Nov 17, 2021 Carmel Redevelopment Commission

[00:00:10]

GOOD EVENING LADIES AND GENTLEMEN. THIS IS THE REGULAR MONTHLY MEETING OF THE CARMEL REDEVELOPMENT OMMISSION. WE ARE HERE IN COUNCIL CHAMBERS

[1. PLEDGE OF ALLEGIANCE]

THE FIRST ITEM IN OUR AGENDA IS THE PLEDGE OF ALLEGIANCE. IF YOU WOULD RISE AND JOIN ME IN THE PLEDGE. 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]

>> MOVED TO APPROVE. >> THANK YOU. IT IS BEEN MOVED BY

COMMISSIONER BROOKS. >> SECONDED. P>> MOVED AND SECONDED.E

PLEASE CALL THE ROLE RACHEL? >>.

PAST. >> WE WILL NOW MOVE ON TO OUR NEXT AGENDA ITEM WHICH IS

[3a. Cash Flow Report]

HE IS RECENTLY BECAME THE PROUD FATHER OF I BELIEVE HIS SECOND DAUGHTER.

HE IS NOT HERE TONIGHT. MORRIS IS GOING TO TAKE OVER FOR HIM.

MARSEILLE VIEW IT. >> WOMAN: THE COMMISSION'S END OF MONTH BALANCE FOR OCTOBER WAS 3,471,000 $280. INCLUDING THE RESTRICTED FUNDS THE END OF MONTH BALANCE WAS 35,374. QUICK THANK YOU VERY MUCH. ARE THERE ANY QUESTIONS

[3b. Approval of Claims]

NCE AIN MARISSA? >> YOU HAVE PLACED BEFORE YOU THREE SETS OF CLAIMS TONIGHT.

FIRST ARE NONOPERATING EXPENSES IN THE AMOUNT OF $81,876.20. SECOND IS FOR THE 856 GIFT FUND IN THE AMOUNT OF $2165. AND FINALLY THE 2021 LOCAL INCOME TAX GENERAL OBLIGATION

BOND IN THE AMOUNT OF $3342.50. >> THANK YOU VERY MUCH. ARE THERE QUESTIONS REGARDING

THE CLAIMS BEFORE US THIS EVENING? >> MOVED TO APPROVE.

>> THANK YOU, IS THERE A SECOND? >> SECOND.

>> IT IS BEEN MOVED AND SECONDED. RACHEL WILL YOU PLEASE CALL THE ROLE.

[4. EXECUTIVE DIRECTOR REPORT]

LIKE TO PROVIDE YOUR REPORT. >> MAN: HELLO EVERYONE. HEADER MISSED THAT SKI I AM THE EXECUTIVE DIRECTOR. WOULD HAVE POWERPOINT BUT SOMETIMES THINGS GET A TAKE A WHILE TO IF YOU SEE ON THE SCREEN I'M CEDING INSIDE OF THIS HOTEL IT IS BEEN A VERY BUSY MONTH FOR H FOR US. THE PROSCENIUM CONTINUES TO GET BELT OUT THE PROJECT HAS STARTED CONSTRUCTION AND THEY ARE DOING SITE WORK PRESENTLY. I KNOW THAT IS ONE SIXTEENTH IN RANGELINE AND WE'VE BEEN WAITING FOR QUITE A WHILE. IT'S GOOD TO SEE THAT MOVING FORWARD. AS YOU HEAD NORTH THE CITY CENTER FIRST FLOOR IS OPEN.

CONSTRUCTION ON THE RIGHT BUILDING HAS STARTED AS WELL AND WE EXPECT CONSTRUCTION ON THE WINTER BUILDING TO BEGIN IN A FEW MONTHS. ONE OF THE EXCITING THINGS THAT HAPPENED LAST MONTH WAS THE INTRODUCTION OF THE ARCHITECTURE FOR WHAT IS FORMALLY CALLED LOT 1 AND NOW IS FIRST ON MAINE. I WOULD SHOW IT HERE BUT THE INTERNET IS NOT ALLOWING THAT. IT IS AN INCREDIBLY EXCITING PROJECT WITH 70,000 FT.B2 OF OFFICE SPACE, CONDOS, APARTMENTS AND WRAPPING AN APARTMENT GARAGE.

IF YOU'VE BEEN ON MAIN STREET RECENTLY YOU WOULD SEE THAT AREA HAS NOW BEEN FENCED AND CONSTRUCTION ON THE PROJECT HAS BEGUN AS WELL. ALSO LAST MONTH OR EARLIER THIS

[00:05:05]

THAT'S THE PROJECT ON MAIN STREET WHICH IS COMPLETE WITH FREE PUBLIC PARKING AND MULTIFAMILY UNITS. RETAIL AND FOR-SALE COMPONENTS AND CONDOS AS WELL.

>> IT SEEMS LIKE IN THOSE AREAS THERE REDEVELOPMENT PROJECTS HAPPENING AND IT'S EXCITING TO WATCH. THAT CONCLUDES MY REPORT. I'M HAPPY TO ANSWER ANY

QUESTIONS THE COMMISSION >> ANY QUESTIONS FOR THE DIRECTOR? THAT WAS A NICE GROUNDBREAKING THE OTHER DAY. IT LOOKS LIKE THEY ARE GOING TO

[5a. Finance Committee]

WE WILL BEGIN WITH THE FINANCE COMMITTEE. >> WE DID NOT HAVE A FINANCE COMMITTEE MEETING THIS MONTH. ALTHOUGH WE HAD SEVERAL MEETINGS.

ONE WAS THE MONTHLY MEETING IN THE HOTEL WITH A LITTLE BIT OF UPDATE.

THE HOTEL IS DOING VERY WELL IN THE CASH FLOWS VERY GOOD. OUR RESERVES ARE ADEQUATE AND THINGS LIKE VERY GOOD FOR ME OCCUPANCY STANDPOINT. THERE'S NOTHING NEGATIVE TO REPORT CERTAINLY THERE BUT VERY POSITIVE. YOU'LL SEE AN ACTION ITEM LATER TONIGHT ON THE REFINANCE. MIKE AND I HAVE HAD SOME CONFERENCE CALLS WITH THE BANK INVOLVED LOOKING AT THE REFINANCE. WE DISCUSSED THE PROS AND CONS.

I THINK DOING THE REFINANCE AND HE MAKES ECONOMIC SENSE. FOR US AND ALSO THE DEVELOPER AND IT'S BY FAR THE BEST OPTION UP THERE BECAUSE WE LOOKED AT SEVERAL.

[5b. Architectural Review Committee]

NOTHING ELSE TO REPORT. >> THANK YOU COMMISSIONER. ANY QUESTIONS OF THE FINANCE COMMITTEE? IF NOT WE'LL MOVE ON TO THE ARCHITECTURAL REVIEW COMMITTEE.

>> THANK YOU WE DID MEET THIS MONTH. WE HAVE A LOOK AT THREE PROJECTS. THE FIRST ONE IS PERCENT IN TWO WHICH IS OVER 1215 RANGE AND IT HAS THE OLD WALGREENS AREAS OVER THERE. WE APPROVE THE RENDERINGS IN THE SITE PLAN PROVIDED THE NOTED CONSUL RESOLVE IN THE FINAL PLAN.

THEN WE HAD A LOOK AT THE STUDIO AND OFFICE BUILDING WHICH IS DONE ON VETERANS WAY AND THIRD STREET. IT'S DIAGONALLY FROM THE FAR HEADQUARTERS.

WE APPROVE THAT SITE PLAN ALAN ELEVATION. THE CIVIC SQUARE PARKING GARAGE WAS JUST IN THE OLD PARKING GARAGE AREA BEHIND THE HEADQUARTERS AND THE SPEEDY FACTORY. THERE'S NOTHING FURTHER MISTER PRESIDENT.

>> THANK YOU COMMISSIONER BROOKS. ANY QUESTIONS OF THE ARCHITECTURAL REVIEW COMMITTEE? SEEING NONE WE WILL THEN MOVE ON TO THE OLD BUSINESS.

[7a. Action Item #1 – Resolution 2021-24 re: Declaratory Resolution for Market East Carmel allocation area]

IS THERE ANY OLD BUSINESS TO COME BEFORE US THIS EVENING? >> THERE IS NOT.

>> THANK YOU MISTER DIRECTOR. WE'LL MOVE ON TO NEW BUSINESS. OUR FIRST ACTION ITEM IS A DECLARATORY RESOLUTION 2021 Ã 2024 WHICH IS A REDEVELOPMENT TO AMEND THE RESOLUTION OF THE DEVELOPMENT PLAN FOR THE MERCHANT SQUARE ECONOMIC DEVELOPMENT AREA.

THIS IS KNOWN AS THE MARKET EAST CARMEL ALLOCATION AREA. JUST TO REMIND EVERYONE THERE ARE FOUR STEPS IN THE PROCESS. FIRST IS A DECLARATORY RESOLUTION.

THEREAFTER IT GOES OVER TO THE PLANNING COMMISSION FOR THEIR REVIEW AND APPROVAL AND THEN TO CITY COUNCIL AND THEN BACK HERE FOR A PUBLIC HEARING AND THEN A FINAL ACTION.

WITH THAT I WILL TURN IT OVER TO YOU MISTER DIRECTOR. IN A COMMONS.

>> MAN: THANK YOU MISTER PRESIDENT. YOU DID MOST OF THE HEAVY LIFTING ALREADY. THE REDEVELOPMENT COMMISSION IS WORKING ON A PROJECT THAT WILL BE ON THE MARSEILLE CURRENTLY HOME TO THE CARMEL TEMPORARY CENTRAL LIBRARY.

AT SOME POINT THE LIBRARY WILL MOVE INTO THEIR NEW BUILDING AND THERE'LL BE A FUTURE REDEVELOPMENT PROJECT ON THE SITE. WE WANT TO GET IN HERE AND CAPTURE IT CURRENTLY TOPS FOR THE REDEVELOPMENT OF THIS PROJECT.

THE MARKET EAST CARMEL AREA ESSENTIALLY COMPRISING THE SINGLE PARCEL THAT IS THE

[00:10:06]

>> DO YOU HAVE ANY QUESTIONS? SEEING NONE DO WE HAVE A MOTION TO APPROVE QUESTION.

>> I WOULD LIKE TO MOVE TO APPROVE. >> SECOND.

>> THANK YOU PLEASE CALL CALL THE ROLE.

ONE HAS D. >> THANK YOU VERY MUCH. IT IS APPROVED.

[7b. Action Item #2 – Resolution 2021-25 re: Proscenium TIF pledge amendment]

THIS IS THE CARMEL REDEVELOPMENT COMMISSION AMENDING THE TIF PLEDGE RESOLUTION FOR THE PAYMENT OF THE CITY OF CARMEL ECONOMIC DEVELOPMENT REVENUE BONDS FOR

THE PROSCENIUM PROJECT.ISTER RECTOR? >> THANK YOU.

WHEN THESE PLEDGE RESOLUTIONS TAKE PLACE WHAT HAPPENS IS THEY FIRST GO THROUGH CITY COUNCIL.

AND THEN THEY COME BACK TO THE REDEVELOPMENT COMMISSION AS ADMINISTRATIVE MATTER.

LAST MONTH THE CITY COUNCIL HEARD A REQUEST BY THE PROSCENIUM DEVELOPER TO INCREASE THE SIZE AND POTENTIAL SIZE OF THE BONDS FOR THAT PROJECT.

THE CITY COUNCIL APPROVED THAT SIN OUT HEADS BACK TO THE REDEVELOPMENT COMMISSION.

BY WAY OF BACKGROUND WE'RE TALKING ABOUT THE BONDS FOR THE PRESIDIUM PROJECT WHICH ARE DEVELOPER BONDS WHICH MEANS THAT THE CITY IS NOT ON THE HOOK FOR THOSE BONDS.

THEY APPROVED A 100% TIP SPLIT FOR THIS PROJECT AND THAT MEANS THAT THE TAXES GENERATED BY THIS PROJECT COME BACK TO THE DEVELOPER TO PAY THE BONDS THAT FUNDED QUALIFIED PUBLIC INFRASTRUCTURE. IF YOU IMAGINE THE PROSCENIUM SITE TODAY THE PUBLIC INFRASTRUCTURE ON THAT SITE INCLUDES NOT JUST THE 450 UNDERGROUND SPACES BUT ALSO VETERANS WAY AN EXECUTIVE DROP WITH STREETS BUILT BY THE DEVELOPER AND DEDICATED TO THE CITY. ONE OF THE THINGS THAT SOMETIMES HAPPEN TO THE DEVELOPER WELL BUILD A PROJECT GREATER THAN WHAT IS INITIALLY PROJECTED.

IT WILL THEN GENERATE THE POTENTIAL OF MORE AND IT IS GOOD FOR US TO ENCOURAGE OR NOT TO INCENTIVIZE A DEVELOPER FROM BUILDING GREATER THAN THEY OTHERWISE WOULD OR THAT THEY INITIALLY DID. HERE I THINK WE CAN AGREE THAT THE PROSCENIUM DEVELOPER KNOCKED IT OUT OF THE PARK WITH RESPECT TO THE QUALITY OF WHAT THAT DEVELOPMENT IS TODAY.

AS A HAS GENERATED MORE TAX INCREMENT.FTER THE COUNCIL HAS ALREADY ALLOWED UNDER PRESENT TO GO TOWARDS THE DEVELOPER TO REPAIR THE DEVELOPER BONDS THAT THE DEVELOPER WAS ASKING FOR PREVIOUSLY WAS TO INCREASE THE AMOUNT OF THOSE BONDS.

THERE ARE NO LIABILITIES. THIS IS IN A GIVEAWAY OF FREE MONEY.

THIS IS A CONTINUATION OF A PARTNERSHIP WHERE THE DEVELOPER HAS ALWAYS BEEN ENTITLED TO 100% OF THE TEST AND HAS BUILT SOMETHING GREATER. IT MAKES THE TIP MEAN MORE.

[00:15:05]

QUESTIONS ABOUT THIS IF YOU LIKE. >> THANK YOU MISTER DIRECTOR.

QUESTIONS OF THE DIRECTOR REGARDING THIS PROPOSED AMENDMENT?

>> SEEING NONE OF IT IS YO PRICEPLEASURE WE WOULD ENTERTAIN A MOTION APPROVAL.

>> MOVED TO APPROVE. >> THANK YOU. >> AS THEIR SECOND?

>> SECOND. >> IT HAS MOVED AND SECONDED. RITUALLY PLEASE CALL THE ROLE.

[7c. Action Item #3 – Monon and Main loan refinance]

MISTER DIRECTOR THIS HAS YOUR NAMON ON IT. I DON'T KNOW IF THE FINANCE COMMITTEE HAS LOOKED AT IT AS WELL WE WILL BEGIN WITH YOU HENRY.

>> SURE. MONON AND MAINE IS A SLIGHTLY DIFFERENT PROJECT THAT MOST PROJECTS ENTER INTO. IN THIS INSTANCE THE PUBLIC INFRASTRUCTURE WASN'T FUNDED WITH TIF. IT WAS FUNDED WITH A LOAN INSTALLMENT CONTRACT.

ESSENTIALLY THE REDEVELOPMENT COMMISSION TAKES OUT A LOAN AND USES IT TO PAY FOR THE GARAGE AND IN THE TIF REPLACE THE LOAN. TO PROTECT THE TAXPAYERS THERE ARE GUARANTEES FROM THE DEVELOPER PROTECTING THE CRC ON THE LOAN.

THE LOAN IS HELD BY LAKESIDE CITIBANK. RIGHT NOW WE ARE REALLY FACING SOME HISTORICALLY LOW INTEREST RATES. LED BY OUR FINANCE MANAGER WHO CAN'T BE HERE TODAY MAKE LEE WE APPROACH TO THE LAKE CITIBANK TO RENEGOTIATE THE INSTALLMENT PURCHASE CONTRACT TICKET TO LOWER RATES. THERE'S AN ADJUSTMENT BASED ON THE LB. THAT'S ESSENTIALLY WHAT'S HERE THESE DAYS.

FOR THE NEXT FIVE YEARS WE ARE LOWERING THE INTEREST RATE FROM 4.35 TO 3.55 WHICH IS NOT INSIGNIFICANT. THAT'S REAL MONEY. ESSENTIALLY WE SAVE OURSELVES ABOUT $2500 PER MONTH IN INTEREST FOR THE FIRST PART OF THE LOAN.

THIS JUST MAKES SENSE FOR A VARIETY OF REASONS. IT HELPS THE CRC CUSHION THE RESPONSIBILITY OF THE DEVELOPER AS WELL. IF MISTER VICE PRESIDENT ONCE

THAT ANYTHING PLEASE GO AHEAD. >> COMMISSIONER JUST A COUPLE OF THINGS.

THERE IS A REPRICE ON THIS AFTER FIVE YEARS AND IS A THAT'S ARTY BEEN PAID FOR THEIR DERIVATIVES. TO TRY TO REPLICATE THAT WITH ANOTHER FINANCIAL INSTITUTION WOULD HAVE BEEN COST PROHIBITIVE. I THINK THIS IS A FAIR DEAL FROM THE BANK STANDPOINT. IT CERTAINLY IS A DEBT OR OBLIGATION OF THE REDEVELOPMENT COMMISSION BUT AS YOU SAID THERE ARE GUARANTEES IN PLACE. THIS WILL ONLY HELP IN THAT REGARD LONG-TERM. I CERTAINLY SUPPORT THIS ACTION ITEM.

>> THANK YOU COMMISSIONER. >> ANY QUESTIONS FOR EITHER THE DIRECTOR OR THE FINANCE

[00:20:06]

COMMITTEE? >> THANK YOU MISTER CHAIRMAN. WHAT WILL HAPPEN TO THE SAVINGS? WHERE WILL THOSE FUNDS ACTUALLY GO? I GUESS MY QUESTION IS THE SAVINGS ARE NOT GOING TO THE DEVELOPER.

THEY ARE GOING TO CRC AS I CORRECT? >> IF THERE ARE SAVINGS THEY

WILL GO TO THE CRC THAT IS CORRECT. >> AND THEN I'M JUST CURIOUS.

THE EXISTING. WE HAVE A LIMB IN FIVE YEARS ON THIS NEW ONE IS THAT THE WAY

GOES? >> A REPRICE. WHAT WAS OUR EXISTING TERM? THE ONLY REASON I ASKED THAT IS THERE A RISK IN FIVE YEARS WILL RATES WILL BE VERSUS WHATEVER

WE WERE LOCKED IN THAT NOW? THAT IS JUST MY QUESTION. >> I THINK THE RATE WAS 4.3 5% AND IT WILL BE EAD PRICE TO 355. WE WERE GOING TO HAVE A REPRICE IN THREE YEARS. THERE IS A SO THERE IS RELATIVITY I THINK OUR CAP IS 5.75 OR 5.9. I CAN REMEMBER BUT THAT IS THE MOST THAT THE RATES WOULD GO UP. WITH THE CHANGE IN WHAT'S GOING AWAY TO THE THERMAL BANK WHICH IS A GOOD METRIC AND THEN WE HAVE A GOOD SPREAD OVER THAT I DON'T THINK WE WILL EVER HIT EVEN IF IT GOES FIVE YEARS FROM NOW. IF SOMETHING GOES CRAZY BASED ON THE LAST 10 YEARS OF INTEREST RATE RISK I DON'T THINK THEY'LL BE A PROBLEM.

CERTAINLY TO GET 80 BASIS POINTS SAVINGS FOR FIVE YEARS IS A BIG DEAL.

WE LOOKED AT OTHER THINGS AND THERE ARE SOME OTHER OPTIONS BUT WE PAY A SIGNIFICANT FEE TO GET THE BECAUSE THE DEVELOPER WE WORRY ABOUT THE RISK IT'S REALLY NOT FOR THE REDEVELOPMENT COMMISSION'S RISK BECAUSE WE'VE GUARANTEES AND SUBSTANTIAL PEOPLE BEHIND THE GUARANTEES. SO REALLY IT'S TO MITIGATE THEIR RISK AND LOWER THAT DEBT

SERVICE PAYMENT WHICH IS PAID FOR BY THE PROJECT. >> THE TERM OF THE LOAN STAYS

THE SAME. >> I WAS JUST GOING TO SAY THAT THE TERM OF THE LOAN STAYS THE SAME. IT'S NOT LIKE WE HAVE EXTENDED THE LOAN REPAYMENT.

WE HAVE JUST MADE A BETTER DEAL. >> TO JUST ADD ONE LITTLE PIECE DURING CORONAVIRUS IS A LOT OF BANKS DEAD THERE WAS A PRINCIPAL DEFERRAL DURING CORONAVIRUS. IT IS ADDED ONTO THE END OF THE LOAN BECAUSE THAT'S WHAT THE BANKS DID OVER THE LAST 18 MONTHS. WITH THE REPRICING TO LOWER THE RATE BASICALLY A BALLOON PAYMENT WHICH IS BASICALLY SIX MONTHS OF DEBT SERVICE WENT AWAY. IF REALLY IT WAS A WIN-WIN FROM THAT PERSPECTIVE IT GOT US

THROUGH THAT DEFERRAL. >> JUST TO QUALIFY THAT I DID THE MATH IT'S ABOUT $250,000

SAVINGS. >> VERY GOOD. >> ANY OTHER QUESTIONS AT THIS POINT? SEEING NONE IF IT'S YOUR PLEASURE GENTLEMAN THE CHAIR

WILL ENTERTAIN A MOTION OF THE APPROVAL. >> I WILL GO AHEAD AND MAKE A MOTION TO APPROVE THE REFINANCING OF THE MONON AND MAIN LOAN IN ORDER TO SAVE

INTEREST. >> THANK YOU COMMISSIONER. IS THERE A SECOND?

>> SECOND. >> THANK YOU COMMISSIONER BROOKS.

RACHEL, WILL YOU PLEASE CALL THE ROLE.

[7d. Action Item #4 – Purchase of 611 3rd Ave SW site]

THREE HAS PASSED. >> VERY GOOD THANK YOU GENTLEMEN.

WE WILL NOW MOVE ON TO ACTION ITEM NUMBER FOUR. THIS IS THE APPROVAL OF THE PURCHASE OF PROPERTY LOCATED AT 611 THIRD AVENUE SOUTHWEST. THIS IS PAYABLE FROM THE 2021 TIF BONDS IN THE AMOUNT OF $4.8 MILLION. MISTER DIRECTOR?

>> MAN: THANK YOU MISTER PRESIDENT. 611 THIRD AVENUE SOUTHWEST IS THE BUILDING THAT HAS A TENANT. THAT'S HOW MOST PEOPLE IDENTIFY IT.

IF I CUT I WILL JUST QUICKLY BRING UP WHICH PARTS WE ARE TALKING ABOUT.

[00:25:07]

REALLY IN THE CENTRAL CORE AS WE TRY TO BUILD OUR DOWNTOWN ONE OF THE MAIN THINGS OF THE MAYOR HAS FOCUSED ON IS LAND ACQUISITION OR AGGREGATION TO ALLOW CARMEL TO BE CHARGED IN CHARGE OF ITS DESTINY WHEN IT COMES TO MASTER PLANNING OF DOWNTOWN.

AS THE CITY CENTER CONTINUES TO GET BUILT OUT IN MAINSTREET AND MIDTOWN CONTINUES TO GROW EITHER WITH EXISTING PROJECTS OR LANDS CONTROLLED BY HEAD CORP. WHICH IS A OFTEN TIME PARTNER WITH THE REDEVELOPMENT COMMISSION AND PUBLIC AND PRIVATE PARTNERSHIPS THERE ARE THREE BIG PIECES THAT ARE MISSING. THIS BUILDING IS OWNED BY HEADQUARTERS AS WELL AND THESE LOTS ARE OWNED BY PET CORE AS WELL.

THE THREE BIG PIECES THAT ARE MISSING BETWEEN THE CITY CENTER AND OUR MIDTOWN AREA FOR MONON SQUARE WHICH THE COMMISSION WITH COUNCIL'S APPROVAL PURCHASED FOR $15 MILLION THAT WAS ABOUT A LITTLE UNDER 9 ACRES. IN THE LAST TWO BIG PIECES OTHER THAN SALON ON SITE IS THE BUILDING THAT WE ARE CURRENTLY TALKING ABOUT.

THE 611 BUILDING. WE HAVE TWO APPRAISALS FOR THIS PROPERTY.

ONE COMES IN AT 5 MILLION AND THE OTHER COMES IN A 4.25 MILLION.

ONE OF THE THINGS THAT IS IMPORTANT IS TO WORK WITH THESE PROPERTY OWNERS THAT HAVE HAD A LONG HISTORY IN CARMEL. THERE IS A PURCHASE AGREEMENT ON THE TABLE TODAY WITH THE PROPERTY OWNER HERE FOR $4.8 MILLION WHICH IS SLIGHTLY ABOVE THE AVERAGE OF TWO APPRAISALS BUT STILL LESS THAN THE $5 MILLION APPRAISAL THAT WE DO HAVE.

IT WILL ALLOW THE PROPERTY OWNER TO HAVE TIME TO BUILD A NEW BUILDING AND MOVE INTO A NEW BUILDING SO IT SOME GOOD TEAMWORK BETWEEN THE PROPERTY OWNER IN THE CITY.

IT'S ALSO FAIR VALUE FOR THAT LAND AND PRICED LOWER THAN WHAT WE SEE A LOT OF LAND GOING FOR IN THE CENTRAL CORE. WE'VE SEEN PRICES OF $2 MILLION PER ACRE HAPPEN IN THE MARKET.

THIS IS BELOW THAT. FOREIGN URBAN PLANNING STANDPOINT IT REALLY ALLOWS US TO FURTHER AGGREGATE THE LAST REMAINING PARTS OF OUR DOWNTOWN.

AS A CITY CENTER AND MIDTOWN CONTINUE TO CONVERGE HAVING THIS PROPERTY STRADDLES THE MOAN ON BETWEEN US AND MOAN ON SQUARE. THE 611 BUILDING WILL ALLOW US TO CONTROL OUR DESTINY. FROM A LANG AND AGGREGATION STANDPOINT THIS IS PROBABLY THE MOST AFTER MOAN ON SQUARE WHICH IS PURCHASED A FEW YEARS AGO THIS IS PROBABLY THE MOST IMPORTANT LAND ACQUISITION REMAINING FOR THE REDEVELOPMENT COMMISSION IN THE CORE.

THE REQUEST IS TO APPROVE THE PURCHASE OF THIS PROJECT FOR $4.8 MILLION.

IF THE COMMISSION APPROVES THAT IT WILL THEN GO TO CITY COUNCIL FOR THEIR APPROVAL AS WELL.

IT WILL BE FINAL ON THE CITY COUNCIL ALSO APPROVES IT. THIS IS THE FIRST STEP.

THE FUNDING FOR THIS 2021 TIF BONDS OF THE COUNCIL JUST RECENTLY PASSED ANY LAND ACQUISITION FUNDS WHEN USED TO BE APPROVED BY THE CITY COUNCIL.

>> THANK YOU MISTER DIRECTOR. >> QUESTIONS COMMISSIONERS? >> COMMISSIONER BARROW BOWERS?

>> THE ONE THING THAT WE TALKED ABOUT IN THE PAST IS LOOKING AT LAND AS WE TRY TO AGGREGATE OVE TIME. I WILL TELL YOU MY TIME OVER THE LAST 10 YEARS.

WE'VE HAD THIS QUESTION AND OBVIOUSLY WERE LOOKING AT LAND VALUE.

THE APPRAISALS MAY LOOK AT THE EXISTING BUILDINGS AND THE USE OF THE BUILDING BUT WE ARE GOING TO BASICALLY LOOK AT IT STRAIGHT AND FOR REDEVELOPMENT. ESPECIALLY IN THIS COURT ARE ALONG THE MONON AREA. WE'VE HAD TO PAY AT TIMES A PREMIUM FOR THESE LAND

[00:30:06]

THIS IS A COUPLE OF ACRES RIGHT ON THERE. THIS PRICE PER SQUARE FOOT REALLY FALLS IN LINE AND I GUESS I'M LOOKING IN YOUR OPINION THAT IT DOES ON LINE WITH WHAT WE ARE SEEING OF OTHER LAND ACQUISITIONS. IT'S WITHIN LINE OF WHAT WE'VE

BEEN DOING HISTORICALLY. >> I THINK IT'S ALSO FAIR TO POINT OUT ONE OTHER THING.

I KIND OF MENTIONED THIS. WHEN WE BOUGHT MOAN ON SQUARE. OUR AVERAGE OF TWO APPRAISALS WAS 11 AND A HALF MILLION.HE PURCHASE PRICE WAS 15 MILLION. I THINK THAT COUNCIL ULTIMATELY APPROVED IT BUT THERE WAS A LOT OF CONVERSATION ABOUT HOW WE WERE PAYING FOR BILLIONS MORE THAN THE AVERAGE APPRAISAL. MOAN ON SQUARE RECENTLY REAPPRAISED AT 21.9 MILLION.

THAT IS $10 MILLION MORE THAN THE PREVIOUS APPRAISAL. NOW EVERYONE AT THE COMMISSION SEEMS LIKE GENIUSES FOR PURCHASING MOAN ON SQUARE. WE KNOW THAT WE SOMETIMES REDEVELOPMENT BREED AMOUNTS ON PROJECTS AND THEIR OWN WORST ONLY AS EVERY YEAR WE DO SO MUCH GOOD DEVELOPMENT THAT IT CONTINUES TO RAISE THE ASSESSED AND APPRAISED PRICES OF REAL ESTATE. WE ARE GETTING THIS LAND FOR $4.8 MILLION LESS THAN AN APPRAISAL THAT WE HAD AND THAT'S REALLY A GREAT DEAL. I THINK JUST LIKE WITH MONON SQUARE WE ARE LOOKING BACK ON THIS A FEW YEARS FROM NOW AND TRULY FEEL LIKE WE GOT IT FOR

STEEL. >> THANK YOU MISTER DIRECTOR. >> ANY OTHER QUESTIONS COMMISSIONERS? C NOT IF IT'S YOUR PLEASURE THE CHAIR WILL ENTERTAIN A MOTION

OF APPROVAL. >> I MOVED TO APPROVEPROVE. >> AND I WILL SECOND THAT.

>> IT HAS BEEN MOVED AND SECONDED.RACHEL, PLEASE CALL THE ROLE.

>>.

[8. OTHER BUSINESS]

>> THANK YOU VERY MUCH COMMISSIONERS IT IS APPROVED. WE WILL NOW MOVE ON.

IS THERE ANY OTHER BUSINESS TO COME BEFORE THE COMMISSION THIS EVENING?

>> THERE'S NO BUSINESS BUT I WANT TO SEND A SHADOW TO MAKE LEE AT HNOT THINKINGSLEEPING AN TAKING CARE OF HIS SECOND BABY. WE MISS HIM DEARLY. HOPE IS NOT WATCHING THIS IS

DOING SOMETHING BETTER. >> HOPEFULLY IS GETTING SOME SHUT EYE.

>> I DO WANT TO CONGRATULATE MIKE, THAT'S A BIG DEAL. >> IF THERE IS NO OTHER BUSINESS TO COME BEFORE US I JUST REMIND EVERYONE THAT CHRIS KENDALL MARKET OPENS UP THE SATURDAY. THE WEATHER IS SUPPOSED TO BE ON THE COOLER SIDE.

IT IS APPROPRIATE FOR EVERYONE SO WE HOPE YOU WILL COME OUT. WITHOUT OBJECTION I WOULD LIKE

[9. EXECUTION OF DOCUMENTS]