2010-Economic Development Plan/Meridian & Main Project Area Final Economic Development Plan
Supplement to old Meridian ED Plan:
Meridian Main
Project Area
Presented to the
Carmel Redevelopment Commission
April21, 2010
Revised April 27, 2010 to address BT comments
Revised May 12, 2010 to include tax exempt provisions
Revised September 17, 2010 to include updates
Public Hearing November 17, 2010
Approved November 17, 2010
Scrivener error correction December 2, 2010
Presented by:
Wabash Scientific, inc.
Michael R. Shaver, President
3799 Steeplechase Drive
Carmel, IN 46032
317.872.9529
wabsci @aol.com
Meridian Main Economic Development Plan Supplement (Final, November 17, 2010)
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Map #1: Two Phases of Meridian Mt' (per Devolrsper)
Publ Hearing Final ED Plan
The Public Hearing on Meridian Main was held by the CRC on November 17, 2010, with no
public comment. The CRC approved the Final ED Plan at its regular meeting on the same date.
Supplement to the Old Meridian ED P lan:
This document is expressly offered as a supple to the Old Meridian ED Plan, which was
approved by the Carmel Redevelopment Commission (the "CRC in 2002 and amended by the
2004 Amendment: Integrated Economic Development Plan Amended Redevelopment Plan
(as amended, the "2002 E Plan The original Old Meridian ED Plan was developed for the
purpose of allowing the investment of TIF revenues into select projects where the design and
development standards for the project afforded an extremely high quality project.
The Old Meridian Task Force (the "Task Force identified the Old Meridian Corridor as a
corridor in need of redevelopment. The development patterns of 2002 represented residential
and low -rise commercial developments on scattered sites. The Task Force recommended that
properly stimulated market forces, over time, would enable the existing development to be
replaced by more intense and high profile commercial development and the CRC underscored
the Carmel -Clay Plan Commission's (the "Plan Commission effort by agreeing that certain
projects proposed to meet these redevelopment goals would be considered for TIF investment.
2 Meridian Main Economic Development Plan Supplement (Final, November 17, 2010)
As such, this "Supplement" document seeks to achieve optimal transparency in asserting those
aspects of the proposed Meridian Main project which meet or exceed the original
redevelopment goals of the Old Meridian Task Force in 2002, as well as the high quality
development standards established for the US31 corridor.
Meridian Main ED Plan Supplement: Introduction
The Meridian Main ED Plan Supplement (the "ED Supplement is developed for the purpose
of enabling the Carmel Redevelopment Commission (CRC) and the Carmel City Council to
assess and determine the propriety of extending TIF incentives to the development which has
been proposed by Browning Investments. It is specifically noted that the Plan Commission has
already considered and approved a significant portion of the overall project, which is consistent
with the past practices of the CRC with respect to the independence of the Plan Commission.
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Map 42: Meridian Main's Two phases Showing Subdivided Lots Site Data Breakdown per Developer)
The Old Meridian ED Area Was Designated in 2002
The Meridian Main project area (the "Project Area was originally designated as an
ED Area in February, 2002, as part of the Old Meridian ED Area (the "ED Area and is
entirely contained within the ED Area. The 2002 approval by the CRC was undertaken
specifically in support of the Plan Commission's approval of the Old Meridian Task
Force Report (the "Task Force Report") which painstakingly attempted to integrate both
3 Meridian Main Economic Development Plan Supplement (Final, November 17, 2010)
new development and redevelopment activities for the purpose of achieving the highest
quality development to occur along the Old Meridian corridor. The 2002 ED Plan noted
that both new development and redevelopment would be necessary to assure high quality
development in these areas. The 2002 ED Plan can be attached as Appendix, if needed,
but is hereby incorporated by reference.
It is noted that the 2002 ED Plan, as well as the Task Force Report, noted the
complexities and sensitivities of the area with specific situation of the need for both new
development and urban redevelopment as part of a combined package for the overall
area.
In addition, the ED Area was expanded was expanded and the Old Meridian ED Plan was
integrated into the consolidated /integrated economic development plan per the 2004 ED
Plan Amendment that was prepared, per Resolution No. 5 -2004; adopted by the CRC on
February 10, 2004; and confirmed on May 18, 2004.
The Meridian Main Proposal Is Consistent With Previous Planning
The Meridian Main development proposal has been determined to conform to the
previous ED Plan for the area, as well as other previous planning for the area. This
determination is affirmed by the independent public actions of the Plan Commission.
The Meridian Main development/redevelopment proposal (both phases) contains a
blend of new development and redevelopment activities which is consistent with all
previous planning.
Statements of CRC Policy RE: Meridian Main Potential for Tax Exempt Status:
The CRC has requested that the Meridian Main ED Plan Supplement be adjusted to
clearly state that any TIF investment by the CRC will be undertaken with a clear legal
understanding that the proposed development is to be taxable real estate. This public
policy caution is rooted in the CRC's intent to clearly establish that any public debt which
is issued and which is to be payable through property taxes or other public revenues
be protected from some future action which would render the property exempt from
property tax (and hence would potentially jeopardize the revenues used for repayment of
debt). While the ED Plan cannot serve as a legal document to guarantee such
protection, it is the CRC's intent that such protections be included in any TIF debt
instrument as a means of protecting the public interest.
The Meridian Main TIF Request is Consistent with the 2002 ED Plan, as
amended in 2004
In order to assure optimum public transparency, it is noted that the Meridian Main TIF
request is also consistent with the 2002 ED Plan, in terms of the amount of the TIF
request ($4.9 million), as well as the items requested for funding. This statement should
not be interpreted as a commitment or recommendation for TIF funding, but rather a
statement of fact, which will be presented in detail later in this ED Plan Supplement.
In addition to the fact that the TIF request conforms to the projects identified in the 2002
ED Plan, it is noted that the TIF request represents only —50% of the total property tax
revenues projected to be generated by the Meridian Main development proposal. This
4 Meridian Main Economic Development Plan Supplement (Final, November 17, 2010)
factor should be examined and affirmed through any Financial Analysis performed in the
event that TIF investment is deemed appropriate by the CRC and/or City Council.
It is further noted that the 2002 ED Plan contains a provision suggesting that the CRC can
consider using TIF revenues for the purpose mitigating the impact of new development
on nearby neighborhoods such as "landscaping, screening, earthwork, and other
improvements" designed to mitigate such impact, "if they (the CRC) determine that such
requests are reasonable and appropriate to the interests of the community at large."
Phases I II of the Meridian Main project are graphically depicted on Maps #1 and
#2, including the residential parcels which are proposed to be excluded.
TIF Decisions Are Governed by Developer Agreements
The CRC is sensitive to issues of transparency, and as such, this ED Plan notes
that the final, controlling document for a CRC decision is memorialized in a
developer agreement. A developer agreement is currently being negotiated for the
Meridian Main project, which is anticipated to specifically govern the details of
the commitments of the developer and the CRC. The developer agreement is
intended to be binding upon the current develop, as well as future landowners.
The developer agreement has become integral to CRC TIF policy and is
extremely detailed. Matters generally covered by the developer agreements are
generally intended to reduce /eliminate risk on the part of the City, CRC and
Carmel taxpayers, while clearly placing the risks and burdens on the developer for
failures to perform in accordance with the understandings expressed in this ED
Plan. As such, it is not uncommon for a developer agreement to place constraints
on the developer with regard to such things as changes in TIF revenue streams,
changes in underlying assessed value of property, changes to project schedules
(which might secondarily affect revenue streams), and limitations of the
obligations of the CRC. With this understanding, the developer agreement is
generally considered a more legally binding document than the ED Plan.
Special Note With Regard to the Spine Center Proposal
One of the centerpieces of the Meridian Main proposal is the development of a facility
referred to as "The Spine Center." This facility is important to the CRC on several levels
and deserves special note.
First, the Spine Center would serve as an enhancement to the capabilities of the existing
St. Vincent's campus. Hospital facilities, as well as professional training and human
resource development, must be virtually constantly updated to embrace new technologies.
When those new investments do not occur, the facilities become obsolete and eventually
become economically unsustainable. Since hospitals are often tax exempt entities, it is
difficult for government to provide substantial assistance to such facilities.
The Spine Center is a unique blend of for profit facilities which not only houses highly
specialized health care professionals, but also contains high technology professional and
5 Meridian Main Economic Development Plan Supplement (Final, November 17, 2010)
skill development facilities. This training and learning center will enable medical
professionals to be trained in the most cutting -edge technologies with regard to spinal
injuries and diseases, as well as affording therapy and other training necessary to enable
health care professionals to remain current and relevant in a rapidly changing industry.
In effect, it is reasonable to state that the development of the Spine Center will serve not
only as a high quality professional development for Carmel at- large, but it will also help
to sustain, enhance, and extend the effective life of the existing St. Vincent's campus.
The long -term economic viability of the St. Vincent's campus was a concern of the
community at large as far back as 1980 (when the Comprehensive Plan was updated at
that time) and it continues to be a critical entity in 2010. The Spine Center is projected to
be a major benefit to the economic viability of St. Vincent's in the near future.
Brief Description of the Proposed Meridian Main Project
The Meridian Main project has been presented as a combined new development and
redevelopment project to be undertaken in at least two phases: a "West Parcel" covering 38 acres
(referred to as "Meridian Main I located at the intersection of Meridian Main streets (with
five subdivided sites within the 38 -acre parcel); and an "East Parcel (Meridian Heights)"
covering approximately 18 acres (which was assembled through the private acquisition of
approximately 47 subdivision homesites). The latter phase is referred to as "Meridian Main
II." Maps #1 #2 depict the general parameters of the 2- phased project (as presented by the
developer.)
A development Plan for Meridian Main I has been approved by the Plan Commission.
Meridian Main II has been re- zoned, but no development proposal has yet been approved.
Map #2 shows both phases of Meridian Main, as well as the excluded residential parcels in
North Meridian Heights.
The totality of the Meridian Main I II development represents a combination of new
development along with urban redevelopment, which is in conformity with the original
parameters and expectations of the 2000 Old Meridian Task Force, as well as the 2002 ED Plan.
The proposed project is generally outlined below, and specific details related to the inter-
relationships between the developer, the project and the investment of TIF incentives are
governed specifically by the developer agreement. That said, the investment of TIF incentives
generally include following proposed elements (information derived from developer's printed
material):
Internal roadway corridors which extend and connect existing municipal corridors, as well as
other appropriate infrastructure;
o Included in the infrastructure planning for the project is a long -term provision to extend
Pennsylvania Street to connect to Old Meridian, east of the proposed ED Area;
o The proposal to extend Pennsylvania Street to Old Meridian conforms to the Task Force
Report dated 2000, as well as to the 2002 ED Plan.
6 Meridian Main Economic Development Plan Supplement (Final, November 17, 2010)
A 3 -story medical office building, ambulatory surgery center and a high technology, specialized
training /learning center, including a skills development laboratory for medical professionals;
o 1 level ambulatory surgery center, imaging suite, and appurtenant support facilities;
o 2 level clinical facilities, including physicians' and staff offices, fluoroscopy suite, and
physical therapy suite;
o 3 level administrative offices, research and development facilities, records, and bio- skills
laboratory with 60 -seat auditorium for bio- skills training and education;
o Parking at 4 spaces per 1,000 sf of office facilities
Additional retail, office, and apartment development;
A hotel facility to support the ambulatory surgery center (as well as the existing St. Vincent's
Hospital campus);
Approximately 623,000 sf of professional office, medical office, retail and hotel uses;
An estimated (by the developer) $87,000,000+ in business assessed value;
Projected (by the developer) property tax revenue of $1.4 million (net of previous development);
Developer requests TIF assistance for infrastructure development amounting to —50% of
projected property tax revenue from the proposed development.
Brief Summary of the Request for TIF Incentives
The developer has requested that the CRC consider the investment of TIF incentives in the
estimated amount of $4.9 million to support the Meridian Main project, briefly summarized as
follows:
Infrastructure Improvements totaling $4.35 million, preliminarily estimated as follows:
o Site work estimated at $1.65 million;
o Construction of roads /water /sewer estimated at $1.5 million;
o Drainage improvements estimated at $0.4 million;
o Demolition of existing structures estimated at $600,000;
o Professional fees estimated at $200,000;
Incentives for the Indiana Spine Group estimated at $550,000.
Estimated total TIF Funding Request (per developer ($4.9 million);
o 2002 ED Plan project cost estimates were $5.5 -$8 million.
Net (developer) estimated annual TIF revenue ($1.434 million build -out).
While the final determination of any TIF investment resides with the CRC and Carmel City
Council, it is appropriate for this ED Plan Supplement to note that the TIF request is consistent
with the provisions of the Old Meridian ED Plan approved in 2002. A detailed explanation of
the original 2002 ED Plan projects is contained in the section of this ED Plan Supplement
entitled "Conformity with the Old Meridian ED Plan Supplement (2/28/2002): Proposed
Projects" as presented below.
For transparency purposes, it is noted that the 2002 ED Plan proposed that TIF funding would be
considered for infrastructure extensions in the form of thoroughfare improvements, utility
enhancements and impact mitigation.
7 Meridian Main Economic Development Plan Supplement (Final, November 17, 2010)
Conformity with Previous Planning
This ED Plan Supplement seeks to root itself firmly in the long -term planning of the community
at large. In pursuit of this planning goal, the ED Plan Supplement notes four separate and
distinct determinations of conformity with the previous planning for the area and the community,
as follows:
Conformity with the Comprehensive Plan of the City of Carmel as evidenced by the approval of
the Meridian Main development proposal by the (the "City" or "Carmel Plan Commission
(including the Plan Commission's approval of the re- zoning of North Meridian Heights).
o It has been the longstanding policy of the CRC to allow the Plan Commission to make its
determinations and decisions freely and without confusion from or by the CRC.
o In support of this CRC policy, the CRC did not consider the creation of any TIF- related
entity or action until after the Plan Commission had approved the Meridian Main I
project (as well as re- zoning of North Meridian Heights).
o It has also been the longstanding and consistent policy of the CRC to assume that any
approval of any project by the Plan Commission is tantamount to a statement of the
conformity of the approved project with the Comprehensive Plan for the affected area.
Conformity with the US31 Corridor Overlay provisions as evidenced by the approval of the
Meridian Main development proposal by the Carmel -Clay Plan Commission (for the pertinent
portions of the project lying within the US31 Overlay district).
o The Carmel -Clay Plan Commission previously approved a US31 Corridor Overlay for the
purpose of governing development along the US31 (Meridian) Corridor.
o The provisions of the US31 Corridor Overlay were included in the review and approval of
the Meridian Main project by the City's Department of Community Services (DOCS)
staff and the Plan Commission.
o Approval of the Meridian Main project by the Plan Commission affords the CRC
detailed documentation of the conformity of the approved Meridian Main Project with
the US31 Overlay requirements.
Conformity with the 2002 ED Plan (final), as approved on February 28, 2002 by the CRC.
o The 2002 ED Plan, approved February 28, 2002, designated a large area as being the
Old Meridian ED Area.
The 27 February, 2002, map depicting the actions of the CRC showed a "Base
Economic Development Area" which was generally located southeast of the
intersection of Main Street and Old Meridian.
The 27 February, 2002, map depicting the actions of the CRC also showed an
"Overall Old Meridian Economic Development Area" which included the a section
of the Old Meridian corridor from approximately 130 Street to Old Meridian's
intersection with US31 near 136 Street.
The 27 February, 2002, map depicting the actions of the CRC also showed
"Unincorporated Area" which was not (at that time) within the corporate
boundaries of the City of Carmel, yet which the CRC designated its intent to put
into the Overall Old Meridian Economic Development Area upon its annexation to
the City.
The CRC's intent was later affirmed by amending the ED Area in
accordance with the stated intent of February 27, 2002 to include the
previously unincorporated areas (as a result of. Annexation Ordinance C-
210).
The Meridian Main Project Area lays within a portion of this total
previously- designated ED Area, north of Main (aka 131 Street and
southeast of the existing St. Vincent's campus.
8 Meridian Main Economic Development Plan Supplement (Final, November 17, 2010)
o In addition to the original 2002 ED Plan which was approved in 2002, the CRC updated
and expanded the ED Area as a result of the annexation ordinance C -210 becoming
effective.
This expansion of the ED Area conformed to the "Overall Old Meridian ED Area"
as reflected in 2002, thereby validating and affirming the previous actions of the
CRC.
Ordinance C -210 brought the areas previously (as of 2/27/2002) unincorporated
(but designated by the CRC as part of the "Overall Old Meridian ED Area into
the corporate limits of the City, as specifically provided in the original 2002 ED
Plan.
The Integrated Economic Development Plan and Amended Redevelopment
Plan" (dated August 6, 2003) brought the separate ED Plans which had originally
been developed for specific individual areas into one, integrated framework for
the CRC.
The "2004 Amendment to the Integrated Economic Development Plan
Amended Redevelopment Plan" (dated February 10, 2004) further affirmed the
original economic development and redevelopment intentions and policies of the
CRC.
The CRC hereby expresses its respect for the actions and autonomy of the Carmel -Clay Plan
Commission with regard to developmental review and approval. The actions proposed in this
ED Plan Supplement, as well as the stated evidentiary basis for those CRC actions are based on
its respect for the Plan Commission as well as the CRC's interest in promoting the
developmental policies of the Plan Commission by assisting in the development of the highest
possible quality of infrastructure to support long -term growth and development.
Conformity with the 2002 ED Plan (2/28/2002): Proposed Projects
The 2002 ED Plan was approved by the CRC on February 28, 2002, along with the
designation of the ED Area. (According to our research, no tax allocation area was
designated at that time.) The approved ED Plan itemized a series of general types of
projects which would be considered by the CRC for TIF funding, and the pertinent
section of the 2002 ED Plan is reproduced in its entirety below for ease of reference:
"Proposed Projects (2002 ED Plan, pp 34 -35)
"The following is intended to serve as a general list of the types of projects to be
considered for funding using the financial incentives afforded through the establishment
of an ED Area. In conjunction with the above narrative, these projects are directed
primarily toward assuring adequate infrastructure service to the ED Area for the
foreseeable future.
"Thoroughfare improvements (est. cost $2.5 to $3.5 million)
"Thoroughfare projects are anticipated to include street widening, intersection
improvements, traffic control facilities, corridor landscaping /aesthetic enhancements,
curbs, gutters, and other such improvements to the driving pavement, as well as right of
way.
"Utility enhancements (est. cost $2.0 to $3.0 million)
"Utility enhancement projects are anticipated to include such things as utility burial and
enhanced utility service (such as increases in sewer and water lines), as well as other
possible forms of utility improvements (such as stormwater control). It is anticipated that
these enhancements could be necessitated due to the importance of this "front door"
location along Old Meridian, thereby generating an above average need for aesthetic
consideration.
9 Meridian Main Economic Development Plan Supplement (Final, November 17, 2010)
"Impact mitigation (est. cost $1.0 to $1.5 million)
"Impact mitigation projects would be those activities which would mitigate the impact of
the proposed development on surrounding neighborhoods. Such projects could include
such items as landscaping, screening, earthwork, and other improvements designed for
this purpose. At this point, the specific details of such impact mitigation projects is not
final, but the CRC should be prepared to consider such requests, if they determine that
such requests are reasonable and appropriate to the interests of the community at large.
"It is expected by the CRC that the projects to be considered for projects will only be
those projects approved by the DOCS (City) and Plan Commission as conforming to the
development standards prescribed for the Old Meridian area. The precise scope and
amount of any public funding for any development proposal will be determined by the
CRC in conjunction with the leadership of the City of Carmel. In the discussions based
on specific project proposals, the explicit details of the improvements which are
appropriate to the public interest should be finalized and presented to the public as part
of the financial packaging for the project."
The above excerpt from the Old Meridian ED Plan indicates that the Meridian Main
proposal for projects using TIF funds conforms to the original ED Plan expectations of
2002 (8 years prior to the Meridian Main proposal). This consistency of outcome
validates and affirms the original assumptions of the CRC with regard to promotion of
the highest possible quality of development in the Overall Old Meridian ED Area. In the
original 2002 ED Plan, the total estimated cost of TIF projects (above) was $5.5 -$8
million, and the developer's TIF request for the Meridian Main project is $4.9 million
and covers similar project types. The fact that the developer's request conforms so
closely to the long- stated policies of the CRC is further affirmation of the conformity of
the Meridian Main development proposal to those original expectations and policies as
well as affirming that this new ED Plan Supplement conforms to the previous economic
development planning for the ED Area.
In addition, this current ED Plan Supplement also conforms to the expectations and
policies set forth in 2002 via the 2002 ED Plan on other topics and levels. For purposes
of brevity, the excerpts below are drawn from the 2002 ED Plan as examples of the
conformity between the 2002 ED Plan and the proposals contained in the ED Plan
Supplement. These excerpts are offered in order to provide the reader with a clear,
transparent and unambiguous basis for determining whether the Meridian Main
proposal conforms to the intentions and policies of the CRC as stated in 2002. We
believe that the conclusion that this ED Plan Supplement conforms to the provisions of
the 2002 ED Plan is reasonable based on the excerpts of the 2002 ED Plan, as set forth
below.
`Purpose of the ED Plan' (2002 ED Plan, pp. 5 -6):
o "At the point where a development project is proposed, it becomes the job of the
Economic Development Plan to objectively review the body of previous
development policy and determine the extent to which the current project
complies with those policies."
o "...the community must assure itself that any development proposed will place
the community in a better position to implement its long term developmental
goals."
10 Meridian Main Economic Development Plan Supplement (Final, November 17, 2010)
o "This Economic Development Plan attempts to identify the infrastructure
improvements required to support growth in the proposed Economic
Development Area...."
o "The Economic Development Plan provides the rational analytical process by
which the community can measure whether a proposed project is consistent with
the consensus built through the comprehensive planning process."
o `An Economic Development Plan, therefore, is an examination of previous
economic development policy in light of new proposals."
`Purpose of the ED Area' (pp. 6 -8)
o "...the role of the Carmel Redevelopment Commission (CRC) in this project is to
create appropriate Economic Development Areas (ED Areas) for the purposes of
supplementing the capacity of the City to implement the development
proposals...."
o "Since the Old Meridian Corridor is clearly established in the long -term plan of
development for the community, and since the enhanced development
standards have been in place for some time, it is appropriate for the CRC to
consider the creation of an ED Area for the purpose of supporting the investment
of public sector dollars into the overall, long -term development of the area."
o "...any funding decisions to be made as a result of the creation of any proposed
ED Area must be reached through the process defined by those agencies and
the elected officials responsible for governing those activities."
`Recommendation for a Phased ED Area' (pp. 8 -10)
o "...any funding decisions to be made as a result of the creation of any proposed
ED Area must be reached through the process defined by those agencies and
the elected officials responsible for governing those activities."
`Zoning Land Use in the ED Area' (pp. 12 -14)
o "The special Old Meridian zoning consists of 8 zoning categories specially
designed for the OM area."
o "The ED Plan notes that tax status of St. Vincent's Hospital, as well as Carmel
Clay schools and churches with respect to potential TIF development in the ED
Area."
o "The Old Meridian Task Force prescribed multiple forms of potential new
development for the area, citing both development and redevelopment
opportunities".
`Conclusions' (p. 43)
o the implementation of the Old Meridian plan will require a substantial amount
of redevelopment activity, where existing development is replaced by new
development."
o "...the best strategy for implementing the development/redevelopment program
described by the Old Meridian planning effort is to phase in the Old Meridian ED
Area by designating an original ED Area and incrementally expanding the ED
Area as new projects are presented to the Plan Commission."
o "The area which is most likely to create difficulty for the CRC with respect to TIF
and other economic incentives is the area of St. Vincent's Hospital...It is clear
that St. Vincent's is a dominant citizen in the overall ED Area, and it is equally
clear that they are a valuable corporate citizen."
`Recommendations' (pp. 43 -44)
o it is recommended that the CRC clearly designate the entire Old Meridian
area as being eligible for addition to the phase one, or base, ED Area as future
projects are identified and approved by the Plan Commission."
Meridian Main Economic Development Plan Supplement (Final, November 17, 2010)
Economic Development Strategy (p. 44)
o "...designating the entire Old Meridian area for potential future expansion of the
ED Area through the amendment process."
o "The Redevelopment Commission will consider the use of economic incentives
for the purpose of implementing the provisions of the Old Meridian plan. The
CRC anticipates that its predominant participation in such projects will be in
providing the ED Area with infrastructure services sufficient to meet the current
and future needs of the ED Area."
o "The CRC shall consider providing economic incentives for the development of
infrastructure systems/facilities separately from any other decisions...."
o "The decision to offer any TIF or other economic incentive will be undertaken
based on a specific development proposal which has been approved by the
appropriate authorities."
In addition to the excerpts from the 2002 ED Plan offered above, the ED Plan Supplement
includes by reference all relevant excerpts related to the statutory findings of fact in the
appropriate sections of this ED Plan Supplement, as well as all other sections of either the 2002
ED Plan and/or the ED Plan Supplement, and the 2004 Amendment: Integrated Economic
Development Plan. Finally, the above testimony is suggested to afford satisfaction of the
statutory requirement that "the plan for the economic development area conforms to other
development and redevelopment plans for the unit."
Approved Zoning for Meridian Main
Map #3 is taken from the developer's re -zone submittal to the Plan Commission and is intended
to depict the existing, approved zoning for Meridian Main I II. The map clearly shows that
the Phase I area is zoned B -6, which has been found to conform to the requirements of the US31
Overlay, as well as with the Comprehensive Plan for Carmel. Phase I will initially include the
proposed Spine Center and a proposed hotel, as well as other future development in accordance
with the US31 Overlay.
The Phase II area shown on Map #3 was proposed to be split into two zoning districts: OM /MU
(southern portion) and B -6 (northern portion). The southern portion (OM /MU zoning) fronts
along 131 Street (aka Main Street) and is proposed to be developed into high quality office
space. The office space would have direct access to an improved Main Street (aka 131 Street)
corridor for access purposes.
The northern portion of Phase II was re -zoned to B -6 and contains six existing residential parcels
(part of the North Meridian Heights subdivision) proposed to be excluded from the Project Area,
as shown on Map #2. The existing residential parcels are to continue as residential uses, noted
by the Plan Commission as being legal non conforming uses, as provided by standard Plan
Commission policy. There has been no development plan approved for Phase II at this time,
however, this ED Plan Supplement notes and extends the sensitivity of the CRC with regard to
interfaces between existing and proposed development, while also noting that the North
Meridian Heights subdivision was included in the 2002 ED Plan for the overall area.
12 Meridian Main Economic Development Plan Supplement (Final, November 17, 2010)
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(F al
l ment Plan Supplement in November 17, 2010)
The Statute Governing Creation of an ED Area
The ED Plan Supplement is undertaken to support the proposed development of the Project Area
generally described as being located in the northeast quadrant of the intersection of Main Street
(aka 131 Street) and Meridian (aka US31). The development proposal for the Meridian Main
development has already been considered and approved by the Plan Commission, and the CRC
has already undertaken consideration of the Meridian Main development proposal using the
approval of the Plan Commission as the good -faith basis for considering the proposed Meridian
Main project. As such, the CRC accepts the re- zoning and the development plan approvals of
the Plan Commission as a clear and unambiguous statement of the Plan Commission's finding
that the proposed development conforms to the overall plan of development of the existing ED
Area. This determination is critical to the CRC's statutory consideration of the commitment of
TIF to support the Meridian Main project.
The creation of an Economic Development Area and the contents of an Economic Development
Plan are governed by IC 36- 7- 14 -41, which, for purposes of clarity and transparency, is
presented in its entirety below:
IC 36- 7- 14-41: Economic development area; determination; enlargement
(a) The commission may, by following the procedures set forth in sections 15 through 17
of this chapter, approve a plan for and determine that a geographic area in the
redevelopment district is an economic development area. Designation of an
economic development area is subject to judicial review in the manner prescribed in
section 18 of this chapter.
(b) The commission may determine that a geographic area is an economic development
area if it finds that:
(1) the plan for the economic development area:
(A) promotes significant opportunities for the gainful employment of its citizens;
(B) attracts a major new business enterprise to the unit;
(C) retains or expands a significant business enterprise existing in the boundaries
of the unit; or
(D) meets other purposes of this section and sections 2.5 and 43 of this chapter;
(2) the plan for the economic development area cannot be achieved by regulatory
processes or by the ordinary operation of private enterprise without resort to the
powers allowed under this section and sections 2.5 and 43 of this chapter because
of:
(A) lack of local public improvement;
(B) existence of improvements or conditions that lower the value of the land
below that of nearby land;
(C) multiple ownership of land; or
(D) other similar conditions;
(3) the public health and welfare will be benefited by accomplishment of the plan for
the economic development area;
(4) the accomplishment of the plan for the economic development area will be a
public utility and benefit as measured by:
(A) the attraction or retention of permanent jobs;
(B) an increase in the property tax base;
(C) improved diversity of the economic base; or
14 Meridian Main Economic Development Plan Supplement (Final, November 17, 2010)
(D) other similar public benefits; and
(5) the plan for the economic development area conforms to other development and
redevelopment plans for the unit.
The determination that a geographic area is an economic development area must be
approved by the unit's legislative body. The approval may be given either before or after
judicial review is requested. The requirement that the unit's legislative body approve
economic development areas does not prevent the commission from amending the plan
for the economic development area. However, the enlargement of any boundary in the
economic development area must be approved by the unit's legislative body, and a
boundary may not be enlarged unless:
(1) the existing area does not generate sufficient revenue to meet the financial
obligations of the original project; or
(2) the Indiana economic development corporation has, in the manner provided by
section 15(f) of this chapter, made a finding approving the enlargement of the boundary.
As added by P.L.380- 1987(ss), SEC.16 and P.L.393- 1987(ss), SEC.5. Amended by
P.L.114 -1989, SEC.11; P.L.146 -2008, SEC.739.
This ED Plan Supplement will conform to the above recited statute in all respects, and the CRC
will use the ED Plan Supplement to clearly set forth the premises upon which the CRC
considered the investment of TIF revenues to support the Meridian and Main project. The
documentation for the underlying project will rely upon the same documentation presented to the
Plan Commission for the Meridian Main planning /zoning approval, thereby affording the CRC
a structurally identical basis for the CRC's consideration of its statutory responsibilities in this
regard. By basing the CRC's decision on whether to invest TIF revenues into the Meridian
Main Project Area on the same information that was provided to the Plan Commission, the
public policies of both regulatory bodies should conform to one another and present the public
with a transparent and consistent public policy result.
Findings of Fact
In accordance with statute (above), the ED Plan Supplement contains the below Findings of Fact,
drawing information as needed from the developer's proposal, the 2000 Old Meridian Task
Force Plan, the 2002 ED Plan, the 2004 Amendment: Integrated Economic Development Plan
Amended Redevelopment Plan and all appurtenant economic development and redevelopment
planning documents of the CRC, as previously approved. While the CRC recognizes the
potential for redundancy in addressing each specific statutory finding of fact, this ED Plan
Supplement will attempt to minimize such redundancy where possible, but reserving the right to
amend and amplify any of its findings in response to public testimony, comments and
suggestions, per statutory intent.
These Findings of Fact hereby incorporate by reference any and all previous ED Plans approved
by the CRC to the extent that those ED Plans support and extend the considerations relevant to
the creation of the ED Area. It should be clear to even the most casual (or cynical) observer that
the US31, Main Street, and Old Meridian Corridors (all directly affected by this ED Area
proposal) are critical to the long term economic viability of the City of Carmel on multiple,
simultaneous levels. Further, the separate and independent scrutiny and review of development
proposals by the City's DOCS, Plan Commission, City Council and CRC are all intended to
15 Meridian Main Economic Development Plan Supplement (Final, November 17, 2010)
serve as protection of the community's standards and public policies in service to the community
at large. It is the CRC's intent to remain consistently respectful of these parallel, independent
and inter dependent roles.
FINDING OF FACT #1A: THE PLAN FOR THE ECONOMIC DEVELOPMENT AREA: (A)
PROMOTES SIGNIFICANT OPPORTUNITIES FOR THE GAINFUL EMPLOYMENT OF ITS CITIZENS
The ED Plan Supplement specifically proposes to promote significant opportunities for
gainful employment of not only Carmel citizens, but for citizens residing in a broad
cross section of central Indiana, including Indianapolis, as well as all of Hamilton
County, and even extending to Boone, Tipton and other counties in the general area.
The Meridian Main I project proposes to create the Spine Center, as well as a hotel on
two of the sites proposed within the existing ED Area. Phase I contains 6 building sites
covering approximately 20 acres (see Map 2). Site #3 has been acquired for a hotel and
Site #4 is proposed to contain the Spine Center, which includes an ambulatory surgery
center, medical offices, and high technology health -care and public safety training
facilities. The buildings on Sites 3 and 4 are projected to contain approximately $20
million in estimated assessed value as the initial development sites in Phase I. The
remaining Phase I sites are projected to contain improvements totaling another $15
million in assessed value (for a total projected Phase I assessed value of approximately
$35 million).
The Phase II portion of the project consists of 5 sites, as it is now planned, and is
projected to contain another $53 million in assessed value. The total estimated assessed
value of the Meridian Main improvements (both phases) is —$88 million, and includes
a hotel, plus 623,000 sf of office and retail space.
Using accepted parameters for estimation of employment in such developments, it is
preliminarily estimated that the Phase I II development will ultimately employ 1,800-
2,000 persons in varying capacities; however, this figure does not purport to include
doctors and other medical personnel trained at the Spine Center (but employed remotely),
nor does it include any employment estimate for the hotel, or support employment for the
maintenance and/or management of the offices.
On a more immediate level, the hotel and Spine Center, alone, propose to employ a
significant number of the area's citizens at very highly skilled (and very highly
compensated) rates of employment. Inasmuch as the period between the Task Force
Report, as well as the 2002 ED Plan, did not realize the growth of the US31 medical
corridor, the proposed development represents an extension of a series of previous
investments in medical facilities, including the Heart Hospital, Clarion North, Urology of
Indiana and others.
The Meridian Main proposal clearly is intended to promote the gainful employment of
the citizens of Carmel and surrounding communities, thus meeting the statutory
requirements of this finding of fact.
Meridian Main Economic Development Plan Supplement (Final, November 17, 2010)
FINDING OF FACT #1B: ...ATTRACTS A MAJOR NEW BUSINESS ENTERPRISE TO THE UNIT....
The Meridian Main proposal for Phase I purports to immediately bring two new
business enterprises to the area: the Spine Center and a new hotel. The estimated
assessed value of these two facilities is 420 million. These new business enterprises
represent the commitments currently received by the developer and do not include the
potential for additional business enterprise which is projected to be attracted to the
remainder of Phase I (totaling 180,000 sf in addition to the hotel and the 66,000 sf at the
Spine Center).
Beyond the immediate prospects for Phase I, the Phase II portion of the Meridian Main
development is projected to add over 400,000 sf of additional development to house
additional business enterprises which the developer will seek to attract.
While it is impossible to project with certainty, it would not be unreasonable to find that
the total of 623,000 sf of business improvements, plus the hotel, would potentially attract
as many as 50 -75 new business enterprises to the Meridian Main Project Area.
The ED Plan Supplement clearly contemplated the attraction of major new business
enterprise to Carmel and to the ED Area, thus meeting the statutory requirements of this
finding of fact.
FINDING OF FACT #1C: THE PLAN FOR THE ECONOMIC DEVELOPMENT AREA... RETAINS
OR EXPANDS A SIGNIFICANT BUSINESS ENTERPRISE EXISTING IN THE BOUNDARIES OF THE
UNIT.
The medical facilities proposed for location in the Project Area, including the Spine
Center and other medical office, laboratory, rehabilitation/therapy facilities, etc., offer a
direct benefit to the existing St. Vincent's Hospital campus. It is well understood that
hospital and medical care facilities must remain technologically current in order to
remain economically viable. Campuses which do not or cannot remain technologically
current are vulnerable to relocation, and such relocation generally leaves a rather
substantial urban redevelopment problem with regard to the vacated campus.
The presence of the Spine Center at Meridian Main, along with the professional
training facilities which the Spine Center proposes to develop, affords the St. Vincent
Hospital campus the opportunity for continuous professional development in the highest
and newest technologies. The training offered at such a facility has far reaching
implications for medical and other health -care professionals living and working in
Carmel and other central- Indiana locations.
For these reasons, it is suggested that the ED Plan Supplement will assist the City of
Carmel in extending the viable economic life of the St. Vincent's Hospital campus, thus
helping to retain a significant business enterprise which currently exists in the City.
17 Meridian Main Economic Development Plan Supplement (Final, November 17, 2010)
FINDING OF FACT VD: THE PLAN FOR THE ECONOMIC DEVELOPMENT AREA... MEETS
OTHER PURPOSES OF THIS CHAPTER....
The Meridian Main project meets several `other purposes' for the economic
development of Carmel, and the surrounding area. To achieve brevity of purpose, this
section will simply summarize some of the concepts which can be expanded, if
necessary, to further support and enhance the compliance with the statutory findings of
fact. Such additions can be made as the ED Plan Supplement/project approval process
moves forward.
First, the CRC emphasizes the cooperative and mutually beneficial relationship which the
Spine Center will have with the existing campus of St. Vincent's Hospital. The
opportunity to capture a facility which exhibits the newest in spinal technologies and
therapies and to train professionals from throughout central Indiana is an economic
development benefit which extends beyond the municipal boundaries of Carmel.
Second, the health care attributes of the Meridian Main proposal generally increase the
public access to the highest quality health care for the northern areas of Indiana. This
increased access is a general benefit to the public, at large, and is not limited to Carmel or
Hamilton County.
Third, the development of a new hotel facility, as well as the high technology office
developments which are proposed, offers the potential for new employment development
on multiple levels. This includes attracting entrepreneurs from a broad range of
professional disciplines whose business innovations can be captured at Meridian Main.
Fourth, the developer offers more than simply real estate development and construction
services. Browning Investments provides highly targeted marketing as part of its
development services, enabling Browning to capture national and international clients to
its developments which would not be possible with some smaller developers. The
professional marketing expertise which Browning brings to the Meridian Main project
gives the City of Carmel a presence in national and international markets which might not
be present with other developers.
For these and other reasons, it is suggested that the economic development benefits of the
ED Plan Supplement meets "other purposes" of the statute. In addition, this ED Plan
Supplement is also prepared to draw from and reiterate similar findings related to the
2002 ED Plan, as well as the Integrated Economic Development Redevelopment Plans
(as amended) for further support of this statutory compliance.
FINDING #2A: THE PLAN FOR THE ECONOMIC DEVELOPMENT AREA CANNOT BE ACHIEVED
BY REGULA TORY PROCESSES OR BY THE ORDINARY OPERATION OF PRIVATE ENTERPRISE
WITHOUT RESORT TO THE POWERS ALLOWED UNDER THIS SECTION... BECAUSE OF: (A)
LACK OF LOCAL PUBLIC IMPROVEMENT....
The 2002 ED Plan cited a number of arguments with regard to this statutory provision.
Fundamentally, the Task Force Report completed in 2000, as well as the 2002 ED Plan,
clearly set forth that the development standards for development of this area of Carmel
M eridian Main
18 ain Economic Development Plan Supplement (Final, November 17, 2010)
would be complex, and that the expectations would be that new development would be of
the highest quality. These previous planning efforts by the Plan Commission and the
CRC recognized that incremental planning and development would not generate
integrated public improvements.
Throughout Indiana, communities with less foresight than Carmel are plagued by
"Christmas tree" developments along major corridors. These "Christmas trees" are
dominated by cul de sacs and a lack of integration and coordination of individual
developments, preventing traffic from moving between developments along a corridor
without increasing traffic on the main corridor. The intent of both the Plan Commission
and the CRC in 2000 and 2002 was to assure that the Old Meridian area was not plagued
by narrow and incremental thinking with regard to public improvements.
In response to these needs, the CRC acted to assure that the coordinated and integrated
public improvements necessary to support the highest quality development could be
supported through the investment of TIF revenues. The Meridian Main Project Area is
an example of this thinking in that the creation of the ED Area is intended to afford
access to TIF revenues for the purpose of improving the quality of public infrastructure.
Without the foresight invested in the 2000 and 2002 Old Meridian planning, it would be
normal to see developments in the vicinity of Meridian Main provide roadways that
simply surrender to the geography. Since the area's primary access is Main Street, the
internal roadways for the development could be expected to connect only to Main Street.
The CRC and the Old Meridian Task Force, however, sought to broaden that incremental
thinking to provide connector corridors between Old Meridian and Main Street through
this specific area, thus enhancing the traffic circulation system and spreading traffic over
a larger number of corridors and road miles. The Meridian Main TIF request seeks
funding for a roadway which would ultimately connect Main Street to Old Meridian
through the Meridian Main development.
It is clear that the Task Force Report and 2002 ED Plan both provide a planning platform
for enhanced public improvements which were intended to generate high quality
development. Therefore, this ED Plan Supplement conforms to this statutory
requirement.
FINDING OF FACT #2B: THE PLAN FOR THE ECONOMIC DEVELOPMENT AREA CANNOT BE
ACHIEVED BECAUSE OF... (B) EXISTENCE OF IMPROVEMENTS OR CONDITIONS THAT
LOWER THE VALUE OF THE LAND BELOW THAT OF NEARBY LAND....
Both the Task Force Report and the 2002 ED Plan recognized that achieving the highest
forms of development in the Old Meridian area would be difficult. The US31 Overlay set
the standards very high. At the same time, existing historical development in the area
had been largely incremental, and the Task Force recognized that new development
would be complicated by these older developments. The Task Force Report and 2002
ED Plan attempted to strike a careful balance between the needs of new development and
the protection of existing development.
19 Meridian Main Economic Development Plan Supplement (Final, November 17, 2010)
It is clear that the site of Meridian Main I is one of the highest visibility sites along the
US31 Corridor. It is equally clear that this site is one of the last to develop in the area.
One of the reasons for this delay in development is that the attributes of the site are
complex and require a number of potentially conflicting considerations to be
accommodated. Clearly, a `clean' bean field which is not encumbered by complications
of an existing church and a residential subdivision would be less complicated to develop.
Regardless of preferences, the existing conditions of the ED Area required a more
complex approach.
This ED Plan Supplement would prefer to avoid the characterization that the existing
developments `lower the value of land.' We do not suggest that existing developments
are blighting influences in any form. Rather, we simply suggest that the presence of
these developments makes the development of the Meridian Main real estate more
complicated, and in making the site's development more complicated, the cost of its
development is increased. Mathematically, `increased cost' has the same effect on profit
as `decreased value.' However, the two are not the same thing.
The Task Force Report and 2002 ED Plan were clear in their statements. Existing
development in the Old Meridian area made new development more difficult and
challenging. These challenges were not ameliorated by the high development standards
demanded in the US31 Overlay. The CRC responded to this situation by creating an ED
Area for the purpose of assisting developers overcome these challenges through the
investment of TIF revenues. Furthermore, the Task Force sought to develop enhanced
roadway connections between Old Meridian and other corridors, such as those suggested
by the Meridian Main proposal.
This ED Plan Supplement simply seeks to explain how the 2000 2002 planning are
conceptually connected to and compliant with the Meridian Main development
proposal, and in so doing, this ED Plan Supplement attempts to comply with this
statutory requirement.
FINDING OF FACT #2C: THE PLAN FOR THE ECONOMIC DEVELOPMENT AREA CANNOT BE
ACHIEVED BECAUSE OF ...MULTIPLE OWNERSHIP OF LAND....
The Phase II portion of the Meridian Main development proposal takes place in an area
that the developer has acquired from individual property owners in the North Meridian
Heights subdivision. At this time, six of those property owners have elected to keep their
property as residential, and this ED Plan Supplement respects their decision by
continuing the exclusion of those property owners from the ED Area. The exclusion of
these properties is shown on Maps #1 and 42 (see northwest corner of yellow Phase II
area).
At this point in this ED Plan Supplement, however, attention is to be turned toward the
developer's acquisition of the 47 of the 53 lots of North Meridian Heights which the
developer has acquired. (See source documents provided in support of re -zone request
for Meridian Main II.) The Phase II development takes place on these lots in the
20 i Meridian Main Economic Development Plan Supplement (Final, November 17, 2010)
southern parcels of the previous North Meridian Heights subdivision, as shown on Maps
#1 and #2.
Maps #1 and #2 clearly show that the southern parcels of North Meridian Heights front
directly onto West Main Street and that the real estate lies in a high visibility location.
Future improvements to the US31 corridor will further increase the existing visibility,
making the site even more desirable; however, the multiple ownership of residential
parcels prevents effective redevelopment of those residential parcels. Equally
importantly, it is generally not considered a benefit (in terms of enjoyment of the
property) to residential property to experience the noise and other issues related to
extremely high levels of traffic, while business development thrives on such attributes.
The developer's acquisition of residential parcels in North Meridian Heights performs
two benefits to the development/redevelopment of the Phase II real estate. First, it
provides singular ownership of the land in order that the parcels can be redeveloped for
business purposes. Those business purposes are more suitable to high levels of traffic
and commensurate attributes resulting from the development of the US31 corridor over
the past 40 years.
Second, it allows the individual residential parcels to be redeveloped in an integrated
fashion, with suitable infrastructure (including utilities), and subdivided in conformity
with business market demands. Map #2 suggests that the Phase II development will be
subdivided into approximately 5 parcels and the development proposal suggests that
approximately 428,000 sf of business development will take place as Phase II develops.
Business development is suitable to the Main Street Corridor, as well as US31, and the
reduction of multiple owners of land enables the redevelopment activity to be
substantially more uniform and integrated than would be possible if the land continued to
be owned multiply.
For these reasons, it is suggested that this ED Plan Supplement conforms to this statutory
requirement.
FINDING OF FACT #2D: THE PLAN FOR THE ECONOMIC DEVELOPMENT AREA CANNOT BE
ACHIEVED... BECAUSE OF... OTHER SIMILAR CONDITIONS....
The Old Meridian Task Force confronted a difficult issue seeking to assure that high
quality development occurred in the Old Meridian area, despite the complexities of
integrating new development with existing development. In effect, the Plan Commission
was attempting to confront BOTH new development and urban redevelopment issues on
the same tracts of land. Inasmuch as the needs and demands of existing landowners is
almost certainly separate and distinct from the needs and demands of landowners that do
not yet exist (because a tract of land is undeveloped), those two sets of issues are almost
always at loggerheads.
The Plan Commission (in 2000) and the CRC (in 2002) attempted to lay the public policy
groundwork for enabling the real estate development market to creatively address both
the new development and redevelopment issues simultaneously. As most public policy
21 Meridian Main Economic Development Plan Supplement (Final, November 17, 2010)
analysts would agree, simultaneously reconciling two competitive sets of constraints is a
difficult task, requiring substantial resources. The Plan Commission has effectively
concluded that the Meridian Main development proposal has achieved this end, by
virtue of its approval actions. The difficulty of this achievement is acknowledged.
In addition, this ED Plan Supplement would be negligent to avoid noting the impact of
the Indiana Legislature's recent actions to constrain and reconfigure property tax
revenues which have traditionally formed the lifeblood of municipal government. The
`condition' of municipal revenues is certain to become an increasingly important factor
throughout Indiana as a result of the 1%-2%-3% caps on municipal property taxes.
These property tax revenue constraints provide substantial property tax relief for
residential property. In affording that relief, however, the revenue burden is shifted to
business property. In shifting the property tax revenue burden to business property, the
most likely public policy consequence of the Legislature's action is that cities will work
to obtain more business development, such as that proposed for Meridian Main.
Municipalities which lack a sufficient proportion of business assessed value will find it
more difficult to support the traditional form of services which local government has
provided. In effect, the Meridian Main proposal offers a virtually immediate
opportunity to sustain existing municipal services, especially since the developer is
requesting only a portion of the TIF revenues to be invested in the site.
The Meridian Main project, however, has impacts beyond the boundaries of the
proposed ED Area. The extension of Pennsylvania Street into the Project Area, with the
provision for a final connector to Old Meridian, affords Carmel the opportunity to
promote additional economic development beyond the boundaries of the Project Area.
Even if the only outcome of this roadway provision is to complete the roadway, itself,
without realigning land uses to the east, the result would be greater traffic dispersion and
lower traffic congestion in the area, which is also a benefit to the community which
cannot be accomplished without the Meridian Main development.
As the process of consideration of the proposed ED Plan Supplement moves forward, the
CRC may choose to add other arguments to the ED Plan Supplement as a result of the
public testimony, but for immediate purposes, these provisions are considered sufficient
to address this statutory finding of fact.
FINDING OF FACT #3: THE PUBLIC HEALTH AND WELFARE WILL BE BENEFITED BY
ACCOMPLISHMENT OF THE PLAN FOR THE ECONOMIC DEVELOPMENT AREA....
The Meridian Main development proposal will benefit the health and welfare of the
community at large in several ways. First, as noted above, the proposed business
development will benefit the public treasury in the form of business property tax
revenues subject to the 3% cap, rather than the 1% cap which exists for residential
property. This benefit is especially prominent for those parcels which were previously
residential parcels in North Meridian Heights. The developer's documentation estimates
that the existing property tax revenue from the Meridian Main real estate amounts to
approximately $86,000 /year, whereas the estimated property tax revenues from Meridian
Meridian Main Economic Mi Ecomic Dvelopent Plan Supplement ment (Final, November 17, 2010)
Main at full build -out are estimated to exceed $1.5 million per year. These enhanced
revenues represent a direct benefit to the public welfare.
In addition, the public welfare is benefited through enhanced healthcare employment
training to be afforded at the Spine Center, as well as new jobs and entrepreneurial
opportunities afforded by the expansion of business development at the Meridian Main
location. The expansion of individual economic opportunity extends beyond the
corporate limits of any city and supports the public welfare in multiple ways.
In addition, the public health will be benefited in several ways. First, the public health
will be benefited by the provision of cutting -edge medical technology, as well as
technological training to health professionals, which is planned for the Meridian Main
development. Second, the public health is benefited by the availability of enhanced
health care and improved technologies and health care products, as well as through such
facilities as ambulatory surgical centers. Third, the public health is benefited by
dispersion of traffic onto secondary corridors, rather than congesting along existing
roadways where slower traffic operating speeds promote greater air pollution.
In addition to these arguments, the CRC reserves the right to add or revise these sections
of the ED Plan Supplement in response to public testimony, as the process moves
forward, but for purposes here, these suggestions are deemed to serve as compliance with
the statutory requirement.
FINDING OF FACT #4A: THE ACCOMPLISHMENT OF THE PLAN FOR THE ECONOMIC
DEVELOPMENT AREA WILL BE A PUBLIC UTILITY AND BENEFIT AS MEASURED BY: (A) THE
ATTRACTION OR RETENTION OF PERMANENT JOBS;
This statutory finding of fact is similar in character to that of Finding #1A (`opportunities
for gainful employment'), and as such the pertinent/relevant issues raised in Finding #1A
and Finding #4A are interchangeable. It is clear that the development of new business
property, including the proposed hotel, the Spine Center and a total of 623,000 sf of
business space is intended to attract and retain permanent jobs to the ED Area.
The fundamental premise of all economic development policy is to expand the local
economy. This can be done by extending the outreach of existing community businesses,
or by attracting businesses from other communities. In any case, the economic
development policies of a community are best served when high quality professionals are
partnered to the policies and bring their unique professional talents to the attraction effort.
Based on general statistical relationships between square footage of development and
employment, the Meridian Main development could be expected to employ 1,800-
2,000 persons in varying capacities at full build -out and occupancy, depending upon the
mix of business development which ultimately takes place. These figures could be
expanded if secondary /dependant employment were counted in the total. These figures
can be even further amplified if job retention related to other local business is counted in
the total.
23 3 Meridian Main Economic Development Plan Supplement (Final, November 17, 2010)
It is clear that the fundamental intent of the Meridian Main proposal is to provide
business development opportunities to the ED Area, which would include the attraction
and/or retention of permanent jobs. The goal is for Meridian Main to capture a share
of a growing local economy, and therefore, the achievement of that goal would be
reasonably expected to satisfy this statutory requirement.
FINDING OF FACT #4B: THE ACCOMPLISHMENT OF THE PLAN FOR THE ECONOMIC
DEVELOPMENT AREA WILL BE A PUBLIC UTILITYAND BENEFIT AS MEASURED BY: (B) AN
INCREASE IN THE PROPERTY TAX BASE....
This Finding is largely redundant with other findings of fact related to the attraction of
business enterprise, the removal of constraints on land value, diversity in the economic
base of the community, and other similar findings. To a large extent these findings and
the arguments that support them are interchangeable. The narrative above has clearly set
forth that the Meridian Main proposal seeks to add 623,000 sf of business space to the
City and to Hamilton County. The estimated assessed value of that projected
development amounts to more than $1.5 million in property taxes annually. These
revenues far exceed the estimate of approximately $86,000 per year that is currently
being generated.
Beyond the boundaries of the Meridian Main project, however, it is also expected that
the completion of the Pennsylvania Street extension to Old Meridian will add
infrastructure support to further stimulate potential development in the Old Meridian
area, which further improves /increases the property tax base of the City. These findings,
as well as related arguments, suggest that this ED Plan Supplement meets this statutory
requirement.
FINDING OF FACT #4C: THE ACCOMPLISHMENT OF THE PLAN FOR THE ECONOMIC
DEVELOPMENT AREA WILL BE A PUBLIC UTILITYAND BENEFIT AS MEASURED BY: (C)
IMPROVED DIVERSITY OF THE ECONOMIC BASE....
This Finding of Fact extends the argument from a simple assessment of the impact of a
proposal on the property tax base to an argument regarding revenue diversity related to
the economic base of the community. The creation of business property tax revenues
generally also adds an assortment of other tax revenues to state and local coffers, beyond
property taxes. Personal and corporate income taxes, various excise taxes, and other tax
revenues generally accompany new business development and expansion, and those
additional revenues go beyond property taxes.
In addition to the above arguments, diversification of the economic base occurs in more
subtle forms as a result of developments such as the Spine Center. When new products
and technologies are showcased and training in implementing those technologies is
amplified, there is a simultaneous increase in economic productivity as a result of
improved personal health. People live longer and are more productive for an extended
period of time, which also adds diversity to the local economic base.
The addition of a new hotel to the Meridian corridor also enables the corridor to capture
additional tourism traffic, which further supports retail enterprises in the community and
24 Meridian Main Economic Development Plan Supplement (Final, November 17, 2010)
the region. The range of professional employment necessary to operate a hotel runs from
part-time unskilled labor to full -time positions with exceedingly high and specialized
skill levels. These economic activities also extend diversification of the local economy.
The sum of these and related arguments suggests that the Meridian Main development
proposal will help to promote diversification in the local and regional economy, as
provided in this statutory requirement.
FINDING OF FACT 144D: THE ACCOMPLISHMENT OF THE PLAN FOR THE ECONOMIC
DEVELOPMENT AREA WILL BEA PUBLIC UTILITY AND BENEFIT AS MEASURED BY: (D)
OTHER SIMILAR PUBLIC BENEFITS....
As in other Findings, this specific statutory section is somewhat redundant in that
arguments made in addressing other statutory sections also address this statutory
requirement. As such, the ED Plan Supplement notes this potential redundancy and
reserves the right to re -state those arguments if the process evidences a need for such re-
statement. The category of `other' is a clear Legislative intent to potentially incorporate
arguments and factors that the Legislature had not anticipated in drafting the legislation.
Let it be sufficient for this ED Plan Supplement to state that the Meridian Main
development proposal is consistent with the 2000 Old Meridian Task Force plan and the
2002 Old Meridian ED Plan, as well as the entire body of testimony which ultimately
generated the US31 Overlay, each contained a myriad of `other' factors which were
considered to contribute to the `public utility and benefit.' As such, those plans and their
supporting documents are hereby incorporated by reference in the event that sufficient
justification is determined necessary.
In summary, however, it should be re- stated that the Meridian Main development
proposal arguably achieves virtually every stated development goal which was offered
for all three of these major planning efforts, despite the fact that 8 years have transpired
since the Old Meridian Task Force report was approved. Furthermore, the CRC should
be able to take some comfort in the consideration that, if the Meridian Main
development proposal was in any way defective, the Plan Commission would not have
taken the approval actions that it has publicly taken. The fact that such a high proportion
of the stated developmental goals of previous planning efforts related to this ED Area are
to be achieved should be satisfactory evidence that the Meridian Main ED Plan
Supplement is consistent with these previous documents and policies.
Conclusions of the ED Plan Supplement
The sum of the effort invested in this ED Plan Supplement is that the Meridian Main
development proposal addresses the requirements of statute sufficiently to be considered
for designation as an ED Area, as well as to be reasonably considered for the investment
of TIF incentives. The ED Plan Supplement has determined that the TIF request
conforms to the parameters of TIF investment set forth in the 2002 ED Plan, as well as
with the Integrated Economic Development Plan (as amended), and the projects proposed
for TIF funding are also consistent with the Task Force Report. To further underscore
25 Meridian Main Economic Development Plan Supplement (Final, November 17, 2010)
these conformities, the Plan Commission has acted independently to approve the
development plan for Meridian Main I and the re- zoning for Meridian Main II,
indicating that the Plan Commission is comfortable with the development proposal as
conforming to all requirements, as well as the Comprehensive Plan, generally.
Given the narrative presented above, it is suggested that the CRC can be comfortable in
moving forward with the ED Area designation process in order to determine whether the
final designation is appropriate for approval.
LEGAL DESCRIPTION:
MERIDIAN MAIN PROJECT AREA
The legal description of the proposed Meridian Main Project Area is based on the public
information of the office of the Hamilton County Auditor. The legal description uses the
Auditor's parcel numbers for ease of designation and for optimal public transparency, enabling
any interested person to access the Auditor's information in order to inform and educate
themselves in this regard. In addition to the legal boundary description, this ED Plan
Supplement also includes a list of the parcel numbers to be included in the Meridian Main
Project Area (below). The Meridian Main Project Area is entirely contained with the existing
ED Area.
Residential Parcels to be Excluded from the Meridian Main Project Area
Please note that six (6) residential parcels in North Meridian Heights are proposed to be excluded
from the Meridian Main Project Area because those parcels are projected to remain as
residential parcels and are not currently a part of the development/redevelopment proposal. The
intent of this exclusion is to assure the owners of these parcels that it is the CRC's intent to allow
and enable them to continue to enjoy their homes, despite the new development and
redevelopment which is occurring in the general area. The exclusion is offered out of respect for
the wishes of the homeowners by the CRC. In order to best respect the wishes of landowners in
North Meridian Heights, the following residential parcels are proposed to be excluded from the
Meridian Main Project Area:
17- 09- 26- 02 -03- 001.000
17- 09- 26- 02 -03- 002.000
17- 09- 26- 02 -03- 003.000
17- 09- 26- 02 -03- 005.000
17- 09- 26- 02 -01- 003.000
17- 09- 26- 01 -03- 005.000 Scrivener error: Parcel number corrected to conform to map.
17- 09- 26- 02 -01- 005.000
Boundary Description of the Meridian Main Project Area
Beginning at the point of intersection of the northern right of way line of W. Main (131st) Street
and the eastern right of way line of North Meridian Street (US 31), which corresponds to the south
western corner of parcel number 16- 09- 26- 00 -00- 001.101,
26 Meridian Main Economic Development Plan Supplement (Final, November 17, 2010)
Then proceeding northeast along the (south)eastern right of way line of North Meridian Street (US
31) and the northern boundary lines of parcel numbers 16- 09- 26- 00 -00- 001.101, 17-09-26-00-00-
004.101, and 17- 09- 26- 00 -00- 005.000 to the point of intersection of the southwestern corner of
parcel number 17- 09- 26- 00 -00- 003.001,
Then proceeding eastward along the southern boundary of parcel 17- 09- 26- 00 -00- 003.001 to the
point of intersection with the northwestern corner of parcel number 17- 09- 26- 00 -00- 008.000,
Then proceeding southward along the western boundary of parcel 17- 09- 26- 00 -00- 008.000 to the
point of intersection of the southwestern corner of parcel number 17- 09- 26- 00 -00- 008.000 and
the northern right of way of line of W. Main (131st) Street,
Then proceeding westward along the northern right of way line of W. Main (131st) Street to the
point of intersection with the southwestern corner of parcel number 17- 09- 02 -01- 023.000,
Then proceeding northward along the western boundary of parcels 17- 09- 26- 02 -01- 023.000, 17-
09-26-02-01- 021.000, 17- 09- 26- 02 -01- 009.000, and 17- 09- 26- 02 -01- 008.000 to the point of
intersection with the southeastern corner of parcel number 17- 09- 26- 00 -00- 005.201,
Then proceeding westward along the southern boundary of parcel number 17-09-26-00-00-
005.201 to the southwestern corner of that parcel,
Then proceeding southward to the point of intersection of the northeast corner of parcel number
17- 09- 26- 00 -00- 005.001,
Then proceeding along the northern edge of parcel number 17- 09- 26- 00 -00- 005.001 and then
southward along the western edge of that same parcel number 17- 09- 26- 00 -00- 005.001 to the
point of intersection of the southwest corner of said parcel where it intersects the north right of
way line of W. Main (131st) Street,
The proceeding westward along southern lines of parcel numbers 17- 09- 26- 00 -00- 005.101, 17-
09-26-02-01- 001 -001, 17- 09- 26- 00 -00- 004.001, and 16- 09- 26- 00 -00- 001 -101 to the point of
beginning,
But excluding of the following parcels which Browning does NOT currently own in the Meridian
Heights subdivision:
17- 09- 26- 02 -03- 001.000 17- 09- 26- 02 -03- 002.000 17- 09- 26- 02 -03- 003.000
17- 09- 26- 02 -03- 005.000 17- 09- 26- 02 -01- 003.000 17- 09- 26- 01 -03- 005.000
Scrivener error: Parcel number 17- 09- 26- 01 -03- 005.000 corrected to conform to map.
17- 09- 26- 02 -01- 005.000
27 Meridian Main Economic Development Plan Supplement (Final, November 17, 2010)