2003-Economic Developement Plan/Merchants' PointeCarmel, Indiana
Hamilton County
Economic
Development
Plan
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March 5, 2001
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Michael R. Shaver, President
4742 Bluffwood North Drive
Indianapolis, IN 46228
(voice) 317/299 -9529
(fax) 317/329 -9885
(e -mail) wabsci @aol.com
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Map No. 1
Merchant's Pointe Economic Development
Area
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Table of Contents
The Purpose of the ED Plan 4
Description of the Area 6
Location of the Proposed ED Area 6
General Description of the Proposed ED Area 6
Legal Description 6
Land Use within the Proposed ED Area 7
Other Development Plans 8
Conclusions Regarding the ED Area 8
Conformity With Other Plans 9
Creation of an Economic Development Area 10
Statutory Requirements 11
Findings of Fact
Finding
Finding
Finding
Finding
Finding
Finding
Finding
Finding
Finding
Finding
Finding
12
#1A: promotes opportunities for employment 13
#1B: attracts a major new business enterprise 14
#1C: retains or expands a significant (existing) business 16
1D: ...meets other purposes of this (statute) 17
#2A: lack of local public improvements 18
#2B: Protects Property Values 19
#2D: "Other Similar Conditions" 20
#3: the public health and welfare will be benefitted 21
#4A: the plan will increase the property tax base 22
#4B: Attraction or Retention of Permanent Jobs 23
#4C: Improved Diversity in the Economic Base 23
Conclusions 24
Recommendations 25
Economic Development Strategy 26
Proposed Projects 26
List of Parcels 26
The Purpose of the ED Plan
An economic development plan should not be a free - standing document,
designed and undertaken in isolation from previous planning and
development policies. It should, instead, be philosophically and factually
linked to the previous and current planning efforts of the community. An
economic development plan should build upon the historical perspective
of the community, enabling community leaders to consciously connect the
proposed economic development activities to the economic development
goals and policies which the community has previously endorsed.
The strongest economic development plans, therefore, are based on public
policy which was initiated before any current project was conceived.
Economic development projects which are proposed in areas designated
for particular business land uses should be the easiest to defend. In cases
where economic development areas are designated for commercial
development before any specific project is proposed, the community's
leadership should logically feel more comfortable that they have properly
planned the development patterns for the community.
Public opinion can ebb and flow on a random basis, and opposition often
requires only the scantiest factual basis for their challenges. In the face of
opposition to economic development projects, the community's leaders can
use the Economic Development Plan to examine previous community
development policy and determine whether a proposed project fits into the
development parameters which had been previously established. At the
Pointe where a development project is proposed, it becomes the job of the
Economic Development Plan to objectively review the body of previous
development policy and determine the extent to which the current project
complies with those policies.
This Economic Development Plan has been undertaken in the context of a
comprehensive and detailed planning effort by the municipality which has
been judiciously maintained. The local economy must grow in order for
the citizenry and the community to prosper and at the same time,
municipal leaders seek to preserve the character of the community amidst
the growth. Consequently, the community must assure itself that any
development proposed will place the community in a better position to
implement its long term developmental goals.
Merchants' Pointe Economic Development Plan: Carmel, Indiana
Second, infrastructure issues must be foreseen many years in the future in
order to accommodate growth. Infrastructure problems must be identified
and potential solutions developed in order for an Economic Development
Area to be successful on a long term basis. This Economic Development
Plan attempts to identify the infrastructure improvements required to
support growth in the proposed Economic Development Area, as well as
offering the community a mechanism to update the needs periodically.
Third, any proposed economic development project needs to be well
rooted in public consensus. There will always be honest disagreements
among good people. Consequently, for projects to be successful, they
must be launched from a platform of consensus where people lacking a
direct interest in a specific outcome have already had the opportunity to
discuss and debate the issues. If that objective consensus is present, the
final discussion involves only the negotiation of details.
Finally, an Economic Development Plan must meet the requirements of
applicable Indiana statutes. If the planning process can provide economic
stimulus to existing and/or new businesses and industries, giving those
businesses a competitive advantage in the marketplace, then the Plan
should address those opportunities and provide the analysis necessary to
assure that benefits accrue to the community.
Public opposition is essentially a random phenomenon. Opinions and
tempers often run hot with emotion. The Economic Development Plan
provides the rational, analytical process by which the community can
measure whether a proposed project is consistent with the consensus built
through the comprehensive planning process. It is not appropriate for a
community to develop planning, land use and zoning recommendations for
an area, and then arbitrarily reverse themselves. By virtue of the extensive
overall planning effort of the community over the past several years, it is
clear that this Economic Development Plan can never be rightly
challenged as being incremental, short- sighted, or hastily drawn.
An Economic Development Plan, therefore, is an examination of previous
economic development policy in light of new proposals. It examines
previous planning, proposed land uses, area, and the qualitative context of
the development as a means of measuring any current project proposal. In
so doing, the ED Plan re- establishes the public policy basis of economic
development for the community, objectively tests the project against that
basis, and recommends an appropriate level of support for the project.
Merchants' Pointe Economic Development Plan: Carmel, Indiana 5
Description of the Area
Location of the Proposed ED Area
The proposed Merchants' Pointe Economic Development Area (ED Area)
is located on the south side of 116`h Street, immediately west of Keystone
Avenue. The primary transportation access to the proposed commercial
development is provided from 116`h Street. The area is located at the
extreme northeast corner of the Woodland Country Club golf course and is
to be subdivided from the Woodland Country Club golf course, as
considered and approved by the Carmel /Clay Plan Commission and the
Carmel City Council.
General Description of the Proposed ED Area
The Merchants' Pointe ED Area contains approximately 14.4 acres of
land, 100% of which is dedicated to use as commercial/business, and
which was previously a part of the Woodland Country Club golf course.
The annexation territory was previously re -zoned for development as a
commercial area by both the Carmel City Council and the Plan
Commission.
Legal Description
The boundaries of the proposed Economic Development Area (ED Area)
are described as follows:
Part of the North Half of Section 6, Township 17 North, Range 4 East in Clay
Township, Hamilton County, Indiana, described as follows:
Commencing at the Northwest corner of Section 6, Township 17 North, Range 4
East; thence South 89 degrees 53 minutes 03 seconds East (assumed bearing)
on the North line of said Section 6, (being a straight line between said Northwest
corner and the Southeast corner of Section 31, Township 18 north, Range 4
East as said corners were monumented with Harrisan Workers on September
23, 1999) a distance of 2265.00 feet to the Northeast corner of WOODLAND
GOLF CLUB SUBDIVISION, a subdivision in Hamilton County, Indiana the plat
of which is recorded on pages 545 and 546 of Deed Record 136 in the Office of
the Recorder of Hamilton County, Indiana, said corner being the PLACE OF
BEGINNING of the within described real estate; hence continuing South 89
degrees, 53 minutes, 03 seconds East on said North line of section 6, a distance
of 58.41 feet to a point that is 750.00 feet West of the centerline of Indiana State
Road 431, (designated as line "E" on I.S.H.C. plans for Project Number S -165
Merchants' Pointe Economic Development Plan: Carmel, Indiana 6
(13), dated 1959 and revised August 3, 1964); thence South 00 degrees 04
minutes 33 seconds West, passing through a I.S.H.C. Right of Way Marker, a
distance of 18.01 feet to the Southerly right -of -way line of 116th Street at point
that is 20.00 feet South 00 degrees 04 minutes 33 West of survey line "5 -6 -E"
on said I.S.H.C. plans; (the following three courses are on said Southerly right -
of -way line) 1.) thence South 75 degrees 53 minutes 16 seconds East 103.08
feet to a point that is 45.00 feet South of said survey line "5 -6 -E "; 2.) thence
South 89 degrees 06 minutes 20 seconds East 350.04 feet to a point that is
50.00 seconds feet South of said survey line, 3.) thence 87 degrees 03 minutes
42 seconds East 100.13 feet to a point that is 55.00 feet South of said survey
line, said Point being on the Westerly limited access right -of -way line of said
Indiana State Road 431, per the aforesaid I.S.H.C. plans; thence South 48
degrees 51 minutes 27 seconds East on said right -of -way line 126.28 feet to a
Pointe that is 105.00 feet west of line "E" on said plans, thence South 02
degrees 52 minutes 32 seconds East on right -of -way line 200.35 feet, thence
South 00 degrees 42 minutes 11 second West on said right -of -way line 347.17
feet; thence North 79 degrees 19 minutes 04 seconds West 1002.87 feet;
thence North 33 degrees 33 minutes 52 second West 446.74 feet to the
Southeast corner of Lot Number 33 in the aforesaid WOODLAND GOLF CLUB
SUBDIVISION, thence North 00 degrees 06 minutes 57 seconds East on the
East line of said subdivision 127.00 feet to the place of beginning, containing
14.378 acres, more or less.
Land Use within the Proposed ED Area
The land use within the proposed ED Area is 100% commercial zoning for
the entire 14.4 acres. Immediately east of the proposed ED Area is
Keystone Avenue (US highway 431), which is a major, limited access,
divided highway. Immediately north of the proposed ED Area is the
Merchants Square commercial complex which consists of a mix of
commercial land uses, including offices, retail space and outlots. The
Merchants Square area represents Carmel's most intense area of
commercial development. On the west and south sides of the proposed
ED Area lies the Woodland Country Club, which is an 18 -hole golf course
and club house. The land for Merchants' Pointe was subdivided from the
golf course, with additional land added to the golf course to replace what
was subdivided away. The golf course also has single family homes
located around it.
The Carmel -Clay Plan Commission, as well as the Carmel City Council
have already approved the re- zoning for Merchants' Pointe, thus assuring
that the proposed land use conforms to the Comprehensive Plan for the
community. In addition, the City has approved the petition for annexation
which was submitted by the developer and that annexation action is now
Merchants' Pointe Economic Development Plan: Carmel, Indiana 7
effective, bringing the Merchants' Pointe area within the incorporated City
of Carmel.
Other Development Plans
In addition to the consideration of suitable land uses, the city of Cannel
has been preparing for major expansion of the 116`h Street corridor in this
vicinity for some time. The widening of 116`h Street will increase the
capacity to handle traffic, thereby increasing the viability of the corridor in
supporting commercial development. As such, the Merchants' Pointe re-
zoning was very justifiable.
In addition to the enhanced traffic capacity, however, the infrastructure
support for the widening project must also be enhanced. The increased
drainage needs of the widened facility must be accommodated, therefore
creating a perfect opportunity for cooperative redevelopment. Since the
Merchants' Pointe commercial complex will require drainage facilities, it
is entirely appropriate for the public and private interests to cooperate and
to consider the investment of public funds (such as Tax Increment
Financing) to finance a drainage facility of sufficient size to handle both
needs.
Conclusions Regarding the ED Area
The proposed ED Area is appropriately defined and the opportunity for
public /private cooperation regarding drainage and other infrastructure is
substantial. The zoning/land uses approved by the Plan Commission and
City Council recognize the attributes of the site, especially with regard to
high -level transportation and infrastructure access, as well as the location
adjacent to the largest commercial area of the City. The high visibility of
the ED Area due to the US431 and 116`h Street corridors makes the ED
Area suitable for commercial development. An economic development
area is expected to have the potential for development as commercial real
estate, thereby making the ED Area proposal viable.
Perhaps most importantly, however, the opportunity for public /private
cooperation is a substantial argument in favor of the designation of an ED
Area. The City and the developer both need to improve drainage in the
area. By designating the ED Area, such infrastructure needs can be
accommodated with substantial savings to both parties. Such
Merchants' Pointe Economic Development Plan: Carmel, Indiana 8
opportunities strike at the very heart of the legislative intent of creating
economic development areas.
Conformity With Other Plans
The designation of the proposed ED Area conforms in all respects with the
overall plan of development of the community because it is proposed for
the specific purpose of implementing the recommendations of the City's
transportation plan. It is clear that the City has prepared for the widening
of 1l6th Street. The approval of the Merchants' Pointe shopping center
enabled the city and the developer to work cooperatively to designate the
additional right of way necessary to achieve the widening. In addition, the
necessity to improve drainage and other infrastructure service within the
area, and along the corridor offers significant potential cost savings if
public /private cooperation can be implemented.
The Plan Commission and City Council have, by specific action, certified
that the land proposed for the ED Area is suitable for commercial
development, and have adjusted the comprehensive plan accordingly.
The high visibility and transportation access, as well as the location
adjacent to a large commercial complex further substantiates the validity
of this decision.
The ED Plan does not propose any adjustments or alterations to the
proposed land uses of the ED Area. Those decision have already been
made by action of appropriate authorities. The ED Plan, instead, attempts
to set a framework for extending the cooperative effort already invested by
the public and private sectors to achieve mutual economic benefits. The
creation of an ED Area would establish a financing mechanism to provide
economic incentives which would help to assure that the infrastructure
systems are sufficient to meet the demands of the community at this
location.
The final result of these considerations is that the ED Plan conforms in all
respects to the comprehensive plan for the ED Area. The ED Plan
supports recent adjustments to the comprehensive plan, as well as
supporting the implementation of the transportation plan for the area. The
CRC is prepared to implement an ED Area which enables the p ublic/
private cooperation to achieve the cost savings opportunity related to
cooperative infrastructure development which has been made available. If
the ED Area is not approved, the opportunity for cost savings will be lost.
Merchants' Pointe Economic Development Plan: Carmel, Indiana 9
Therefore, it is the conclusion of Wabash Scientific, inc., that the ED Plan
meets the statutory requirement of conforming to the plan of development
for the community.
Creation of an Economic Development Area
A community may choose to create an Economic Development Area (ED
Area) to implement an economic development strategy within an area. As
provided in Indiana law, the community can use a number of economic
incentives to recruit new business, encourage new development or create
new economic opportunities for its citizens, including various forms of
public financing such as the use of the County Option Income Tax (COIT)
bonds, and tax increment financing (TIF). The creation of an ED Area is
part of an overall strategy for implementing a community's economic
development plan.
This matter is of particular importance with regard to the City of Carmel.
The Carmel Comprehensive Plan has noted for some time that the
planning area of Clay Township will be fully developed by the year 2020.
At such time as full development is achieved, the fiscal growth parameters
of the City will be substantially curtailed. The City completed a Fiscal
Strategic Plan in 2000 which showed that the amount of undeveloped land
east of Spring Mill Road in Clay Township would add less than 20% to
the overall development of the City. The impact of this finding is that the
City must take extreme care to make certain that its infrastructure needs
are well planned and methodically addressed. Once the City has achieved
full development, municipal revenue growth will be essentially halted.
Consequently, the designation of the proposed Merchant's Pointe ED Area
would enable the City to address the infrastructure needs of 116`h Street
and Keystone Avenue at this time.
The proposed ED Area will be administered by the Redevelopment
Commission. The Economic Development Area must be created through
approval actions by the Redevelopment Commission, the Plan
Commission and the City Council, following the statutory process in IC
36 -7 -14. Creation of an Economic Development Area does not directly
result in the issuance of any municipal debt in any form. It does, however,
enable the community to issue tax exempt municipal bonds (payable from
a number of revenue streams) to pay for those public improvements which
would generate and shape economic growth in the Area, and would
otherwise implement the economic development strategy for the Area.
Merchants' Pointe Economic Development Plan: Carmel, Indiana
10
Any decision on financing, however, is completely separate from the
decision to establish an economic development area.
It is important to note that the designation of an Economic Development
Area includes no powers of eminent domain within the area. Therefore,
the Redevelopment Commission will have no power of eminent domain in
the Economic Development Area, and may not acquire land without the
owner's consent under Indiana law (IC 36- 7- 14 -43). Voluntary acquisition
of land, however, is allowable under these provisions. The
recommendations contained in this report will not include any proposal for
the use of eminent domain by the Redevelopment Commission.
However, voluntary acquisition of land by the City for infrastructure
improvement purposes may be included so long as the City and the
Redevelopment Commission follow the appropriate statutory procedures.
This provision should not be construed as any limitation upon the powers
of the incorporated municipality to act in partnership with the
Redevelopment Commission to implement any project(s).
Statutory Requirements
The minimum contents of an Economic Development Plan (ED Plan) are
set forth in Indiana Code. IC 36- 7 -14 -41 states that:
"The (redevelopment) commission may, by following the procedures set
forth in sections 15 through 17 of this chapter, approve a plan for and
determine that a geographic area in the redevelopment district is an
economic development area. Designation of an economic development
area is subject to judicial review in the manner prescribed in section 18 of
this chapter.
(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;
Merchants' Pointe Economic Development Plan: Carmel, Indiana
11
1
(2) the plan for the economic development area cannot be
achieved by regulatory processes or by the ordinary
operation of private enterprise without resort to the powers
allowed under this section and sections 2.5 and 43 of this
chapter because of
(A) lack of local public improvement;
(B) existence of improvements or conditions that
lower the value of the land below that of nearby land;
(C) multiple ownership of land; or
(D) other similar conditions;
(3) the public health and welfare will be benefitted by
accomplishment of the plan for the economic development
area;
(4) the accomplishment of the plan or the economic
P P .>�
development area will be a public utility and benefit as
measured by: '
(A) the attraction or retention of permanent jobs;
(B) an increase in the property tax base;
(C) improved diversity of the economic base; or
(D) other similar public benefits; and
(5) the plan for the economic development area conforms to ,
other development and redevelopment plans for the unit.
(c) The determination that a geographic area is an economic
development area must be approved by the unit's legislative body.
The approval may be given either before or after judicial review is
requested. The requirement that the unit's legislative body approve
economic development areas does not prevent the commission
from amending the plan for the economic development area. '
However, the enlargement of any boundary in the economic
development area must be approved by the unit's legislative body."
Findings of Fact
This Economic Development Plan will directly address the statutory
requirements of 36- 7- 14 -41, as stated previously through explanation of
the following findings of fact. 1
Merchants' Pointe Economic Development Plan: Carmel, Indiana 12
1
FINDING #1A: PROMOTES OPPORTUNITIES FOR EMPLOYMENT
The measurement of new employment opportunities for potential
commercial development is complicated. The proposed job creation of
potential industrial development is much simpler to track because the
heavy equipment needs and large scale of industrial operations makes it
very difficult for industries to re- locate, thus simplifying the quantification
of new job opportunities.
In commercial development situations, however, businesses relocate
and/or go out of business fairly regularly. The cost of moving an office or
a retail store is cheaper than that of moving an industry. Consequently, it
is not uncommon for commercial businesses to change from one Cannel
address to another, for new businesses to emerge, and for other businesses
to disappear. Because it is difficult to know how much of the commercial
space is occupied by "new" employers, vs. "relocated" employers, it is
difficult to specifically quantify "new opportunities for employment." It
would not be uncommon for there to be some public debate on such issues
from opponents to development proposals.
While there could potentially be some argument over precisely how many
"new" jobs would be created, as opposed to "relocated" jobs, we find this
distinction to be fundamentally academic in this case. In the opinion of
Wabash Scientific, inc., any development proposal which conforms to the
designated commercial land use for the ED Area will certainly promote
opportunities for employment by provinding additional locations for retail
and commercial businesses to operate with the city. These might be new
businesses seeking to establish a presence in Carmel, or an existing
business seeking to strengthen their existing enterprise.. While
commercial businesses will turn over as a normal function of the local
economy, the provision of additional commercial space in direct proximity
to the large concentration of such space at Merchant's Square, coupled
with the improved traffic capacity of the 116`h Street corridor and the high
visibility of space within the Merchants' Pointe complex, will almost
certainly generate new job opportunities within the community.
Furthermore, the fact that the Merchants' Pointe site (the ED Area) is
currently undeveloped suggests that the requirements of this finding of fact
are met.
Having stated that caveat, it is equally clear that the proposed ED Area
currently provides no employment opportunities, whatsoever. It is now
totally undeveloped. Consequently, while there may be the potential for
Merchants' Pointe Economic Development Plan: Carmel, Indiana
13
1
debate regarding "how many" jobs will be created, it can be stated with
1
substantial certainty that whatever new commercial development is
proposed will generate more jobs than the jobs currently available at this
site. As such, it is the finding of this ED Plan that the designation of the
ED Area will certainly and categorically generate new opportunities for
gainful employment of the citizens of Carmel and the surrounding areas,
which conforms to the required statutory finding of fact.
FINDING #1B: ATTRACTS MAJOR NEW BUSINESS ENTERPRISE
The proposed Merchant's Pointe ED Area has attracted a major new
business enterprise in the form of The Linder Company, commercial
developers. While the developers are generally only interim employers, it
is clear from the successful track record of Linder that their presence as the
prime developer enables the proposed development to be marketed to the
prime retail chains, nationally. '
Linder has already been successful in redeveloping the Merchants Square
commercial complex. Linder's redevelopment of Merchants Square has
been hugely successful, despite the fact that, prior to Linder's interest, the
shopping center was suffering from severe deterioration and blighting
conditions. The economic resurgence of Merchants Square is a clear
testimony of the importance of the developer in commercial development
projects. ,
Clearly, the Carmel market has not declined. Household incomes are
increasing, as well as population. Expensive new homes are being built
throughout the Carmel area and the amount of disposable income available
within a 10 -mile radius of Merchant's Square would be the envy of any
commercial center. ,
Despite these obvious economic advantages, Merchant's Square was
suffering dramatic decline. It was The Linder Company which mobilized 1
the public and private resources necessary to redevelop the area, restoring
Merchant's Square as the central commercial area of the city. The City
played a key role in this economic reversal by providing TIF funding for a
portion of the project, but it was Linder which marketed the project to
national retail chains, convincing those chains that Merchant's Square was
a solid place to do business. This clearly demonstrates the importance of
the developer's reputation for successful projects.
1
Merchants' Pointe Economic Development Plan: Carmel, Indiana 14 '
1
FINDING OA: PROMOTES OPPORTUNITIES FOR EMPLOYMENT
The measurement of new employment opportunities for potential
commercial development is complicated. The proposed job creation of
potential industrial development is much simpler to track because the
heavy equipment needs and large scale of industrial operations makes it
very difficult for industries to re- locate, thus simplifying the quantification
of new job opportunities.
In commercial development situations, however, businesses relocate
and/or go out of business fairly regularly. The cost of moving an office or
a retail store is cheaper than that of moving an industry. Consequently, it
is not uncommon for commercial businesses to change from one Carmel
address to another, for new businesses to emerge, and for other businesses
to disappear. Because it is difficult to know how much of the commercial
space is occupied by "new" employers, vs. "relocated" employers, it is
difficult to specifically quantify "new opportunities for employment." It
would not be uncommon for there to be some public debate on such issues
from opponents to development proposals.
While there could potentially be some argument over precisely how many
"new" jobs would be created, as opposed to "relocated" jobs, we find this
distinction to be fundamentally academic in this case. In the opinion of
Wabash Scientific, inc., any development proposal which conforms to the
designated commercial land use for the ED Area will certainly promote
opportunities for employment by provinding additional locations for retail
and commercial businesses to operate with the city. These might be new
businesses seeking to establish a presence in Carmel, or an existing
business seeking to strengthen their existing enterprise.. While
commercial businesses will turn over as a normal function of the local
economy, the provision of additional commercial space in direct proximity
to the large concentration of such space at Merchant's Square, coupled
with the improved traffic capacity of the 116`h Street corridor and the high
visibility of space within the Merchants' Pointe complex, will almost
certainly generate new job opportunities within the community.
Furthermore, the fact that the Merchants' Pointe site (the ED Area) is
currently undeveloped suggests that the requirements of this finding of fact
are met.
Having stated that caveat, it is equally clear that the proposed ED Area
currently provides no employment opportunities, whatsoever. It is now
totally undeveloped. Consequently, while there may be the potential for
Merchants' Pointe Economic Development Plan: Carmel, Indiana
13
debate regarding "how many" jobs will be created, it can be stated with
substantial certainty that whatever new commercial development is
proposed will generate more jobs than the jobs currently available at this
site. As such, it is the finding of this ED Plan that the designation of the
ED Area will certainly and categorically generate new opportunities for
gainful employment of the citizens of Carmel and the surrounding areas,
which conforms to the required statutory finding of fact.
FINDING #1B: ATTRACTS A MAJOR NEW BUSINESS ENTERPRISE
The proposed Merchant's Pointe ED Area has attracted a major new
business enterprise in the form of The Linder Company, commercial
developers. While the developers are generally only interim employers, it
is clear from the successful track record of Linder that their presence as the
prime developer enables the proposed development to be marketed to the
prime retail chains, nationally.
Linder has already been successful in redeveloping the Merchants Square
commercial complex. Linder's redevelopment of Merchants Square has
been hugely successful, despite the fact that, prior to Linder's interest, the
shopping center was suffering from severe deterioration and blighting
conditions. The economic resurgence of Merchants Square is a clear
testimony of the importance of the developer in commercial development
projects.
Clearly, the Carmel market has not declined. Household incomes are
increasing, as well as population. Expensive new homes are being built
throughout the Carmel area and the amount of disposable income available
within a 10 -mile radius of Merchant's Square would be the envy of any
commercial center.
Despite these obvious economic advantages, Merchant's Square was
suffering dramatic decline. It was The Linder Company which mobilized
the public and private resources necessary to redevelop the area, restoring
Merchant's Square as the central commercial area of the city. The City
played a key role in this economic reversal by providing TIF funding for a
portion of the project, but it was Linder which marketed the project to
national retail chains, convincing those chains that Merchant's Square was
a solid place to do business. This clearly demonstrates the importance of
the developer's reputation for successful projects.
Merchants' Pointe Economic Development Plan: Carmel, Indiana
14
For these reasons, this ED Plan considers the role of The Linder Company
to constitute the "attraction of a major new business enterprise ". While
Linder will not be employing those people directly, it is Linder that has
risked its financial resources to market the Merchants' Pointe development
to national retailers. While those retailers are not yet in place, it is clearly
Linder's intent that these major new retail employers will be brought to
Merchants' Pointe, as the construction nears completion (4th quarter of
2001).
As is often the case of commercial and retail development, these major
new business tenant cannot be identified this early in the process, various
for reasons, including confidentiality and timing. The Carmel
Redevelopment Commission, therefore, is left in the position of either
accepting or rejecting the word of the developer that the development
proposal will generate major new tenants, which will become the major
new employers sought in the statute. It is the assertion of Wabash
Scientific, inc., that the reputation of the developer becomes a key matter
in such a situation, and the reputation of Linder for delivering the highest
quality commercial development product lends credence to the
truthfulness of the developer's assertion.
There is further evidence of the truthfulness of this assertion in that Linder
has conditionally agreed to pay the expenses of creating the ED Area and
to guarantee the debt related to the TIF financing for the project. Again, it
is the assertion of Wabash Scientific, inc., that the developer would not be
likely to agree to bear such significant expenses and liabilities if their
statements regarding the attraction of major new businesses were not
truthful.
Therefore, regardless of the identity of a single, major new business
enterprise, the proposed development, as well as the development proposal
prior to that, will constitute a major new business development which will
obviously seek to attract several major new business enterprises to Carmel.
Developers utilize a broad range of market criteria and other factors to
identify unmet needs in the business markets. The Linder Company is a
top -tier, highly - successful developer which has a consistent track record of
successful business development which attracts major new business
enterprise to locations throughout the nation. Linder's reputation was
proven at Merchant's Square. Therefore, even if one doubts the veracity
of the statements regarding the reputation of the developer, it is clear that
the proposed development constitutes a significant risk of cash resources
Merchants' Pointe Economic Development Plan: Carmel, Indiana 15
intended to attract other major new business enterprises. The profile and
visibility of the ED Area are so ideally suited to retail/commercial
development that Wabash Scientific, inc., is therefore fully comfortable
with the prospect that the commercial development of ED Area will attract
one or more major new business enterprises, thereby meeting the statutory
requirements of this finding of fact.
FINDING #1 C RETAINS OR EXPANDS A SIGNIFICANT (EXISTING) BUSINESS
The City of Carmel has been highly successful in attracting growth -
oriented business enterprises at all levels: from very small businesses to
regional and national headquarters. In fact, the area immediately north of
the proposed Merchant's Pointe development has successfully attracted
major new retailers which had never before sought locations in Carmel,
despite the obvious demographic advantages of the market.
It is common for growing businesses in high - visibility locations to require
new retail space. At the same time, a redevelopment effort such as the one
undertaken for Merchant's Square, often displaces marginal retailers
which were previously located in the old property, but could not afford the
rents after redevelopment. Carmel is home to literally dozens of such
growing companies, and the Merchant's Pointe development proposal
would provide flexible space to retain or expand these significant
businesses along the 116``' Street and Keystone Avenue corridors.
In addition, it is common among retailers to make decisions based upon
the actions of their direct competitors. In fact, some retailers might well
ignore a location opportunity for various reasons, yet become interested in
that same location when they later find that their competitors have located
nearby. For example, retailers specializing in certain markets or products
might approach the decision of opening new stores in very different ways.
One might aggressively seek new store locations in markets with certain
demographic characteristics, while another might simply follow the lead of
their primary competitor. While each location decision is idiosyncratic, it
is the expertise of the developer (in this case, Linder) which is pivotal in
knowing the productive approach to these retail decision - makers.
It is projected that the Merchants' Pointe commercial complex will
succeed in retaining or expanding small- to mid -sized retail establishments
which have outgrown their existing locations and might otherwise be lost
to the Carmel market. Linder's previous experience at Merchants' Square
clearly proves that the developer knows the names and needs of local retail
Merchants' Pointe Economic Development Plan: Carmel, Indiana
16
businesses and is willing to market their product directly to those interests.
It is therefore the determination of Wabash Scientific, inc., that the
proposed Merchants' Pointe retail development (also the proposed ED
Area) meets the meets the statutory requirement of retaining or expanding
significant business enterprises in Carmel.
FINDING 1D: ...MEETS OTHER PURPOSES OF THIS (STATUTE)
This is a broad and vague statutory provision, which is often avoided due
to its lack of structural definition; however, meeting "other purposes of
this chapter" is a specific finding of this ED Plan. In this case, the "other
purposes of this chapter" constitute the unique opportunity for bi- lateral
cost savings through cooperation and coordination of the private and
public sector projects.
As stated elsewhere, the City of Carmel has a stated intent to widen and
otherwise improve the 116`h corridor to enhance its capacity to handle
traffic loads. This will require the acquisition of land for corridor
widening, as well as further acquisition of land and construction of support
facilities for drainage facilities.
At the same time, the developer will need to meet the development
standards requisite for a commercial development at this location,
including ingress /egress facilities, acceleration/deceleration lanes, and
stormwater retention/drainage facilities.
By combining the interests of the public and private sectors through the
designation of an ED Area, it is projected that both the City and the
developer have the potential to enjoy substantial cost savings in addressing
their respective needs.
Clearly, the wording of the statute is broad, thereby deliberately creating a
wide opening for project justification. When comparing this statutory
provision with the other provisions which are much more explicit, it is
clear that the Legislature intended the vague wording to allow
communities to deal with a broad range of specific idiosyncracies which
could not be otherwise reliably quantified. It is the contention of Wabash
Scientific, inc., that the circumstances cited above directly address this
statutory finding and meet the parameters therein.
Merchants' Pointe Economic Development Plan: Carmel, Indiana 17
FINDING #2A: LACK OF LOCAL PUBLIC IMPROVEMENTS
The lack of public improvements is one of the primary reasons that the
designation of the ED Area is so important to the long -term interests of the
City of Carmel and the CRC. The transportation plan for the City clearly
shows that the 116`h Street corridor must be improved to handle additional
traffic flows. The City currently has plans to implement public
improvement projects to meet these needs.
At the same time, the development standards for the Merchants' Pointe
proposal creates a cooperative synergy which could result in substantial
cost savings for both the City and the developer. The access design
standards for the commercial development will require the developer to
dedicate right of way for future thoroughfare needs, as well as providing
acceleration/deceleration lanes and ingress /egress facilities. In addition to
transportation access design standards, the commercial development will
be required to provide runoff control and drainage facilities.
By cooperation and coordination, both the public and the private sector
needs can be met with potentially significant cost savings. The widening
of 116`h Street will be facilitated by the dedication of additional right of
way from Merchants' Pointe, and the reconstruction of the golf course to
include additional land owned by the Country Club, but previously
undeveloped. Without the Merchants' Pointe proposal, the acquisition of
land from the golf course would have caused significant impact to the golf
course, resulting in land acquisition cost increases for the City.
Secondly, the improvements to 116`h Street subsequently generate a need
for enhanced drainage facilities related to the widened roadway. The
drainage facilities provided to serve Merchants' Pointe can be
enlarged/enhanced to accommodate these needs, thereby enabling the City
to enjoy significant savings, while simultaneously reducing the
development costs for the developer.
Third, the designation of an ED Area enables the CRC to approve TIF
financing for the necessary public improvements, thereby reducing the
cash demands of the project against the municipal budget. The prospect
of a TIF bond also reduces the net cash obligations of the developer,
through reduced interest costs, as well as other cash flow benefits.
The Merchants' Pointe proposal represents an intersection of mutual
interests and benefits by both the public and the private sectors. If the
Merchants' Pointe Economic Development Plan: Carmel, Indiana
18
Merchants' Pointe development was not proposed at this time, it would be
very difficult and expensive for the City to meet all of its needs related to
the local public improvements to the 116`h Street corridor. By cooperating
with the developer, both entities will enjoy project cost savings even while
the local infrastructure needs are fully met. The designation of the
proposed Merchants' Pointe ED Area will enable the City to generate
important improvements to the local infrastructure, thereby meeting this
statutory requirement.
FINDING #2B: PROTECTS PROPERTY VALUES
This assertion is a constant source of public debate. Anyone who regularly
attends the meetings of plan commissions in Indiana becomes painfully
aware that opponents to a development virtually always argue that the
proposed development will have an adverse impact on the property values
of the neighbors to the proposed development. In a recent case before the
Carmel /Clay Plan Commission, opponents argued that a development
proposing homes in excess of $1 million would have an adverse impact on
the value of their homes nearby. Similar arguments are made in cases
where the development proposal includes business development adjacent
to residential areas. It is difficult to substantiate such fears, and it is
equally difficult to debate the issue with passionate advocates.
The case of the Merchants' Pointe development, however, has less of a
problem in that regard. While there was some opposition to the re- zoning
necessary to promote the commercial development, it was clear during that
process that even the opponents understood that the traffic volumes and
existing land uses at 116`h Street & Keystone Avenue justified commercial
development in this location. The presence of a revitalized Merchant's
Square shopping center immediately across the street has already
stabilized property values in the area. The expansion of the commercial
area to include Merchants' Pointe should further protect surrounding land
values. In addition, the presence of Merchants' Pointe at this location
should reduce the pressure to develop additional commercial property in
other areas, thus helping to maintain property values in other areas where
potential land use conflicts could arise.
Finally, it is important to note that a retail development in this location is
consistent with the land use patterns of the area, and increases the value of
the land dedicated to the new commercial development, which is
consistent with this statutory finding of fact. The statute states that the
designation of the ED Area is necessary due to the "existence of
Merchants' Pointe Economic Development Plan: Carmel, Indiana
19
improvements or conditions that lower the value of the land below that of
nearby land." The redevelopment of 14.4 acres of a golf course which is
located on one of the hottest commercial corners in Carmel directly meets
this statutory finding. The "improvements or conditions" that exist with
the golf course in place means that the intersection is actually under-
developed, especially in comparison to the value of land directly across the
street at Merchant's Square. By redeveloping this 14.4 acre parcel, the
value of this land is brought squarely into alignment with the "value of
nearby land, "as designated in the statute.
This benefit is further amplified when considering that the relocation of
these golf course facilities to accommodate the Merchants' Pointe
development has resulted in the revitalization and renewal of the
Woodland Country Club golf course, itself. The reconfiguration of the
golf course provides the opportunity to refresh an aging facility, thus
revitalizing its value to its members, and the general public. If the net
impact of the Merchants' Pointe development on the golf course would
have been anything less than substantially positive, it can be safely
assumed that the club would have never sold the land to Linder in the first
place.
For these reasons, Wabash Scientific, inc., would suggest that there is
sufficient market data to indicate that the continuation of the current
development pattern of providing commercial development near the
intersection of 116`h Street and Keystone Avenue would support increased
property values within the ED Area, as well as in surrounding areas,
thereby meeting the requirements of the statute in this regard.
FINDING #2D: "OTHER SIMILAR CONDITIONS"
As in the case of finding #1D (above), the Legislature again chose to
provide broad wording that would enable a potential ED Area designation
to respond to idiosyncratic local conditions through wording such as
"other similar conditions." This statutory finding is contained within the
section of the statute relating to the inability of the community to meet the
needs of the area through normal operation of private business or through
regulatory processes.
In the case of the proposed Merchant's Pointes ED Area, the "other similar
conditions" would be the convergence of the public and private sector
opportunities to fully meet the development standards of the area at a
substantial savings in cost As noted in several other parts of this ED Plan,
Merchants' Pointe Economic Development Plan: Carmel, Indiana
20
the opportunity for public and private sector cooperation and coordination
could lead to substantial sharing of assets which would generate a mutual
economic benefit to both parties.
It is the contention of Wabash Scientific, inc., that such opportunities for
mutual, public /private benefit is the direct intent of the statute with regard
to this finding of fact. If each of the cooperating parties were to pursue
their individual needs separately, the technical needs of each would likely
conflict and the costs to both would increase. By cooperating through the
designation of the ED Area, this finding is statutorily justifed.
FINDING #3: THE PUBLIC HEALTH AND WELFARE WILL BE BENEFITTED
The issues of health and welfare are fairly easy to define for the proposed
ED Area. It is clear that the purpose of the ED Area designation is to
promote the development of the area in accordance with the land use
parameters of the city's comprehensive plan, as well as in accordance with
the demographic attributes of the site. The combination of these
considerations suggests that commercial development of the proposed ED
Area is appropriate. It is equally clear that new commercial development
will generate new jobs, and the creation of new job opportunities
inherently benefits the welfare of the community at large.
Beyond the simple issue of job employment and promotion is an
amplifying factor in the case of this particular community and this
particular ED Area. The area directly north of the proposed Merchants'
Pointe ED Area is already occupied by a very successful commercial
redevelopment project. This is not a complex full of off -price
merchandise benefitting from below - market rental rates. The
redevelopment project undertaken by Linder at Merchant's Square has
generated bona -fide, cutting edge retailers with a specific interest in
Carmel's demographic markets. By revitalizing this retail area, Linder
restored the area that is the de -facto retail center of Carmel.
Current occupants of the existing space include some of the region's
leading retailers. Therefore, it can be appropriately stated that the welfare
of the community is served not only by the simple creation of new
opportunities for gainful employment, but additionally benefitted by the
creation of high - quality retail space in an area that was suffering
substantially from blighting influences. All of these Pointes add up to a
major benefit to the overall economic welfare of the Carmel community,
in and of themselves.
Merchants' Pointe Economic Development Plan: Carmel, Indiana
21
The designation of the Merchants' Pointe ED Area will expand the
economic impact of the Merchant's Square revitalization. The high -
visibility location of Merchants' Pointe and the demographics of the
Carmel market will enable a greater percentage of the disposable income
of the community to be captured within the City's corporate limits, thus
again directly benefitting the economic welfare of the City.
Finally, the potential public and private cost savings and other economic
benefits gained through cooperation and coordination provides yet another
benefit to the overall fiscal welfare ofthe community at large.
Based on these considerations, it is the finding of this ED Plan that the
proposed designation of the ED Area will directly benefit the health and
welfare of the community.
FINDING #4A: THE PLAN WILL INCREASE THE PROPERTY TAX BASE
It is unquestionably clear that the implementation of this ED Plan will
increase the property tax base of the City of Carmel in at least three ways.
First, the redevelopment of the Merchants' Pointe parcel of 14 acres from
green/recreational space to an upscale commercial development will
clearly generate additional Net Assessed Value (NAV) for the
incorporated City. The NAV assessment rates for commercial areas is
substantially higher than that of recreational space, thus generating a
substantial increase in the property tax base.
Second, this increase in the property tax base is achieved without a net loss
of recreational space. Although 14 acres of recreational land was removed
from the community, this recreational acreage was replaced when the golf
course was reconfigured to include additional land along Westfield
Boulevard which was previously undeveloped. In so doing, the viability
of the golf course was not compromised by the removal of the 14 acres.
Third, the City increases its property tax base through annexation. The
Merchants' Pointe parcel was previously outside of the corporate limits of
the city of Carmel and it was only annexed within the last few months.
This annexation action brings new land — and subsequently new taxable
property and property tax revenues — into the incorporated city, thereby
creating an increase in the property tax base of the City.
Merchants' Pointe Economic Development Plan: Carmel, Indiana
22
The net result of these three considerations is that the proposed ED Area
meets the parameters of this statutory finding of fact.
FINDING #4B: ATTRACTION OR RETENTION OF PERMANENT JOBS
There are several levels of understanding to this finding of fact. On the
most general level, research was performed into the Comprehensive Plans
of the towns of Westfield and Sheridan (both located north of Carmel and
served by the US3 1 corridor) and the City of Tipton, as well as the Carmel
Comprehensive Plan. Each of these plans approaches the issue of
development from the individual perspective of that specific community
and its needs. However, in all of these plans there is an over -riding
uniformity of one finding — that the City of Carmel has emerged as a
regional employment center. In reaching that conclusion, the
developmental patterns of all of these cities were affected. The jobs
located in Carmel provide significantly reduced commuting time and
enabled residents of communities farther north to work in Carmel, as well
as providing those communities to potentially attract various forms of new
development in support of this employment shift. The Carmel
Comprehensive Plan makes several specific citations of the fact that north-
bound traffic on US3 1 was increasing at a significantly higher rate than
south bound traffic, which supports the fact that Indianapolis people are
increasingly traveling to Carmel to work and that population/labor
dynamics are shifting north.
The proposed ED Area is located at 116`h Street & Keystone Avenue. The
Merchant's Square commercial complex immediately north already
provides a broad range of permanent and temporary, full -time and part-
time jobs. It is projected that Merchants' Pointe will provide precisely the
same economic benefit at a proportionate scale. The success of
Merchant's Square — despite the previous negative image of the blighted
retail area — should be interpreted as substantial proof that the Merchants'
Pointe commercial development (to be undertaken by precisely the same
developer — The Linder Company) will also provide permanent jobs within
the Carmel community. Consequently, it is the finding of Wabash
Scientific, inc., that the proposed ED area meets the statutory requirements
of this finding of fact.
FINDING #4C: IMPROVED DIVERSITY IN THE ECONOMIC BASE
Diversity in the economic base of the community is essential to the fiscal
health of a municipality. As a developmental matter, the City of Carmel is
primarily served by two major highway corridors: Meridian Street (US31)
Merchants' Pointe Economic Development Plan: Carmel, Indiana
23
and Keystone Avenue (US431). Aside from these north -south corridors,
the City is served by secondary east -west corridors including 116`'' Street
and 131' Street. The intersection of 116th Street and Keystone Avenue has
historically been considered Carmel's primary commercial area. The
proposed Merchants' Pointe commercial development takes advantage of
this prime location.
In addition to location, one must consider demographics when considering
a proposal for a commercial development. To be succinct, Carmel has one
of the strongest demographic patterns in Indiana, as well as one of the
strongest in the entire Midwest. The income and resident wealth in the
City of Carmel generates levels of disposable income which rivals that of
much larger cities. The level of disposable income in Carmel carries a
direct benefit in that the City can support more retail space, with higher -
priced inventory.
The Merchants' Pointe commercial development proposal intends to
address both of these significant advantages, which are key issues in
commercial development. The Merchants' Pointe development will be
capable of attracting new retail interests, with different products, thus
increasing the diversity in the economic base of the community.
The designation of the proposed ED area will help to further diversify the
economic base of the community by providing new facilities in which new
and existing businesses can grow and flourish. In the process, some
businesses will relocate or cease to exist, as is common in every economy
in the world. This does not in any way diminish the interests of the
community at large in the importance of economic diversification. The
proposed Merchants' Pointe commercial development (which constitutes
100% of the proposed ED Area) will directly assist the community in
diversifying the retail portion of its economic base. As such, it is our
conclusion that the proposed ED area meets the parameters of this
statutory environment.
Conclusions
The narrative presented above adequately demonstrates that the proposed
ED Area meets all five of the statutory requirements of IC36- 7- 14 -41.
Furthermore, it is the conclusion of Wabash Scientific, inc., that the
opportunity for mutual cost savings related to infrastructure improvements
increases the urgency of the ED Area designation. For these reasons,
Merchants' Pointe Economic Development Plan: Carmel, Indiana 24
Wabash Scientific, inc., concludes that the proposed Merchant's Pointe
Economic Development Area complies with the requirements of Indiana
statute, and that the designation of the ED Area is critical to the interests
of the community at large.
Recommendations
Based upon the above considerations, it is the recommendation of Wabash
Scientific, inc., that the Redevelopment Commission establish the
Merchant's Pointe Economic Development Area as a tax allocation area
for purposes of offering economic incentives for infrastructure
improvements.
Economic Development Strategy
The Strategy for promoting development within the ED Area is
straightforward. If the ED Area is established, as recommended, through
the sequential approvals of the Plan Commission and the City Council, the
strategic elements would be generally suggested as follows:
1. The Redevelopment Commission takes no formal position with regard to
the endorsement or approval of any development proposal. Such
decisions are left entirely and respectfully to the plan commission and
city council, as authorized by statute.
2. The Redevelopment Commission will consider the use of economic
incentives for the purpose of providing the ED Area with infrastructure
services sufficient to meet the current and future needs of the ED Area,
both public and private.
3. Consideration of providing economic incentives for the development of
infrastructure systems /facilities shall be considered separately from any
other decisions, especially those of other duly authorized bodies, such
as the plan commission, board of works or city council.
4. Any decision to offer economic incentives as proposed will be
undertaken in full cooperation with all appropriate bodies of the City.
5. The decision to offer any TIF incentive may be undertaken based on a
specific development proposal, especially with regard to the capture of
mutual cost - saving opportunities related to infrastructure improvements
by the City and the developer.
Merchants' Pointe Economic Development Plan: Carmel, Indiana
25
Proposed Projects
The following is intended to serve as a general list of the types of projects
to be considered for funding using the financial incentives afforded
through the establishment of an ED Area. In conjunction with the above
narrative, these projects are directed primarily toward assuring adequate
infrastructure service to the ED Area for the foreseeable future.
1. Thoroughfare improvements (est. cost $0.5 to $1.5 million)
Thoroughfare projects are anticipated to include street widening,
intersection improvements, traffic control facilities, corridor landscaping/
aesthetic enhancements, curbs, gutters, and other such improvements
to the driving pavement, as well as right of way. It is anticipated that
such improvements will be needed on 116`h Street, with minor work
along Keystone Avenue, however, other improvements may be
identified.
2. Utility enhancements (est. cost $1.0 to $2.0 million )
Utility enhancement projects are anticipated to include such things as
utility burial and enhanced utility service, increases in sewer and water
lines, and drainage enhancements, as well as other possible
improvements.
The precise scope of any public funding should be determined by the CRC
in conjunction with the appropriate city officials. In these discussions, the
explicit details of those improvements which are appropriate to the public
interest should be finalized and presented to the public, as well as the
conclusions of the Financial Advisor as to the financial capacity of the
project to support such expenditures, as part of the financial packaging for
the project.
List of Parcels
The list of parcels presented below represents information taken directly
from the property tax assessment cards obtained from the Hamilton
County Auditor in November, 2000.
PARCEL #
OWNER
acres
`impr. sq.ft.
*NAV (as of 11 -00)
17- 14- 06- 00 -00- 001.000 ( pt)
(part of Woodland County
Club
Linder
Realty
14.4
0
( Est). $7200
Merchants' Pointe Economic Development Plan: Carmel, Indiana 26
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
*This data is not yet available from the Hamilton County Auditor. The
subdivision of the Woodland Golf Course to create the Merchants' Pointe parcel
has not been officially recorded in the Auditor's files and maps, and the property
has not been re- assessed to reflect that subdivision. The estimated NAV is
based on a value of $500 per acre for 14.4 acres of undeveloped land, as
existed on March 1, 2001. All data should be verified by the Financial Advisor
prior to any public financing action.
/MrPt edplan dra
Merchants' Pointe Economic Development Plan: Carmel, Indiana 27