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HomeMy WebLinkAbout1988 Grant InformationAugust 8, 1988 Samuel L. Moore F4 Associates, Inc. Consulting Engineers 6363 Hollister Drive Speedway, Indiana 46224 RE: Job Creation Grant No. C -85 -003 City of Carmel /CTRWD Dear Sam: BROWNING INVESTMENTS, INC. Suite 150 Fidelity Plaza 11550 North Meridian Carmel, Indiana 46032 -4599 (317) 573 -6000 Investments Real Estate Development Leasing Property Management In response to your letter dated August 2, 1988 I have several comments. We will gather as soon as possible the information that you requested as it relates to the jobs that have been created as a result of activity by Browning Investments, Inc. Also, as I mentioned to you by phone, your attachment to your August 2 letter shows Browning Investments at 51 jobs. This is in error and must involve some double counting as it does not conform to our numbers. We believe the idea of the grant being refunded is outlandish. The whole program of the Meridian Corridor sewer is a tremendous success. When one looks at the development that has and is occuring along the Corridor and the benefit generated by new jobs and new tax base what conclusion other than a successful project could one reach? If, as you suggest, surcharges to users would occur we would expect the opportunity to assist the District in contesting the refunding of the grant and to assist the District with litigation should that become necessary. Therefore we are requesting immediate notice of any refund request received by the District so that we can take prompt action. We are sending a copy of this letter to Mike Huston at Baker F Daniels as counsel for the guarantors for his review and informational purposes. We hope the information regarding job creation that you receive from ourselves and others will resolve this issue. DMM /leb cc: Michael R. Shaver Dorothy Hancock Robert M. Book Robert F. Campbell Michael Huston Very Truly Yours, BROWNING ' S INTS, INC. 7 Dennis M. Murphy Vice President of Development (OMMONWEALTH ENGINEERS, INC. ENVIRONMENTAL ENGINEERS & CONSULTANTS August 9, 1988 Honorable Dorothy J. Hancock, Mayor Mayor's Office 3 Civic Square Carmel, Indiana 46032 Re: Sam Moore's Memo on IDOC Grant Dear Dottie: Enclosed is a copy of Sam Moore's memo on the IDOC Grant audit by H.U.D. I have highlighted the key parts. The most important part is the bottom line. Sam says they may ask for the grant money back. He blames Chuck Orzehowski of IDEM for making inflammatory remarks to the auditors that the project wasn't needed. I have talked to Sam and will call Mike Shaver. Responses to the auditors by Clay District will need to be convincing or it could get serious real quick. I will also keep touching base with Sam to keep track of it and keep you advised. Very truly yours, COMMONWEALTH ENGINEERS, INC. Donald R. Silvey DRS /vld 710 Executive Park Drive P.O. Box 406 Greenwood, Indiana 46143 (317) 888 -1177 8770 Guion Road Suite P Indianapolis, Indiana 46268 (317) 872 -1177 ;2- MEMORANDUM TO: File 1043 FROM: Samuel L. Moore SUBJECT: Carmel IDOC Grant i O c SHUFFLELOS o� (shut ul loss) n. The act of misplacing that importan paper you had in your hand "just a minute ago." Mike Shaver of the IDOC telephoned and said they had gotten the HUD Audit report and HUD has cited Carmel for the following: 1) Failure to create the 96 jobs committed in the grant. They say zero new jobs created. 2) Jobs that were created were either jobs that were for maintenance of buildings that were already planned, under construction or pre- existing. 3) Other jobs claimed created were purely speculative in nature and not created because of the CDBG grant. These jobs weren't in the 18 month grant period. 4) The sewer would have been large enough to service the Meridian Corridor area and enlargement wasn't necessary but only for the economic gain of developers. Mike said he needed information from us to submit a response. He suggested: 1) Statement from us relative to the existing waste load from the area, the limitation of the proposed sewer system before increasing the size, and use of aerial maps from Carmel Plan Commission (1983 or 1984) and present to show where buildings were constructed and where jobs were created. 2) Statements by developers relative to restrictions on development and dependence on the sewer to proceed tying in jobs created. Critical ones are Browning Investments, Inc. and Eaton & Lauth, Inca 3) Statement from us on how deficit caused by Signature Inc. withdrawing was corrected by other motels coming in. Must get Pickett Inn's low to moderate (unskilled) jobs documented better and must get data from Marriot to add more jobs. The emphasis being Signature got out but made room for Pickett and Marriot to move in. MEMORANDUM File 1043 Page 2 I told Mike I would discuss with the District and the City. Indicated this would be over and above our. Contract for Administration and we would have to charge for the additional work. Asked if the funds left over could be used. Mike said he would check. He suggested the Developers that benefitted be made to pay cost of defending the grant that benefitted them. CC: Robert M. Book Dorothy Hancock, Robert Campbell Dennis Murphy Rusty Richardson Samuel L. Moore