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