main Economic Development Plan (Draft, April 22, 2010) Brief Description of the Proposed Meridian Main Project The Meridian Main project has been presented as a combined new development and redevelopment project to be undertaken in at least two phases: a "West Parcel" covering 38 acres (referred to as "Meridian Main I located at the intersection of Meridian Main (with five subdivided sites within the 38 -acre parcel); and an "East Parcel (Meridian Heights)" covering approximately 18 acres (which was assembled through the private acquisition of approximately 47 subdivision homesites). The latter phase is referred to as "Meridian Main II." Maps #1 #2 depict the general parameters of the 2- phased project (as presented by the developer.) A development Plan for Meridian Main I has been approved by the Plan Commission. Meridian Main II has been re- zoned, but no development proposal has been approved. Map #2 shows both phases of Meridian Main, as well as the excluded residential parcels in North Meridian Heights. The totality of the Meridian Main I II development represents a combination of new development along with urban redevelopment, which is in conformity with the original parameters and expectations of the 2000 Old Meridian Task Force, as well as the 2002 Old Meridian ED Plan. The proposed project generally includes following proposed elements (information derived from developer's printed material): Internal roadway corridors which extend and connect existing municipal corridors, as well as other appropriate infrastructure; o Included in the infrastructure planning for the project is a long -term provision to extend Pennsylvania Street to connect to Old Meridian, east of the proposed ED Area; o The proposal to extend Pennsylvania Street to Old Meridian conforms to the Old Meridian Task Force report dated 2000, as well as to the 2002 ED Plan. A 3 -story medical office building, ambulatory surgery center and a high technology, specialized training /learning center, including a skills development laboratory for medical professionals; o 1 level ambulatory surgery center, imaging suite, and appurtenant support facilities; o 2 level clinical facilities, including physicians' and staff offices, fluoroscopy suite, and physical therapy suite; o 3` level administrative offices, research and development facilities, records, and bio- skills laboratory with 60 -seat auditorium for bio- skills training and education; o Parking at 4 spaces per 1,000 sf of office facilities Additional retail, office, and apartment development; A hotel facility to support the ambulatory surgery center (as well as the existing St. Vincent's Hospital campus); Approximately 623,000 sf of professional office, medical office, retail and hotel uses; An estimated (by the developer) $87,000,000+ in business assessed value; Projected (by the developer) property tax revenue of $1.4 million (net of previous development); Developer requests TIF assistance for infrastructure development amounting to -50% of projected property tax revenue from the proposed development. 5 Meridian Main Economic Development Plan (Draft, April 22, 2010) Brief Summary of the Request for TIF Incentives The developer has requested that the CRC consider the investment of TIF incentives in the estimated amount of $4.9 million to support Meridian Main, briefly summarized as follows: Infrastructure Improvements totaling $4.35 million, preliminarily estimated as follows: o Site work estimated at $1.65 million; o Construction of roads /water /sewer estimated at $1.5 million; o Drainage improvements estimated at $0.4 million; o Demolition of existing structures estimated at $600,000; o Professional fees estimated at $200,000; Incentives for the Indiana Spine Group estimated at $550,000. Estimated total TIF Funding Request (per developer) ($4.9 million); o 2002 ED Plan estimates were $5.5 -$8 million). Net (developer) estimated annual TIF revenue ($1.434 million build -out). While the final determination of any TIF investment resides with the CRC and Carmel City Council, it is appropriate for this ED Plan to note that the TIF request is consistent with the provisions of the Old Meridian ED Plan approved in 2002. A detailed explanation of the original ED Plan projects is contained in the section of this ED Plan entitled "Conformity with the Old Meridian ED Plan (2/28/2002): Proposed Projects" as presented below. For transparency purposes, it is noted that the Old Meridian ED Plan proposed that TIF funding would be considered for infrastructure extensions in the form of thoroughfare improvements, utility enhancements and impact mitigation. Conformity with Previous Planning This ED Plan seeks to root itself firmly in the long -term planning of the community at large. In pursuit of this planning goal, the ED Plan notes four separate and distinct determinations of conformity with the previous planning for the area and the community, as follows: Conformity with the Comprehensive Plan of the city of Carmel as evidenced by the approval of the Meridian Main development proposal by the Carmel -Clay Plan Commission (including the Plan Commission's approval of the re- zoning of North Meridian Heights). o It has been the longstanding policy of the CRC to allow the Plan Commission to make its determinations and decisions freely and without confusion from or by the CRC. o In support of this CRC policy, the CRC did not consider the creation of any TIF related entity or action until after the Plan Commission had approved the Meridian Main 1 project (as well as re- zoning of North Meridian Heights). o It has also been the longstanding and consistent policy of the CRC to assume that any approval of any project by the Plan Commission is tantamount to a statement of the conformity of the approved project with the Comprehensive Plan for the affected area. Conformity with the US31 Corridor Overlay provisions as evidenced by the approval of the Meridian Main development proposal by the Carmel -Clay Plan Commission (for the pertinent portions of the project lying within the US31 Overlay district). o The Carmel -Clay Plan Commission previously approved a US31 Corridor Overlay for the purpose of governing development along the US31 (Meridian) Corridor. o The provisions of the US31 Corridor Overlay were included in the review and approval of the Meridian Main project by Carmel DOCS staff and the Plan Commission. 6 Meridian Main Economic Development Plan (Draft, April 22, 2010) o Approval of the Meridian Main project by the Plan Commission affords the CRC detailed documentation of the conformity of the approved Meridian Main Project with the US31 Overlay requirements. Conformity with the Old Meridian Economic Development Plan (final), as approved on February 28, 2002 by the CRC. o The Old Meridian ED Plan, approved February 28, 2002, designated a large area as being the Old Meridian ED Area. The 27 February, 2002, map depicting the actions of the CRC showed a "Base Economic Development Area" which was generally located southeast of the intersection of Main Street and Old Meridian. The 27 February, 2002, map depicting the actions of the CRC also showed an "Overall Old" Meridian Economic Development Area" which included the a section of the Old Meridian corridor from approximately 130 Street to Old Meridian's intersection with US31 near 136 Street. The 27 February, 2002, map depicting the actions of the CRC also showed "Unincorporated Area" which was not (at that time) within the corporate boundaries of the City of Carmel, yet which the CRC designated its intent to put into the Overall Old Meridian Economic Development Area. The CRC's intent was later affirmed by amending the Old Meridian ED Area in accordance with the stated intent of February 27, 2002 to include the previously unincorporated areas (as a result of Annexation Ordinance C -210). The Meridian Main project comprises only a portion of this total previously- designated ED Area, lying north of Main (aka 131 Street and southeast of the existing St. Vincent's campus. o In addition to the original ED Plan which was approved in 2002, the CRC updated and expanded the Old Meridian ED Area as a result of the annexation ordinance C -210 becoming effective. This expansion of the Old Meridian ED Area conformed to the "Overall Old Meridian ED Area" as reflected in 2002, thereby validating and affirming the previous actions of the CRC. Ordinance C -210 brought the areas previously (as of 2/27/2002) unincorporated (but designated by the CRC as part of the "Overall Old Meridian ED Area into the corporate limits of the city of Carmel, as specifically provided in the original ED Plan. The Integrated Economic Development Plan and Amended Redevelopment Plan" (dated August 6, 2003) brought the separate ED Plans which had originally been developed for specific individual areas into one, integrated framework for the CRC. The "2004 Amendment to the Integrated Economic Development Plan Amended Redevelopment Plan (dated February 10, 2004) further affirmed the original economic development and redevelopment intentions and policies of the CRC. The CRC hereby expresses its respect for the actions and autonomy of the Carmel -Clay Plan Commission with regard to developmental review and approval. The actions proposed in this ED Plan, as well as the stated evidentiary basis for those CRC actions are based on its respect for the Plan Commission as well as the CRC's interest in promoting the developmental policies of the Plan Commission by assisting in the development of the highest possible quality of infrastructure to support long -term growth and development. 7 Meridian Main Economic Development Plan (Draft, April 22, 2010) Conformity with the OId Meridian ED Plan (2/28/2002): Proposed Protects The Old Meridian ED Plan was approved by the CRC on February 28, 2002, along with the designation of the Old Meridian ED Area. (According to our research, no tax allocation area was designated at that time.) The approved ED Plan itemized -a series of general types of projects which would be considered by the CRC for TIF funding, and the pertinent section of the ED Plan is reproduced in its entirety below for ease of reference: "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. "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. "Utility enhancements (est cost $2.0 to $3.0 million) "Utility enhancement projects are anticipated to include such things as utility burial and enhanced utility service (such as increases in sewer and water lines), as well as other possible forms of utility improvements (such as stormwater control). it is anticipated that these enhancements could be necessitated due to the importance of this `front door" location along OId Meridian, thereby generating an above average need for aesthetic consideration. "Impact mitigation (est. cost $1.0 to $1.5 million) "Impact mitigation projects would be those activities which would mitigate the impact of the proposed development on surrounding neighborhoods. Such projects could include such items as landscaping, screening, earthwork, and other improvements designed for this purpose. At this point, the specific details of such impact mitigation projects is not final, but the CRC should be prepared to consider such requests, if they determine that such requests are reasonable and appropriate to the interests of the community at large. "It is expected by the CRC that the projects to be considered for projects will only be those projects approved by the DOCS (City) and Plan Commission as conforming to the development standards prescribed for the Old Meridian area. The precise scope and amount of any public funding for any development proposal will be determined by the CRC in conjunction with the leadership of the City of Carmel. In the discussions based on specific project proposals, the explicit details of the improvements which are appropriate to the public interest should be finalized and presented to the public as part of the financial packaging for the project" The above excerpt from the Old Meridian ED Plan indicates that the Meridian Main proposal for projects using TIF funds conforms to the original ED Plan expectations of 2002 (8 years prior to the Meridian Main proposal). This consistency of outcome validates and affirms the original assumptions of the CRC with regard to promotion of the highest possible quality of development in the Overall Old Meridian ED Area. In the original Old Meridian ED Plan (dated 2002), the total estimated cost of TIF projects (above) was $5.5 -$8 million, and the developer's TIF request for Meridian Main is $4.9 million and covers similar project types. The fact that the developer's request 8 Meridian Main Economic Development Plan (Draft, April 22, 2010) conforms so closely to the long- stated policies of the CRC is affirmation of the conformity of the Meridian Main development proposal to those original expectations and policies as well as affirming that this new ED Plan conforms to the previous economic development planning for the Area. In addition, this current Meridian Main ED Plan also conforms to the expectations and policies set forth in 2002 via the Old Meridian ED Plan on other topics and levels. For purposes of brevity, the excerpts below are drawn from the 2002 Old Meridian ED Plan as examples of the conformity between the 2002 ED Plan and the proposals contained in the Meridian Main ED Plan. These excerpts are offered in order to provide the reader with a clear, transparent and unambiguous basis for determining whether the Meridian Main proposal conforms to the intentions and policies of the CRC as stated in 2002. We believe that the conclusion that this ED Plan conforms to the provisions of the 2002 ED Plan is reasonable based on the excerpts of the 2002 ED Plan, as set forth below. Purpose of the ED Plan' (2002 ED Plan, pp. 5 -6): o "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." o the community must assure itself that any development proposed will place the community in a better position to implement its long term developmental goals." o "This Economic Development Plan attempts to identify the infrastructure improvements required to support growth in the proposed Economic Development Area...." o "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." o "An Economic Development Plan, therefore, is an examination of previous economic development policy in light of new proposals." `Purpose of the ED Area' (pp. 6 -8) o "...the role of the Carmel Redevelopment Commission (CRC) in this project is to create appropriate Economic Development Areas (ED Areas) for the purposes of supplementing the capacity of the City to implement the development proposals...." o "Since the Old Meridian Corridor is clearly established in the long -term plan of development for the community, and since the enhanced development standards have been in place for some time, it is appropriate for the CRC to consider the creation of an ED Area for the purpose of supporting the investment of public sector dollars into the overall, long -term development of the area." o "...any funding decisions to be made as a result of the creation of any proposed ED Area must be reached through the process defined by those agencies and the elected officials responsible for governing those activities." Recommendation for a Phased ED Area' (pp. 8 -10) o "...any funding decisions to be made as a result of the creation of any proposed ED Area must be reached through the process defined by those agencies and the elected officials responsible for governing those activities." Zoning Land Use in the ED Area' (pp. 12 -14) 9 Meridian Main Economic Development Plan (Draft, April 22, 2010) o The special Old Meridian zoning consists of 8 zoning categories specially designed for the OM area. o The ED Plan notes that tax status of St. Vincent's Hospital, as well as Carmel Clay schools and churches with respect to potential TIF development in the ED Area. o The Old Meridian Task Force prescribed multiple forms of potential new development for the area, citing both development and redevelopment opportunities. `Conclusions' (p. 43) o the implementation of the Old Meridian plan will require a substantial amount of redevelopment activity, where existing development is replaced by new development." o "...the best strategy for implementing the development/redevelopment program described by the Old Meridian planning effort is to phase in the Old Meridian ED Area by designating an original ED Area and incrementally expanding the ED Area as new projects are presented to the Plan Commission." o "The area which is most likely to create difficulty for the CRC with respect to TIF and other economic incentives is the area of St. Vincent's Hospital...lt is clear that St. Vincent's is a dominant citizen in the overall ED Area, and it is equally clear that they are a valuable corporate citizen." Recommendations' (pp. 43 -44) o it is recommended that the CRC clearly designate the entire Old Meridian area as being eligible for addition to the phase one, or base, ED Area as future projects are identified and approved by the Plan Commission." o Economic Development Strategy (p. 44) o "...designating the entire Old Meridian area for potential future expansion of the ED Area through the amendment process." o "The Redevelopment Commission will consider the use of economic incentives for the purpose of implementing the provisions of the Old Meridian plan. The CRC anticipates that its predominant participation in such projects will be in providing the ED Area with infrastructure services sufficient to meet the current and future needs of the ED Area." o "The CRC shall consider providing economic incentives for the development of infrastructure systems /facilities separately from any other decisions...." o "The decision to offer any TIF or other economic incentive will be undertaken based on a specific development proposal which has been approved by the appropriate authorities." In addition to the excerpts from the 2002 ED Plan offered above, the Meridian Main ED Plan includes by reference all relevant excerpts related to the statutory findings of fact in the appropriate sections of this ED Plan, as well as all other sections of either ED Plan, and the entire body of ED Plans of the CRC. Finally, the above testimony is suggested to afford satisfaction of the statutory requirement that "the plan for the economic development area conforms to other development and redevelopment plans for the unit." Approved Zoning for Meridian Main Map #3 is taken from the developer's re -zone submittal to the Plan Commission and is intended to depict the existing, approved zoning for Meridian Main I II. The map clearly shows that the Phase I area is zoned B -6, which has been found to conforrn to the requirements of the US31 10 Meridian Main Economic Development Plan (Draft, April 22, 2010) Overlay, as well as with the Comprehensive Plan for Carmel. Phase I will initially include the proposed Spine Center and a proposed hotel, as well as other future development in accordance with the US31 Overlay. The Phase II area shown on Map #3 was proposed to be split into two zoning districts: OM/MU (southern portion) and B -6 (northern portion). The southern portion (OM /MU zoning) fronts along 131 Street (aka Main Street) and is proposed to be developed intohigh- quality office space. The office space would have direct access to an improved Main Street (aka 131 Street) corridor for access purposes. The northern portion of Phase II re -zoned to B -6 and contains_ six existing residential parcels (part of the North Meridian'Heights subdivision) proposed to be excluded from the ED Area, as shown on Map #2. The existing residential parcels are to continue as residential uses, noted by the Plan Commission as being legal non conforrning uses, as provided by standard Plan Commission policy. There has been. no development plan approved for Phase II at this time, however, this ED Plan notes and extends the sensitivity of the CRC with regard to interfaces between existing and proposed development, while also noting•that the North Meridian Heights subdivision was included in the 2002 ED Plan for the overall area. Meridian Main Economic Development Plan (Draft, April 22, 2010) s. r*' ra f� r i �e; „=+i"*`...aw b ;'9 y1 cS r3�1L n d NaT 'ty 'n, 1 "e+,,' �s °P ''q'F 4021.,-A1.7. I �15'� r °N' 3 .F >h (I* z. .0 r k a *9 P� d, k a v ss M1 'gy �'�u rfi S s 2 .i�ee.�x,aE�s.. t.: F� a';k�.t, ,s.i kt� r 1+s+ Riau w a r" #'k," c1 ;�o ng�map r p ry ;+',.a''`s 4 f A rti a i `Fa R sf s eR� �atG t�� al t ai^ Y t1St0 aZ y'' .1'rd ke s 4- 42 M ,:f4, i3 a'' i P s r A roa o f Re r 4' 3 b r s t# t Ou tlined in Blac I c -,..,a,,,,,04,%0 sa r OMIMM Pj Y,, .k# i� 4 1:� {%trsP &,.W�i k 't`a.�4 «t j h`."t fP .IV IYt tom' s e �i O /SU C M /NIU OMAN AM!SFA r`Iara� �t OMIM 4 y t. F x OM/M f b st 4:. 'TI�'A i Z rt e r T 3 �c— j r' w f c 7, s a a 'C' 1', t .t *,,At a F, TM ds1 h f,v t w -s g,-.4,,, 4i ,•4, ),-,..3,u, a s *a vat a, I i .4,:ci, 1,-,11 �'`'h .,4 tea. g sr s a b 1.4 .k° C S t MERIDI, N &cMA1N;11 R EQU Sr FOR RFZO 1TDEDj c n ;f,� mz s pa a�� Map #3 per Developer 12 Meri Main Economic Development Plan (Draft, April 22, 2010) LEGAL, DESCRIPTION: MERIDIAN MAIN ED AREA The legal description of the proposed Meridian Main ED Area is based on the public information of the office of the Hamilton County Auditor. The legal description uses the Auditor's parcel numbers for 'ease of designation and for optimal public transparency, enabling any interested'person to access the Auditor's information in order to inform and educate themselves in this regard. In addition to the legal boundary description, this ED Plan also includes a list of the parcel numbers to be included in the Meridian Main ED Area (below). Residential Parcels to be Excluded from the Meridian Main ED Area Please note that six (6) residential parcels in North Meridian Heights are proposed to be excluded from the Meridian Main ED Area because those parcels are projected to remain as residential parcels and are not currently a part of the development /redevelopment proposal. The intent of this exclusion is to assure the owners of these parcels that it is the CRC's intent to allow and enable them to continue to enjoy their homes, despite the new development and redevelopment which is occurring in the general area. The exclusion is offered out of respect for the wishes of the homeowners by the CRC. In order to best respect the wishes of landowners in North Meridian Heights, the following residential parcels are proposed to be excluded from the Meridian Main ED Area: 17- 09- 26- 02 -03- 001.000 o 17- 09- 26- 02- 03- 002.000 o 17- 09- 26- 02 -03- 003.000 o 17- 09- 26- 02 -03- 005.000 17- 09- 26- 02 -01- 003.000 9 17- 09- 26- 01 -03- 005.000 Boundary Description of the Meridian Main ED Area Beginning at the point of intersection of the northern right of way line of W. Main (131st) Street and the eastern right of way line of North Meridian Street (US 31), which corresponds to the south western corner of parcel number 16- 09- 26- 00 -00- 001.101, Then proceeding northeast along the (south)eastern right of way line of North Meridian Street (US 31) and the northern boundary lines of parcel numbers 16- 09- 26- 00 -00- 001.101, 17 09 26 00 00 004.101, and 17- 09- 26- 00 -00- 005.000 to the point of intersection of the southwestern corner of parcel number 17- 09- 26 -00 -00 -003.001, Then proceeding eastward along the southern boundary of parcel 17- 09- 26- 00 -00- 003.001 to the point of intersection with the northwestern corner of parcel number 17- 09- 26- 00 -00- 008.000, Then proceeding southward along the western boundary of parcel 17- 09- 26- 00 -00- 008.000 to the point of intersection of the southwestern corner of parcel number 17- 09- 26- 00 -00- 008.000 and the northern right of way of line of W. Main (131st) Street, 13 Meridian Main Economic Development Plan (Draft, April 22, 2010) Then proceeding westward along the northern right of way line of W. Main (131st) Street to the point of intersection with the southwestern corner of parcel number 17- 09- 02- 01- 023.000, Then proceeding northward along the western boundary of parcels 17- 09- 26- 02 -01- 023.000, 17- 09- 26- 02 -01- 021.000, 17- 09- 26- 02 -01- 009.000, and 17- 09- 26- 02 -01- 008.000 to the point of intersection with the southeastern corner of parcel number 17- 09- 26- 00 -00- 005.201, Then proceeding westward along the southern boundary of parcel number 17-09-26-00-00- 005.201 to the southwestern corner of that parcel, Then proceeding southward to the point of intersection of the northeast corner of parcel number 17- 09- 26- 00 -00- 005.001, Then proceeding along the northern edge.of parcel number 17- 09- 26- 00 -00- 005.001 and then southward along the western edge of that same parcel number 17- 09- 26- 00 -00- 005.001 to the point of intersection of the southwest corner of said parcel where it intersects the north right of way line of W. Main (131st) Street, The proceeding westward along southern lines of parcel numbers 17- 09- 26- 00 -00- 005.101, 17- 09- 26 -02 -01- 001 -001, 17- 09- 26- 00 -00- 004.001, and 16- 09- 26 -00 -00 -001 -101 to the point of beginning, But excluding of the following parcels which Browning does NOT currently own in the Meridian Heights subdivision: 17- 09- 26- 02 -03- 001.000 17- 09- 26- 02 -03- 002.000 17- 09- 26- 02 -03- 003.000 17- 09- 26- 02 -03- 005.000 17- 09- 26- 02 -01- 003.000 17- 09- 26- 01 -03- 005.000 14 Meridian Main Economic Development Plan (Draft, April 22, 2010) The Statute Governing Creation of an ED Area The Meridian Main Economic Development Plan (ED Plan) is undertaken to support the proposed development of an area generally described as beinglocated in the northeast quadrant of the intersection of Main Street (aka 131 Street) and Meridian (aka US31). The development proposal..for the Meridian Main development has already been considered and approved by the Carmel -Clay Plan Commission, and therefore the Carmel Redevelopment Commission (CRC) undertakes consideration of the creation of an Economic Development. Area (ED Area) using the approval of the Plan Commission as the good -faith basis for considering the proposed development. project. As such, the CRC accepts the approval decision of the Plan Commission as a clear and unambiguous statement of the Plan Commission's finding that the proposed development conforms to the overall plan of development of the proposed ED Area. This determination is critical:to the;CRC'.s statutory consideration of the creation of an ED Area to support the Meridian Main project. The creation of an Economic Development Area and the contents of an ED Plan are governed by IC 36- 7- 14 -41, which, for purposes of clarity, is presented in its entirety below: IC 36- 7- 14 -41: Economic development area; determination; enlargement (a) The commission may, by following the procedures set forth in sections 15 through 17 of this chapter; approve a plan for and determine that a geographic area in the redevelopment district is an economic development area. Designation of an economic development area is subject to judicial review in the manner prescribed in section 18:of this chapter. (b) The commission may determine that a geographic area is an economic development area if it finds that: (1) the plan for the economic development area: (A) promotes significant opportunities for the gainful employment of its citizens; (B) attracts a major new business enterprise to the unit; (C) retains or expands a significant business enterprise existing in the boundaries of the unit;: or (D) meets other purposes of this section and sections 2.5 and 43 of this chapter; (2) the plan:for the economic development area cannot be achieved by regulatory processes or by;the ordinary operation of private enterprise without resort to the powers allowed under this section and sections 2.5 and 43 of this chapter because of: (A) -lack of local public improvement; (B) existence of improvements or conditions that lower the value of the land below that of nearby land; (C) multiple ownership of land; or (D) other sirriilar conditions; (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: (A) the attraction or retention of permanent jobs; (B) an increase in the property tax base; (C):improved diversity of the economic•base; or .,....y,...:...._,..,.. �.,..,_w.,... 15 M eridian Main Economic Development Plan (Draft, April 22, 2010) (D) other similar public benefits; and (5) the plan for the economic development area conforms to other development and redevelopment plans for the unit. 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, and a boundary may not be enlarged unless: (1) the existing area does not generate sufficient revenue to meet the financial obligations of the original project; or (2) the Indiana economic development corporation has, in the manner provided by section 15(f) of this chapter, made a finding approving the enlargement of the boundary. As added by P.L.380-1987(ss), SEC.16 and P. L.393- 1987(ss), SECS. Amended by P.L.114 -1989, SEC.11; P.L.146 -2008, SEC.739. This Meridian Main ED Plan will conform to the above recited statute in all respects, and the CRC will use the ED Plan to clearly set forth the premises upon which the CRC considered the creation of an ED Area to support the Meridian and Main project. The documentation for the underlying project will rely upon the same documentation presented to the Plan Commission for the Meridian Main planning /zoning approval, thereby affording the CRC a structurally identical basis for the CRC's consideration of its statutory responsibilities in this regard. By basing the CRC's decision on whether to create a Meridian Main ED Area on the same information that was provided to the Plan Commission, the public policies of both regulatory bodies should conform to one another and present the public with a transparent and consistent public policy result. Findings of Fact In accordance with statute (above), the Meridian Main ED Plan contains the below Findings of Fact, drawing information as needed from the developer's proposal, the 2000 Old Meridian Task Force Plan, the 2002 Old Meridian ED Plan, and all appurtenant economic development and redevelopment planning documents of the CRC as previously approved. While the CRC recognizes the potential for redundancy in addressing each specific statutory finding of fact, the ED Plan will attempt to minimize such redundancy where possible, but reserving the right to amend and amplify any of its findings in response to public testimony, comments and suggestions, per statutory intent. These Findings of Fact hereby incorporate by reference any and all previous ED Plans approved by the CRC to the extent that those ED Plans support and extend the considerations relevant to the creation of the Meridian Main ED Area. It should be clear to even the most casual (or cynical) observer that the US31, Main Street, and. Old Meridian Corridors (all directly affected by this ED Area proposal) are critical to the long term economic viability of the City of Cannel on multiple, simultaneous levels. Further, the separate and independent scrutiny and review of development proposals by the City's Department of Community Services (DOCS), Plan Commission, City Council and CRC are all intended to serve as protection of the community's 16 Meridian Main Economic Development Plan (Draft; April 22, 2010) standards and public policies in service to the community at large. It is the CRC's intent to remain consistently respectful of these parallel, independent and inter dependent roles. FINDING OF FACT #1A: THE PLAN FOR THE ECONOMIC DEVELOPMENT AREA: (A) PROMOTES SIGNIFICANT OPPORTUNITIES FOR THE GAINFUL EMPLOYMENT OF ITS CITIZENS The Meridian Main ED Plan specifically proposes to promote significant opportunities for gainful employment of not only Carmel citizens, but for citizens residing in a broad cross section of central Indiana, including Indianapolis, as well as all of Hamilton County, and even extending to Boone, Tipton and other counties in the general area. The Meridian Main I project proposes to create the Spine Center, as well as a hotel on two of the sites proposed. Phase I contains 6 buildingsites covering approximately 20 acres (see Map 2). Site #3 has been acquired for a hotel and site #4 is proposed to contain the Spine Center, which includes an ambulatory surgery center, medical offices, and high- technology health -care and public safety training facilities. The buildings on sites 3 and 4 are projected to contain approximately $20 million in estimated assessed value as the initial development sites in Phase I. The remaining Phase I sites are projected to contain improvements totaling another $15 million in assessed value (for a total projected Phase I assessed value of approximately $35 million). The Phase II portion of the project consists of 5 sites, as it is now planned, and is projected to contain another $53 million in assessed value. The total estimated assessed value of the Meridian Main improvements (both phases) is —$88 million, and includes a hotel, plus 623,000 sf of office and retail space. Using accepted parameters for estimation of employment in such developments, it is preliminarily estimated that the Phase I II development will ultimately employ 1,800- 2,000 persons in varying capacities, however, this figure does not purport to include doctors and other medical personnel trained at the Spine Center (but employed remotely), nor does it include any employment estimate for the hotel, or support employment for the maintenance and/or management of the offices. On a more immediate level, the hotel and Spine Center, alone, propose to employ a significant number of the area's citizens at very highly skilled (and very highly compensated) rates of employment. Inasmuch as the period between the 2000 Old Meridian Task Force Plan, as well as the 2002 ED Plan, did not realize the growth of the US31 medical corridor, the proposed development represents an extension of a series of previous investments in medical facilities, including the Heart Hospital, Clarion North, Urology of Indiana and others. The Meridian Main proposal clearly is intended to promote the gainful employment of the citizens of Carmel and surrounding communities, thus meeting the statutory requirements of this finding of fact. FINDING OF FACT ##I B:....ATTRACTS A MAJOR NEW BUSINESS ENTERPRISE TO THE UNIT.... The Meridian Main proposal for Phase I purports to immediately bring two new 17 Meridian Main Economic Development Plan (Draft, April 22, 2010) business enterprises to the area: the Spine Center and a new hotel. The estimated assessed value of these two facilities is —$20 million. These new business enterprises represent the commitments currently received by the developer and do not include the potential for additional business enterprise which is projected to be attracted to the remainder of Phase I (totaling 180,000 sf in addition to the hotel and the 66,000 sf at the Spine Center). Beyond the immediate prospects for Phase I, the Phase II portion of the Meridian Main development is projected to add over 400,000 sf of additional development to house additional business enterprises which the developer will seek to attract. While it is impossible to project with certainty, it would not be unreasonable to find that the total of 623,000 sf of business improvements, plus the hotel, would potentially attract as many as 50 -75 new business enterprises to the Meridian Main ED Area. The Meridian Main ED Area clearly is intended to attract major new business enterprise to Carmel and to the ED Area, thus meeting the statutory requirements of this finding of fact. FINDING OF FACT #1C: THE PLAN FOR THE ECONOMIC DEVELOPMENT AREA... RETAINS OR EXPANDS A SIGNIFICANT BUSINESS ENTERPRISE EXISTING IN THE BOUNDARIES OF THE UNIT. The medical facilities proposed for location in the Meridian Main project, including the Spine Center and other medical office, laboratory, rehabilitation /therapy facilities, etc., offer a direct benefit to the St. Vincent's Hospital campus. It is well understood that hospital and medical care facilities must remain technologically current in order to remain economically viable. Campuses which do not or cannot remain technologically current are vulnerable to relocation, and such relocation generally leaves a rather substantial urban redevelopment problem with regard to the vacated campus. The presence of the Spine Center at Meridian Main, along with the professional training facilities which the Spine Center proposes to develop, affords the St. Vincent Hospital campus the opportunity for continuous professional development in'the highest and newest technologies. The training offered at such a facility has far reaching implications for medical and other health -care professionals living and working in Carmel and other central- Indiana locations. For these reasons, it is suggested that the Meridian Main ED Plan will assist the City of Carmel in extending the viable economic life of the St. Vincent's Hospital campus, thus helping to retain a significant business enterprise which currently exists in the city of Carmel. FINDING OF FACT #ID THE PLAN FOR THE ECONOMIC DEVELOPMENT AREA... MEETS OTHER PURPOSES OF THIS CHAPTER.... The Meridian Main project meets several `other purposes' for the economic development of Carmel, and the surrounding area. To achieve brevity of purpose, this 18 Meridian Main Economic Development Plan (Draft, April 22, 2010) section will simply summarize some of the concepts which can be expanded, if necessary, to further support and enhance the compliance with the statutory findings of fact. Such additions can be made as the ED Plan/Area approval process moves forward. First, the CRC emphasizes the cooperative and mutually beneficial relationship which the Spine Center will have with the existing campus of St. Vincent's Hospital. The opportunity to capture a facility which exhibits the newest in spinal technologies and therapies and to train professionals from throughout central Indiana is an economic development benefit which extends beyond the municipal boundaries of Carmel. Second, the health care attributes of the Meridian Main proposal generally increases the public access to the highest quality health care for the northern areas of Indiana. This increased access is a general benefit to the public, at large, and is not limited to Carmel or Hamilton County. Third, the development of a new hotel facility, as well as the high technology office developments which are proposed, offers the potential for new employment development on multiple levels. This includes attracting entrepreneurs from a broad range of professional disciplines whose business innovations can be captured at Meridian Main. Fourth, the developer offers more than simply real estate development and construction services. Browning Investments provides highly targeted marketing as part of its development services, enabling Browning to capture national and international clients to its developments which would not be possible with some smaller developers. The professional marketing expertise which Browning brings to the M eridian Main project gives the City of Carmel a presence in national and international markets which might not be present with other developers. For these and other reasons, it is suggested that the economic development benefits of the Meridian Main ED Plan meets "other purposes" of the statute. In addition, this ED Plan is also prepared to. draw from and reiterate similar findings related to the 2002 Old Meridian ED Plan, as well as the Integrated Economic Development Redevelopment Plans (as amended) for further support of this statutory compliance. FINDING #2A: 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... BECAUSE OF: (A) LACK OF LOCAL PUBLIC IMPROVEMENT.... The 2002 Old Meridian ED Plan cited a .number of arguments with regard to this statutory provision. Fundamentally, the 2000 Old Meridian Task Force, as well as the 2002 Old Meridian ED Plan, clearly set forth that the development standards for development of this area of Carmel would be complex, and that the expectations would be that new development would be of the highest quality. These previous planning efforts by the Plan Commission and the CRC recognized that incremental planning and development would not generate integrated public improvements. 19 Meridian Main Economic Development Plan (Draft, April 22, 2010) Throughout Indiana, communities with less foresight than Carmel are plagued by "Christmas tree" developments along major corridors. These `Christmas trees" are dominated by cul de sacs and a lack of integration and coordination of individual developments, preventing traffic from moving between developments along a corridor without increasing traffic on the main corridor. The intent of both the Plan Commission and the CRC in 2000 and 2002 was to assure that_the Old Meridian area was not plagued by narrow and incremental thinking with regard to public improvements. In response to these needs, the CRC acted to assure that the coordinated and integrated public improvements necessary to support the highest quality development could be supported through the investment of TIF revenues. The Meridian Main ED Area is an example of this thinking in that the creation of the ED Area is intended to afford access to TIF revenues for the purpose of improving the quality of public infrastructure. Without the foresight invested in the 2000 and 2002 Old Meridian planning, it would be normal to see developments in the vicinity of Meridian Main provide roadways that simply surrender to the geography. Since the area's primary access is Main Street, the internal roadways for the development could be expected to connect only to Main Street. The CRC and the Old Meridian Task Force, however, sought to broaden that incremental thinking to provide connector corridors between Old Meridian and Main Street through this specific area, thus enhancing the traffic circulation system and spreading traffic over a larger number of corridors and road. miles. The Meridian Main TIF request seeks funding for a roadway which would ultimately connect Main Street to Old Meridian through the Meridian Main development. It is clear that the 2000 and 2002 Old Meridian plans both provide a planning platfonn for enhanced public improvements which were intended to generate high quality development. Therefore, this ED Plan suggests that the Meridian Main ED Plan conforms to this statutory requirement. FINDING OF FACT #2B: THE PLAN FOR THE ECONOMIC DEVELOPMENT AREA CANNOT BE ACHIEVED BECAUSE OF... (B) EXISTENCE OF IMPROVEMENTS OR CONDITIONS THAT LOWER THE VALUE OF THE LAND BELOW THAT OF NEARBY LAND.... Both the 2000 and the 2002 Old Meridian plans recognized that achieving the highest foil's of development in the Old Meridian area would be difficult. The US31 Overlay set the standards very high. At the same time, existing historical development in the area had been largely incremental, and the Old Meridian Task Force recognized that new development would be complicated by these older developments. The 2000 and 2002 plans attempted to strike a careful balance between the needs of new development and the protection of existing development. It is clear that the site of Meridian Main I is one of the highest visibility sites along the US31 Corridor. It is equally clear that this site is one of the last to develop in the area. One of the reasons for this delay in development is that the attributes of the site are complex and require a number of potentially conflicting considerations to be accommodated. Clearly, a `clean' bean field which is not encumbered by complications 20 Meridian Main Economic Development Plan (Draft, April 22, 2010) of an existing church and a residential subdivision would be less complicated to develop. Regardless of preferences, the existing conditions of the Meridian Main ED Area required a more complex approach. This ED Plan would prefer to avoid the characterization that the existing developments `lower the value of land.' We do not suggest that existing developments are blighting influences in any form. Rather, we simply suggest that the presence of these developments makes the development of the Meridian Main real estate more complicated, and in making the site's development more complicated, the cost of its development is increased. Mathematically, `increased cost' has the same effect on profit as `decreased value.' However, the two are not the same thing. The 2000 and 2002 plans both were clear in their statements. Existing development in the Old Meridian area made new development more difficult and challenging. These challenges were not ameliorated by the high development standards demanded in the US31 Overlay. The CRC responded to this situation by creating an ED Area for the purpose of assisting developers overcome these challenges through the investment of TIF revenues. Furthermore, the Old Meridian Task Force sought to develop enhanced roadway connections between Old Meridian and other corridors, such as those suggested by the Meridian Main proposal. This ED Plan simply seeks to explain how the 2000 2002 planning are conceptually connected to and compliant with the Meridian Main development proposal, and in so doing, this ED Plan attempts to comply with this statutory requirement. FINDING OF FACT #2C: THE PLAN FOR THE ECONOMIC DEVELOPMENT AREA CANNOT BE ACHIEVED BECAUSE OF ...MULTIPLE OWNERSHIP OF LAND.... The Phase II portion of the Meridian Main development proposal takes place in an area that the developer has acquired from individual property owners in the North Meridian Heights subdivision. At this time, six of those property owners have elected to keep their property as residential, and this ED Plan respects their decision by excluding those property owners from the Meridian Main ED Area. The exclusion of these properties is shown on Maps #1 and #2 (see northwest corner of yellow Phase II area). At this point in this ED Plan, however, attention is to be turned toward the developer's acquisition of approximately 47 of the 53 lots of North Meridian Heights which the developer has acquired. (See source documents provided in support of.re -zone request for Meridian Main II.) The Phase II development takes place on the southern parcels of the previous North Meridian Heights subdivision, as shown on Maps #1 and #2. Maps #1 and #2 clearly show that the southern parcels of North Meridian Heights front directly onto West Main Street and that the real estate lies in a high visibility location. Future improvements to the US31 corridor will further increase the existing visibility, making the site even more desirable, however, the multiple ownership of residential parcels prevents effective redevelopment of those residential parcels. Equally importantly, it is generally not considered a benefit (in terms of enjoyment of the 21 Meridian Main Economic Development Plan (Draft, April 22, 2010) property) ,to residential property to experience the noise and other issues related to extremely high levels of traffic, while business development thrives on such attributes. The developer's acquisition of residential parcels in North Meridian Heights performs two benefits to the development /redevelopment of the Phase II real estate. First, it provides singular ownership of the land in order that the parcel can be redeveloped for business purposes. Those business purposes are more suitable to high levels of traffic and commensurate attributes resulting from the development of the US31 corridor over the past 40 years. Second, it allows the individual residential parcels to be redeveloped in an integrated fashion, with suitable infrastructure (including utilities), and subdivided in conformity with business market demands. Map #2 suggests that the Phase II development will be subdivided into approximately 5 parcels and the development proposal suggests that approximately 428,000 sf of business development will take place as Phase II develops. Business development is suitable to the Main Street Corridor, as well as US31, and the reduction of multiple owners of land enables the redevelopment activity to be substantially more uniform and integrated than would be possible if the land continued to be owned multiply. For these reasons, it is suggested that this ED Plan conforms to this statutory requirement. FINDING OF FACT #2D: THE PLAN FOR THE ECONOMIC DEVELOPMENT AREA CANNOT BE ACHIEVED... BECAUSE OF... OTHER SIMILAR CONDITIONS.... The Old Meridian Task Force confronted a difficult issue seeking to assure that high quality development occurred in the Old Meridian area, despite the complexities of integrating new development with existing development. In effect, the Plan Commission was attempting to confront BOTH new development. and urban redevelopment issues on the same tracts of land. Inasmuch as the needs and demands of existing landowners is almost certainly separate and distinct from the needs and demands of landowners that do not yet exist (because a tract of land is undeveloped), those two sets of issues are almost always at loggerheads. The Plan Commission (in 2000) and the CRC (in 2002) attempted to lay the public policy groundwork for enabling the real estate development market to creatively address both the new development and redevelopment issues simultaneously. As most public policy analysts would agree, simultaneously reconciling two competitive sets of constraints is a difficult task, requiring substantial resources. The Plan Commission has effectively concluded that the Meridian Main development proposal has achieved this end, by virtue of its approval actions. The difficulty of this achievement is acknowledged. In addition, this ED Plan would be negligent to avoid noting the impact of the Indiana Legislature's recent actions to constrain and reconfigure property tax revenues which have traditionally formed the lifeblood of municipal government. The `condition' of municipal revenues is certain to become an increasingly important factor throughout Indiana as a result of the 1 -2 -3% caps on municipal property taxes. 22 Meridian Main Economic Development Plan (Draft, April 22, 2010) These. property tax revenue constraints provide substantial property tax relief for residential property. In affording that relief, however, the revenue burden is shifted to business property. In shifting the property tax revenue burden to business property, the most likely public policy consequence of the Legislature's action is that cities will work to obtain more business development, such as that proposed for Meridian Main. Municipalities which lack a sufficient proportion of business assessed value will find it more difficult to support the traditional form of services which local government has provided. In effect, the Meridian Main proposal offers a virtually immediate opportunity to sustain existing municipal services, especially since the developer is requesting only a portion of the TIF revenues to be invested in the site. The Meridian Main project, however, has impacts beyond the boundaries of the proposed ED Area. The extension of Pennsylvania Street into Meridian Main, with the provision for a final connector to Old Meridian, affords Carmel the opportunity to promote additional economic development beyond the boundaries of Meridian Main. Even if the only outcome of this roadway provision is to complete the roadway, itself, without realigning land uses to the east, the result would be greater traffic dispersion and lower traffic congestion in the area, which is also a benefit to the community which cannot be accomplished without Meridian Main. As the process of consideration of the proposed ED Area moves forward, the CRC may choose to add other arguments to the ED Plan as a result of the public testimony, but for immediate purposes, these provisions are considered sufficient to address this statutory finding of fact. FINDING OF FACT #3: THE PUBLIC HEALTH AND WELFARE WILL BE BENEFITED BY ACCOMPLISHMENT OF THE PLAN FOR THE ECONOMIC DEVELOPMENT AREA.... The Meridian Main development proposal will benefit the health and welfare of the community at large in several ways. First, as noted above, the proposed business development will benefit the public treasury in the form of business property tax revenues subject to the 3% cap rather than the 1% cap which exists for residential property. This benefit is especially prominent for those parcels which were previously residential parcels in North Meridian Heights. The developer's documentation estimates that the existing property tax revenue from the Meridian Main real estate amounts to approximately $86,000 /year, whereas the estimated property tax revenues from Meridian Main at full build -out are estimated to exceed $1.5 million per year. These enhanced revenues represent a direct benefit to the public welfare. In addition, the public welfare is benefited through enhanced healthcare employment training to be afforded at the Spine Center, as well as new jobs and entrepreneurial opportunities afforded by the expansion of business development at the Meridian Main location. The expansion of individual economic opportunity extends beyond the corporate limits of any city and supports the public welfare in multiple ways, 23 Meridian Main Economic Development Plan (Draft, April 22, 2010) In addition, the public health will be benefited in several ways. First, the public health will be benefited by the provision of cutting -edge medical technology, as well as technological training to health professionals, which is planned for the Meridian Main development. Second, the public health is benefited by the availability of enhanced health care and improved technologies and health care products, as well as through such facilities as ambulatory surgical centers. Third, the public health is benefited by dispersion of traffic onto secondary corridors, rather than congesting along existing roadways where slower traffic operating speeds promote greater air pollution. In addition to these arguments, the CRC reserves the right to add or revise these sections of the ED Plan in response to public testimony, as the process moves forward, but for purposes here, these suggestions are deemed to serve as compliance with the statutory requirement. FINDING OF FACT #4A: 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; This statutory finding of fact is similar in character to that of Finding„ #1A (`opportunities for gainful employment'), and as such the pertinent /relevant issues raised in Finding #1A and Finding #4A are interchangeable. It is clear that the development of new business property, including the proposed hotel, the Spine Center and a total of 623,000 sf of business space is intended to attract and retain permanent jobs to the ED Area. The fundamental premise of all economic development policy is to expand the local economy. This can be done by extending the outreach of existing community businesses, or by attracting businesses from other communities. In any case, the economic development policies of a community are best served when high quality professionals are partnered to the policies and bring their unique professional talents to the attraction effort. Based on general statistical relationships between square footage of development and employment, the Meridian Main development could be expected to employ 1,800- 2,000 persons in varying capacities at full build -out and occupancy, depending upon the mix of business development which ultimately takes place. These figures could be expanded if secondary /dependant employment were counted in the total. These figures can be even further amplified if job retention related to other local business is counted in the total. It is clear that the fundamental intent of the Meridian Main proposal is to provide business development opportunities to the ED Area, which would include the attraction and/or retention of permanent jobs. The goal is for Meridian Main to capture a share of a growing local economy, and therefore, the achievement of that goal would be reasonably expected to satisfy this statutory requirement. r.. 24 Meridian Main Economic Development Plan (Draft, April 22,2010) FINDING OF FACT #4B: THE ACCOMPLISHMENT OF THE PLAN FOR THE ECONOMIC DEVELOPMENT AREA WILL BE A PUBLIC UTILITY AND BENEFIT AS MEASURED BY: (B) AN INCREASE IN THE PROPERTY TAX BASE.... This Finding is largely redundant with other findings of fact related to the attraction of business enterprise, the removal of constraints on land value, diversity in the economic base of the community, and other similar findings. To a large extent these findings and the arguments that support them are interchangeable. The narrative above has clear set forth that the Meridian Main proposal seeks to add 623,000 sf of business space to the city and to Hamilton County. The estimated assessed value of that projected development amounts to more than $1.5 million in property taxes annually. These revenues far exceed the current estimate of approximately $86,000 per year that is currently being generated. Beyond the boundaries of the Meridian Main project, however, it is also expected that the completion of the Pennsylvania Street extension to Old Meridian will add infrastructure support to further stimulate potential development in the Old Meridian area, which further improves /increases the property tax base of the city. These findings, as well as related arguments, suggest that this ED Plan meets this statutory requirement. FINDING OF FACT #4C: THE ACCOMPLISHMENT OF THE PLAN FOR THE ECONOMIC DEVELOPMENT AREA WILL BE A PUBLIC UTILITY AND BENEFIT AS MEASURED BY: (C) IMPROVED DIVERSITY OF THE ECONOMIC BASE.... This Finding of Fact extends the argument from a simple assessment of the impact of a proposal on the property tax base to an argument regarding revenue diversity related to the economic base of the community. The creation of business property tax revenues generally also adds an assortment of other tax revenues to state and local coffers, beyond property taxes. Personal and corporate income taxes, various excise taxes, and other tax revenues generally accompany new business development and expansion, and those additional revenues go beyond property taxes. In addition to the above arguments, diversification of the economic base occurs in more subtle forms as a result of developments such as the Spine Center. When new products and technologies are showcased and training in implementing those technologies is amplified, there is a simultaneous increase in economic productivity as a result of improved personal health. People live longer and are more productive for an extended period of time, which also adds diversity to the local economic base. The addition of a new hotel to the Meridian corridor also enables the corridor to capture additional tourism traffic, which further supports retail enterprises in the community and the region. The range of professional employment necessary to operate a hotel runs from part-time unskilled labor to full -time positions with exceedingly high and specialized skill levels. These economic activities also extend diversification of the local economy. The sum of these and related arguments suggests that the Meridian Main development proposal will help to promote diversification in the local and regional economy, as provided in this statutory requirement. AIMESIMIIIMINIINSIMSCIONEMAMOI 25 Meridian Main Economic Development Plan (Draft, April 22, 2010) FINDING OF FACT #4D: THE ACCOMPLISHMENT OF THE PLAN FOR THE ECONOMIC DEVELOPMENT AREA WILL BE A PUBLIC UTILITY AND BENEFIT AS MEASURED BY: (D) OTHER SIMILAR PUBLIC BENEFITS.... As in other Findings, this specific statutory section is somewhat redundant in that arguments made in addressing other statutory sections also address this statutory requirement. As such, the ED Plan notes this potential redundancy and reserves the right to re -state those arguments if the process evidences a need for such re- statement. The category of `other' is a clear Legislative intent to potentially incorporate arguments and factors that the Legislature had not anticipated in drafting the legislation. Let it be sufficient for this ED Plan to state that the Meridian Main development proposal is consistent with the 2000 Old Meridian Task Force plan and the 2002 Old Meridian ED Plan, as well as the entire body of testimony which ultimately generated the US31 Overlay, each contained a myriad of `other' factors which were considered to contribute to the `public utility and benefit.' As such, those plans and their supporting documents are hereby incorporated by reference in the event that sufficient justification is determined necessary. In summary, however, it should be re- stated that the Meridian Main development proposal arguably achieves virtually every stated development goal which was offered for all three of these major planning efforts, despite the fact that 8 years have transpired since the Old Meridian Task Force report was approved. Furthermore, the CRC should be able to take some comfort in the consideration that, if the Meridian Main development proposal was in anyway defective, the Plan Commission would not have taken the approval actions that it has publicly taken. The fact that such a high proportion of the stated developmental goals of previous planning efforts related to this ED Area are to be achieved should be satisfactory evidence that the Meridian Main ED Plan is consistent with these previous documents and policies. Conclusions of the ED Plan The sum of the effort invested in this ED Plan is that the Meridian Main development proposal addresses the requirements of statute sufficiently to be considered for designation as an ED Area, as well as to be reasonably considered for the investment of TIF incentives. The ED Plan has determined that the TIF request conforms to the parameters of TIF investment set forth in the 2002 Old Meridian ED Plan, as well as with the Integrated Economic Development Plan (as amended), and the projects proposed for TIF funding are also consistent with the 2000 Old Meridian Task Force Plan. To further underscore these conformities, the Plan Commission has acted independently to approve the development plan for Meridian Main I and the re- zoning for Meridian Main II, indicating that the Plan Commission is comfortable with the development proposal as conforming to all requirements, as well as the Comprehensive Plan, generally. Given the narrative presented above, it is suggested that the CRC can be comfortable in moving forward with the ED Area designation process in order to determine whether the final designation is appropriate for approval. 26 Meridian Main Economic Development Plan (Draft, April 22, 2010)