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2000-Consolidation of Five Econ. Dev. Areas Carmel Redevelopment Commission Carmel, Indiana In e ra e Economic Development PIan (working draft: for City Leadership review purposes only) Integration Consolidation of Economic Development Areas 126` Street Economic Development Area Amended 126` Street Economic Development Area Pennsylvania Street North South Economic Development Areas Old Town Economic Development Area City Center Redevelopment Area January 10, 2000 Woth T Zcho O Michael R. Shaver, President 4742 Bluffwood North Drive Indianapolis, IN 46228 (voice) 317/299 -9529 (fax) 317/329 -9885 (e -mail) wabsci@aol.com Table Of Contents Introduction 1 Summary of Previous Actions 1 Purpose of this Amendment Action 4 Statement of Policy Amendments 6 Interconnected Benefits 6 Amendment to the Old Town EDPIan 8 Amendment to the City Center Redevelopment Plan 8 Total Designated Areas 9 Impact of Future Actions 10 Description of the Integrated EDArea 11 Findings of Fact 12 Overview 12 Continuation of the City Center Project 12 Findings of Fact Related to Additional EDAreas 13 Finding of Fact #1: "...promotes significant opportunities for the gainful employment of its citizens..." 14 Finding of Fact #2: "...lack of local public improvements 15 Finding #3: "...the public health and welfare will be benefitted...." 17 Finding #4: "an increase in the property tax base..." 19 Finding #5: "...conforms to other development and redevelopment plans...." 20 Summary 22 Description of the Proposed Projects 24 The City Center Project 24 Pennsylvania Street Corridor Widening 25 Future Projects Overview 25 Economic Development Strategy 28 Integrated EDPIan Conclusions 29 Integrated EDPIan Recommendations 31 Parcels Potentially to be Acquired 32 Introduction The following introduction is offered as a means of "setting the stage," for the actions recommended in this Integrated Economic Development Plan (EDPIan). The 126t" Street Economic Development Area is a critical area for the future of Carmel. This area contains the City's primary business/ office /industrial development, and it represents a substantial portion of the city's non residential property tax base. As a result of its importance, the 126' Street Economic Development Area (126t EDArea) has received a great deal of development since the original action to create the EDArea. Summary of Previous Actions The following summary explains the motives and actions undertaken prior to the development of this Plan. The summary will summarize the actions previously taken by the Carmel Redevelopment Commission (CRDC) with regard to the creation of economic development areas and redevelopment areas in the central part of the city. Please note that the following narrative does not address either the Merchant's Square area or the economic development area(s) created to support the financing for the Hazel Dell Parkway project, because these projects are not integral to the economic development activity in the central parts of the City. In all, the CRDC created four economic development areas and a redevelopment area, as well as amending the 126t Street EDArea to include more territory. Map #1 supports the following narrative. THE OLD TOWN 126TH STREET ECONOMIC DEVELOPMENT AREAS: The 126th Street Corridor Economic Development Area was created by the Carmel Redevelopment Commission, with the affirmation of the Plan Commission and City Council, during the summer of 1997. The Economic Development Plan which documented the creation of the 126t Street Corridor Economic Development Area was officially named the "Economic Development Plan: Old Town 126' Street Corridor Economic Development Areas." It is clear from the title that the original Economic Development Plan created two Economic Development Areas simultaneously, each with its own documented findings and justification through previous editions of the comprehensive plan. Integrated 126th Street Corridor Economic Development Plan l The Old Town EDArea was formed for the purpose of supporting streetscape and other improvements to the Old Town area of Carmel. This area represents the oldest developments in Carmel, including the old downtown area, adjacent to the intersection of 131st Street and Rangeline Road, which was once the developmental center of Carmel. The Old Town EDArea was not contiguous with the 126`" Street EDArea. The 126` Street EDArea was formed to support the extension of the 126` Street corridor from Rangeline Road, westward into the Science Technology Park. By completing the 126` Street corridor in this manner, the city consolidated its thoroughfare system such that the Science Technology Park and the US31 corridor were more efficiently linked with the City Center area.. At the time these areas were created, the primary financing for the proposed improvements was provided by a COIT -based Redevelopment Authority bond, and no action was taken to create /designate a tax allocation area for TIF purposes. PENNSYLVANIA ST. NORTH SOUTH ECONOMIC DEVELOPMENT AREAS: At the same timeas the 126` St. EDArea was created, the Carmel Redevelopment Commission (CRDC) also approved the creation of the Pennsylvania Street North Economic Development Area (Penn North) and the Pennsylvania Street South Economic Development Area (Penn South). The purpose of creating these two areas was to support the widening of the Pennsylvania Street corridor in order to: handle greater traffic flow; to serve new development which would occur once the corridor was complete; and to accommodate the long term development of a limited access freeway facility along US31. In the long term scenario, the improved Pennsylvania Street corridor would provide thoroughfare service to the east side of the US31 corridor, while a similar corridor would be developed on the west side of US31 to provide access on that side. It was necessary to create two, separate EDAreas because a portion of the corridor had not been incorporated into the City of Carmel. The Pennsylvania Street EDAreas were not officially designated as tax allocation areas for the purpose of TIF financing support. The improvements to the Pennsylvania Street corridor were to be undertaken using the same COIT -based Redevelopment Authority bonds that were used for the 126t Street project, and Hazel Dell Road. Integrated 126th Street Corridor Economic Development Plan 2 AMENDED 126 STREET ECONOMIC DEVELOPMENT AREA: The amended EDPIan for the 126t Street corridor dealt solely with the portion of the original Economic Development Plan (EDPIan) pertaining to the 126' Street Corridor. No portion of the Old Town Economic Development Area or Economic Development Plan was amended by that effort. The amendment action significantly enlarged the 126t Street Economic Development Area (126t EDArea) to the west, bringing most of the Science Technology Park into the EDArea. As a result of that amendment action, as shown in Map #1, the 126t Street EDArea abutted the Pennsylvania Street North Pennsylvania Street South EDAreas. At the same time, the portion of the 126t Street EDArea surrounding the government complex was deleted from the EDArea for the purpose of creating a redevelopment area under Indiana law (see Map #1.) The amendments to the 126t Street EDArea were undertaken to enable the City to support the City Center project which was proposed and approved by the City to be implemented along the west side of Rangeline Road, south of 126t Street, and north of the government complex. The financing was to support the first phases (primarily land acquisition) of the City Center project, and the financial plan was to issue Redevelopment Commission/Authority bonds based on COIT revenues. The City also designated the 126t Street Economic Development Area, as amended, as a tax allocation area for TIF purposes. Incremental tax revenues from the allocation area would provide a revenue source which would be used to offset the payments from COIT. THE CITY CENTER REDEVELOPMENT AREA: The City Center Redevelopment Area was created to directly support the development of the City Center project. The City Center project is a multi faceted proposal to include a mix of moderate to high- intensity commercial, retail, office, public and other space. The project was capable of accommodating such things as museums, performing arts, retail, office, residential and other types of development, and the long term intent was for the City Center project to identify and anchor this area as the business hub of the city, and to protect the long economic term viability of the area. The results of this action are also shown on Map #1. The City Center Redevelopment Area was also designated as a tax allocation area for TIF purposes. The primary financing for the initial phases of the City Center project was to come from a COIT bond, issued Integrated 126th Street Corridor Economic Development Plan J by the Redevelopment Commission/Authority. In this financing arrangement, the revenue source for repaying the bonds was COIT, while incremental tax revenue from the allocation area would provide a revenue source which would be used to offset the COIT cash flow. INITIAL FINANCIAL RESULTS IN THE REDEVELOPMENT AREA: The TIF /COIT bond which was issued to support the City Center Redevelopment Area and its activities resulted in the acquisition of several parcels of land north of the Government Center, along the 126t Street corridor. Those parcels were fundamentally undeveloped prior to the creation of the RDArea. As a result of the acquisition and redevelopment of these parcels, however, the Redevelopment Commission realized a substantial developmental windfall. The AMLI development was recruited into the RDArea by virtue of the acquisition of land by the Carmel RDC. The RDC assembled the land and advertised for development proposals for this property, and as a result of that effort, the community realized a direct cash benefit of some $4 million for the purchase of the land, as well as the developmental benefits associated with future property tax increment. Please note that these parcels were previously undeveloped, despite their prime location, therefore, the ability of the RDC to recruit suitable development in conjunction with the City Center Redevelopment Plan was a major overall benefit to the community. Purpose of this Amendment Action The purpose of this amendment to the 126 Street Corridor Economic Development Plan is to clarify and coordinate all of the previous actions into a single, integrated plan. Map #1 shows all of the previous economic development and redevelopment areas created to support the efficient and effective development of the central part of the City of Carmel. The purpose of this Amendment Action (Amendment #2) is to present the public and the various city agencies and elected officials with a single, integrated plan that shows what has happened within theses EDAreas and also shows what is proposed to happen over the next 10 -20 years. PROPOSED A CTIONS: This Amendment #2: Integrated Economic Development Plan undertakes the following specific activities (see Map #2): Integrated 126th Street Corridor Economic Development Plan 4 1. To consolidate three (3) of the economic development areas within the central part of the City into a single, integrated economic development area, as follows: Pennsylvania Street South Economic Development Area; Pennsylvania Street North Economic Development Area; 126"' Street Economic Development Area, as amended. 2. To extend the boundaries of the Integrated Economic Development Area to include new development which has taken place in the vicinity. 3. To designate as a tax allocation area that portion of the Integrated Economic Development Area not currently designated as a tax allocation area, as a means of providing future financing opportunities to stimulate desirable economic development in the integrated area. (See Map #2.) PURPOSE OF THE PROPOSED ACTIONS: The Economic Development Areas are being consolidated and amended for several reasons: 1. To clarify and simplify the economic development scenario related to the ultimate development of the central portion of the City. 2. To extend the tax allocation area of the City for the purpose of potentially supporting additional phases of the City Center project. Now that the land acquisition has been complete, the 126 Street corridor is functional, the City has been presented with new development opportunities related to the City Center project. 3. To increase the capacity for tax increment financing in support of economic development opportunities in the integrated area. 4. To set the stage for specific consideration of additional financing strategies for projects related to the central area of the community. Integrated 126th Street Corridor Economic Development Plan 5 Statement of Policy Amendments The purpose of the Integrated EDP1an is to provide the city's leadership with a single, organized planning document from which to base future economic development policy decisions. As will be explained below, much of this Integrated EDPIan is simply a consolidation and re- statement of the original body of multiple economic development plans and redevelopment plans. In addition to that re- statement, however, the Integrated EDPIan officially extends the individual existing plans, in part as follows. Interconnected Benefits The 126t Street Economic Development Plan (as amended), the Old Town Economic Development Plan, the Pennsylvania Street North South Economic Development Plans, and the City Center Redevelopment Plan have been developed as an interconnected network of planning documents relating to the long term development of the business core of the City of Carmel. These plans were originally conceived as integrated documents, each with a specific contribution to the overall development pattern of this core area. Originally, however, it was impossible to predict how quickly the developmental elements would come together. DEVELOPMENTAL CHARACTER: The development of the Pennsylvania Street corridor is integral to the long term plan to develop the US31 corridor into a limited access, freeway corridor. Ultimately, the improved Pennsylvania corridor will be paired with an improved corridor west of US31 to provide local access to important developments along the US31 corridor, thus allowing US31 to be re- designed as a freeway. The Old Town area is projected to be redeveloped as an intense urban core containing the historical origins of the City. This area will ultimately reflect the city's historic character and will be linked to the commercial core of the city through the Science Technology Park, as well as the Carmel Drive commercial area. The 126t Street EDArea will represent Carmel's development as an upscale business center, containing some of the region's most successful high technology business interests. This area was once defined by the Integrated 126th Street Corridor Economic Development Plan 6 Carmel Industrial Park, which was severely limited in its developmental capacity. Through the development of a greater vision, however, the original Industrial Park was expanded and its developmental profile substantially elevated to include the attraction of business headquarter operations, as well as high profile national offices and high -rise office and conference complexes. This area represents the city's highest profile business core. The City Center Redevelopment Area was conceived as the cultural center of the community. Although Carmel has grown as an upscale suburban community, the City Center concept was developed as a place where the best of the community was anchored in defining the future character of the community. The City Center proposal included arts and cultural facilities, substantial public spaces, improved thoroughfare access, and increased visibility of the community's core. INTERCONNECTING BENEFITS: Due to the developmental character issues discussed above, the original planning efforts, including the economic development plans and redevelopment plans for the various areas, it was determined that benefits resulting from projects in one area interconnected with benefits from projects in the other areas. Improvements to the 126' Street corridor would benefit Old Town by increasing thoroughfare access to the historic downtown. Cultural facilities in the City Center would benefit old downtown merchants by increasing popular access to their businesses. Having greater cultural traffic in the City Center would also improve the visibility of the Science Technology Park. Improvements to the Pennsylvania St. corridor would generally increase access to the business core of the community. In short, each of these separate planning efforts contributed incrementally to the developmental character of the others. Success in one area facilitated success in the other areas. Completion of one project made it easier to complete the next. For these reasons, the Integrated EDP1an hereby specifically and formally notes that it is the position and policy of the Carmel Redevelopment Commission that the benefits of theses plans and projects are mutually interconnected, with one benefitting the others. All of the projects in the Integrated EDP1an are considered to be functionally and developmentally linked toward the ultimate execution of the long term development plan for the City of Carmel in the defined areas. Integrated 126th Street Corridor Economic Development Plan 7 Amendment to the Old Town EDPIan The Old Town Economic Development Plan (EDPIan) is hereby formally amended to include support for various public private redevelopment efforts within the Old Town EDArea. This includes various proposals to redevelop certain portions of the area. Since the EDArea retains no authority for eminent domain, there is no proposed land acquisition through eminent domain, however, it may be appropriate for the city to participate in the purchase of various parcels of real estate in conjunction with certain redevelopment proposals. It is important to note, however, that the City should exercise caution in the process of purchasing land so as to assure the public that due process was carefully followed and that the public interest was served at all times. Therefore, the Old Town EDPIan is hereby amended to include appropriately negotiated land acquisition in support of public private redevelopment proposals which meet the developmental parameters of the long term development plans of the community. In such cases where the process is appropriately followed, it is therefore determined that the benefits of such projects to the Old Town EDArea also accrue equally to the benefit of the 126` Street EDArea, and the City Center Redevelopment Area. Amendment to the City Center Redevelopment Plan The City Center Redevelopment Plan comprehensively incorporated the proposals of the City Center project, including the development of both public and private sector facilities, as well as open spaces and other developments to increase the public visibility of the RDArea, including the government center. Since the City Center Redevelopment Area was defined by a Redevelopment Plan, the CRDC retains the power of eminent domain in the City Center RDArea, which can be exercised cooperatively with the City of Carmel, depending upon the ultimate use of the land acquired. Therefore, the City Center RDPIan is officially amended to include such land acquisition as was originally envisioned in support of the implementation of the City Center project, including parcels fronting on Rangeline Road. Therefore, the City Center Redevelopment Plan RDPIan) is hereby amended to include land acquisition, possibly including eminent domain Integrated 126th Street Corridor Economic Development Plan 8 actions, in support of the City Center Redevelopment proposals which were previously made a part of the RDPIan. Such land acquisition, either through eminent domain or negotiated purchase, should meet the developmental parameters of the long term development plans of the community. In such cases where the process is appropriately followed, it is therefore determined that the benefits of such projects to the City Center Redevelopment Area also accrue equally to the benefit of the 126t Street EDArea, and the Old Town EDArea Total Designated Areas The following table summarizes the previous actions of the Carmel Redevelopment Commission with respect to the creation of economic development and redevelopment areas, as well as amendments thereto. Area Name original total acreage acreage 126` Street Economic Development Area 278 278 (less) City Center Redevelopment Area (112) 166 126 Street Economic Development Area (amended) 378 544 Pennsylvania St. North Economic Development Area 41 585 Pennsylvania St. South Economic Development Area 130 715 Old Town Economic Development Area 322 1037 Acres Recommended for Addition 110 1147 Integrated 126th Street Corridor Economic Development Plan 9 Impact of Future Actions This Integrated EDPIan is to be submitted to the Carmel Redevelopment Commission (CRDC) for approval. After receiving such approval, the Integrated EDP1an must then receive approval from the City Council. It is, therefore, important that the various agencies, bodies, elected officials and the general public understand the limitations which are imposed on subsequent decisions and actions by these various agencies and bodies. The vast bulk of all of the geographic area contained in the Integrated Economic Development Area is already within a designated economic development area. The actions proposed within this Integrated EDPIan in no way negate any previous action, but rather build upon those previous actions. Therefore, this Integrated EDPIan is undertaken with the understanding that future actions are cumulative. Any agency or governing body with authority over the decisions to be undertaken as a result of this Integrated EDP1an, therefore, should understand that such actions do not negate the previous legal actions of the CRDC or the City of Carmel. This is especially true of any actions which resulted in the issuance of public debt to support the proposed economic development activities. Since all previous actions remain in place, the impact which this future action has on the economic development planning of the city is as follows: 1. To integrate the three designated economic development areas (126 Street (as amended), Pennsylvania Street South, Pennsylvania Street North) into a single economic development area, as presented above; 2. To amend the Integrated EDArea to include new areas which are being developed (see Map #2): 3. To designate the entire Integrated EDArea, including the new developments, as a tax allocation area (see Map #3); 4. To present projects which might be anticipated as part of the Economic Development Strategy for the Integrated EDArea for the potential of public financing and /or financial incentives. Integrated 126th Street Corridor Economic Development Plan 10 Description of the Integrated EDArea The description of the boundaries of the Integrated 126' Street Economic Development Area is based on the aerial parcel maps provided by the Hamilton County Auditor's office on December 15, 1997 (aerial photography dated April, 1994), as follows: Integrated 126th Street Corridor Economic Development Plan 11 Findings of Fact Overview The statutory Findings of Fact for each of the EDAreas was originally established in the Economic Development Plans for each area. In each of those plans, the statutory provisions were itemized and examined individually, and conclusions and recommendations were made based on the analytical parameters of each, individual area. Consequently, this Amendment #2: Integrated Economic Development Plan hereby officially and formally incorporates all of the original Findings of Fact, as well as the entire text of each Economic Development Plan into this single, Integrated Economic Development Plan. The text of the individual Economic Development Plans previously approved and implemented by the CRDC are included as appendices to this EDPIan in support of this official action (see Appendix). As a result of this action, this Integrated EDPIan officially incorporates the sum of all of the individual findings of all of the individual EDPlans. The integration of these EDPlans into a single document has no effect to negate any of the findings of fact which constituted the statutory rationale for creating the EDAreas, in the first place. Therefore, each and every finding of fact is hereby certified, and affirmed by action of the CRDC and the City Council, to remain valid in consideration of the Integrated EDPIan. Continuation of the City Center Project The reader is directed to the financial premise of the City Center Redevelopment Plan and the Amended 126` Street Economic Development Plan. (See Appendix) These two plans served as the policy basis for the creation of a Redevelopment Area and an Amended Economic Development Area, as well as the designation of both of these areas as tax allocation areas under Indiana statute. The purpose of designating these areas as tax allocation areas was to capture tax increment revenue in support of the initial phases of the City Center project (land acquisition). This initial phase has been completed. Therefore, the proposed action to combine three of the EDAreas into a single Integrated EDArea is a direct continuation of the City's support of Integrated 126th Street Corridor Economic Development Plan 12 the City Center project. In the interim since the previous action by the CRDC, new development opportunities have been realized, and the City is in position to implement additional phases of the original vision of the City Center project, based on the projects itemized in this Integrated EDPIan. The original City Center Redevelopment Area remains geographically unchanged by any action proposed herein. However, the inclusion of new areas, identified below, into the EDArea, as well as the designation of an expanded tax allocation area, can potentially add to the TIF increment which can be captured in support of the City Center project. This, therefore, is simply a continuation of the previous economic development pro forma which was approved by the CRDC and the City Council in 1998. Findings of Fact Related to Additional EDAreas Beyond the original Findings of Fact which were detailed in each, individual EDPIan, and are hereby incorporated into this Integrated EDPIan, this Integrated EDPIan will focus the additional Findings of Fact on the areas which are proposed to be added to the Integrated EDArea. As such, the Findings of Fact presented below are to be considered cumulative, in addition to the sum of the previous Findings. These new areas to be added to the Integrated EDArea are generally described as follows: 1. The previously undeveloped area located on the west side of US31, north of 126 Street south of 131 Street, and east of the Firestone office building, as shown on Map #2. This new area is contiguous with the EDArea previously known as the Pennsylvania Street North EDArea. 2. The area of the planned development known as the Buckingham area, north of the amended 126 Street EDArea, and contiguous thereto, as shown on Map #2. This development includes both multi family residential units and commercial development. These two areas constitute a minor addition to the total Integrated EDArea Integrated 126th Street Corridor Economic Development Plan 13 FINDING OF FACT #1: "...PROMOTES SIGNIFICANT OPPORTUNITIES FOR THE GAINFUL EMPLOYMENT OF ITS CITIZENS..." The areas being added to the Economic Development Area consist of areas peripheral to the Carmel Science Technology Park. In each of the two areas, there will be development of new office and other commercial space which demonstrably adds new jobs to the local economy. Therefore, the new areas are easily demonstrated to promote significant opportunities for the gainful employment of the citizens of Carmel and surrounding communities. The area west of US31 is the site of a major new office building, located immediately north of 126t Street. This site is directly served and benefitted by the 126t Street corridor which was completed through the original public financing (COIT bonds). Because the 126t Street corridor now extends continuously from the far east side of Carmel to the US31 corridor, without interruption, the economic viability of this site was enhanced. The development of this office building will clearly provide job opportunities for residents of the Carmel /Hamilton County area. The proposed Buckingham development will also provide opportunities for gainful employment of the citizens of the area. The proposed development provides multi family residential units which can be included in the tax increment according to the State Board of Tax Commissioners. Section 36- 7 -14 -39 (a)(1) indicates that "residential property under the rules of the state board of tax commissioners" is not to be included in the tax increment. However, the regulations of the State Board of Tax Commissioners regarding real estate property assessment (50 IAC 2.2 -1- 53, "Residential property defined states, "Residential property is normally construed to mean a structure where less than three (3) families reside in a single structure." This clause is interpreted to mean that apartment complexes of greater than 3 units can be considered eligible for generating tax increment, as proposed for the Buckingham development. The development proposal also includes commercial development space, which can certainly be included in the tax increment. This commercial space, in the form of office and retail space, will also provide employment opportunities for citizens of the area, and the contribution of net assessed value by the whole Buckingham development will benefit the community. The overall plan for the economic development of the area is to continue the implementation of the City Center project, as previously presented and Integrated 126th Street Corridor Economic Development Plan 14 approved. The areas proposed for inclusion in the Integrated EDArea are contiguous to the EDArea and are developing in accordance with the surrounding land use, as a part of the business core of the City of Carmel. As such, it is the conclusion of this EDPIan that the areas proposed for inclusion in the Integrated EDArea meet the definition of this statutory finding and should be included in the Integrated EDArea. FINDING OF FACT #2: "...LACK OF LOCAL PUBLIC IMPROVEMENTS... The goal of integrating the EDAreas continues to be directly related to the need for additional local public improvements in order to achieve the highest level of economic activity in the core business area of the City. Carmel is truly a gifted community. It has achieved a level and success of development which is virtually unparalleled in any other part of the state, and as such, the standards of the community are higher than most other communities. Because Indiana statute does not create highly specific and detailed criteria for statutory findings of fact or findings of blight, communities are able to adjust these findings to their own context and apply the statute to the particular idiosyncracies of their community. In Carmel, the goal is literally to achieve the highest possible level of success with new development of the highest possible quality. The historical development patterns of the city are reaching the point where certain types of goals cannot be achieved without the re- arrangement of land uses and activities. The Comprehensive Plan predicts that by the year 2020, all of the land within the Carmel planning area will be developed. The importance of planning for the highest and best use of the land becomes even more important to achieve the community's goals. The Integrated EDArea represents Carmel's highest profile employment center. The Science and Technology Park holds many of the City's top employers and most growth- oriented companies. It is the success of these companies which will continue to provide the area with economic growth, even after the planning area is fully developed. The Integrated EDArea is in a critical location for the economic activity of the community. The 126 Street extension from Rangeline Road to Adams Street was presented as a critical element of the public improvements necessary for the original Economic Development Plan. In addition, EDPIan amendments established that the City Center project contributed directly to the Economic Development Plan for the 126th Street Corridor Economic Development Area as well as the Old Town EDArea, and provided Integrated 126th Street Corridor Economic Development Plan 15 additional public sector improvements which have been identified and previously approved by the community as part of its long -range planning effort. These approvals are a matter of public record, particularly with regard to the incorporation of the City center project into the long term development plan of the City of Carmel. Included within the proposed City Center project are a number of public improvements designed to establish a cultural center for the City of Carmel adjacent to its business core. Those public improvements include: Parking Facilities A Community Center (art museum) Performing Arts Center An Outdoor Amphitheater Improvements to the Monon Trail Corridor The City Center project proposal, as previously presented to the City Council, provided additional perspective for the public to understand the magnitude and architectural detail of the City Center proposal. In addition, the architect also provided a perspective rendering of the proposed project to demonstrate the overall architectural integrity of the project and its impact on the community and surrounding area. The City Center project is of such a substantial scale and impact that it will become an active part of the overall economic development of the area, including both the Integrated EDArea and the City Center Redevelopment Area. It is projected that the proposed City Center project and the public improvements to be funded as part of its implementation will have a direct impact on the entire community, with the intent of developing the center of the city as a cultural center. Without these public improvements, the City of Carmel will not become economically distressed. However, it is clear that the successful development of the City Center project will have a direct economic benefit to the surrounding area, including the Old Town EDArea and the 126t Street EDArea, and will reinforce the economic viability of the city's business and social core. The City Center project was proposed as a public private partnership. Since its inception, the City has enjoyed several redevelopment type projects for the central core of the city, including the housing /commercial development proposed for the southwest corner of the intersection of Main Street and Rangeline Road. The subsequent phases of the City Center project include the development of public space, possibly including a performing arts center, museums or other forms of cultural, entertainment Integrated 126th Street Corridor Economic Development Plan 16 and recreational activities for the citizens of Carmel. These facilities are generally not within the purview of the private sector, except under highly unusual circumstances. Even in major cities like Indianapolis, Chicago and New York, performing arts facilities, museums and community activity space is a public sector responsibility. Therefore, it is clear that neither the normal operation of the regulatory process nor the operation of private enterprise is likely to be functional in meeting such needs. For these reasons, it is concluded that the Integrated EDPIan (including the proposed City Center project) cannot be achieved by the regulatory processes or by the ordinary operation of private enterprise without resort to the powers allowed under IC Sections 36- 7- 14 -2.5, 41 and 43 because of lack of local public improvements which, once implemented, will enable the combined areas to achieve a higher level of economic activity and public benefit than would otherwise be possible, thereby confirming this statutory finding of fact. FINDING #3: THE PUBLIC HEALTH AND WELFARE WILL BE BENEFITTED.... The City Center project will benefit the public health and welfare of the City of Carmel in several ways, as explained in previous EDPlans. First, the City Center project will generate more intense and coordinated development in the central business core area. For example, along the Rangeline Road corridor, the existing land use patterns include unimproved land and property which needs reinvestment and remodeling. This corridor represents the original economic link between Carmel and Indianapolis, and the strip commercial development which originally took place along this corridor is among the oldest commercial development in the City. The long range plan of the City is to develop a single, architecturally coordinated development which will be undertaken generating a substantially greater number of jobs and economic activity than the current land uses of the City Center area. Second, the City Center improvements are expected to lead to substantially greater levels of local tax revenues including property taxes and COIT. Economic incentives can then be directed to public services needed by the community, including road repairs, maintenance of public spaces, infrastructure improvements and so forth. The uses for these funds can be determined annually by the City's leadership as part of the budgeting process. Integrated 126th Street Corridor Economic Development Plan 17 FINDING #4: "AN INCREASE IN THE PROPERTY TAX BASE...'' The amended Economic Development Plan meets the statutory finding of a public utility and benefit as measured by: the attraction or retention of permanent jobs; an increase in the property tax base; improved diversity in the economic base, OR other similar public benefits." The City Center project was designed to meet this finding of fact by increasing the land use intensity within the Redevelopment Area. This increased intensity will provide more private sector office and retail space and, with that increase in space, there will be a commensurate increase in the number of permanent jobs created and retained in the community. Considering that most of the Redevelopment Area is either vacant altogether or in need of substantial reinvestment, it is easy to see that the City Center project will almost certainly result in many more jobs than those now existing. Thus, the first part of the finding is established. Second, the portion of the Redevelopment Area located in the southwest quadrant of the intersection of 126`" Street and Rangeline Road is largely undeveloped, and is mostly owned by the City. As such, it is generating no tax base for the community. Although no formal implementation is yet proposed, many of the projected improvements will take place on land that is currently either totally unimproved or whose improvements are suffering from a lack of reinvestment. Therefore, the net result of the plan is to increase the amount of taxable improvements in the real property of the area, leading to an increase in the property tax base. The construction of an integrated entertainment complex, economically buttressed by infrastructural improvements and new office and retail space will also increase the diversity of the local economy. The location of this project, between the historic retail center of the community and the primary retail center of Carmel Drive /116`" Street, links the overall retail functions of the community, providing continuity of land uses. This project, combined with the impact of the 126`" Street corridor completion, should improve the diversity of the local economy, resulting in needed investment and reinvestment in property in the area. For these reasons, it is concluded that the accomplishment of the City Center project, as well as other aspects of the Integrated EDPIan will be "a public utility and benefit as measured by: the attraction or retention of permanent jobs; an increase in the property tax base; improved diversity in the economic base; OR other similar public benefits," thereby confirming this statutory finding of fact. Integrated 126th Street Corridor Economic Development Plan 19 As stated in the earlier sections of this document, the original EDPlans and the RDPIan were undertaken in support of the long term development of the city's business core area (generally defined as 116` Street to 131" Street, and from US31 to Rangeline Road). This general area contains the old downtown area, as well as the Science Technology Park, which represents the most modern business center in the community. Those earlier sections of this report, including the Introduction, Statement of Policy Amendments and the Impact of Future Actions all substantiate that this action toward integrating and consolidating the individual EDAreas into one area, continues the original intent to develop the entire area as a developmental whole. As of the date of presentation of this Integrated EDPIan, all projects have been undertaken for the purpose of securing these areas as developmentally and functionally interconnected. Furthermore, these projects have been undertaken to underscore the developmental importance of the defined areas as the cultural, governmental and business center of the community. The recommended action to integrate the separate EDAreas into a single Integrated EDArea is undertaken to reduce confusion and increase public awareness. Individual projects originally justified the creation of individual areas, however, as the developmental constraints were removed, the area began to grow in the preferred manner until now all of the areas are functionally and developmentally interconnected. For these reasons, the original reasons for pursuing EDArea and RDArea designations for the various areas remain valid. The findings of fact presented above all assert and demonstrate that the new areas meet the developmental conditions prescribed by statute, in substantially the same manner as the original areas. Therefore, it is hereby asserted that the amendment to the resolution and the amended (Integrated) plan are reasonable and appropriate to the original purpose and intent of the individual areas. ADD'L FINDING: THE AMENDED RESOLUTION PLAN CONFORM, TO THE COMPREHENSIVE PLAN In Finding #5, above, it was clearly demonstrated that the original plans were determined to conform to the plans of development for the city. An entire sequence of official actions by public agencies and officials affirmed this assertion. As a result of the findings of this Integrated Integrated 126th Street Corridor Economic Development Plan 21 EDPIan, presented above, the areas proposed for inclusion in the EDArea by virtue of this EDPIan are also in conformance with the overall plan of development of the city. The areas proposed for inclusion (those areas which were not previously a part of any EDArea) amount to approximately 100 -110 acres. As shown in the "Total Designated Areas" summary table earlier in this Integrated EDPIan, the total acreage previously designated exceeds 1,000 acres. As shown on Map #2, the expansion areas include three primary developments: Hamilton Crossing (about 48 acres); Additional Meijer Development (about 5 acres); and, Buckingham Development (about 55 acres) These 3 developments predominantly represent commercial developments which have been facilitated by the provision of new thoroughfare access along Pennsylvania Street, 126t Street (or other projects), as well as through the developmental integration of the overall area as the business core of the community. As such, these developments will benefit from the new facilities and projects recommended in previous EDPlans. More importantly, however, the Comprehensive Plan for the community is clear in its designation of this general area as the business core of the community. Even the most cursory examination of the existing and future land use plans of the community clearly show the intent of these areas to serve as the business core. This conformity was clearly established in the previous EDPlans and the inclusion of the three developments listed above does not alter that original conclusion. Inasmuch as these developments increase the intensity of this business core, as well as expanding to and developing undeveloped parcels which were designated for business land uses within that core, it is absolutely clear that these developments fall totally within the original intent of the designation of these areas as economic development areas. Therefore, it can be safely concluded that the three areas listed above conform to the comprehensive plan of the community. SUMMARY: The narrative above demonstrates conclusively that the Integrated EDPIan meets the requirements of all "findings of fact" as provided in Indiana statute, IC36 -7 -14. It is clear that the Redevelopment Commission has considered all of the relevant issues related to the establishment of the Integrated 126th Street Corridor Economic Development Plan 22 economic development areas. Originally, individual EDAreas were created to support projects such as corridor improvements which were geographically separated, yet still part of the central business core of the community. As these projects were implemented, however, it became clear that all of the projects were a part of an overall plan to assure the economic viability of this business core. Although the 126t Street corridor and the Pennsylvania Street corridor were previously considered separate projects, it is now clear that they are closely related to the economic success of the whole area. Therefore, this is an appropriate time to integrate all of the separate areas into a single, unified whole. Integrated 126th Street Corridor Economic Development Plan 23 Description of the Proposed Projects The Integrated 126 Street Economic Development Plan includes, by incorporation of all of the previous economic development plans, all of the projects originally proposed. (See Appendix) This Integrated EDPIan adds no new projects to the list of projects to be undertaken as a result of the economic development plans of the community. These projects are summarized below. The City Center Project The City Center project is proposed for an area of slightly less than 100 acres located along Rangeline Road and stretching from the City Hall on the south to the new alignment of 126` Street on the north. The dominant land uses in the area are commercial and governmental uses, however, about 61 acres of the area are totally unimproved. The primary proposed development within City Center project is commercial, and public space, including an entertainment complex with a theater, performing arts center and amphitheater. The City is also considering opportunities for museum space as part of the public space complex. Additional commercial, retail and office development is planned along the major transportation corridors as part of the overall development. The early phases of the project included land acquisition. Future phases are expected to include construction of parking facilities, infrastructure, and other project related activities, which would be anticipated to be eligible for COIT and TIF financing. 126 Street Extension /Completion The 126` Street corridor was completed as a result of previous financing and construction activity and is currently operative within the city's thoroughfare system. This project was critical to the developmental integration of the central sections of the city, and in providing additional thoroughfare access to the city's business core. The 126 Street project substantially increased traffic access and circulation within the business core, while simultaneously improving access to the government center and the City Center area. Integrated 126th Street Corridor Economic Development Plan 24 Pennsylvania Street Corridor Widening Financing for the Pennsylvania Street corridor widening project has already been completed through the issuance of public debt, and it is not anticipated that additional financing will be required. Future Projects Overview The Integrated EDPIan is presented for the purpose of integrating the economic development efforts of the City of Carmel over the past 5 years while projecting that same progress into the future. When the economic development planning efforts were originally initiated in 1996, the City's Leadership had a "schematic" vision of the future development of the central areas of the City (generally bounded as follows: from Range Line Road on the east; to 116' Street on the south; to the US31 corridor on the west; to 131 Street on the north). Based on that "schematic" vision, the city's Leadership moved forward with those portions of the vision which were the most fundamental, including projects such as the 126 Street Extension, the Pennsylvania Street corridor widening, and the Old Town streetscape improvements. Not long afterward, the City Center concept was developed sufficiently to be added to the long term plan. It is a positive testimony to the strength of this long term vision that the vision continues to grow while becoming more real. The 126 Street extension is now in place, and as a result, the community can more easily visualize the developmental importance of the "City Center" and the 126 Street corridor areas of the city. The Pennsylvania Corridor improvements, though not yet complete, have already helped to generate a positive image of growth, which has led to continued economic development along the US31 corridor in the form of new office and retail development. The Old Town streetscape improvements have dramatically improved the aesthetic character of downtown (which was once a primary concern of the Comprehensive Plan), to the point that major redevelopment proposals for the area are being received from the private sector. The City Center project continues to tangibly move toward reality, resulting in the direct cultivation of new opportunities for a performing arts center and other community amenities which were part of the original vision for the overall area. Integrated 126th Street Corridor Economic Development Plan 25 The economic development and redevelopment planning process which began in 1996 as a "schematic" concept, has moved forward. The original "fundamental" elements now appear as fragments of a puzzle which is becoming increasingly clear in terms of the City's development. And as that puzzle moves toward completion, the elements which once appeared as fragments are more clearly becoming a part of a single, integrated, developmental picture. Thus, it is appropriate to take the time to integrate these "fragments" into a single, operative, planning document so that the entire community can see the overall developmental picture, as well as the longer term vision, more clearly. This Integrated Economic Development Plan is intended to serve that purpose. UPDATED PROJECT LIST: Having offered the planning and development rationale which served as the conceptual basis for the previous economic development plans, it is therefore, appropriate to present the list of improvement projects which are anticipated to be a part of the final phases of implementation of the economic development strategy for this portion of the City. The projects are summarized in the table below. Project Minimum Maximum Estimate Estimate Performing Arts Center $25,000,000 $30,000,000 Art Museum $14,000,000 $16,000,000 Land Acquisition for Old Town Redevelopment $3,500,000 $4,000,000 Street Department Maintenance Facility $1,500,000 $2,000,000 Land Acquisition along Range Line Road $1,800,000 $2,200,000 (near City Hall) Total Estimated Costs $45,800,000 $54,200,000 The project list presented above is offered with the intent of placing the entire list of projects into the venue of public discussion. It is important to understand that the list is presented as part of this Integrated Economic Development Plan. Therefore, the list is intended to represent the realm of future possibility, NOT as a list of "approved" projects. It is also appropriate to note that several of the projects listed above, in fact, were presented in the previous economic development and redevelopment for the area, as found in the appendix to this report. For Integrated 126th Street Corridor Economic Development Plan 26 example, the performing arts center was originally presented as part of the redevelopment plan for city center. The economic development planning process requires that all potential projects be listed in the Integrated Economic Development Plan in order to be considered for implementation in the future. Therefore, in order for a project to move from the realm of "possibility" to the realm of "reality, "the City and the Redevelopment Commission must identify appropriate financing. Integrated 126th Street Corridor Economic Development Plan 27 Economic Development Strategy The comprehensive plan for the City of Carmel over the last three decades demonstrates a substantial concern for the fate of the city's original core area. While Carmel has enjoyed high quality growth, there are some areas which were developed before the city could anticipate the success of its future. This original development is not compatible with a city which is nearing its developmental limits. The prime areas of need are in the vicinity of Rangeline Road, and with this understanding, the Economic Development Strategy for the Integrated Economic Development Area contains the elements previously approved by the City, as follows: 1. The Carmel Redevelopment Commission amended the boundaries of the 126 Street Economic Development Area to reflect the boundaries shown on Map #1 (presented earlier in this document). 2. The City Center project was distinctly designed to re- direct the focal point of the community of Carmel. The Government Center was developed over the last decade to include a new City Hall, Police Station and Fire Station, as well as a central public space. 3. The Government Center is also adjacent to the Monon Trail corridor which is proposed for significant improvements creating a linear park, linked to Indianapolis and unequaled in the state of Indiana. 4. The proposed City Center project is expected to generate an entertainment complex, as well as new office /retail space to support and augment the space available in the Science Technology Park. The integration of these needs into the overall needs of Carmel's premier employment center assures that the City Center project will directly benefit the Integrated EDArea, as proposed. 5. The Redevelopment Commission established a Tax Allocation Area to coincide with the boundaries of the amended 126 Street Corridor Economic Development Area and issued COIT debt to support the initial phases of the City Center project. 6. The Redevelopment Commission should also consider the viability of using COIT bonding to assist in paying for the necessary improvements related to the City Center and Monon Trail projects. 7. The City should, in addition, consider pursuing additional phases of the City Center project in an appropriate manner, based on financing for specific projects or elements under the City Center plan, as presented previously. Integrated 126th Street Corridor Economic Development Plan 28 Integrated EDPIan Conclusions The following conclusions are offered for the Integrated 126` Street Economic Development Plan. These conclusions also include by reference (see Appendix), the conclusions offered for the original EDPlans, as well as the City Center Redevelopment Plan and the Amended 126` Street Corridor Economic Development Plan. Based on the examination of the facts and the analysis set forth in this integrated EDPIan, the following conclusions are offered: 1. That the implementation of the City Center project will directly benefit the Integrated 126` Street Economic Development Area. 2. That the implementation of the City Center project will help to developmentally unify the entirety of the business core of the City of Carmel, including the Rangeline Road corridor, the Old Town (historic downtown) area, and the Science and Technology Park. 3. That the need for the 126 Street extension project has proven beneficial to the thoroughfare system of the area. 4. That the 126 Street extension project directly benefitted the City Center project. 5. That the future economic development of the entire area, including the amended 126` Street Corridor Economic Development Area, the Old Town Economic Development Area and the City Center Redevelopment Area, as the business core for the community will be directly benefitted by the projects proposed in this Integrated Economic Development Plan. 6. That it was appropriate to delete the City Center project area from the original 126` Street Corridor Economic Development Area in order to facilitate the creation of the City Center Redevelopment Area and to implement the City Center project. 7. That it was appropriate to extend the boundaries of the 126 Street Corridor Economic Development Area to take in a larger portion of the Science Technology Park, due to the economic interdependence of the economic development areas as the functional employment center for the community. 8. That a positive economic impact resulted from the implementation of the projects recommended in these previous Economic Development Plans in the form of supporting the creation of new permanent jobs, securing existing jobs and generation of additional tax revenues to the City. Integrated 126th Street Corridor Economic Development Plan 29 9. That if this Integrated Economic Development Plan is not approved and the recommended projects are not implemented, it will be more difficult for the community to achieve the levels of economic intensity and competitive efficiencies which would otherwise be possible with the implementation of the City Center and other projects already undertaken within these EDAreas. 10. That it is appropriate to offer public financing for certain portions of the proposed projects as an economic stimulus for the proposed projects. 11. That the City and the Redevelopment Commission should seek private sectors partners to assist in the implementation of the recommended projects and in assembling project "packages" which will minimize the public sector investment and optimize the economic impact of the projects. The Redevelopment Commission has done an outstanding job of analyzing and implementing an appropriate level of activity to encourage the optimal economic development of the interdependent economic development areas. The conclusions of this Integrated Economic Development Plan are predicated on the continued performance of objective analysis, public policy direction, and the formation of partnerships with the Plan Commission and the City Council necessary to assure the success of the projects. Integrated 126th Street Corridor Economic Development Plan 30 Integrated EDPIan Recommendations Based on the information presented, the analyses performed and the findings and conclusions of this Integrated Economic Development Plan, the following recommendations are presented for the consideration of the Carmel Redevelopment Commission, and thereafter to the City Council for approval. 1. That the Carmel Redevelopment Commission should formally integrate the boundaries of the amended 126 Street Corridor Economic Development Area and the Pennsylvania Street North South Economic Development Areas to create one, single, Integrated Economic Development Area. This action will result in greater clarity and simplicity of public policy with regard to economic development initiatives for this business core area. The resulting boundaries are shown in Map #2 and the boundary description was presented earlier in this EDPIan. 2. That the Carmel Redevelopment Commission add the two areas not previously included within the economic development areas (as shown on Map #2) to the Integrated 126 Street Economic Development Area. 3. That the Carmel Redevelopment Commission should formally create a Tax Increment Finance (TIF), Tax Allocation Area whose boundaries are shown on Map #4. 4. That the Carmel Redevelopment Commission should formally approve this Integrated Economic Development Plan and undertake further implementation of additional phases of the City Center project, and the Monon Trail corridor improvements. 5. That the Carmel Redevelopment Commission should work directly with the City to develop a financial plan for the implementation of the City Center project, including eminent domain actions and negotiated purchases, as well as financing for additional phases of the project, as determined necessary by cooperative efforts of the Redevelopment Commission, the City Administration and the City Council. Integrated 126th Street Corridor Economic Development Plan 31 Parcels Potentially to be Acquired The following parcels have been identified as those having the potential to be acquired by the CRDC in pursuit of the Economic Development Strategy. Please note that the City or the CRDC may be acquiring most or all of these parcels through negotiated purchase, rather than eminent domain. parcel owner acres /cr126integ Integrated 126th Street Corridor Economic Development Plan 32