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[00:00:07]

GOOD EVENING, LADIES AND GENTLEMEN.

THIS IS THE REGULAR MONTHLY MEETING OF THE CARMEL REDEVELOPMENT COMMISSION.

WE'RE HERE IN THE COUNCIL CHAMBERS, AND WE DO HAVE A QUORUM OF OUR MEMBERS PRESENT.

SO I'LL CALL OUR MEETING TO ORDER, AND I'LL ASK YOU TO JOIN ME IN THE PLEDGE OF ALLEGIANCE.

[1. 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.

THANK YOU.

WE'LL NOW PROCEED ON TO OUR NEXT AGENDA ITEM, WHICH IS THE APPROVAL OF MINUTES FOR OUR JUNE 19TH MEETING.

[2. APPROVAL OF MINUTES]

ARE THERE ANY CORRECTIONS OR ADDITIONS TO THE MINUTES AS PROVIDED TO YOU IN YOUR PACKETS? MOVE TO APPROVE. THANK YOU SIR.

SECOND BEEN MOVED AND SECONDED.

SO I'LL ASK FOR ALL IN FAVOR, PLEASE SAY AYE.

AYE, AYE.

ANY OPPOSED? OKAY. THEY ARE APPROVED.

THANK YOU VERY MUCH.

WE'LL NOW MOVE ON TO OUR FINANCIAL MATTERS.

[3.a. Cash Flow Report]

AND WE'LL BEGIN WITH THE CASH FLOW REPORT.

AND MR. DIRECTOR, YOU'RE GOING TO DO THE CASH FLOW.

THAT'S RIGHT. HEY, EVERYONE.

HENRY MYSTETSKYI, REDEVELOPMENT DIRECTOR.

OUR FINANCE DIRECTOR IS ON VACATION THIS WEEK.

SO HE'S ENTRUSTED ME WITH THIS IMPORTANT TASK.

CASH FLOW, OUR END OF MONTH BALANCES FOR JUNE.

WE HAVE ABOUT 5.59 MILLION IN CASH, ABOUT 2.9 MILLION IN IN TIP ALL TOGETHER WITH CASH TIP.

AND OUR RESTRICTED FUNDS IN THE VARIOUS ESCROW ACCOUNTS IS $17,338,643.

I'M HAPPY TO ANSWER ANY QUESTIONS ABOUT THAT.

OR I CAN MOVE ON TO THE APPROVAL OF CLAIMS.

[3.b. Approval of Claims]

THANK YOU, MR. DIRECTOR.

ANY QUESTIONS REGARDING OUR JUNE BALANCES? NO. SEEING NONE, WE WILL MOVE ON TO THE APPROVAL OF CLAIMS ONCE AGAIN.

MR. DIRECTOR IN FRONT OF YOU TODAY, WE HAVE A NUMBER OF INVOICES.

SO THE NON-OPERATING EXPENSES TOTAL $554,937.

AND 2021 AND THE TIFF BOND TIFF CLAIMS TOTAL A LITTLE OVER $200,000.

THANK YOU, MR. DIRECTOR.

QUESTIONS OF THE DIRECTOR REGARDING THE CLAIMS THAT ARE BEFORE US THIS EVENING? NO. IF NOT, THEN CHAIR WOULD ENTERTAIN A MOTION OF APPROVAL.

SO MOVED. SO MOVED.

SECOND. IT'S BEEN MOVED AND SECONDED.

ALL IN FAVOR, PLEASE SAY AYE.

AYE. ANY OPPOSED? SAME SIGN. IT IS APPROVED.

THANK YOU VERY MUCH. WITH THAT, WE WILL NOW MOVE ON TO THE EXECUTIVE DIRECTOR'S REPORT ON PROPERTIES.

[4. EXECUTIVE DIRECTOR REPORT]

MR. DIRECTOR, I'M GOING TO TRY TO MOVE TO THIS REPORT AS FAST AS I CAN BEFORE THIS NOTIFICATION ON MY COMPUTER RESTARTS MY COMPUTER.

SO LOTS OF PROGRESS GOING ON IN CITY CENTER.

THERE'S AN IMAGE OF THE RENT FOR YOU, AS WELL AS THE WINDSOR, WHICH IS LOOKING BEAUTIFUL.

FIRST ON MAIN HAD ITS DEDICATION CEREMONY LAST MONTH.

AGAIN, THAT OFFICE IS FULL.

LOTS OF PROGRESS GOING ON AT WELL, LET'S SEE CIVIC SQUARE THAT'S IN DESIGN NOW, THOSE CIVIC SQUARE CONDOS TONY BURKE IS DOING THOSE BIG NEWS IN HAMILTON CROSSING.

THE REPUBLIC HEADQUARTERS IS UNDERWAY.

SO THAT PICTURE IS ACTUALLY A BIT DATED.

IF YOU DRIVE BY THERE, YOU'LL SEE MUCH MORE PROGRESS GOING ON ON THE HEADQUARTERS, WHICH IS A BIG DEAL.

PRESIDIUM TWO IS MOVING RIGHT ALONG.

IT'S THE FACADE ON THAT IS LOOKING BETTER AND BETTER EVERY DAY.

REALLY GOOD ARCHITECTURAL DETAILS.

WE CAN BE REALLY PROUD OF THAT PROJECT.

111 SOUTH RANGE LINE.

THIS IS WHERE 1933 LOUNGE IS GOING, IS ROARING AHEAD.

YOU CAN SEE SOME OF THE DETAILED BRICK WORK THAT'S ALREADY GOING ON IN THE BACK OF THE BUILDING.

SO NOT FEATURED IN THIS PICTURE, BUT YOU CAN ALREADY SEE SOME OF THOSE DETAILS.

THAT'S GOING TO BE A GOOD LOOKING PROJECT.

WORK CONTINUES ON ICON ON MAIN.

I MENTIONED THIS ON MONDAY AT CITY COUNCIL.

I SAW SOME FACEBOOK POSTS THAT SHOWED THAT PICTURE THERE THAT YOU SEE IN THE BOTTOM LEFT AND WAS WONDERING WHY KAMAL WOULD ALLOW SOMETHING LIKE THAT TO GET BUILT.

SO FOR ANYONE WATCHING, THAT IS NOT THE FINAL PRODUCT.

THAT'S JUST THE GARAGE.

IT WILL GET WRAPPED WITH BEAUTIFUL ARCHITECTURE.

NOT TO WORRY.

END OF THAT PROJECT WILL INCLUDE A PLAZA THAT'S FEATURED THERE IN THE IMAGE ON THE CORNER.

LOTS OF WORK GOING ON ACROSS THE WAY AT THE AT&T SITE REDEVELOPMENT, BOTH ON THE MERCHANTS BANK EXPANSION, THE OFFICE BUILDING AND ALSO ON THE MULTIFAMILY THERE.

THE TOWNSHIP PROJECT CONTINUES MOVING FORWARD.

[00:05:03]

CRC IS ABOUT A MILLION AND A HALF IN THAT CHECK OUT.

NEXT TIME YOU ARE WALKING BY THAT PROJECT, CHECK OUT THE BRICK DETAILS AND THE CORNICE LINE ON THAT BUILDING.

IT'S REALLY BEAUTIFUL.

THAT'S GOING TO BE A REALLY NICE BUILDING.

REDEVELOPMENT COMMISSION BUILT OUT THE A TRAILHEAD AT THE INTERURBAN FOR THE PARKS DEPARTMENT.

WE LOVE TO SUPPORT OUR FRIENDS EVERY CHANCE WE GET.

AND FRESH OFF THE PRESSES, WE HAVE THE WINTER FARMERS MARKET, WHICH IS IN A BUILDING THAT IS ESSENTIALLY MANAGED BY THE REDEVELOPMENT COMMISSION.

NOW PEOPLE WILL KNOW WHERE THEY'RE DRIVING TO BECAUSE THEY WILL SEE THE BEAUTIFUL BUTTERFLIES AND BUNNIES, LEADING THEM TO FRESH PRODUCE AT THE CARMEL WINTERS FARMERS MARKET. I DIDN'T GET ANYTHING FOR SAYING THAT.

JUST LOVE OUR PARTNERS.

THE PROBABLY THE LAST THING THAT I WANT TO JUST SPEND A SECOND ON IS TO TALK ABOUT A NEW PROJECT THAT WAS INTRODUCED BY THE REDEVELOPMENT COMMISSION ON MONDAY AT CITY COUNCIL.

FOR ANYONE WATCHING.

THIS PROJECT IS A DEVELOPER TIFF, WHICH MEANS THAT THERE IS NO RISK FOR THE CITY FOR INCENTIVIZING A PROJECT LIKE THIS.

IF THE THE REVENUE, THE TAX REVENUE THAT THE DEVELOPER THINKS IS GOING TO BE THERE DOESN'T COME IN, IT IS NOT THE CITY'S OBLIGATION TO FILL THAT GAP IN ANY WAY.

THE CITY IS NOT AT RISK.

THE CITY IS NOT ON THE HOOK.

THE TAXPAYERS ISN'T ON THE HOOK, AREN'T ON THE HOOK.

THE TAX RATE IS NOT GOING TO CHANGE.

DEVELOPER BONDS ARE SUCH WHERE THE DEVELOPER TAKES ON ALL THE RISK OF THE REVENUE PAYING THEM BACK FOR THEIR INVESTMENT NOT BEING GENERATED.

RISK ON THE DEVELOPER, NOT ON THE CITY.

THE PROJECT WE'RE TALKING ABOUT, PROSCENIUM THREE IS BETWEEN CITY HALL AND RANGELINE ROAD.

IT ENCOMPASSES THREE.

WELL, I WOULD CALL THEM RESIDENCES, BUT THEY HAD BUSINESSES IN THEM.

CITY DRIVE AND A KIND OF AN OLDER OFFICE, SMALL OFFICE BUILDING.

THE PLAN IS TO IS TO HAVE A 152.

125 ROOM HOTEL AT THE ROUNDABOUT CORNER, ABOUT 63,000FT² OF OFFICE, OVER ABOUT 15,000FT² OF RETAIL ALONG RANGELINE AND THEN APARTMENTS ON THE BACK SIDE, CLOSER TO VETERANS TO HELP FACILITATE THE REST OF THE PROJECT.

AS YOU CAN SEE, THE BEST PART IS THAT, WELL, MANY BEST PARTS.

ONE OF THEM IS THIS IS ALL PARKED UNDERGROUND, AND YOU CAN SEE IN THE PICTURE ON THE BOTTOM LEFT WHERE ESSENTIALLY THE AREAS IN GRAY THERE ARE THE STAIRCASES AND ELEVATORS.

SO WE'RE ESSENTIALLY MAXIMIZING THE ENTIRETY OF THAT FOOTPRINT TO ADD AS MANY PARKING SPACES AS POSSIBLE AND ALL.

THERE'S GOING TO BE 508 PARKING SPACES UNDERGROUND AND ON TOP OF THE SITE.

THIS IS A SHOT LOOKING NORTH WEST WITH THE LUXURY HOTEL THERE AT THE CORNER FRAMING THE ROUNDABOUT.

THE NEW OFFICE THERE, LONG RANGE LINE WITH THE APARTMENTS IN THE BACK, AND YOU CAN SEE CITY HALL IN THE BACKGROUND.

IF YOU PEEK OUT THE WINDOW, THEY MAY.

THEY MAY SEE US IN THE PICTURE.

JUST KIDDING.

THIS IS A REALLY IMPORTANT PROJECT.

IT CONTINUES KIND OF THE VIBRANCY THE PRESIDIUM ONE AND TWO HAVE STARTED CONTINUES THAT WALKABILITY.

WE KNOW TODAY THAT DEVELOPERS REALLY AREN'T GOING TO DO APARTMENT PROJECTS WITH LESS THAN 250 APARTMENTS.

IT DOESN'T MAKE SENSE FOR THEM FROM A MANAGEMENT, FROM AN ECONOMIES OF SCALE STANDPOINT.

SO IT IS WORTH POINTING OUT THAT THIS PROJECT ONLY HAS 150 APARTMENTS, 152.

THAT'S THE BARE MINIMUM NEEDED TO MAKE THIS PROJECT WORK, FRANKLY.

OTHERWISE IT WOULDN'T AT ALL.

SO THIS IS NOT, AS I MENTIONED, A COUNCIL.

THIS IS NOT AN APARTMENT PROJECT.

THIS IS AN OFFICE AND LUXURY HOTEL PROJECT WITH A SMALL APARTMENT COMPONENT TO FACILITATE THE WHOLE THING.

THIS IS THE VIEW, THE BACK VIEW OF IT.

THE PARK IMPACT FEES ON THIS PROJECT ARE SUBJECT TO AN EXISTING AGREEMENT ALREADY APPROVED WITH DPW, BUT ALSO WILL HELP BUILD THAT GREEN SPACE THAT YOU SEE THERE ALONG VETERANS SO YOU CAN IMAGINE WHEN WE HAVE, YOU KNOW, OUR MIDWAY RIDES FOR THE KIDS DURING CARMEL, DURING CARMEL FEST.

THAT'S ADDITIONAL SPACE THAT'S UTILIZED FOR SOMETHING LIKE THAT.

CITY HALL ON THE BOTTOM.

THAT IS CORRECT. FOR ANYONE THAT COULDN'T HEAR THAT ON THE TV, THAT IS CITY HALL THERE AT THE BOTTOM IN THAT VIEW.

THIS IS ANOTHER VIEW. IT'S THIS THIS IS THE VIEW FROM THE EXECUTIVE DRIVE ROUNDABOUT.

SO WE'RE GOING TO HAVE, YOU KNOW, THE BK 101 BUILDING AND PROSCENIUM IS JUST SOUTH OF THIS.

JUST TO THE EAST OF THIS IS NOW PROSCENIUM TWO.

SO WE'VE REALLY CREATED A REALLY PROPER ENTRANCE TO OUR CIVIC SQUARE AREA, TO OUR CITY HALL AREA.

THAT LOOKS BETTER THAN THE WAY THAT IT LOOKS TODAY, WHICH IS THIS IF THE CITY COUNCIL BLESSES THE TIF BOND, IT'S A IT'S AN ASK FOR A TIF BOND WITH A 95 FIVE SPLIT OF THE.

WE WILL BE GOING BACK TO COUNCIL AND ASKING THE COUNCIL TO CREATE ALLOCATION AREAS AND TO PUT THAT CITY PARCEL AS LABELED ON THE MAP INTO THE PROJECT TO HELP MAKE THE PROJECT HAPPEN. ONE OF THE THINGS WORTH NOTING IS WE USUALLY HAVE A 7525 PARKING SPLIT ON THESE PROJECTS, WHERE 75% OF THE

[00:10:08]

PARKING IS FREE AND OPEN TO THE PUBLIC ON A FIRST COME, FIRST SERVE BASIS.

IN THIS INSTANCE, BECAUSE WE ARE PUTTING IN A CITY DRIVE WHERE CURRENT CITY VEHICLES PARK FOR THE FIRST TIME EVER, THERE'S GOING TO BE AN 80 OVER 20 PARKING SPLIT SO THAT MORE CARS CAN PARK THERE, INCLUDING CITY VEHICLES, TO MAKE ALL THIS WORK.

SO WE'RE NOT NECESSARILY LOSING PARKING.

WE ALSO JUST GENERALLY KNOW THAT ONCE THE COURTHOUSE AND THE CLERK'S OFFICE MOVED TO ITS CURRENT LOCATION, THE THE KIND OF THE PARKING DEMAND ON THE EXISTING CITY LOT IS JUST NOT WHAT IT USED TO BE.

NEVER MIND THAT OVER A THOUSAND FREE PARKING SPACES WITHIN WALKING DISTANCE THAT WE'RE GOING TO HAVE ONCE THIS GETS BUILT, IF COUNCIL CHOOSES TO MAKE IT HAPPEN.

SO PROBABLY THE FINAL PART OF THIS IS OUR ASSESSED VALUE PER ACRE ON THIS SITE JUMPS FROM HALF A MILLION TO, YOU KNOW, 20 FOLD TO 11.2 MILLION.

THAT'S A HUGE JUMP IN ASSESSED VALUE FOR THE CITY.

THE SCHOOLS, YOU KNOW, RIGHT NOW, THIS, THIS, THESE PARCELS GENERATE $47,000 A YEAR IN TAXES SPLIT AMONGST ALL THE DIFFERENT TAXING UNITS CITY, SCHOOL, LIBRARY, COUNTY.

IF GOD WANTS THIS PROJECT, IF THIS PROJECT IS APPROVED, ONCE BUILT, THE SCHOOLS ALONE ARE GOING TO GET AN EXTRA $112,000 A YEAR OFF THIS PROJECT JUST FROM THE INCREASE IN ASSESSED VALUE THANKS TO THE REFERENDA.

SO IT'S A IT'S A HUGE CHANGE TO WHAT'S THERE NOW.

IT'S DONE IN THE MOST VIBRANT, WALKABLE WAY THAT WE COULD WITH THE LEAST AMOUNT OF APARTMENTS.

AND SO THIS PROJECT GOT INTRODUCED AT CITY COUNCIL ON MONDAY.

WE'LL BE HAVING A FINANCE COUNCIL FINANCE COMMITTEE MEETINGS AND HOPEFULLY SEE SOME POSITIVE, POSITIVE ACTION ON THIS IN THE NEXT MONTH AND A HALF.

AND WITH THAT, I'M HAPPY TO ANSWER ANY QUESTIONS ABOUT ANYTHING GOING ON IN THE CITY OR THIS PROJECT IN PARTICULAR.

I DO HAVE A QUESTION.

DO WE HAVE A PROPOSED FLAG YET FOR THE HOTEL? WE DON'T.

IN OUR AGREEMENT, IT HAS TO BE AN UPPER UPSCALE HOTEL ON THE STR CHAIN SCALES, WHICH FOR ANYONE WHO DOESN'T KNOW, THAT'S KIND OF AN INDUSTRY STANDARD THAT RANKS THE DIFFERENT HOTEL BRANDS OR FLAGS INTO UPPER, UPSCALE, UPSCALE LUXURY.

SO THE THE MARRIOTT AUTOGRAPH IS LIKE AT A LUXURY STATE.

UPPER UPSCALE LIKE THIS COULD BE IF IT'S A HILTON, THIS COULD BE A CURIO, WHICH IS JUST ONE STEP BELOW THE AUTOGRAPH.

IT COULD ALSO, IF IT HAS AN EXTENDED STAY COMPONENT, THAT CAN BE A HYATT HOUSE HYATT PLACE MODEL, WHICH IS KIND OF LIKE THE THE MOST UPSCALE EXTENDED STAY FLAG.

WE KNOW HYATT ISN'T IN THE CORE.

I MEAN, OBVIOUSLY MARRIOTT WITH THE CARMICHAELS IN THE CORE, BUT HEIGHT IS NOT AND HILTON IS NOT.

AND SO IN OUR IN OUR TERM SHEET AND OUR DEAL, WE'RE GIVING THE DEVELOPER SOME FLEXIBILITY.

BUT IT HAS TO BE ONE OF THESE UPPER UPSCALE HOTELS REGARDLESS OF THE FLAG.

QUESTION. OTHER QUESTIONS FOR THE DIRECTOR? YES, HENRY, I DID WATCH THE CITY COUNCIL PRESENTATION ON MONDAY, AND I THINK IT WOULD BE GOOD.

I DON'T KNOW IF JUST FOR US, BUT FOR THE PUBLIC IS WHEN WE TALK ABOUT SPLITS AND TIFF AND, YOU KNOW, IN A VERY HIGH LEVEL, WHAT TIFF CAN BE USED FOR.

NUMBER ONE. NUMBER TWO, WHEN THE DEVELOPER COMES IN AND THEY SAY, HEY, I WANT 100% OF THE TIFF OR 95% IN THIS CASE, TIFF OR IT'S 5050 TIFF.

THERE IS A SCIENCE BEHIND HOW WE COME TO THAT NUMBER.

IT'S NOT THAT THIS IS WHAT THEY DESIRE.

AND BECAUSE OBVIOUSLY WE WANT AS MUCH TODAY MONEY.

AND YOU KNOW WHAT? WE HAVE TO HAVE A BOND OF A CERTAIN SIZE BECAUSE THE TYPE OF DEVELOPMENT THAT WE WANT, THE DENSITY THAT WE WANT THAT WORKS.

AND MAYBE YOU COULD GO THROUGH THAT BRIEFLY WITH US, BUT ENCOURAGE BEFORE IT GETS TO FINANCE COMMITTEE, THE DEVELOPER TO SORT OF BRING THAT TO THE FOREFRONT.

SO THESE QUESTIONS CAN BE ASKED NOT ONLY BY ANSWERED FOR THE CITY COUNCIL, BUT ALSO THE PUBLIC.

YEAH, THOSE ARE VERY GOOD QUESTIONS.

AND I SUSPECT THAT A LOT OF THIS CONVERSATION WILL HAPPEN AT, AT, AT FINANCE COMMITTEE.

I MEAN, TO ANSWER YOUR QUESTION, I THINK, LOOK, THERE'S A THERE'S A BASELINE IN THE SUBURBS AND THE BASELINE IS IF IT'S RESIDENTIAL THEN YOU'RE BUILDING SINGLE FAMILY TRADITIONAL NEIGHBORHOODS.

IF IT'S COMMERCIAL, YOU'RE PROBABLY BUILDING A STRIP CENTER WITH A BIG PARKING LOT.

AND IF IT'S MULTIFAMILY, IT'S PROBABLY GARDEN STYLE APARTMENTS, WHICH IS APARTMENT BUILDINGS.

MAYBE THEY'RE TWO STORIES, MAYBE THEY'RE TALLER IN A GIANT SEA OF PARKING LOT.

AND THAT'S WHAT THE SUBURBS BUILD, AND THAT'S WHAT DEVELOPERS ARE GOING TO BUILD.

AND THEY'RE NOT GOING TO BUILD ANYTHING MORE WALKABLE THAN THAT.

THEY'RE NOT GOING TO BUILD ANYTHING MORE VIBRANT THAN THAT ESPECIALLY IN INDIANA, ESPECIALLY IN SUBURBAN INDIANA, BECAUSE YOU CAN ALWAYS DRIVE FIVE MILES NORTH AND LAND IS

[00:15:01]

CHEAPER, AND THERE'S PEOPLE THERE TOO.

AND SO IT JUST MAKES SENSE TO CONTINUE BUILDING OUT THIS KIND OF SPRAWLING SUBURB THAT, FRANKLY, THAT'S HOW THE REST OF THE UNITED STATES IS BUILT OUT AS WELL.

SO IF WE WANT TO CREATE A WALKABLE DISTRICT, THE CITY HAS TO I WOULDN'T SAY TAKE THE LEAD, BUT THERE HAS TO BE A PUBLIC PRIVATE PARTNERSHIP IF WE WANT TO ELEVATE OUR DESIGN, IF WE WANT TO ELEVATE WHAT OUR BUILT ENVIRONMENT, WE HAVE TO, IN A SENSE, PARTICIPATE IN THAT.

AND IF WE CAN PARTICIPATE IN THAT IN A WAY THAT'S RISK FREE FOR THE TAXPAYERS, THAT MEANS WE ARE ACCOMPLISHING OUR MISSION.

SO TO GET A DEVELOPER TO BUILD A VERY EXPENSIVE UNDERGROUND PARKING GARAGE SO THAT YOU ARE GETTING A DEVELOPMENT THAT HAS ALL SORTS OF USES THAT FLEX, YOU KNOW, THAT SPEND TIME AND ESSENTIALLY KEEP THAT DEVELOPMENT VIBRANT DURING THE DAY WITH THE OFFICE WORKERS AND THE RETAIL AT NIGHTTIME WITH THE APARTMENT DWELLERS AND THE HOTEL DWELLERS, ALL WITHOUT A HUGE PARKING LOT TO MAKE IT MORE WALKABLE.

THE CITY HAS TO BE A PARTNER IN THAT, OR ELSE IT'S JUST NOT GOING TO HAPPEN.

SO THE STATE LEGISLATURE HAS DEVISED TAX INCREMENT FINANCE AS A MEANS TO DO THAT, WHERE YOU CAN CAPTURE THE FUTURE 25 YEARS OF TAXES FOR A PROJECT AND USE A PORTION OF THAT TO MAKE THE PROJECT HAPPEN.

SO ESSENTIALLY, IT'S THE JOB OF REDEVELOPMENT STAFF TO FIGURE OUT WHAT'S THE WHAT.

HOW MUCH INCENTIVE DOES A DEVELOPER NEED TO TO MAKE THAT PROJECT HAPPEN AND GET TO A POINT WHERE IT'S ESSENTIALLY A BREAKING POINT BETWEEN THE DEVELOPER NOT BEING INCENTIVIZED ENOUGH TO DO THE PROJECT, AND THE DEVELOPER BEING INCENTIVIZED ENOUGH TO DO THE PROJECT AND MOVE LIKE $1 TOWARDS THE YOU HAVE ENOUGH INCENTIVE AND NO MORE.

I MEAN, THAT'S THE IDEAL STATE.

BUT IF THE DEVELOPER LIKE, LET'S BE REAL, IF THE DEVELOPER ISN'T MAKING MONEY, THE DEVELOPER ISN'T BUILDING THE PROJECT.

AND IF YOU'RE ARGUING OVER A 5% OF THE TIF AND YOU'RE ARGUING WHETHER SOMEONE'S GETTING 95% OF THE TIF, OR 90% OF THE TIF.

WELL, AN EXTRA 5% OF ZERO IF THE DEVELOPER IS NOT PROPERLY INCENTIVIZED TO DO THE PROJECT IS ZERO.

AND SO IT IS IDEAL THAT WE WOULD TRY TO GET SOME TIF SPLIT OR SOME BENEFIT IN THE SHORT TERM.

BUT CITIES AREN'T BUILT IN THE SHORT TERM.

CITIES ARE BUILT OVER A LONG PERIOD OF TIME AND FOR A LONG PERIOD OF TIME.

SO WE ARE CERTAINLY TRYING TO GET THE BEST DEAL THAT WE CAN FOR THE NEXT 25 YEARS.

BUT ON THE 26TH YEAR, THIS PROJECT IS GOING TO START PAYING A WHOLE LOT OF TAXES TO THE CITY, AND WE WANT TO MAKE SURE THIS PROJECT EXISTS IN YEAR 26 AND IS AS NICE AS IT CAN BE IN YEAR 26.

AND SO WE NEED TO USE INCENTIVE THE DEVELOPER'S OWN FUTURE TAXES TO CREATE THE DEVELOPER DEVELOPMENT FROM THE BEGINNING.

SOME OF THE BENEFITS THAT YOU GET IMMEDIATELY, EVEN THOUGH THE PROPERTY TAXES ARE LOCKED IN, IS THAT YOU'RE GETTING THE INCOME TAXES THE SCHOOLS ARE GETTING MORE MONEY.

YOU'RE GETTING SPENDING.

YOU'RE GETTING VIBRANCY.

AND WE HAVE TO COME TO THE RIGHT INCENTIVE LEVEL TO GET TO THAT.

AND SO I THINK IT'S IN THE ABSTRACT.

I THINK IT'S, YOU KNOW, IT'S ALWAYS IT'S REASONABLE TO WANT TO GET THE BEST DEAL FOR THE CITY.

AND THAT'S WHAT WE ARE TRYING TO DO.

BUT AT A CERTAIN POINT, IF YOU PUSH TOO MUCH, YOU HAVE NO DEAL AND YOU HAVE NO PROJECT, AND THAT DOESN'T BENEFIT ANYONE.

AND SO THE REDEVELOPMENT COMMISSION STAFF SPENT A LOT OF TIME TRYING TO FIGURE OUT WHAT THAT MIDPOINT IS ON THIS PROJECT.

ONE OF THE, YOU KNOW, AS A AS AN EASY BASELINE TO COMPARE THIS TO, THIS IS A PROJECT THAT IS GETTING 95% TIF IN A SLIVER OF LAND, ESSENTIALLY, BUT IS BUYING ALL THE REST OF THE LAND.

AND IT IS A CONCEPT PRETTY SIMILAR TO ONE THAT WAS BUILT A FEW YEARS AGO.

SAME ONE LEVEL UNDERGROUND PARKING GARAGE, SAME ALMOST MIX OF APARTMENTS AND OFFICE.

THE ONLY DIFFERENCE IS THE HOTEL.

WHILE IN THE PRESIDIUM WE PRETTY MUCH GAVE THEM ALL THE LAND FOR FREE AND WE PUT IN 100% OF THE TIF AND THE DIFFERENCE.

LET ME JUST ADD MAYBE STAIR STEP BECAUSE THAT'S NOT HOW THE DEAL STARTED.

BUT ONCE THE ECONOMICS OF AN UNDERGROUND PARKING GARAGE CAME IN, THE ACTUAL PRICE.

IT'S THE SPLIT STEPPED UP TO TO KEEP THE PROJECT INTACT.

THERE THERE WAS IN THE BEGINNING ON PRESIDIUM ONE, IT WAS A 75, 25% SPLIT OF TIF, BUT IT DIDN'T INCLUDE THE ARBY'S PARCEL.

SO TO PUT IN THE ARBY'S PARCEL, BUY IT AT ITS HIGHER, HIGHER COST AND PUT PARKING UNDER IT AND BRING IT INTO THE DEAL.

IT WENT TO A BELIEVE 100% TIF SPLIT.

SO IT WAS PRESIDIUM TWO.

SO JUST AS A COMPARISON, PROSCENIUM ONE VERSUS PROSCENIUM THREE, PROSCENIUM ONE GETS ALL THE LAND.

PROSCENIUM ONE GETS ALL THE TIF, PROSCENIUM THREE GETS A SLIVER OF LAND.

NOT ALL THE TIF.

AND THE ONLY DIFFERENCE BETWEEN WHEN THIS PROJECT WAS DONE IN PRESIDIUM IS THAT THE COSTS ARE WAY HIGHER NOW AND THE INTEREST RATES ARE WAY HIGHER NOW.

SO I THINK RELATIVELY THE PRESIDIUM THREE DEAL FOR THE CITY IS ONE OF THE MOST AMAZING DEALS WE'VE EVER NEGOTIATED.

[00:20:05]

SO IT YOU KNOW, I LOOK FORWARD TO HAVING EACH OF THESE CONVERSATIONS, ALL THESE CONVERSATIONS AT FINANCE COMMITTEE BECAUSE WE BELIEVE THIS IS A GOOD PROJECT.

DID THAT ANSWER KIND OF WHERE YOU WERE GOING FOR COMMISSIONER OVERALL? YEAH, I MEAN, IT'S WE ALL UNDERSTAND THAT THE MONEY HAS TO BE USED.

THE TIF MONEY HAS TO BE USED FOR INFRASTRUCTURE.

SO IT'S NOT VERTICAL CONSTRUCTION AND JUST IT'S GOING TO THE BENEFIT OF THE DEVELOPER OF WHAT HE'S BUILDING.

IT'S BASICALLY BUILDING A PLATFORM AND THEN GOING VERTICAL WITH SOMETHING YOU KNOW, ON TOP OF IT.

BUT BUT I JUST I BRING IT UP BECAUSE I REALLY WANT FOR US OR THE DEVELOPER TO BE OUT IN FRONT OF THIS AND PRESENT IT TO THEM VERSUS THE, THE FINANCE COMMITTEE OR THE CITY COUNCIL COMING TO US AND SAYING, HOW DID WE GET TO THIS NUMBER? WELL, LET'S EXPLAIN IT BECAUSE I THINK, YOU KNOW, YOU AND YOUR STAFF SPEND A LOT OF TIME, YOU KNOW, ON WHERE THAT SPLIT COMES IN, EVEN ON A CONCEPTUAL BASIS.

RIGHT? THAT'S RIGHT.

ANY OTHER QUESTIONS OR COMMENTS? I'VE GOT ONE QUICK ONE.

I THINK IT'S WORTH REMEMBERING THAT WHILE IT'S A SMALL STRIP OF LAND, IT'S ONE OF THE MAJOR PARKING FACILITIES FOR CITY VEHICLES HERE AT CITY HALL THAT GETS LOST. THERE'S ABOUT 29 VEHICLES THAT CAN PARK THERE.

YEAH. AND SO THOSE NOW WILL HAVE A PLACE IN THE GARAGE WHEN THEY'RE NOT IN, IN USE DURING THE EVENING AND THAT SORT OF THING.

SO THAT'S PART OF IT AS WELL.

THAT IS RIGHT. ANY OTHER QUESTIONS AT THIS POINT THE DIRECTOR ON THIS OR ANY OTHER PROJECT? NOPE. NO, SIR. SEEING NONE.

THANK YOU, MR. DIRECTOR.

WE WILL NOW MOVE ON TO OUR COMMITTEE REPORTS AND THE ARCHITECTURAL REVIEW COMMITTEE.

WE DID NOT MEET THIS PAST MONTH.

OKAY. THANK YOU VERY MUCH.

IS THERE ANY OLD BUSINESS TO COME BEFORE US THIS EVENING.

THERE IS NOT, MR. PRESIDENT.

OKAY. IS THERE ANY NEW BUSINESS? NOT THIS MONTH. NOT THIS MONTH.

VERY GOOD. ANY OTHER BUSINESS? I WILL MISS YOU ALL FOR THE NEXT 30 DAYS.

UNTIL I SEE YOU AGAIN AUGUST 21ST.

AND I USUALLY ASK MIKE THIS, BUT I ASSUMED ALL OF OUR BOND PAYMENTS WERE MADE ON TIME AND IN FULL AND WITH OUR TIFF ALLOCATIONS. AND EVERYTHING IS GOOD.

GOOD. JUST LIKE TO DO THAT.

WELL, IF THERE'S NO OTHER MATTERS TO COME BEFORE US THIS EVENING WE WILL GO AHEAD.

AND WITHOUT OBJECTION, DECLARE OUR MEETING TO BE ADJOURNED PENDING THE EXECUTION OF DOCUMENTS, IF ANY.

[9. EXECUTION OF DOCUMENTS]

OUR NEXT REGULAR MEETING WILL BE WEDNESDAY, AUGUST 21ST, HERE IN THE CITY COUNCIL CHAMBERS AT 630.

SO WITH THAT, WE ARE ADJOURNED.

THANK YOU VERY MUCH. THANK YOU SO, HENRY, HOW WAS PARIS?

* This transcript was compiled from uncorrected Closed Captioning.