[1. Call to Order]
[00:00:10]
>> : AUGUST 12TH CARMEL ECONOMIC DEVELOPENT MEETING
[2. Election of Officers]
CALLING TO ORDER AT 8:08 A.M. A BEAUTIFUL MONDAY. FIRST ORDER OF BUSINESS IS THE ELECTION OF OFFICERS. DO I HAVE A MOTION?>> I WILL MOVE. >> I WILL MOVE TO RE-ELECT AS IS FROM THE CURRENT POSITIONS.
>> AND WE READ THOSE, FOR THE RECORD?
>> PRESIDENT WOULD BE ADDED TO QUEBEC. VICE PRESIDENT WOULD BE JEFFREY MAR -- MAYOR -- ALL IN FAVOR SAY, AYE..
[3. Approval of Minutes from December 7, 2023 Meeting]
>> AYE.. IMPASSES UNANIMOUS. NEXT ITEM IS THE APPROVAL OF THE MINUTES FROM NOVEMBER 7TH, 2023 MEETING. DO I HAVE ANY CHANGES OR DISCUSSIONS? OR A MOTION TO APPROVE THE MEETING
MINUTES? >> I MOVED TO APPROVE THE
MEETING MINUTES. >> I WILL SECOND.
>> ALL IN FAVOR SAY, AYE. . >> AYE.
[4. Public hearing on economic development revenue bonds for the Proscenium III project]
>> MEETING MINUTES ARE PROOF. BEFORE WE GO TO ITEM NUMBER FOUR, I HAVE SOME WORDS FROM HENRY MESTETSKY.
>> GOOD MORNING. WE HAVE ONE PROJECT IN FRONT OF THE COMMISSION TODAY. IT IS CALLED PROSCENIUM THREE. AS YANDEL, WHEN PROJECTS GET INTRODUCED AT CITY COUNCIL, BEFORE CITY COUNCIL HAS A FINAL VOTE, STATE LAW REQUIRES COMMISSION TO ALSO REVIEW AND APPROVE THE PROJECT AS WELL. THE PROJECT WILL TALK ABOUT IS PROSCENIUM THREE. I WILL SHOW A PICTURE IN JUST A MINUTE. BEFORE I GET TO THE MAIN PROJECT, I WANT TO SPEND A MOMENT ON DEVELOPER BONDS. THE -- INCENTIVE WOULD BE A DEVELOPER BOND . IN CASE ANYONE IS WATCHING, I WANT TO READ NUMBERS ONE THROUGH SIX SO IT IS CLEAR. ON DEVELOPER BONDS WHILE THE CITY ACCESSES THE ISSUANCE, -- FROM THE TAXES OF THE NEW PROJECT. THESE ARE NOT AS PTO BONDS, THEY HAVE NO TAXPAYER BACKUPS. THE TAXPAYERS ARE NOT AT RISK AND WILL NEVER BE RESPONSIBLE FOR THEM. THESE ARE DEVELOPER PURCHASED BONDS.
ALL THE RISK IS ON THE DEVELOPER. IF THE PROJECT IS NOT GENERATE THE TAX REVENUE INITIALLY DEVELOPED, THE DEVELOPER BUYS THE BOND -- AND WILL ESSENTIALLY RECEIVE LESS REVENUE. AT NO POINT DOES THIS BECOME AN OBLIGATION OF THE CITY OR TAXPAYER. WE APPRECIATE THAT OUR MEDIA HERE HAS COVERED THESE DEVELOPER BONDS IN THE PAST. AND RECOGNIZES THAT THEY ARE NO TAXPAYER RISK, BECAUSE THEY ARE NOT. WITH THAT, LET'S GET TO THE PROJECT. THE PROJECT IS CALLED PROSCENIUM III. THE RED HIGHLIGHTED AREAS SHOW THE SITE WE ARE TALKING ABOUT. JUST NORTH OF THE PROSCENIUM AND JUST EAST OF OUR CITY HALL, BETWEEN RANGELINE AND VETERANS WAY . THERE ARE A COUPLE OF OLDER HOUSES THERE -- AND THERE IS A CITY DRIVE AS PART OF IT.
THE PLAN WOULD BE WHAT YOU HAVE HERE. THIS IS A SITE PLAN. IT WOULD HAVE 63,000 SQUARE FEET OF OFFICE ALONG THE RANGELINE.
125 KEY UPSCALE HOTEL . AND 151 APARTMENT . THIS IS ALL ESSENTIALLY PLAZA LEVEL, THE RANGELINE LEVEL YOU SEE. THE SMALLER IMAGE SHELF ESSENTIALLY THE VETERANS WAY ELEVATION, OR LEVEL. THE ENTIRETY OF THIS PROJECT SITS ON TOP OF A SINGLE LEVEL PODIUM PARKING GARAGE, WE HAVE MAXIMIZED EVERY INCH OF THE SITE, TO ADD AS MUCH PARKING AS POSSIBLE. 508 OVERALL SPACES ON THE ENTIRETY OF THE SITE . THIS IS A SHOT OF THE PROJECT FROM THE EXECUTIVE DRIVE , AND THE RANGELINE ROUNDABOUT . YOU HAVE A -- 101, YOUR KITCHEN OVER HERE. AND THE
[00:05:05]
PROSCENIUM TO PROJECT CURRENTLY UNDER DISCUSSION. WHAT YOU HAVE AT THE CORNER IS THIS UPSCALE HOTEL. ALONG THE RANGELINE, WE HAVE THE 63,000 SQUARE FEET OF OFFICE, AND THEN APARTMENTS IN THE BACK. YOU CAN SEE CITY HALL IN THE BACKGROUND. IF WE LOOK FROM THE OTHER VIEW, YOU HAVE YOUR APARTMENTS, OFFICE, AND HOTEL. IT REALLY BRINGS IN THE MISSING PIECE OF URBANISM WERE TODAY WE HAVE JUST A FEW HOUSES. FINALLY, THIS IS A SHOT FROM THE CORNER, A REALLY NICE VIEW OF THE HOTEL. A STRIKING ARCHITECTURAL PRESENCE THERE. AND OBVIOUSLY, I THINK AS EVERYONE KNOWS, THE OFFICE MARKET IN THE CENTRAL CORE IS FULL, AS SOON AS THE BUILDING IS ANNOUNCED, IF WE STOP, WELL BEFORE IT IS OPEN. AS MUCH OF THIS HIGH-END OFFICE PRODUCT WE CAN PUT IN THE CORE, THE BETTER IT IS FOR OUR CITY. FINALLY, THIS IS ABOUT $123 MILLION PROJECT. RIGHT NOW, THE LAND PAYS ABOUT $50,000 A YEAR IN PROPERTY TAXES. ONCE THE PROJECT IS COMPLETED, IT WILL GENERATE ALMOST $800,000 IN PROPERTY TAXES, WITH THE SCHOOL GET A SPECIAL GETTING HUNDRED $12,000 A YEAR, BECAUSE THE REFERENDUM. OBVIOUSLY, WE ARE NO LONGER GROWING IN TERMS OF LAND IN THIS CITY. SO HOW EFFICIENT OUR MIND IS A MATTERS FOR OUR FUTURE. THIS PROJECT WILL -- HALF A MILLION DOLLARS AN ACRE, TO ABOUT $11 MILLION AN ACRE , MORE THAN A 20 FOLD INCREASE IN THE VALUE OF THIS PROJECT. I THINK MIKE HAS SOME ADDITIONAL NUMBERS RELATED TOTHIS PROJECT AS WELL. >> YES, WE HAVE ASKED MS. FOR THE JOB CREATION FOR THIS PROJECT. IT'S ESTIMATED RIGHT NOW THERE WILL BE APPROXIMATELY 366 FULL-TIME , PERMANENT JOBS WITH AN ESTIMATED ANNUAL PAYROLL OF APPROXIMATELY $23.8 MILLION . IS ALSO ESTIMATED THERE WILL BE 200 CONSTRUCTION JOBS WILL BE CREATED, THAT WILL HAVE APPROXIMATELY $10 MILLION
IN ANNUAL PAYROLL . >> WITH THAT, WE ARE HAPPY TO ANSWER ANY QUESTIONS YOU MIGHT HAVE.
>> JUST A QUICK ONE. I THINK I KNOW THE ANSWER. BUT IT MIGHT BE BENEFICIAL. THE 95 FIVE SPLIT , IT'S A LITTLE BIT HIGHER THAN TYPICAL. I KNOW THERE IS A NEWSPAPER ARTICLE WE TALKED ABOUT. KEY TOUCH ON THAT REALLY QUICK. HOW THE MARKETER INTEREST RATES IS DRIVING THAT UP A LITTLE HIGHER?
>> THAT IS CORRECT. WE TRY TO PUT TOGETHER THE BEST PROJECT FROM THE PERSPECTIVE OF THE CITY, THAT WE CAN. AS MUCH TIF SPLIT FOR THE CITY, THE BETTER IT IS. ULTIMATELY, THE SITE AND PROJECT ITSELF IS ALWAYS WANTED DICTATE THE KIND OF HELP NEEDED TO MAKE THE PROJECT HAPPEN IN THE FIRST PLACE. WE HAVE DONE 95/5 SPLIT IN HALF DECILE PAST, WE HAVE DONE 90/10 WAS IN THE PAST. WE'VE HAD -- I WILL ALSO SAY, ON THIS PROJECT, THE GARAGE IS MUCH MORE EXPENSIVE THAN WHAT WE USUALLY SEE. MANY OF OUR PROJECTS HAVE PRECAST GARAGES, THE COME UP OUT OF THE GROUND, 504 STORIES. THIS GARAGE IN THE CAST IN PLACE GARAGE, ENTIRELY UNDERGROUND. AND THAT WILL MAKE IT MORE EXPENSIVE. ULTIMATELY, -- ALL OF THOSE THINGS CAUSE US TO HAVE A 95/5 TIF SPLIT. AND THAT'S THE ON THE DEVELOPER .
A LOT OF OUR NEIGHBORS -- AND USING CITY TAXES THE BACKUP A LOT OF THESE PROJECTS. IS STILL A REALLY GOOD PROJECT FOR THE
CITY. >> CAN YOU TALK A LITTLE BIT TO THE SPLIT OF THE APARTMENTS? ARE THERE ANY FOR SALE? AND AMONG THOSE THAT ARE FOR SALE OR RENT, WHAT IS THE SPLIT IN
[00:10:07]
TERMS OF STUDIO, ONE BED, TO BED, THREE BED? AND PRICES, IF THERE'S ANY INFORMATION ON THAT.>> AT THIS POINT, NONE ARE FOR SALE. OF THE ONE-BEDROOM APARTMENT, THERE ARE 80. FOR THE TWO BEDROOM APARTMENT, THERE ARE 72. AND THEY RANGE FROM 670 SQUARE FOOT TO 800.
AND THE TWO BEDROOM GO FROM 900 TO 1100 . AND THEN THERE ARE FOUR PENTHOUSES THAT ARE ABOUT 1900 SQUARE FEET.
>> DO THEY HAVE THE RATES FOR THOSE YET?
>> THEY HAVE ESTIMATES, BUT THEY DO NOT HAVE THE FINAL RACE
YET. WE CAN SEND THAT TO YOU. >> WHAT IS THE TOTAL RESIDENTIAL POPULATION OF THE APARTMENTS THAT THEY ARE
ANTICIPATING ? >> MOSTLY STUDIOS AND ONE BEDROOM, SOME ARE TWO BEDROOM. IT IS KIND OF TOUGH TO PREDICT.
SOMEWHERE BETWEEN 150 PEOPLE AND 250 PEOPLE, PROBABLY.
>> YOU MENTIONED THE ADDITIONAL HUNDRED $12,000 A YEAR IN TAXES THAT WILL GO TO THE SCHOOL . I'M TRYING TO BACK INTO A NUMBER , OR TO PUT INTO CONTEXT. -- SOME OF THEM WILL BE SCHOOL-AGE CHILDREN GOING TO PUBLIC SCHOOL, RIGHT?
>> NOT MANY. >> I'M SORRY. I DO NOT MEAN TO CUT. IN A PREVIOUS MEETING IN FRONT OF CITY COUNCIL, WE HAVE THE DEVELOPER THAT BUILDS THE TOWN FLATS COME TO CITY COUNCIL. THAT IS IN MIDTOWN, 212 UNITS . I THINK THEY HAD THREE SCHOOL-AGE CHILDREN THAT WENT THERE. IS JUST A PROJECT OF STUDIOS AND ONE BEDROOM, THEY'RE NOT GOING TO PRODUCE THE KIND OF HOUSING WHERE FAMILIES ARE GOING TO MOVE INTO . AND WE ALSO KNOW SCHOOL ENROLLMENT IS DOWN, COMPARED TO THE PAST. AND ACTUALLY WANT MORE STUDENTS. THERE IS NEVER AN ISSUE WITH REDEVELOPMENT AND SCHOOL DISTRICT . FOR ANYONE WATCHING, THE SCHOOL GET A MAJORITY OF THE FUNDING, THE STATE ON A PER STUDENT BASIS. SO ONCE WE HAVE BUILT OUT OUR SCHOOLS, AND WE HAVE ALL OF THOSE RESOURCES INVESTED, THE SCHOOL WANT TO FILL THEM WITH AS MANY KIDS AS POSSIBLE, ESPECIALLY GIVEN THAT ENROLLMENT IS DOWN. GENERALLY, URBAN PRODUCTS LIKE THIS ARE NOT TO HAVE ONE SCHOOL-AGE
CHILDREN THERE. >> THAT DOES HELP ADDRESS WHAT I'M GETTING TO. WHAT IS THE NET MARGINAL CONTRIBUTION OR COST FOR THESE UNITS IN TERMS OF THE SCHOOL DISTRICT? IF THE AVERAGE COST PER STUDENT IS X AND THERE ARE Y NUMBER -- ARE WE BASICALLY SHORT FINDING THE SCHOOL? IT ACTUALLY SOMEWHAT THE OPPOSITE, BECAUSE IT WILL GENERATE MORE REVENUE THAT IT
WILL CONTRIBUTE IN STUDENTS. >> THAT'S RIGHT. MAJORITY OF FUNDING GO THROUGH SCHOOLS THROUGH SALES TAX. -- THE REFERENDA THAT APPLY TO ANY NEW PROPERTY IN THE CITY. WE ACTUALLY HEARD FROM SCHOOL OFFICIALS THAT CARMEL SCHOOLS RECEIVE MORE REVENUE FROM CARMEL'S TIF AREAS THAN ANY OTHER SCHOOL DISTRICT IN THE STATE RECEIVING REVENUE FROM ANY OTHER TIF AREAS AND ANY OTHER STATE. IT'S ONLY A
POSITIVE . >> CAN YOU TALK A LITTLE BIT ABOUT THE OFFICE MATRIX. YOU MENTIONED 60,000 SQUARE FEET.
HOW MANY TENANTS? WHAT TYPE OF TENANTS? HOW MUCH SQUARE FOOT PER TENANTS? JUST TO GET A LITTLE COLOR TO THE OFFICE
SPACE. >> WHILE WE KNOW THERE ARE TENANTS IN THE MARKET. THEY USUALLY MAKE PEOPLE SIGN NDAS BEFORE WE CAN TALK ABOUT THEM. THIS IS THE CHALLENGE AND CARMEL , AND OUR CENTRAL CORE. BRING THESE KIND OF OFFICE PROJECT TO THE MARKET, ESSENTIALLY. BECAUSE THEY NEED A PUBLIC/PRIVATE PARTNERSHIPS TO RISE OUT OF THE GROUND, IF YOU WILL. WE ALSO KNOW AS SOON AS THEY DO, TO GET FILLED UP.
LOOK AT THE GOREVILLE THEM -- CORE BUILDING AT THE PROSCENIUM -- THAT IS ALREADY FULL. THE BIG JOBS ANNOUNCEMENTS WILL COME ONCE THE BUILDING ESSENTIALLY IS APPROVED . IT'S
[00:15:04]
ALSO WORTH NOTING THIS BUILDING WILL TAKE LONGER THAN OTHERS, BECAUSE THEY HAVE TO SPEND ABOUT NINE MONTHS BUILDING THE PODIUM STRUCTURE UNDER THE OFFICE BUILDING. THE SPECIFIC ELISA DATA WILL NOT BE KNOWN , LIKELY, UNTIL THE PROJECT IS APPROVED AND MOVING FORWARD. CORPORATION DO NOT WANT TO ANNOUNCE PLANS LIKE THAT WITHOUT EVERYTHING BEING SET IN KNOWN, AS A REPUTATIONAL RISK.>> TO BE CLEAR, THIS IS OFFICE SPACE AND NOT RETAIL SPACE.
>> 63,000 SQUARE FEET OF OFFICE. HAVE ABOUT 15,000 SQUARE FEET OF RETAIL SPACE AS WELL. WHICH IS THE FIRST WAR, ESSENTIALLY, OF THE OFFICE BUILDING .
>> CAN TALK ABOUT THE HOTEL. THERE ARE MANY IN CARMEL WHO HAVE MEMORIES OF THE LAST HOTEL THAT CARMEL WAS INVOLVED IN. HE TALKED ABOUT HOW THIS PROJECT IS DIFFERENT FROM THAT? AND TO MAKE CLEAR ANY OWNERSHIP STAKE THAT CARMEL OR CARMEL TAXPAYERS
HAVE IN THAT? >> THANK YOU FOR THAT QUESTION.
YOU ARE REFERRING TO THE HOTEL CARMICHAEL, A PUBLIC/PRIVATE PARTNERSHIP. WITH THE CITY ESSENTIALLY OWNS HALF OF THE HOTEL. THEY INVESTED A LOT OF MONEY TO BRING A PREMIER, LANDMARK HOTEL TO THE CITY AND KIND OF SET THE TONE FOR THE KIND OF LEVEL OF HOSPITALITY INDUSTRY WE CAN HAVE HERE. THIS IS JUST A DEVELOPER TIF, WHERE THE CITY IS NOT PUTTING IN THE MONEY. WE ARE PUTTING IN A PIECE OF LAND AND GETTING FREE PARKING. THIS PROJECT IS MORE LIKE MOST OF THE OTHER PROJECTS YOU SEE WHERE THE CITY HAS NO FINANCIAL INVOLVEMENT, OTHER THAN ITS RESPONSIBILITIES UNDER COLLECTING TAX REVENUES AND SENDING 95% OF IT TOWARD THE PROJECT. THAT IS THE EXTENT OF THE PROJECT DENSITY RESPONSIBILITY. IT IS NOT LIKE THE CARMICHAEL AT ALL. AT THE SAME TIME, THE OCCUPANCY OF THE CARMICHAEL SHOWS THAT WE CAN HAVE MORE LUXURY IN A WILL HOTELS IN OUR WALKABLE CORE AND IT WOULD BE SUCCESSFUL. THE FREE MARKET, ESSENTIALLY, TAKE THIS ON.
>> HAS THE DEVELOPER INDICATED ANYTHING ABOUT THEIR ASSUMPTIONS IN TERMS OF OUR GIVES THE RATES, AND HOW IT COMPARES WITH THE CARMICHAEL? AND SINCE IT IS PRIVATE, I GUESS THERE IS NO EXPECTATION IS THAT THEY SHARED. IF THEY
HAVE, YOU TALK ABOUT THAT ? >> THE DEVELOPER HAS A CONSTRUCTION PRO FORMA FOR THE HOTEL. THEY'RE LOOKING AT TWO DIFFERENT FLAGS. THAT WILL BRING ADDITIONAL OWNERS TO THE HOTEL. THE DEVELOPER HAS -- WHICH MEANS HOTEL LEADERS WANT TO INVEST AND PUT UP A PROJECT HERE, WHICH IS INDICATIVE OF MARKET FORCES MORE THAN ANYTHING ELSE.
>> FOR -- TO GO UP, THEY ARE ASSUMING AT LEAST 70% PLUS
OCCUPANCY . >> HAS THERE BEEN ANYTHING PUBLIC ABOUT WHAT BRAND OF HOTEL IS BEING CONTEMPLATED?
>> THEY ARE LOOKING AT SEVERAL UPSCALE HOTEL BRANCHES RIGHT NOW. IN OUR AGREEMENT, IT HAS TO BE AN UPSCALE HOTEL ON WHAT IS CALLED AN SDR CHAIN SCALE, INDUSTRY RUBRIC FOR GROUPING DIFFERENT HOTEL BRANDS INTO THEIR CLASS LEVELS, IF YOU WILL. THIS HOTEL WILL HAVE TO BE AN UPSCALE HOTEL.
>> CAN WE SHIFT TO TALKING ABOUT THE PARKING? YOU
MENTIONED 508 SPACES? >> 508 OVERALL SPACES. AND PAST PROJECTS, THAT 1.5 SPACES PER UNIT, OR BETTER. IF THAT IS STILL TRUE, WE ARE SOMEWHERE NEAR THE TWO TO 2050 MARK -- WHAT IS THE MIX OF OFFICE, EVENING, VERSUS DAYTIME USAGE.
PEOPLE WORK FROM HOME MORE. WHAT IS THE PLAN? AND HOW DOES THAT MAKE CHICKS NOW BALANCE OUT THE OFFICE AND RESIDENTIAL?
AND THE HOTEL? >> IT ALMOST PERFECTLY BALANCES OUT. FOR URBAN OFFICE. 3.5 PER THOUSAND, OR FOUR PER THOUSAND,
[00:20:08]
THAT IS A PRETTY GOOD COUNT. IF WE HAVE 63,000 FEET, TIMES FOUR, 250 SPACES ROLLS ON IS STUDIO, ONE VETERAN, IT'S ABOUT 1.2 SPACES. HOTELS ARE INTERESTING THESE DAYS. BECAUSE SO MANY PEOPLE JUST TAKE AN UBER FROM THE AIRPORT .ESPECIALLY IN SPACES MORE WALKABLE. IF YOU THING ALONG U.S. 31, YOU'RE PROBABLY RENTING A CAR. BUT IF YOU THINK THAT THE CARMICHAEL OR THIS HOTEL, YOU'RE PROBABLY USING AN LYRICAL HERE. IS AN OF CATTY CORNER FROM THE GROCERY STORE.
OBVIOUSLY, THIS PROJECT WORKS BECAUSE THE HOTEL USERS ARE SLEEPING THERE AT NIGHT SINGLE-SPACES GENERALLY. AND THE OFFICE USERS ARE THERE AT THE DAY, USING THE SAME EXACT SPACES. THE OTHER INTERESTING THING ABOUT THIS GARAGE IS, WHILE MOST OF THE GARAGES ARE 75% OPEN TO THE PUBLIC. THIS WILL BE 80% OPEN TO THE PUBLIC. IT WILL BE A DIFFERENT MIX, EVEN MORE OPEN PUBLIC PARKING SPACES. GENERALLY, WE WORK ON A FIRST COME, FIRST SERVE BASIS. JUST LIKE IT DOES AT PROSCENIUM II. WE DO NOT EXPECT ANY PARKING ISSUES. WE ACTUALLY EXPECT THIS TO FURTHER PROVIDE ACCORDION PARKING FOR SPECIAL EVENTS, HE WILL -- IF YOU WILL .
>> ARE THERE ANY LOCAL BUSINESSES THAT HAVE INDICATED A NEED FOR SUSTAINED HOTEL TELLING SERVICES? LIKE FOR PUBLIC AIRLINES. THEY HAVE CREWS THAT COME IN FOR EXTENDED TRAININGS AND SERVICING. AND THEY HAVE THEIR OWN HOTEL FUNCTIONING. DO THEY NEED OTHER SPACE? ARE THERE OTHER BUSINESSES WITH SIMILAR PROFILES?
>> YES. >> ABSOLUTELY. THE CARMICHAEL IS VERY BUSY WITH CORPORATE CLIENTS. I ACCEPT THIS HOTEL TO BE BUSY. WE DO NOT HAVE ENOUGH WALKABLE HOTEL ROOM IN OUR CORE THE CARMICHAEL IS ALWAYS SOLD OUT. EXCEEDING WELL ABOVE THE OCCUPANCY . IT SHOWS OUR MARKET NEEDS MORE HOTELS LIKE THIS.
>> I WILL NOT GIVE AWAY THE COMPANY. BUT I KNOW MY WIFE'S COMPANY, THEY HAD TO GO TO KEY STAR AT THE CROSSING HOTELS, THEY WERE NOT HAPPY. BECAUSE THEY DO LIKE STAYING IN CARMEL.
LAST YEAR IT WAS AN ISSUE. >> GOING BACK TO THE PARKING.
THE CARMEL GAZEBO CONCERTS ARE WELL ATTENDEEAT ASSET FOR NEIGHBORS. I AM NOT SURE HOW MUCH PARKING YOU HAVE SEEN THERE IN THE PAST. WILL THAT PARKING GARAGE OR AVAILABILITY HELP? WHAT IS THE ANTICIPATED INTERACTION WITH SOME OF THE EVENTS WE HAVE AT CITY HALL, SUCH AS THE GAZEBO
SERIES? >> THE RULES FOR PARKING IN THESE GARAGES IS OPEN TO THE PARKING -- PUBLIC, FIRST-COME, FIRST-SERVED. -- THE SAME WAY OUR MIDTOWN GARAGES THAT ARE TECHNICALLY THERE FOR OTHER USES ARE ALSO THERE FOR ANYONE THAT WANTS TO VISIT MIDTOWN. THIS IS MORE OF THE SAME THAT OUR RESIDENTS HAVE GUINEY FREE, ACCESSIBLE , PUBLIC PARKING.
>> LET ME ASK A QUESTION ON BEHALF OF SOME NEIGHBORS WHO WERE GOING TO ASK ABOUT DEVELOPER BONDS AGAIN. THERE IS GOING TO BE A NEIGHBOR WHO ASKED, IF THE DEVELOPER IS AT RISK AND THERE IS NO TAXPAYER LIABILITY, THEN WHAT HAPPENS IF THE PROJECT FAILS , OR THE DEVELOPER GOES UNDER? AND NOW WE HAVE AN ASSET, SOMETHING THAT HAS BEEN BUILT AND HAS EXPENSE, BUT NO ONE TO PAY FOR IT? DOES THE CITY HAVE TO PAY FOR THAT EQUIPMENT? OR RAISE RATES OTHERWISE? OR GET BLENDED INTO OVERALL TAXES? HOW DO THOSE THINGS THEY SEPARATE?
[00:25:02]
>> WHEN YOU SAY THE PROJECT FAILS, WHAT YOU MEAN?
>> ONE, IF NOT BUILT, THE OTHER, IT IS.
>> IF NOTHING HAPPENS ON THE SITE, NOTHING HAPPENS ON THE SITE. WHICH IS SOMETHING THAT COULD HAPPEN. IN THIS PROJECT, WE ARE PUTTING IN SOME LAND. IF THE PROJECT IS NOT MOVING FORWARD, IF THERE IS SOME DEFAULT, WE GET THE LAND BACK.
NO HARM, NO FOUL. IF THE PROJECT IS BUILT, AND THE TAXES THE DEVELOPER WAS EXPECTING TO PAY AND GET BACK IS LESS THAN PROJECTIONS, THE PROJECT IS ALREADY BUILT . SO IT HAS ATTENDANCE, -- TENANTS , AND HAVE PEOPLE PAYING INCOME TAXES, AND OFFICER JOBS ALREADY. IT IS JUST A MATTER OF -- THERE ARE INVESTED TO BUY THINGS OUT OF FORECLOSURE ALL THE TIME. THERE ARE INVESTORS THAT ARE SECOND AND THIRD OWNERS OF PROPERTY ALL THE TIME. THAT IS THE WAY THE MARKET WORKS. WE KNOW IF YOU HAVE A BUILDING, YOU BETTER TO YOUR TAXES, OR THE CITY OR COUNTY WILL COME AFTER YOU.
ONCE THE BUILDING IS ILL, THE TAXES GET PAID. ON THE DEVELOPER, TIF, THERE IS NO RISK TO US.
>> IF SOMEONE BANKRUPTS THEMSELVES TO BUILD A REALLY NICE BUILDING, THE SECOND OWNER OF THE BUILDING IS GOING TO PAY ALL THE TAXES. NO OTHER CITY LIABILITY THERE. DOES THAT
ANSWER YOUR QUESTION? >> YES, THAT'S A CLEAR, CONCISE ANSWER FOR THOSE WHO WOULD SAY, BUT, WAIT.
>> ANY OTHER QUESTIONS? >> NO, IT LOOKS GOOD.
>> WITH THAT, MOVING ON TO THE PUBLIC HEARING . I WILL OPEN THAT UP . IT IS 8:34 . I DO NOT SEE ANYBODY HERE . I WILL CLOSE THE PUBLIC MEETING PORTION AT 8:35 . ITEM NUMBER FIVE IS THE
[5. Resolution approving economic development revenue bonds for the Proscenium III project and related Report]
RESOLUTION APPROVING ECONOMIC DEVELOPMENT REVENUE BONDS FOR THE PROSCENIUM III PROJECT. DO I HAVE ANY MOTION TO APPROVE?>> ALL IN FAVOR, SAY, AYE. >> AYE.
>> THE RESOLUTION PASSES. IS THERE ANY OTHER BUSINESS ?
>> THERE IS NONE, MR. PRESIDENT .
>> WITH THAT, IS THERE A MOTION TO ADJOURN ?
>> SO MOVED. >> SECOND-PERIOD -- SECOND .
>> THANK YOU .
* This transcript was compiled from uncorrected Closed Captioning.