[00:00:06]
>> GOOD AFTERNOON, ALL. THIS IS THE REGULAR MONTHLY MEETING OF THE CARMEL REDEVELOPMENT COMMISSION.
WE ARE HERE IN THE CITY COUNCIL CHAMBERS.
[1. PLEDGE OF ALLEGIANCE]
WWE CAN DO HAVE A QUORUM OF MEMBERS PRESENT.I WOULD LIKE TO CALL THE MEETING TO ORDER.
IF YOU WOULD JOIN ME IN THE PLEDGE OF ALLEGIANCE.
>> I PLEDGE ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA, AND TO THE REPUBLIC FOR WHICH IT STANDS, ONE NATION, UNDER GOD, INDIVISIBLE WITH LIBERTY AND JUSTICE FOR ALL.
[2. APPROVAL OF MINUTES]
>> THANK YOU VERY MUCH. WE WILL MOVE ON TO OUR NEXT ORDER OF BUSINESS. APPROVAL OF THE MINUTES OF OUR AUGUST 16 MEETING. ARE THERE ANY CORRECTIONS OR ADDITIONS TO THE MINUTES THAT WERE PROVIDED TO YOU IN THE PACKETS? SO MOVED.
>> SECOND. >> ALL IN FAVOR, PLEASE SAY AYE.
[3.a. Cash Flow Report]
>> AYE. >> ANY OPPOSED? THEY ARE APPROVED. VERY GOOD.
WE WILL NOW MOVE ON TO THE FINANCIAL MATTERS.
MR. LEE WILL BEGIN WITH THE CASH FLOW REPORT.
>> THANK YOU. THE COMMISSION'S END OF MONTH BALANCE FOR AUGUST WAS 7,713,324.
INCLUDED RESTRICTED FUNDS. >> THANK YOU, MR. LEE.
[3.b. Approval of Claims]
ANY QUESTIONS REGARDING THE CASH FLOW REPORT? SEEING NONE, WE WILL GO ON TO THE APPROVAL OF CLAIMS.ONCE AGAIN, MR. LEE. >> YOU HAVE THREE SETS OF CLAIMS BEFORE YOU TONIGHT. FIRST FOR NONOPERATING EXPENSES IN THE AMOUNT OF 465,377.71. THE SECOND SET IS FROM THE 2021TIF BOND CLAIMS. IN THE AMOUNT OF $302,745.28.
THIRDLY, THE 856 FUND CLAIMS. PLEASE LET ME KNOW IF YOU HAVE
ANY QUESTIONS. >> ARE THERE ANY QUESTIONS, MR. LEE, REGARDING THE CLAIMS BEFORE US THIS EVENING? THE CHAIRMAN WILL ENTERTAIN A MOTION OF APPROVAL.
>> SO MOVED. >> IS THERE A SECOND IN.
>> SECOND. >> IT HAS BEEN MOVED AND SECONDED. ALL IN FAVOR, PLEASE SAY AYE.
>> AYE. >> ANY OPPOSED, SAME SIGN.
[4. EXECUTIVE DIRECTOR REPORT]
IT IS APPROVED. THANK YOU VERY MUCH.WITH THAT, WE WILL MOVE ON TO OUR EXECUTIVE DIRECTOR'S REPORT.
>> LOTS OF CONSTRUCTION AROUND THE CITY.
IT IS EXCITING TO SEE THE THIRD FLOOR NOW.
WE ARE EXPECTING AN OPENING OF THE FIRST ON MAIN PROJECT.
IN OCTOBER. AS WELL AS FINALIZING THE PROJECT. LOTS OF BIG THINGS HAPPENING.
SOME PROJECTS HERE ON THE HORIZON.
ON THE AT&T SIDE. AND ON ON SQUARE NORTH.
I WANT TO COMMEND THE PROJECTS THAT HAVE BEEN THE RECIPIENTS OF THE INDY CHAMBER'S MONUMENTAL AWARDS.
THE PROED ISIUM PROSENDIUM GOT A NOMINATION.
THE ART ON 96TH STREET GOT AN ART NOMINATION.
ONE OF THE PARKS ACTUALLY, IN THE CITY OF CARMEL GOT A LANDSCAPE A ARCHITECTURE NOMINATION.
THOSE AWARDS WILL HAPPEN IN EARLY OCTOBER.
OTHER THAN THAT, WE JUST CONTINUE TO MOVE PROJECTS FORWARD. FINALLY, SINCE THE LAST MEETING, WHICH WAS IN MID-AUGUST, WE HAD THE LAUNCH OF THE NEW SHOW LAUNCHING. I HOPE ANYONE LISTENING HAS HAD A CHANCE TO CHECK THAT OUT. AT THE PALLADIUM.
IT PLAYS EVERY NIGHT AT NIGHTFALL.
AND CONTINUES EVERY HALF AN HOUR WITH.
THAT, I'M HAPPY TO ANSWER QUESTIONS.
ANY QUESTIONS THAT THE COMMISSIONERS MAY HAVE.
>> ANY QUESTIONS FOR THE DIRECTOR?
[5. COMMITTEE REPORTS]
THANK YOU, MR. DIRECTOR. >> THANK YOU.
>> SEEING NONE, WE WILL MOVE ON TO COMMITTEE REPORTS AND ARCHITECTURAL REVIEW COMMITTEE. MR. BROOKS?
>> MR. PRESIDENT, WE DID NOT MEET THIS MONTH.
>> THANK YOU, COMMISSIONER. IS THERE ANY OLD BUSINESS TO
[00:05:02]
COME BEFORE US THIS EVENING? >> THERE IS NOT.
[7.a. Action Item #1 – Resolution 2023-30 re: Proscenium II Project Terms]
>> OKAY. WE WILL THEN MOVE ON TO NEW BUSINESS. OUR FIRST ACTION ITEM IS RESOLUTION 2023-30 WHICH IS THE PROSCENIUM II PROJECT TERMS. THIS WILL APPROVE THE TERMS FOR MR. DIRECTOR?
>> PROSCENIUM II WHICH IS ACTUALLY MID-CONSTRUCTION RIGHT NOW, IS AN EXCITING PROJECT. 100% TIF.
A CONTINUATION ON THE FIRST PROSCENIUM PROJECT.
RETAIL ON THE FIRST FLOOR. HAS A GARAGE BEHIND IT.
APARTMENTS ABOVE THE RETAIL. HAS FOR-SALE CONDOS ON THE TOP FLOOR OVER EVERYTHING ELSE WHICH IS ACTUALLY THE FIRST INSTANCE OF WHAT WE HAD BUILT. WE HAD BUILT A FOR-SALE PRODUCT ON TOP OF FOR-RENT PRODUCT ON TOP OF RETAIL.
IT IS A NICE URBAN PROJECT. WITH LONGTIME DEVELOPMENT PARTNER NOVO DEVELOPMENT. ESSENTIALLY, THOSE TERMS THAT I HAVE JUST LISTED ARE MEMORIALIZED IN THE RESOLUTION IN FRONT OF YOU. AS ALWAYS, WITH OUR GARAGES, 75% ARE OPEN TO THE PUBLIC. I'M HAPPY TO ANSWER ANY QUESTIONS OR OTHERWISE, LOOK FOR YOUR VOTE IN THE AFFIRMATIVE.
>> THANK YOU, MR. DIRECTOR. QUESTIONS OF THE DIRECTOR REGARDING ACTION ITEM NUMBER 1. SEEING NONE, IF IT IS YOUR PLEASURE, THE CHAIR WILL ENTERTAIN A MOTION OF APPROVAL.
>> MOTION TO APPROVE RESOLUTION 2023-30, APPROVAL OF THE TERMS
OF THE PROSCENIUM II PROJECT. >> THANK YOU, COMMISSIONER.
>> IT HAS BEEN MOVED AND SECONDED.
ALL IN FAVOR, PLEASE SAY AYE. >> AYE.
[7.b. Action Item #2 – Resolution 2023-31 re: Proscenium II TIF Pledge]
>> ANY OPPOSED, SAME SIGN. IT IS APPROVED.
VERY GOOD. SO WE WILL MOVE ON TO OUR ACTION ITEM NUMBER 2, WHICH IS RESOLUTION 2023-31.
WHICH IS PLEDGING CERTAIN TACK INCREMENT REVENUES TO THE PAYMENT OF THE CITY OF CARMEL ECONOMIC DEVELOPMENT BONDS FOR THE PROSCENIUM II PROJECT. MR. LEE?
>> YES. STICKING WITH THE PROSCENIUM II, THIS IS PRETTY STRAIGHT FORWARD. THE RESOLUTION WILL PLEDGE THE FUTURE INCREMENTAL TAXES FROM THE PROJECT TOWARDS THE ECONOMIC DEVELOPMENT BONDS. THEY WILL HELP PAY FOR THE PROJECT'S INFRASTRUCTURE SUCH AS THE PARKING STRUCTURE.
THIS PLEDGE IS FOR 100% OF THE TIF TO THE BONDS.
>> THANK YOU, MR. LEE. QUESTIONS OF MR. LEE, REGARDING ACTION ITEM NUMBER 2. SEEING NONE, IF IT IS YOUR PLEASURE, THE CHAIR WILL ENTERTAIN A MOTION OF APPROVAL.
>> MOTION TO APPROVE RESOLUTION 2023-31, THE PLEDGE OF CERTAIN TAX INCREMENT REVENUES TO THE PAYMENT OF THE CITY OF CARMEL, INDIANA ECONOMIC DEVELOPMENT REVENUE BONDS FOR THE PROSCENIUM
II PROJECT. >> THANK YOU, COMMISSIONER.
>> THANK YOU, COMMISSIONER. IT HAS BEEN MOVED AND SECONDED.
ALL IN FAVOR, OF APPROVAL OF THE ACTION ITEM NUMBER 2, SO INDICATE. AYE.
ANY OPPOSED SAME SIGN. IT IS APPROVED.
[7.c. Action Item #3 – Award Central Park Interurban Trailhead contract.]
THANK YOU VERY MUCH. NOW WE WILL MOVE ON TO OUR NEXT ACTION ITEM. ACTION ITEM NUMBER 3, APPROVAL OF A CONTRACT FOR THE CENTRAL PARK INTERURBAN TRAILHEAD WITH FA WILHELM. MR. DIRECTOR.>> PART OF THE CORNER PROJECT WHICH IS NOW CALLED MUSE IS A CONNECTION TO THE INTERURBAN TRAIL IN THAT PROJECT.
BUT THAT INTERURBAN TRAIL ALSO RUNS INTO 116TH STREET.
IN ORDER TO ACCOMPLISH THAT CONNECTION AND KIND OF, YOU KNOW, HAVE THAT PROJEC INTERACT WITH THE TRAIL BEHIND IT THE RIGHT WAY, THE REDEVELOPMENT COMMISSION PARTNERED WITH OUR WONDERFUL PARKS DEPARTMENT HERE IN THE CITY, AND ONE OF THE THINGS WE ALL AGREED TO WAS PART OF THE INTERACTION, WAS THAT THE REDEVELOPMENT COMMISSION WOULD BILL A NEW TRAILHEAD AT 116TH AND INTERURBAN FOR THE ENTRANCE INTO THE TRAIL.
WE WENT OUT AND GOT-- THE TRAILHEAD WAS ACTUALLY DESIGNED BY THE PARKS DEPARTMENT AND THEIR CONSULTANTS.
LOTS OF COLLABORATION ON THAT ONE.
WE WENT OUT, AND WE TOOK THIS TO-- WE GOT MULTIPLE QUOTES FOR THIS PROJECT. AND WE ARE NOW PICKING THE LOWEST QUOTE PROVIDER. EVERYTHING HAS BEEN DONE WITH
[00:10:03]
THE PARKS DEPARTMENT DIRECTOR. IN THE LOOP AND THE DECISION-MAKING. THIS PROJECT IS GOING TO BE FUNDED BY OUR CRC URBAN PARKS FUND.IT SHOULD BE A NICE TRAILHEAD FOR THAT PROJECT.
I AM SEEKING TO HAVE THIS COMMISSION APPROVE THE AWARD OF $164,850 FROM THE URBAN PARKS FUND TO AUTHORIZE US TO FUND THE CONTRACT WITH FA WILHELM AFTER STAFF NEGOTIATES IT.
HAPPY TO ANSWER ANY QUESTIONS. >> THANK YOU, MR. DIRECTOR.
QUESTIONS? >> MR. DIRECTOR, COULD YOU JUST PAINT THE PICTURE OF THAT TRAILHEAD.
WHERE IT IS SPECIFICALLY LOCATED.
WHAT IT IS GOING TO LOOK LIKE FOR THE PUBLIC.
>> YEAH. IT IS ESSENTIALLY RIGHT TO THE WEST OF THE MUSE PROJECT. IF YOU WILL REMEMBER, THE INTERURBAN-- YEAH. ON THE SOUTH SIDE OF 116TH.
IT RUNS INTO CENTRAL PARK. THE TRAILHEAD, I MEAN, IT IS NOT EXTENSIVE. IT IS A COUPLE OF SEAT WALLS THAT SAY ACCOUNT INTERURBAN AND-- ON ONE SIDE AND "TRAIL" ON THE OTHER. WE ARE REPLACING THE TRADITIONAL KIND OF PARKS SIGN THAT WAS THERE BEFORE.
WE ARE PUTTING IN A BIT OF LANDSCAPING.
>> OTHER QUESTIONS? >> THIS IS THE PIECE THAT DIRECTLY ATTACHES TO THE NEW PROJECT.
THEY ARE RESPONSIBLE FOR WHAT'S HAPPENING ON THEIR SITE TO CONNECT TO THE TRAIL WHICH WOULD BE JUST SOUTH OF THIS TRAIL?
>> YES, CORRECT. THE SWITCHBACK CORRECTION BETWEEN THE MUSE AND THE TRAIL IS PROBABLY ABOUT 30 YARDS SOUTH OF THE TRAILHEAD. THE TRAILHEAD IS RIGHT AT
116TH. >> THAT IS NOT PART OF OUR
THE MUSE PROJECT IS DOING THE SWITCHBACK.
BUT AS AN ADDITIONAL TEAMWORK EFFORT WORKED OUT WITH THE PARKS DEPARTMENT, THE COMMISSION IS BUILDING OUT THE TRAILHEAD IN
ADDITION TO IT. >> OTHER QUESTIONS? SEEING NONE, THE CHAIR WOULD ENTERTAIN A MOTION OF APPROVAL.
>> MOTION TO AUTHORIZE EXECUTION OF CONTRACT WITH FA WILHELM ON TERMS TO BE NEGOTIATED WITH THE STAFF IN THE AMOUNT OF $164,850,
PAYABLE FROM CRC. >> THANK YOU,COMMISSIONER.
IS THERE A SECOND IN. >> SECOND.
>> THANK YOU. IT HAS BEEN MOVED AND SECONDED.
ALL IN FAVOR, PLEASE SAY AYE. >> AYE.
>> ANY OPPOSED, SAME SIGN. IT IS APPROVED.
[7.d. Action Item #4 – Approval of closing documents related to private sale of 571 Monon Blvd]
VERY GOOD. AND WE WILL NOW MOVE ON TO OUR ACTION ITEM NUMBER 4, APPROVAL OF ALL THE DOCUMENTS AND INSTRUMENTS FOR THE PRIVATE SALE OF 571 MONON BOULEVARD, THE MJ INSURANCE BUILDING. AUTHORIZING THE EXECUTIVE DIRECTOR AND ANY CRC OFFICER TO SIGN ALL THE CLOSING DOCUMENTS RELATED THERETO. ONCE AGAIN, MR. DIRECTOR.>> WHEN THE MIDTOWN PROJECT WAS FIRST CONSTRUCTED, PUT TOGETHER, ONE OF THE INCENTIVES FOR MIDTOWN PROJECT WAS CITY-BACKED BONDS. TO ENSURE THAT THOSE CITY-BACKED BONDS WOULD NEVER BE-- THAT THE CITY BACKING WOULD NEVER BE TRIGGERED, TO MAKE SURE THAT OUR TAXPAYERS WERE FOREVER SAFE, WE PUT IN A HOST OF PROTECTIONS. PROTECTING THE TAXPAYERS.
ONE OF THE PROTECTIONS WAS GUARANTEES FROM ENTITIES WITH MONEY THAT WE VETTED TO STAND IN BETWEEN THE TAX THAT IS WERE PAID BY THE BUILDINGS, IN CASE THERE WAS SOME SORT OF SHORTFALL AND A FINAL TAXPAYER GUARANTEE TRIGGER IF IN CASE THERE IS A SHORTFALL, THESE GUARANTORS IN PLACE ACTUALLY STEP IN AND PAY THE ADDITIONAL PAYMENTS NEEDED TO MAKE THE PAYMENT ON THE BOND RELATED TO THE GARAGES IN MIDTOWN.
EACH BUILDING IN MIDTOWN ESSENTIALLY HAS A TAXPAYER GUARANTY ON IT. THAT AGREEMENT IS THEN BACKED BY A GUARANTOR WITH MONEY OF THAT TAXPAYER GUARANTEE.
AS THESE BUILDINGS SELL, ONE OF THE THINGS WE MAKE SURE IS THAT WHOEVER IS THE BUYER BECOMES A REPLACEMENT GUARANTOR THAT WE VET AND ARE COMFORTABLE WITH THEIR FINANCIAL POSITION SO THAT WE ALLOW THEM TO BUY THE BUILDING AND STEP IN THE SHOES OF THE PREVIOUS GUARANTOR TO MAKE SURE THAT THE TAXPAYER GUARANTEE-- THE TAXPAYER BACKING IS NEVER TRIGGERED.
THERE IS NOW A POTENTIAL PURCHASER FOR THE MJ INSURANCE BUILDING. ME AND MY BACKGROUND IN
[00:15:04]
ACCOUNTING AND FINANCE, MIKE LEE, OUR FINANCE MANAGER, OUR WORLD-CLASS LENDER, BANKER EXTRAORDINAIRE DAVE BOWERS HAVE VETD -- BY THE WAY, DAVE HAS LED THESE VETTINGS OF REPLACEMENT GUARANTORS FOR THE LAST DECADE AS WE HAVE DONE THESE DEALS. WE HAVE VETTED THE REPLACEMENT GUARANTOR, AND I WILL DEFER TO DAVE, TO MR. BOWERS, VICE PRESIDENT BOWERS HERE TO SAY A FEW WORDS.BUT AS LONG AS THERE IS COMFORT, AND I BELIEVE THERE IS, I ASK THAT THIS BOARD, IN THAT CASE, APPROVE THE REPLACEMENT GUARANTOR TO STEP IN THE SHOES OF THE PREVIOUS GUARANTOR AND ALLOW THIS BUILDING TO BE PURCHASED BY THIS POTENTIAL BUYER. MR. BOWERS, WOULD YOU LIKE TO
SAY ANY WORDS? >> VERY BRIEFLY, MIKE DOES A GREAT JOB PUTTING TOGETHER A SPRET SHEAD SPREADSHEET.
BASICALLY, LOOKING AT THE SIZE OF THE BOND, AS THE BOND COMES DOWN, WE CAN ADJUST THE AMOUNT OF THE COVENANTS THAT ARE OUT THERE ON AN ANNUAL BASIS. SO THEY WILL REDUCE.
WHAT WE HAVE DECIDED TO DO PROBABLY SIX OR SEVEN YEARS AGO, INSTEAD OF REVIEWING THE FINANCIALS DIRECTLY, WE REVIEW THEM DIRECTLY IN THE BEGINNING. AND THEN ON AN ANNUAL BASIS, WE GET A RELIANCE LETTER FROM THE ACCOUNTING FIRM THAT DOES THE AUDIT FOR THE ENTITY THAT-- SO THAT WE ARE NOT RESPONSIBLE FOR REVIEWING IT. WE HAVE SET THESE COVENANTS UP.
THEY HAVE A VERY SPECIFIC WAY OF LOOKING AT IT.
YOU KNOW, IT IS BASED ON CASH AND CASH FLOW.
I CAN'T REMEMBER, MIKE. WHAT ARE THE --
>> THERE IS NET WORTH AND LIQUIDITY.
THE TWO THINGS WE LOOK AT. IT IS USUALLY THE PERCENTAGE OF WHAT THAT ACTUAL BUILDING PAYS TOWARDS THE BONDS.
TIMES THE AMOUNT OF OUTSTANDING PAR ON THE BONDS.
THEN THERE IS THE LIQUIDITY RATIO.
BASICALLY, THE AMOUNT OF THE TAXPAYER AGREEMENT HAS TIMES TWO
SO I THINK IT PUTS THE ONUS BACK ON OUR BORROWER-- NOT OUR BORROWER. THAT IS THE BANKING SIDE OF ME.
YOU KNOW, THE OWNER OF THIS PROJECT.
IT IS NOT THE STAND-ALONE ENTITY THAT MIGHT OWN THE PROJECT, BUT IT IS A GUARANTOR BEHIND THAT. SO WE HAVE SOMETHING ABOVE AND BEYOND THE PROJECT ITSELF. SO I THINK YOU HAVE SEEN IT ON OUR FINANCIAL STATEMENTS EVERY YEAR.
IT WILL LIST THE HALF DOZEN OR SIX OR ZEN GUARANTORS THAT WE HAVE AND THAT WE HAVE THE FINANCIAL INFORMATION AND THAT WE WILL TRACK THAT GOING FORWARD, MAKING SURE WE ARE IN
COMPLIANCE. >> THANK YOU, COMMISSIONER BOWERS. ANY QUESTIONS? I WOULD LIKE TO THANK MIKE AND COMMISSIONER BOWERS FOR THEIR HARD WORK ON THIS. AND MR. DIRECTOR, YOU AS WELL.
>> THANK YOU VERY MUCH. IF IT IS YOUR PLEASURE, IF THERE ARE NO FURTHER QUESTIONS, THE CHAIR WILL ENTERTAIN A MOTION OF
APPROVAL. >> MOTION TO APPROVE ALL DOCUMENTS AND INSTRUMENTS FOR THE PRIVATE SALE OF SITE 571 MONON BOULEVARD AND AUTHORIZE THE EXECUTIVE DIRECTOR AND ANY CRC COMMISSIONER TO SIGN ALL CLOSING DOCUMENTS RELATED HERETO. I HAVE A QUESTION.
UP IN THE ITEMS SUBJECT, IT SAYS "ANY CRC OFFICER." HERE IT SAYS "ANY CRC COMMISSIONER." IS THERE A DIFFERENCE IN THE LANGUAGE THAT WE NEED TO
I MEAN, NOT REALLY. EACH OF YOU ONCE AUTHORIZED, C CAN-- IS AN OFFICER AND A COMMISSIONER.
OF THE REDEVELOPMENT COMMISSION. >> OKAY.
WE ARE OKAY WITH THE MOTION AS IT STANDS.
YUP. >> I'M COMFORTABLE WITH IT.
>> THEN THAT IS MY MOTION. >> THANK YOU, MR. BROOKS.
>> IT'S BEEN MOVED AND SECONDED. ALL IN FAVOR, OF ACTION ITEM
ONCE AGAIN, I WOULD LIKE TO THANK YOU FOR YOUR HARD WORK ON IT COMMISSIONER BOWERS WAS A REAL ESTATE LENDER AND HAS SUBSTANTIAL EXPERIENCE IN REVIEWING POTENTIAL BORROWERS AND THAT SORT OF THING. GLAD YOU CAN DO THAT FOR US.
[8. OTHER BUSINESS]
WITH THAT, LET'S SEE. IS THERE ANY OTHER BUSINESS TO[9. EXECUTION OF DOCUMENTS]
COME BEFORE US THIS EVENING? >> THERE IS NOT, MR. PRESIDENT.
>> WELL, THEN-- LET'S SEE. OUR NEXT REGULAR MEETING WILL BE OCTOBER 18, WEDNESDAY. THAT WILL BE 6:30 P.M.
HERE IN THE COUNCIL CHAMBERS. AND SO WITH WITHOUT OBJECTION, WE ARE ADJOURNED PENDING THE EXECUTION OF DOCUMENT.
THANK YOU ALL VERY MUCH.
* This transcript was compiled from uncorrected Closed Captioning.