2008-Economic Development Plan/Legacy City of Carmel
Hamilton County, Indiana
Preliminary Draft
Legac
Economic
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May 20, 2008
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Michael R. Shaver, President
3799 Steeplechase Drive
Carmel, IN 46032
(voice) 317/872 -9529
(fax) 317/872 -9885
(e -mail) wabsci@aol.com
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Legacy Economic Development Plan
Carmel, Indiana
Purpose of the Economic Development Plan
This Economic Development Plan (ED Plan) is being developed for the sole purpose of
underwriting and capturing a specific development proposal for the parcel of land identified by
the Carmel Redevelopment Commission (CRC) as the Legacy project. The area encompassed by
the proposed Legacy ED Area is located on the west side of River Road at 146 Street on the far
northeast side of Carmel. The Legacy PUD Ordinance has been approved by the Carmel Plan
Commission as well as the City Council (thus assuring that the ED Plan conforms to the
Comprehensive Plan) and the development contains substantial amenities which are proposed for
finance using TIF. The proposed Legacy project is designed to provide commercial and
residential development of currently under developed parcels within the proposed ED Area.
The purpose of this Economic Development Plan (ED Plan), therefore, is to present the
developer's proposal to capture and utilize TIF for purposes of installing major infrastructure
improvements which will serve the community at large beyond the demands of the development,
itself. The proposed uses of TIF would include the early development of the Cherry Creek
Boulevard collector street, substantial improvement to River Road, the commercial entry
boulevard known as Community Drive as well as the proposed natural area amenities including a
Wetlands Park and Wildlife Sanctuary. The TIF generated by the commercial portions of the
Legacy development is to be used to accomplish projects identified in the Economic
Development Project List which is a part of this ED Plan.
While the developer will install a portion of the proposed developmental infrastructure regardless
of TIF availability when the development has progressed sufficiently to generate the necessary
cash, this ED Plan suggests that the CRC might consider the commitment of TIF for the purpose
of advancing the timeline to achieve community -wide benefits at an earlier date than would be
otherwise possible. This far northeast portion of the City represents one of the last large
undeveloped tracts, and at this time, the thoroughfare system serving the far northeast area is
insufficient to serve the demands of growth in the surrounding areas (including development in
Westfield and Noblesville).
DEVELOPMENT CONSIDERATIONS
The proposal to create the Legacy ED Area is offered to the CRC for the purpose of
installing major improvements to River Road, as well as constructing the roadway
corridor connecting Hazel Dell Parkway to River Road via Cherry Creek Boulevard. The
use of TIF would enable these improvements to be undertaken years earlier in the
development process, thus serving the surrounding community, prior to the point in time
where the Legacy development, itself, would normally require those improvements to be
completed. In addition, the developer proposes to use TIF for the full development of the
wildlife /natural area.
Given the current economic conditions, and the potential impact of the national economic
slowdown, the developer's proposal to create the Legacy ED Area could advance the
Legacy Economic Development Plan (080520 preliminary review draft) 3
availability of these major corridor and other improvements years before those amenities
might be available without the commitment of TIF.
Description of the Proposed Economic Development Area
The proposed Legacy Economic Development Area is generally located on the south side of
l46` Street, west of River Road. The legal description of the proposed ED Area will be included
in the Declaratory and Confirmatory Resolutions establishing the Legacy ED Area. A list of the
parcel identification numbers which have been assembled from the records of the Hamilton
County Auditor to comprise the proposed ED Area is presented below:
Parcels Included in the Legacy ED Area
Parcels newly designated in the
Legacy ED Area
17-10-23-00-00-001.003
17- 10- 23- 00 -00- 001.103
17-10-22-00-00-011.000
Legacy Preliminary Development Proposal
The preliminary Legacy development proposal includes a mixed -use retail development with
offices and other extremely upscale developmental amenities. The target market is highly
discriminating clientele with upscale demographics. The development proposal which was
approved by the Carmel Plan Commission is included in this ED Plan for purposes of
demonstrating the importance of the Legacy development as an economic benefit to the City, as
well as demonstrating that the early completion of certain improvements would benefit the entire
northeast side of the City.
The Legacy PUD Ordinance has been approved by the Plan Commission and Carmel City
Council, thereby enabling the CRC to act on this ED Area proposal without speculation as to
conformity with the Comprehensive Plan.
Legacy ED PI_ e e 's lntegratcd ED Plan
c u r r e n t l y
contemplated. These-adiustments can be made as the ED Plan is being considered by the CRC.
Intent of this Economic Development Area Designation
By designating a separate Economic Development Area, the Carmel Redevelopment
Commission (CRC) can specifically designate that TIF revenues resulting from the proposed
development can be captured by the CRC and dedicated to the specific developer of Legacy as a
development incentive to support the construction of infrastructure to serve the entire northeast
side of Carmel. The existing condition of River Road requires substantial improvement in order
to viably serve the growth which has already occurred in this vicinity. In addition the connecting
Legacy Economic Development Plan (080520 preliminary review draft) 4
corridor between Hazel Dell Parkway and River Road would serve the entire community at
large, in addition to the Legacy development, itself.
The primary motivation for designating the ED Area and enabling the developer to utilize TIF
for making the improvements proposed would be to enable those improvements to be made at an
earlier date than is currently possible, given the national economic environment, and given the
fact that the amenities proposed for TIF funding would not be necessary for several years, based
on the Legacy's timeline, alone.
Legacy Findings of Fact
Indiana statute IC 36 -7 -14 provides for the formation of an Economic Development Area in
accordance with the following criteria:
1. The plan for the Economic Development Area: promotes significant opportunities for the gainful
employment of its citizens; attracts major new business enterprise to the unit (of government);
retains or expands a significant business enterprise existing in the unit, or; meets other purposes
of development and economic development.
2. The plan for the Economic Development Area cannot be achieved by regulatory processes, or by
the ordinary operation of private enterprise because of: lack of public improvements, existence of
improvements or conditions that lower the value of land below that of nearby land; multiple
ownership of land; or other similar conditions.
3. The public health and welfare will be benefited by the plan for the economic development of the
area.
4. The accomplishment of the plan for the Economic Development Area will be a public utility and
benefit as measured by: the attraction or retention of permanent jobs; an increase in the property
tax base, or; improve the diversity and economic base or other similar benefits.
5. The plan for the Economic Development area conforms to other Development and Development
Plans of the unit.
Finding of Fact #1: "...the plan promotes significant opportunities for the gainful
employment of its citizens; attract major new business enterprise; ...retains or expands
a significant business enterprise existing in the unit...."
Designation of the Legacy Economic Development Area is undertaken for the specific purpose
of advancing the development schedule for the Legacy development proposal. The Legacy
development proposal involves the creation of a mixed use retail /office development which is
targeted to support and attract an extremely upscale clientele to the area. The ED Area
designation and the potential benefits of TIF which would result from the designation would
enable the Legacy development to proceed with certain infrastructure and other projects at an
earlier date than would otherwise be necessary or possible given the current economic
circumstances both locally and nationally.
The Legacy development will provide direct construction jobs during this economic slowdown.
It is noted that many development proposals that were approved before the onset of the economic
slowdown have been curtailed. By designating this ED Area, the CRC would help to assure that
Legacy Economic Development Plan (080520 preliminary review draft) 5
improvements which are beneficial to the community at large would be less dependent upon the
national economic cycles.
In addition, it is the developer's stated intent to develop Legacy for the purpose of attracting new
business enterprise to the proposed Economic Development Area. The intent to develop
commercial business space that will be offered to the business marketplace for the purpose of
housing new, existing, relocated and /or expanded commercial businesses in the Legacy ED Area
and which will generate new opportunities for gainful employment of Carmel and metropolitan
area citizens. The CRC is being asked to respond directly to this development proposal with the
full expectation that new employment opportunities will be captured in this ED Area. As such, it
is determined that the proposed Economic Development Area meets the statutory finding of fact
that the ED Area promotes new opportunities for gainful employment, attracts new business
enterprise, and provides for the expansion of existing business in the City.
Finding of Fact #2: "the plan... cannot be achieved by regulatory processes or by the
ordinary operation of private enterprise because of lack of public
improvements...multiple ownership of land... or other similar conditions."
The designation of the Legacy ED Area responds to a series of conditions that relate to the
development of suburban parcels. The development proposal which has been approved by both
the Plan Commission and the City Council will be implemented as promised, but subject to the
economic constraints affecting the local, state and national economies.
At this time, the regulatory process has performed its full function, and no further exercise of the
regulatory process can overcome the economic realities currently in force. Simply put, the
proposal to designate the Legacy ED Area is rooted in the question of whether the CRC finds
that the early and more substantial completion of certain infrastructure improvements would
benefit the community sufficiently to justify the commitment of TIF funding.
The infrastructure improvements will be performed as promised. However, the extent of River
Road improvement without TIF funding would be minimal. The CRC's commitment of TIF
would simply guarantee that all proposed improvements would take place at a substantially
earlier point in time than if the same improvements were to be funded by the developer without
TIF; and in the case of River Road a complete improvement of the proposed infrastructure in a
single comprehensive project.
The roadway improvements proposed as part of the Legacy development will clearly benefit the
community far beyond the boundaries of Legacy, itself. The question before the CRC is whether
there is sufficient public benefit to be derived by committing TIF for the purpose of achieving
the infrastructure improvements at an earlier date than would otherwise be possible under current
circumstances, at a significant cost savings and with a developer guarantee.
Finding of Fact #3: "the public health and welfare will be benefited..."
The proposal to create the Legacy Economic Development Area will benefit the public health
and welfare in several ways, as follows:
1. The public welfare will be benefited by providing new jobs and significant opportunities for
employment of the citizens of Carmel, as a result of the proposed commercial development.
Legacy Economic Development Plan (080520 preliminary review draft) 6
2. The public welfare will be benefited by making infrastructure improvements which would have a
community -wide impact and benefit at a date /time earlier than would be possible without the
commitment of TIF funds to these improvements.
3. The public welfare will be benefited through the development and implementation of improved
thoroughfare corridors connecting the northeast side of Carmel to major corridors such as 146
Street and by improving River Road.
4. The public welfare will be benefited by creation of new assessed value within the Economic
Development Area.
5. The public health will be benefited by improvements to safety features and local transportation
and infrastructure which are designed to reduce the incidence of traffic accidents, including
pedestrians, joggers and bicyclists struck by vehicles along unimproved roadways, as well as
vehicular accidents.
6. The public health will be benefited by infrastructure improvements which reduce traffic congestion
and thus improve local air quality.
7. The public health will be benefited by attracting more people to walk, jog or bicycle along the
facilities to be completed as part of the Legacy development.
8. The public health will be benefited by developing an area which could possibly have lain fallow
due to the high cost of extensive infrastructure improvement needs in this under developed
portion of the city.
9. The public health will be benefited by providing ecological, open space and other amenities
related to the preservation of natural areas as committed in the Legacy development proposal.
It has been the CRC's strategy since its inception to enhance the quality of life in Carmel by
requiring developers to provide extraordinary amenities as part of their developments. The
Legacy development is one of the highest quality developments in recent memory. The national
economic slowdown will have an impact on the development timelines of many developments in
central Indiana. The designation of this ED Area and the commitment of TIF funding for certain
infrastructure improvements will benefit the public health and welfare by enabling Carmel to
capture an upscale clientele which is both economically and socially beneficial to the community
at large. Therefore, the CRC hereby asserts that this statutory finding is satisfied.
Finding of Fact #4: accomplishment of the plan will be of public utility... as measured
by: the attraction or retention a permanent jobs; an increase in the property tax base...
or other similar benefits."
The proposed Legacy ED Area would be of significant public utility in several ways. The
developer has committed to the development of an extremely upscale mixed use development.
As part of the overall development, the developer has committed to making a series of
infrastructure improvements which will benefit the community at large, with an impact
substantially beyond the demands related to Legacy alone, such as improvements to the under-
developed River Road corridor, and the roadway connecting River Road to Hazel Dell Parkway.
When these infrastructure improvements are made, the entire northeast side of Carmel will
benefit from the public utility afforded by their presence. Trips to /from the local school
currently involve accessing 146 Street, but when the connecting corridor is developed; those
trips will be removed from 146 Street. Improvements to River Road will increase the traffic
safety along the corridor. All of these obviously serve the public utility, and these improvements
will be made, regardless of this ED Area designation.
The central question in this case, however, is whether the CRC determines that there is sufficient
public utility to be derived from the early completion of these infrastructure improvements as a
Legacy Economic Development Plan (080520 preliminary review draft) 7
Economic Development Strategy
The CRC seeks to designate the Legacy Economic Development Area for the purpose of
promoting the early completion of certain infrastructure and other improvements in order to
achieve community -wide benefits at an earlier date than would be possible without the
commitment of TIF funds. The developer has committed to making improvements and will
honor that commitment. However, if TIF is committed, the improvements will be completed,
and will be in service to the public several years in advance of the time that those improvements
will be possible under current economic conditions.
The question facing the CRC is whether the benefits of early completion of these improvements
are sufficient to justify the commitment of TIF.
As stated previously, this Economic Development Area is being designated explicitly for the
purpose of supporting the project proposed as part of the Legacy development, and therefore the
strategy for this Economic Development Area relies heavily upon the CRC's interpretation of the
length and duration of the current economic conditions and the impact of these economic
conditions on the Carmel market.
Economic Development Projects
The CRC's partnership in creating the Legacy ED Area includes the possible use of TIF funds for
the following projects in conjunction with the Legacy proposal.
Cost item Estimated cost
Improvements to River Road $3,121,171.88
Construction of the River Road /Hazel Dell Parkway collector street $3,663,984.38
Natural /open space amenities related to development of the wetlands park $1,357,031.25
and wildlife sanctuary area
Construction of Community Drive collector street. $542,812.50
Preliminary Subtotal of Estimated Costs $8,685,000.00
Legacy Economic Development Plan (080520 preliminary review draft) 9
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