Apr 15, 2024 City Council Meeting 04-15-2024

[1. CALL TO ORDER]

[00:00:08]

I WILL START OVER. I'M CALLING THIS MEETING OF THE COUNCIL

[2. AGENDA APPROVAL]

>> MOVE FOR APPROVAL. TRACK ALREADY DISCUSSION? PLEASE VOTE.

YEP, THE VOTES . THE AGENDA IS APPROVED. NOW I'D LIKE TO

[3. INVOCATION]

INVOCATION. >> WOULD YOU PRAY WITH ME, PLEASE? OUR FATHER IN HEAVEN, I WANT TO BEGIN BY SAYING THANK YOU TO YOU. WE ARE CONFIDENT YOU ARE PRESENT WITH US THIS EVENING. AS I WANT TO SAY THANK YOU THAT WE ARE SEEING THE GREAT BEAUTY OF YOUR SPRINGTIME AROUND US TONIGHT. LORD, I PERSONALLY WANT TO SAY THANK YOU FOR EACH COUNCIL MEMBER AND THEIR WILLINGNESS TO DO THE HARD WORK OF LEADING OUR COMMUNITY TONIGHT. I PRAY THAT YOU GIVE US THE WISDOM, VISION, AND COURAGE TO MAKE DECISIONS FOR THE BEST OF ALL OF US THAT LIVE YOUR KNOW THAT FOR THE SESSION TONIGHT WILL BE CHARACTERIZED BY RESPECT AND INTEGRITY AND HUMILITY , THE KIND THAT BEST SERVES OUR COMMUNITY. ASK ALL THIS IN CONFIDENCE . THAT YOU HEAR US AND YOUR DESIRES TO BLESS US WITH YOUR GOODNESS. FOR THIS IN JESUS 'NAME,

AMEN. >> AMEN.

>> THANK YOU, PASTOR BIT X-RAY MOVE ON TO ITEM FOUR FOR THE

[4. PLEDGE OF ALLEGIANCE]

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.

[5. RECOGNITION OF CITY EMPLOYEES AND OUTSTANDING CITIZENS]

WOULD LIKE TO INTRODUCE YOU TO THE NEWEST MEMBER OF THE POLICE DEPARTMENT, ANDREW -- HE IS A LIFELONG SERVICE. ANDREW COMES TO US WITH 15 YEARS EXPRESSED IN THE U.S. MARINE CORPS. HE HAS A HISTORY OF COACHING YOUTH FOOTBALL. SO MUCH THAT THESE LITTLE DETAILS MATTER WHEN WE HIRED PEOPLE. HIS BACKGROUND INVESTIGATION HE EVEN SAID THAT ON RAINY DYS, YOU PHYSICALLY GO AND PICK KIDS UP AND BRING THEM TO FOOTBALL PRACTICE SO THEY DO NOT HAVE TO WALK OR RIDE THEIR BIKE PRINTOUT IS THE KIND OF OFFICER WE ARE LOOKING HERE AT CARMEL. WE ARE EXCITED TO HAVE EFFORTS OF JOINING ANDREW TONIGHT WILL BE HIS WIFE, DANIEL, HIS TICKETS, ELY -- HIS THREE KIDS. PLEASE COME FORWARD.

>>

[00:05:38]

[6. RECOGNITION OF PERSONS WHO WISH TO ADDRESS THE COUNCIL]

PLEASE INTRODUCE YOURSELF, STATE YOUR NAME, AND IF YOU'RE REPRESENTING A GROUP , YOU CAN SAY THAT GROUP. HE WILL GET THREE MINUTES. YOU WILL SEE THREE LIGHTS FOR THE FIRST WILL BE A GREEN LIGHT THAT COMES ON. YOU'LL GET APPROXIMATELY THREE MINUTES. ONCE YOU GET TO THE LAST 30 SECONDS, A YELLOW LIGHT WILL COME ON AND ON THE RED LIGHT WILL COME ON SIGNALING STOPPING IF HE COULD FINISH OUT YOUR SENTENCE AT THAT TIME.

FIRST, MARK LIGHT. COME UP TO THE PODIUM.

MARK LIGHT. MY TIES TO CARMEL GO BACK TO 1976 WHEN MY FAMILY MOVED HERE WHEN I WAS 10 YEARS OLD. I'M HERE REPRESENTING LOBBY SLAUGHTER WAS RUNNING AS AN INDEPENDENT FOR CONGRESS FOR U.S. CONGRESS IN THE FIFTH DISTRICT BUT I'M NOT HERE TO MAKE ANY KIND OF A POLITICAL SPEECH. IN FACT, AS I TOLD ROBBIE WHEN I VOLUNTEERED FOR HIM, I AM HIGHLY UNLIKELY TO EVER VOTE FOR HIM MYSELF BECAUSE WE SIMPLY DO NOT AGREE ON A LOT OF THE ISSUES. HOWEVER, ONE THING WE DEFINITELY AGREE ON IS IN THE POLITICAL PROCESS IT IS RUNNING AS AN INDEPENDENT I WANTED TO COME UP AND TELL FOLKS THAT. I WOULD ENCOURAGE ANYONE TO GO TO BOBBY'S LETTER.COM AND CHECK OUT HOW HE STANDS ON ISSUES AND LOOK INTO HIM FURTHER IF YOU AGREE WITH HIS STANCE. HOWEVER, MY POSITION AS I WILL BE SITTING IN THE BACK OF THE ROOM. HE IS NOT ON THE BALLOT YET. MY REASON FOR BEING HERE IS TO HOPEFULLY HELP CLICK SIGNATURES. SO WHETHER THEY AGREE WITH HIM OR NOT OR WOULD CONSIDER VOTING FOR ROBBY SLAUGHTER OR NOT, I WOULD PLEASE INVITE YOU TO COME BACK.

IF YOU'RE SO INCLINED, SIGN THE PETITION TO GET HIM ON THE BALLOT FOR MORE CHOICES FOR OUR ELECTED OFFICIALS. THANK YOU VERY MUCH.

IF YOU COULD COME UP MARK THANK YOU.

NAME IS GRAY GORMAN AND I AM A POSTAL CARRIER HERE IN TRENTON, INDIANA. WE REPRESENT THE NATIONAL UNION OF LETTER CARRIERS FOR THE OF THE UNIT THE REPRESENTATIVE FOR THE SECOND SATURDAY IN MAY, WE DO OUR ANIMAL FOOD RECORD THIS YEAR, IT WILL BE THE 11TH. THE OPPORTUNITY TO GIVE BACK TO LOCAL FOOD PANTRIES HERE IN THE AREA. THE UNION I AM PART OF GOES EVERYWHERE FROM AVALON, -- LEBANON, CARMEL, WESTFIELD, ALL THE WAY TO -- BUT ALL THE FOOD COLLECTED IN THAT AREA GOES TO LOCAL FOOD BANKS. WHAT WE ARE LOOKING TO DO IS COMING OUT OF, OUR NUMBERS WERE KIND OF DOWN ON THE FOOD BANKS. WHAT WE HAVE DONE IS REACHED OUT TO THE DIFFERENT CITIES AND KIND OF SOLICIT SOME SUPPORT FOR THE EVENT . EITHER POSTING AND SOCIAL MEDIA, PROVIDING SOME INFORMATION . AGAIN, WE PASS OUT CARDS ONE TIME A YEAR.

I'M SLICK, TO SOCIAL MEDIA, THE MORE THEY SEE IT, THE MORE THEY DO IT. THE OTHER BIG THING IS, WE DO THIS THROUGH RESIDENTS IN THE AREA. WE REALLY WANT TO, WE HAVE ABOUT 90,000 POUNDS FROM THAT AREA. WE REALLY WANT TO GET OVER

[00:10:02]

WE ARE GETTING EXCITED FOR THE EVENT. WE ARE KIND OF GETTING THINGS ROLLING. WE HAVE GOT SEVERAL FOLKS IN THE AREA.

LET'S SEE. LET ME BRAG A LITTLE BIT. -- WE MAKE IT A PROCLAMATION FOR THE EVENT. LEBANON, WESTFIELD, -- OBVIOUSLY, CARMEL IS A GREAT AREA. I'VE WORKED HERE FOR EIGHT YEARS. I REALLY ENJOY IT. THEY HAVE KIND OF PUT ME IN CHARGE OF IT AND THAT IS WHY I THOUGHT, YOU KNOW WHAT? LET'S DO SOME DIFFERENT THINGS BUT WE REALLY HAVE NOT DONE THIS BEFORE. THE FOOD BANKS, WE HAVE PARTNERED WITH THEM BECAUSE EVERYBODY IS GREAT AROUND THANKSGIVING TIME.

COMING AROUND THIS TIME OF YEAR, THE FOOD SUPPLIES ARE REALLY DISMISSED. -- DIMINISHED FOR THIS IS THE LARGEST SINGLE DAY FOOD DRIVE ACROSS NORTH AMERICA. ALL 50 STATES CONTRIBUTE TO THIS. WE WANT TO BE ABLE TO BRAG A LITTLE BIT THAT BRANCH 88 FROM THE CARMEL AREA HERE HAS DONE VERY WELL WHICH WE HAVE IN THE PAST. THAT IS WHY WE ARE REACHING OUT TO SEE AND LET PEOPLE KNOW WHAT IS GOING ON AND WHAT SUPPORT WE CAN GET.

>> LASTLY, THE LAST CARD IS BRUCE SHUFFLE.

IN -- COMPLEX. I GUESS I AM YOUR AD HOC REPRESENTATIVE TO THE LAND-USE MINI MEETING. I WANTED TO SAY THANK YOU TO THE WHOLE CITY COUNCIL FOR PUTTING TOGETHER THE TWO COMMITTEES TO HANDLE THE UTILITIES AND FINANCE. ALSO, THE SPECIAL NEEDS FOR LAND USE. I WANT TO FULLY RECOGNIZE JOSIE , -- LIGHTER, AND -- FOR WORKING WELL WITH THE COMMITTEE. AND BEING OPEN TO LISTEN TO THINGS AND HAVE THE DISCUSSIONS. AND BRING THAT OUT INTO THE PUBLIC SO IT IS SOMETHING EVERYONE CAN BE PART OF AND COME TO CONSENT ACROSS THE BOARD AND EVERYTHING. I WANT TO SAY THANK YOU VERY MUCH FOR THAT. I

APPRECIATE IT. >>

>>

[7. COUNCIL AND MAYORAL COMMENTS/OBSERVATIONS]

COMMENTS AND OBSERVATIONS. >> MR. PRESIDENT, I WOULD LIKE TO ASK, IF THERE IS A GRAPHIC OR SOMETHING FOR US TO SHARE THAT YOU COULD GET TO FOR YOUR EVENT FOR THE LETTER CARRIER

FOOD BANK. >>

>> FORWARD THAT ONTO US. OKAY, THANK YOU.

>> I WANTED TO SAY HELLO TO JAMES LOCKE .

>>

>> ANYBODY ELSE? >> ONE OF US ON THE DAIS IS TURNING 40 YEARS OLD. HAPPY BIRTHDAY TOMORROW. HOPEFULLY, WE ARE NOT STILL HERE TOMORROW. HAVE -- HAPPY BIRTHDAY TO YOU, COUNSELOR.

PREPARED TO KIND OF MAKE A STATEMENT . SOMEONE HANDED ME SOMETHING FAR MORE ELEGANT SO I WILL GO AHEAD AND READ THE STATEMENT. HAVING LOST SOMEONE VERY RECENTLY IMPORTANT TO THE CITY, AND IS WITH PROFOUND SADNESS WE MOURN THE PASSING OF TIM PARAMORE, TERRACE MEMBER OF OUR COMMUNITY AND A DEVOTED ADVOCATE FOR THE DISABLED. TIM'S UNWAVERING COMMITMENT TO IMPROVING THE LIVES OF INDIVIDUALS WITH DISABILITIES HAS LEFT AN INTELLIGIBLE MARK ON OUR CITY AND BEYOND. AS A VALUED MEMBER OF THE ADVISORY COMMITTEE ON DISABILITY FOR CARMEL, TIM BROUGHT INSIGHT AND COMPASSION TO EVERY DISCUSSION.

HIS TIRELESS EFFORTS TO PROMOTE ACCESSIBILITY AND INCLUSION HAVE ENRICHED LIVES OF COUNTLESS INDIVIDUALS . HIS LEGACY WILL CONTINUE TO INSPIRE US ALL ON BEHALF OF THE CITY OF CARMEL, EXTEND MY DEEPEST CONDOLENCES TO TIM FAMILY, FRIENDS, AND COLLEAGUES FOR TIM DEDICATION TO SERVING OTHERS, COUPLED WITH HIS WARM SPIRIT AND GENUINE KINDNESS MADE MY BELOVED FIGURE IN OUR COMMUNITY , HIS ADVOCACY WORK SAID BOUNDARIES, FOSTERING GREATER UNDERSTANDING AND ACCEPTANCE FOR PEOPLE OF ALL ABILITIES.

[00:15:07]

OVER TO TO GET THIS REPORT STARTED.

>> THAT EVENING, TOO. I NAME IS MADISON AND I AM IN FIFTH GRADE AT COLLEGE WITH ELEMENTARY SCHOOL. THE MAYOR IS PLEASED TO REPORT THAT AS OF LAST WEEK, ALL NEW EXECUTIVE HIRES HAVE BEEN ON BOARDED. THE ENTIRE TEAM OF VERY TALENTED LEADERS MET FOR TWO DAYS LAST WEEK TO DISCUSS GOALS AND HOW TO IMPROVE TRANSPARENCY , COMMUNITY ENGAGEMENT, AND FISCAL RESPONSIBILITY. REGARDING TRANSPARENCY .

TONIGHT, FOR THE FIRST PINE -- TIMES OF THE HOTEL OPEN IN 2000, YOU WILL HEAR A FULL REPORT ON THE HOTEL FINANCIALS. ALSO, WE BEGINNING THE 2025 BUDGETING PROCESS SOON. WORKING ON REVAMPING THE PROCESS TO BRING TAXPAYERS MORE INFORMATION AS TO THE WHAT AND WHY OF USING TAXPAYER DOLLARS IN THE CITY. WE HOPE BY IMPROVING THE PROCESS, THAT WILL MAKE HOW WE SPENT DOLLARS MUCH EASIER TO UNDERSTAND.

REGARDING FINANCIALS, WE ARE IN OUR FINAL STEPS IN SELECTING A PURCHASING -- THIS IS A KEY POSITION TO SAVE TAXPAYER DOLLARS BY GETTING THEIR NEGOTIATION AMENDING CONTRACTS.

>> MY NAME IS ERIC SMART. I AM MADISON'S BROTHER. I'M ALSO IN FIFTH GRADE AT COLLEGE WITH ELEMENTARY SCHOOL.

REGARDING COMMUNITY ENGAGEMENT, THE MAYOR IS EXCITED TO SHARE THE -- 11,500 PEOPLE WITH THE CITYWIDE SURVEY. THAT IS A GREAT RESPONSE. THE RESULTS OF THIS SURVEY WILL BE RELEASED TO THE PUBLIC IN THE NEXT COUPLE OF WEEKS. THEY ARE ALSO USING THESE RESULTS TO HELP WITH THE REBRANDING PROJECT. WE HOPE TO CLARIFY THE COMPETITIVE DECISIONING AS WELL AS A BRAND LOOK AND FEEL UNTIL WE ADEQUATELY CONVEY OUR COMMUNITY SPIRIT AND PROVE HOW OTHERS EXPERIENCE CARMEL. IF YOU WOULD LIKE TO LEARN MORE, WE HAVE -- TO ANSWER A QUESTION ON BRANDING CARMEL.

GO TO DISTINCTLY CARMEL.COM. THE NEXT MEETING OF THE -- TAX FORCE WILL BE ON THURSDAY, APRIL 25TH AT 7:30 A.M. THE SUBJECT OF THIS MEETING WILL BE TO REVIEW SINGLE-FAMILY HOUSING . IF YOU HAVE MISSED PRIOR MEETINGS WITH TAX FORCE INFORMATION, YOU COULD GO TO THE CITY WEBSITE. THANK YOU FOR ALL YOU DO.

THAT LINE BECAUSE THEY DID NOT GO BUT I SENT OUT LATE THIS AFTERNOON. YOU DID A VERY GOOD JOB FOR THE FIRST READ THROUGH OF THAT.

[8. CONSENT AGENDA]

>> THANK YOU, MADISON AND ERIC. MOVING ON TO AGENDA ITEM NUMBER EIGHT. THE CONSENT AGENDA. APPROVAL OF MINUTES FROM MARCH 18, 2024 REGULAR MEETING. AND MARCH 28, 2024 CLAIMS MEETING.

GENERAL CLAIMS IN THE AMOUNT OF JILLIAN $397,729.97. AND FOR WATER TRANSFERS, $2,581,000 581,500 30 DOLLARS AND $.44.

WE HAVE A MOTION? >> SO MOVED.

>> SECOND. >> DISCUSSION? PLEASE VOTE.

ALL RIGHT . THE CONSENT AGENDA IS APPROVED 9-0. MOVING ON TO

[10. COMMITTEE REPORTS]

MOVING ON TO AGENDA ITEM NUMBER 10. COMMITTEE REPORTS. FINANCE,

UTILITIES AND RULES. >> YES, THANK YOU. WE DID MEET AND WE HAD TWO ITEMS ON OUR AGENDA.

ONLY ONE OF THOSE WILL BE DEALT WITH TONIGHT. THE OTHER ONE WILL BE PRESENTED AT OUR SECOND ONE. THE MID MAY

[00:20:04]

AGENDA. >> MOVING ON TO LAND-USE AND SPECIAL STUDIES. PARLIAMENTARIAN SNYDER?

>> WE HAD OUR REGULAR MEETING, THE WEDNESDAY FOLLOWING OUR LAST COUNCIL MEETING. IT WAS WELL ATTENDED. WE REALLY DUG INTO EVERYTHING SURROUNDING THE OUTSIDE OF THE GRAMERCY PROJECT FOR THE NEXT MEETING WILL BE TALKING ABOUT THE INSIDE OF THE GRAMERCY PROJECT. WILL ALSO BE GETTING INTO ARTICLE ONE OF THE UDO.

THAT WOULD BE THE FIRST BITE OF THE UDO WILL BEGIN TO REVIEW. THIS WILL BE AT 5:30 THIS COMING WEDNESDAY AT THE CARMEL PUBLIC LIBRARY IN THE SECOND FLOOR BOARDROOM.

[11. OTHER REPORTS]

WEDNESDAY? >> IN TWO DAYS.

>> OKAY. THANK YOU. MOVING ON TO AGENDA ITEM NUMBER 11. THE REPORTS. FIRST UP, CARMEL DEVELOPMENT COMMISSION. HENRY?

>> GOOD EVENING, CITY COUNCIL. IN LIEU OF MY REGULAR REPORT, WE HAVE A SPECIAL REPORT FOR YOU TODAY.

SORRY, I FORGOT THE NAMES OF THE KIDS. MENTIONED BY MADISON EARLIER. WE HAVE A REPORT ON THE FINANCIALS OF THE HOTEL CARMEL. I AM , IN A MOMENT HERE, I'M GOING TO ASK REPRESENTATIVES FROM -- PRESIDENT AND THE SENIOR VICE PRESIDENT TO COME UP AND JOIN US. I WANT TO TAKE JUST A SECOND TO KIND OF SET THE STAGE HERE SO EVERYBODY IS KIND OF ON THE SAME PAGE. AND OH, BACK IN 2017, THERE WAS A PROPOSAL FOR A HOTEL. HOTEL CARMICHAEL. BEFORE CITY COUNCIL, IT WAS DISCUSSED ROBUSTLY. THERE WERE CONVERSATIONS ABOUT THE NATURE OF THIS HOTEL. AND I BELIEVE IT WAS WELL UNDERSTOOD BY EVERYBODY THAT IF WE WERE TO, IF WE WERE TO GET THE KIND OF LANDMARK HOTEL , THE KIND OF OPERATION WE WANTED TO ANCHOR OUR FINE CITY, THAT IT WAS NOT GOING TO BE SOME SORT OF, IT WAS TRULY GOING TO BE A PRIVATE HOTEL AND A GO IN CONCERN, IF YOU WILL. AND TO LURE A DEVELOPER TO COME AND BUILD THE KIND OF LANDMARK HOTEL WE WANTED, THAT WAS UNDERSTANDING FROM THE BEGINNING. THAT WE WOULD NOT HAVE A PARTNER THAT WOULD SHOW UP AND SHARE THEIR NUMBERS EVERY SINGLE MONTH TO THE DETRIMENT OF THE HOTEL'S PERFORMANCE. THE HOTEL CARMICHAEL IS, IN MY OPINION, THE BEST HOTEL IN THE COUNTY. THAT MEANS EVERYTHING OR OTHER HOTELIER WANT TO KNOW EVERY DETAIL OF THEIR NUMBERS. AND SO TO GET THAT KIND OF DENMARK HOTEL HERE WE DESERVE IN THE CITY, FROM THE VERY BEGINNING, WE KNEW THAT WE WERE NOT GOING TO GET SOMEBODY THAT WOULD COME IN AND SHARE ALL OF THEIR PERFORMANCE METRICS THAT KIND OF PROPRIETARY INFORMATION THAT IS SO CLOSELY GUARDED IN THE HOTEL WORLD THAT WE WERE NOT GOING TO GET THAT ON A MONTHLY BASIS. THAT IS KIND OF, THAT WAS THE DEAL WE ENTERED INTO WITH THAT FULL UNDERSTANDING.

HAVING SAID THAT, THE MAYOR AND THE ADMINISTRATION IS ALL ABOUT TRANSPARENCY AND HOW THE HOTEL HAS BEEN DOING. IT HAS BEEN A QUESTION IN THE MIND OF THE VOTERS. EVEN THOUGH TECHNICALLY THAT DATA IS NOT PUBLIC. SO THE BEST COURSE OF ACTION IS TO HAVE THAT OPEN AND TRANSPARENT CONVERSATION WITH THE UNDERSTANDING THAT THIS IS NOT NORMAL. THIS DOES CAUSE SOME NEGATIVE, SOME DETRIMENT TO THE HOTEL OPERATION BECAUSE NO OTHER HOTEL IS WALKING AROUND BLASTING ALL THEIR NUMBERS IN PUBLIC THIS WAY.

BUT BETWEEN TRANSPARENCY AND THIS OTHER VALUE , TRANSPARENCY IS GOING TO TRUMP THE DAY. SO WITH THAT INTRODUCTION, WE ARE GOING TO HEAR SOME NUMBERS THAT ARE NOT PUBLIC. THEY ARE NOT GENERALLY DISPOSABLE AND REVEALED TO THE PUBLIC. BUT BECAUSE TRANSPARENCY IS IMPORTANT AND PEOPLE NEED TO KNOW HOW WELL THE CITY INVESTMENT IS DOING, WE'RE GOING TO HAVE AN OPEN AND HONEST CONVERSATION ABOUT IT BUT WITH THAT, I'D LIKE TO INVITE BRUCE, THE PRESIDENT OF -- COMPANIES. AND THE SENIOR VICE PRESIDENT OF -- COMPANIES.

[00:25:03]

HOPEFULLY, WE WILL FINISH WITH EVERYTHING YOU EVER WANTED TO KNOW AND WERE NOT AFRAID TO ASK. I WILL START WITH THAT.

AS WAS MENTIONED BY HENRY, I AM PRESIDENT OF ACCOR COMPANIES BUT CLASSICALLY, OUR CORE BUSINESSES AFFORDABLE HOUSING THROUGHOUT THE COUNTRY. IT STARTED A LITTLE OVER 20 YEARS AGO WITH SOME OF YOU AND YOUR PREDECESSORS. WE STARTED WORKING WITH THE CITY IN PUBLIC AND PRIVATE PARTNERSHIPS. THE PREPARATION FOR THIS MEETING, I THOUGHT IT WOULD COUNT THE NUMBER OF BUILDINGS WE HAVE DONE. MINE, CAME UP WITH 25. WHEN I DROVE BY TO SEE THE MALL THIS WEEKEND, I REALIZED IT WAS OVER 40. SO I BEEN DOING THIS NOW FOR ABOUT 20 YEARS WITH THE CITY IN PRIVATE AND PUBLIC PARTNERSHIPS FOR THAT IS ABOUT TWO PER YEAR. WHETHER WE WERE ABLE TO CONTINUE THAT OR NOT, WE WILL SEE. I CERTAINLY THINK BETWEEN THE ART AND DESIGN DISTRICT, CARMEL CITY CENTER AND HAD COURSE SQUARES WHERE YOU WILL SEE THESE 40 SOME BUILDINGS. ONE OF THEM IF YOU NEED ONE, SUCH AS THE THEATER.

IN THAT REGARD, WE DID THE DESIGN AND CONSTRUCTION. THE PUBLIC SECTOR OWNS IT. IT DID NOT MAKE SENSE FOR THE PRIVATE SECTOR TO BE INVOLVED. EXCEPT FOR THE HOTEL CARMICHAEL, WITH RESPECT TO THE REST OF THEM, ALMOST 40 BUILDINGS WITH THE CITY WAS INVOLVED. -- STILL INVOLVED WITH MANY OF THESE THINGS AS FAR AS BEING PAID OFF. OF COURSE , ONCE THIS BOND IS PAID OFF, ALL OF THE TAX REVENUE GOES TO YOU AND THE COUNTY AND OTHERS. IT IS QUITE SUBSTANTIAL AND IT GROWS EVERY YEAR. ONE OF THEM WAS UNIQUE. THAT WAS THE HOTEL CARMICHAEL.

HENRY MADE THE COMMENT THAT IT WAS PRESENTED TO YOU IN 2017. I CAN TELL YOU THE IDEA FOR IT CAME SOME 10 YEARS PRIOR TO THAT. YOUR PREDECESSORS, THE CURRENT MAYOR WHEN SHE WAS A COUNCIL MEMBER, BUT ALSO THE PREVIOUS MAYOR. WE HAD DISCUSSIONS THAT WE WANTED SOMETHING ICONIC. WE COULD'VE DONE SOMETHING A LOT LESS EXPENSIVE , BUT WOULD HAVE NOT ADDED, WE THOUGHT, TO THE ECONOMIC DEVELOPMENT OPPORTUNITIES OF THIS CITY. WE THOUGHT THE LOCATION BETWEEN THE CITY CENTER AND THE -- WAS AN EXTRAORDINARY LOCATION. I SUGGESTED IT IS THE MOST VALUABLE PARCEL IN THE STATE OF INDIANA. I WOULD ADD TO HENRY'S COMMENT WHERE HE SUGGESTED IT MIGHT BE THE BEST HOTEL IN THE COUNTY, I WOULD ARGUE IT IS THE BEST HOTEL IN THE STATE IF NOT BEYOND. THAT CERTAINLY HAS BEEN OUR GOAL. IN THAT REGARD THEN, THE HOTEL IS UNIQUE AND IT IS CLASSICALLY A MORE EQUAL PARTNERSHIP BETWEEN THE CITY AND US. HENRY HAS BEEN AN EXCELLENT REPRESENTATIVE I THINK HAS REPRESENTED THE CITY VERY WELL AS WE HAVE WORKED THROUGH OPPORTUNITIES MORE THAN PROBLEMS. THIS HAS WORKED FOR THE PANDEMIC HAPPENED IN MARCH OF 2020 AND ARE OPENING IN JULY 2020 DID NOT CREATE ITS OWN CHALLENGES. IT DID. LET ME COMMENT HOW WE DEALT WITH THAT. AND ALSO, BECAUSE OF CARMEL'S OPENNESS, WE ARE ABLE TO DO IT . LET ME FIRST, THAT THE GOAL OF THE HOTEL INITIALLY WAS FOR EXECUTIVES AND PROFESSIONALS WHO HAD A DAY UP HERE IN CARMEL, WORKING AND DOING THEIR REPRESSION OR BUSINESSES, KEEPING THEM FROM GOING TO INDIANAPOLIS, BASICALLY, FURTHER HOTEL. WE WANTED TO KEEP THEM HERE IN CARMEL. WE THINK WE HAVE ACCOMPLISHED THAT. IN FACT, WE THINK WE HAVE ALSO CAUSED THE OPPOSITE TO OCCUR. THAT IS PEOPLE WHOSE BUSINESSES ARE ACTUALLY HAVE ACTIVITIES DURING THAT DAY, IN INDIANAPOLIS, THEY ARE NOW COMING TO HOTEL CARMICHAEL BECAUSE THAT IS THE BEST LOCATION FOR THEM BUT EVEN MORE IMPORTANT THAN THOSE TWO THINGS , WHAT WE ARE DOING IS ACTUALLY ATTRACTING ACTIVITIES, SOME THAT DID HAPPEN IN INDIANAPOLIS. WE CARE ABOUT INDIANAPOLIS, IS THE COMMON WANT THEM TO THRIVE, BECAUSE TOGETHER WE WILL TRY WITH THEMV ACTIVITIES THAT DID NOT PREVIOUSLY HAPPEN IN INDIANA AT ALL. WE HAVE CONFERENCES, NATIONAL MEETINGS AND WHAT HAVE YOU PUT ON PORCH LIGHT, ALTHOUGH I AM PROUD OF THEM AND WOULD LIKE TO SHARE THOSE, THAT I CANNOT DO AND WILL NOT. I AM SURE YOU UNDERSTAND.

WE ARE BRINGING IN NATIONAL LEADERS, PEOPLE WHO WOULD BE KNOWN. WHOSE ACTIVITIES ARE KNOWN AND UNKNOWN THEY COME TO THIS COMMUNITY THROUGH THE HOTEL CARMICHAEL , THE CITY CENTER, SEEK CARMEL , AND ARE VERY IMPRESSED WITH MY WIFE DENISE IS WITH ME ALSO. THOSE OF US -- THOSE OF YOU WHO KNOW US KNOW THAT I AM THE INTROVERT AND SHE IS ASKED OF HER. WHEN WE ARE AT THE RESTAURANT AND I'M TRYING TO READ MY BOOK CANNOT BE BOTHERED, SHE APPROACHES PEOPLE AND TALKS TO THEM. SHE APPROACHES THE WOMAN AND SAYS, DO YOU KNOW ABOUT ALL THE GREAT CHAPTER? PEOPLE OF THE

[00:30:01]

WE ARE ALSO CONCERNED, NOT CONCERNED. WE ARE VERY MUCH WANTING TO MAKE SURE THE ASSETS, THAT YOU AND WE BOTH OWN, BASICALLY, IS PRESERVED GOING FORWARD IN THE FUTURE.

AS PART OF THE FELTING AWAY, NOT AS AN ACCOUNTING MATTER. WE ACTUALLY SET ASIDE THESE DOLLARS AND REPLACEMENT RESERVE. A TOTAL OF ABOUT $500,000 PER YEAR. LORI TELLS ME WE HAVE ABOUT $1 MILLION IN RESERVES NOW. WE ARE GETTING READY TO ADD 500,000 TO IT. I WANT YOU TO KNOW WE ALSO SPEND IT, OKAY? I'VE ALWAYS HATED THAT WHEN A LENDER HOLDS BACK IN PLACES RESERVES AND WILL NOT LET THEM OUT. THAT IS CRAZY PRETTY WANT THEM INVESTED BACK IN THE PROPERTY. IN THIS COMING YEAR, WE ANTICIPATE 500,000 ACTUALLY BEING REINVESTED IN THE HOTEL TO MAKE SURE WE KEEP IT UP TO THE QUALITY WE ALL WANT.

I WANT TO COMMENT ON ONE THING ABOUT -- INTEREST RATES WHEN I HAD A PLAY IN THIS. I WILL ACCEPT RESPONSIBILITY FOR IT TOO IN CASE ANYBODY COMMENTS. WE INITIALLY HAD THE CHANCE IN 2017 OF A FIXED INTEREST RATE OF 7% OR AN ADJUSTABLE RATE WHICH WOULD BE THE SHORT TERM RATE. PLUS 225 BASIS POINTS.

WE GOT THAT FROM THE TWO BASSFORD COMMERCE BANK TO AS THE FIRST MAGGOTS AND UNITED FIDELITY BANK THAT HAS THE SECOND MORTGAGE. WE ARE CONFIDENT NEXT YEAR, WHEN THESE MORTGAGES COME UP , OR MAYBE THE YEAR AFTER, THAT THOSE BANKS WILL BE HAPPY AND RENEWING THOSE MORTGAGES. I CANNOT SPEAK ON THEIR BEHALF, ALTHOUGH A MAP OF THE SECOND MORTGAGE HOLDER, I CAN ALMOST PRAY BUT I'M QUITE CONFIDENT THEY'RE HAPPY WITH THE PERFORMANCE OF THE HOTEL AND WILL RENEW IT GOING FORWARD BUT AS I MENTIONED, WE COULD'VE GOT A 7% FIXED RATE BUT I KNOW SOME PEOPLE THINK THAT FIXED RATES ARE A PANACEA. I DO NOT BUT I THINK WHEN YOU HAVE A HOTEL WHERE THE INCOME CAN GO UP OR DOWN, DEPENDING ON HOW THE ECONOMY GOES, HAVING IT RELATE TO AN ADJUSTABLE RATE MORTGAGE MAKES A LOT MORE SENSE THAN A FIXED RATE MORTGAGE. SO WHEN WE CLOSE ON THIS IN 2017-18, AGAIN, WE COULD'VE HAD A 7% FIXED RATE. WE CHOSE AN ADJUSTABLE RATE PUT IN THE FIRST COUPLE YEARS, IT STATED ABOUT THE 5% RANGE. MAYBE 6%.

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

[00:35:03]

I WILL SAY I WAS PART OF ALL THOSE DISCUSSIONS.

I WAS IN THE PRIVATE SECTOR. I WILL LEAVE YOU WITH THE PRIVATE SECTOR. THAT IS YOUR -- BUT FROM THE PRIVATE SECTOR POINT OF VIEW, I CAN TELL YOU I THINK EVERYTHING WAS SPENT THERE. IT WAS APPROPRIATELY SENT WAS REPLACEMENT, AND RESULTED IN REAL VALUE FOR BOTH OF US. MY INTEREST IN IT WAS SUBORDINATE TO ALL OF THOSE EXPENDITURES BUT IT WAS NOT AS IF EVEN IF THE CITY SPENT IT AS OPPOSED TO -- MANY OF THOSE CASES, THAT IT WAS NOT AN IMPACT ON ME IN MY BUSINESS. IT WAS BIT BUT I THOUGHT ALL OF THOSE MONIES WERE APPROPRIATELY SPENT AND RESULTED IN, I BELIEVE, AN ICONIC HOTEL BUT AGAIN, I AM MINDLESSLY BIASED. AT 1 TO 2 ROOMS, A DECISION WAS MADE TO HAVE IT AT THAT . EVEN THOUGH THAT IS AT THE MINIMUM LEVEL YOU CAN EXPECT TO RUN A HOTEL AND BE EFFICIENT.

MORE EFFICIENT WOULD BE 150-200 ROOMS. WE DID IT AT 120 BECAUSE NOBODY HAD EVER DONE A HOTEL IN THE AREA WHERE WE PUT HOTEL CARMICHAEL BUT IT ALWAYS BEEN A LONG U.S. 31. THAT WAS A GREAT PLEASURE BUT THAT IS NOT WHAT WE ARE TRYING TO ACCOMPLISH HERE IN THIS LOCATION BETWEEN CITY CENTER AND -- IN THAT REGARD, WE WERE TRYING TO KEEP THE COST DOWN BY HAVING A HOTEL WE THOUGHT MINIMALLY COULD SUPPORT THE RESTAURANT , THE ADAGIO BAR, AND THE FEINSTEIN NIGHTCLUB.

FORTUNATELY, ALL THREE OF THEM HAVE DONE WELL. NOT JUST BECAUSE OF HOTEL GUESTS, BUT BECAUSE OF THE ATTRACTIONS AND BRINGING MANY PEOPLE FROM CARMEL BUT FROM WAY BEYOND CARMEL.

PARTICULARLY FROM THE FEINSTEIN NIGHTCLUB. WE HAVE THE OPPORTUNITY BECAUSE OF THE REALM, WHICH IS THE BUILDING UNDER CONSTRUCTION RIGHT NEXT TO THE HOTEL, WE DESIGNED IT SO THE NORTHERN HALF OF IT COULD, IN FACT, CONNECT TO THE HOTEL.

THAT IS WHAT WE THINK MAKES SENSE NOW. THERE ARE 33 APARTMENTS THERE THEY CAN MAKE THE EQUIVALENT OF A LARGE SUITE. THEY CAN BE ADDED TO THE HOTEL. THE 122 ROOMS, THERE'D BE AN INITIAL 33 THAT WOULD TAKE IT TO 155 WHICH WE THINK WOULD MAKE IT VERY EFFICIENT BUT I'M NOT HERE NOW AND DO NOT ANTICIPATE AT ANY POINT IN TIME, HERE ARE FOR THE REDEVELOPMENT COMMISSION, ASKING FOR ONE DOLLAR FOR THE PUBLIC INVESTMENT. HAVING SAID THAT, IF YOU WANT TO INVEST, I DOUBT YOU DO BECAUSE I KNOW THAT IS NOT YOUR BUSINESS, BUT IF YOU DO, I DO NOT THERE TO BE ANY QUESTION THAT I SEIZED THIS OPPORTUNITY FOR OURSELVES. WE WOULD INVITE AND WELCOME YOUR INVESTMENT. WE ARE NOT EXPECTING OR NEEDING IT. WE BELIEVE THE INCENTIVE HELPED US CREATE WITH THE EXISTING HOTEL CARMICHAEL WILL ENABLE US TO HELP YOU AND US EXPAND IT AND MAKE THE EXISTING HOTEL MORE EFFICIENT. 155 ROOMS , THEIR EVENTS, CONVENTIONS, BUSINESS MEETINGS THAT THE HOTEL IS NOW TURNING DOWN BECAUSE WE DO NOT HAVE CAPACITY FOR THAT. THIS WILL ADD TO THAT CAPACITY AND CREATE MORE BUSINESS OPPORTUNITIES HERE IN CARMEL. THAT IS MY PRESENTATION. I WANT TO TURN IT OVER TO LORI AND AFTER THAT, IF YOU HAVE ANY QUESTIONS, I'M HAPPY TO RESPOND TO THEM. THANK YOU.

>> HELLO. OKAY. I AM GOING TO START THERE WE GO. I'M GOING TO START WITH OCCUPANCY. SO ORIGINALLY, BRUCE HAD TALKED ABOUT THE OCTOBER , THE OCTOBER 2017 ORIGINAL PERFORMANCE. AND SO THAT IS, AS YOU LOOK TO THE HOTEL, ALSO TELLS KIND OF STABILIZE AT ROUGHLY 75-77% OCCUPANCY. I'VE DONE A LITTLE CHART. AS YOU CAN SEE. IT WAS NOTED THAT WE HAVE BEEN -- WE OPEN THE DOORS IN JULY OF 2020 AND THE GLOBAL PANDEMIC.

THROUGH THE CHART , WITHIN THREE YEARS, WE HAVE OUTPACED THE ORIGINAL HOTEL CARMICHAEL. THE ORIGINAL RATE FOR LOOKING THROUGH 2024, I WILL FOCUS ON 2022. YOU CAN SEE IN 2022, WE 76.4%. THE ORIGINAL PERFORMANCE WAS 75%. IF YOU MOVE DOWN, YOU'RE GOING TO SEE SOME MARKET IN THAT NORTH LOUP. THAT IS GOING TO BE OUR SET IN THE STARR REPORT WHICH IS A STANDARD HOTEL KIND OF DYNAMICS. THAT IS MAINLY FOCUSING ON THE NORTH SIDE OF INDIANAPOLIS. SO IN 2022, ALREADY, WE ARE ABOVE THE INDY NORTH LOUP. THE UPPER SCALE CLASS IS ALL THE LUXURY HOTELS, INCLUDING THE ONES IN DOWNTOWN. YOU CAN SEE EVEN IN 2022, WE ARE AT 76. THE LUXURY

[00:40:01]

MOVING TO 2020, WE GO UP TO 80% OCCUPANCY. STILL ABOVE THE 77 WHICH A HOTEL OPERATOR IS CONSIDERED FROM A STABILIZED POSITION. 2024, ANYTHING I HAVE UNDER 2024'S PROJECTIONS.

THESE ARE NOT PROVIDING 2024 NUMBERS IN ANY WAY JUST BECAUSE OF, WE HAVE TWO MONTHS UNDER OUR BELTS. PROJECTED TO BE AT 80% AGAIN. HONESTLY, THE ORIGINAL -- IS 17. IT ALSO KIND OF ROLLS INTO A REVENUE.

WITHIN 18 MONTHS, THE REVENUE WAS 7% ABOVE THE ORIGINAL 10 YEAR PERFORMANCE WE DID IN 2017. YOU CAN SEE THAT HAPPEN ACTUALLY IN 2021. A LOT OF THAT WAS BECAUSE WE TOOK ADVANTAGE OF THE WEDDINGS AND EVENTS AND A LOT OF PEOPLE DID STAYCATIONS. I CANNOT GO ANYWHERE, BUT I CAN COMMENT KIND OF STAY IN DOWNTOWN CARMEL AND ENJOY THAT BE VERSUS BEING STUCK AT MY HOME DURING THE GLOBAL PANDEMIC. WE OPEN IT JULY 2020. YOU KNOW, THE ORIGINAL PORT FOR MY HEAD IS OPENING IN 2019. I'VE SLIGHTLY ADJUSTED FROM YOUR PERSPECTIVE.

BUT THAT IS IT GOOD AT IS THE RELATED OF WHEN WE OPEN IN THE REST OF YOUR VERSUS WHEN THEY HAD US OPENING. 2021, OUR TOTAL REVENUE WAS $10.2 MILLION. THAT ORIGINAL AMOUNT WAS 9.5.

WE WERE ALREADY KIND OF OUT OF THE GATE AT 7%. IN 2022, YOU CAN SEE THAT CONTINUE GROWING TO 25 ABOVE THE PERFORMA. 23 -- 2024 IS PROJECTED TO BE 52. I WOULD LIKE TO POINT OUT FROM A STANDPOINT OF THE TOTAL REVENUE, RICHLY, THE NUMBER PRESENT IN THE ENVIRONMENT NEVER EVEN IN THE 10 YEARS, NEVER WENT ABOVE A 13.2 MILLION AS IT ESCALATED THROUGH. WE CURRENTLY , 2023, WE HAVE $16.4 MILLION IN REVENUE. WE PROJECTED AT 17 POINT TREAT FOR THIS YEAR. WE ARE AUTOMATICALLY EVEN, AS ALL THE GROWTH ABOVE WHAT WE ESTIMATED. THE REVENUE IN 2023 HAD AN INCREASE OF ABOUT 48% FROM THE ORIGINAL PROJECTIONS. I THINK THAT IS, AS ROSA COMMENTED, ALL THE DIFFERENT COMPONENTS WE ARE EXPERIENCING BETWEEN THE EVENTS WE ARE GETTING BETWEEN A LOT OF THE TRAVEL AND CONFERENCES.

THE ADAGIO BAR HAS GONE TO SOMETHING WE NEVER EXPECTED IT TO BE. THAT IS VERY MUCH A HAPPENING PLACE. AND FEINSTEIN'S. YOU ARE GETTING A LOT MORE DIFFERENT ELEMENTS IN DIFFERENT COMPONENTS OF THE HOTEL ADDING TO THAT REVENUE.

I APOLOGIZE BUT I'VE A TENDENCY TO GO REALLY FAST. IF I NEED TO SLOW DOWN, PLEASE LET ME KNOW. INCOME STATEMENTS.

THIS IS JUST GOING TO BE TOTAL REVENUE. SOME EXPENSES. OUR TOTAL EXPENSES . WAS ALSO THE REPLACEMENT IN RESERVE WE SET ASIDE. PER THE MARRIOTT. MARRIOTT HAS AN ESCALATOR. A PERCENTAGE OF TOTAL REVENUE THAT IS EXPECTED TO BE SET PER THEIR DOCUMENTS WHICH WE HONOR AND RESPECT. SO TOTAL REVENUE.

YOU CAN SEE AS IT HAS INCREASED INTO 2023-24, WHICH HAVE ALREADY GONE OVER. TOTAL EXPENSES. IT HAS ALSO INCREASED THROUGH THAT. I THINK IF WE CAN FOCUS ON THE NET INCOME.

THE MIDDLE LINE YOU CAN SEE. WE ARE MOVING. OPERATING IN 2021 , 2022 WAS ABOUT ONE .9 PUT A LOT OF THAT IS A GLOBAL PANDEMIC AND ADJUSTING TO PURCHASING AND COST OF GOODS AND THINGS LIKE THAT. 2023, WE HAD A NET OPERATING INCOME OF 3 MILLION AND WE'RE EXCITED IN 2024 TO HAVE A NET INCOME OF $3.5 MILLION. SO ADJUSTED, I CALL IT ADJUSTED, NOT OPERATING INCOME. THAT IS IS THE ADJUSTMENT OF THE REPLACEMENT RESERVE PIT LIKE BRUCE THAT SAID, THE REPLACEMENT RESERVE IS ABOUT $1 MILLION RIGHT NOW. WE HAVE PROJECTED THE $500,000 FOR 2024. AND WE ARE WORKING AND WILL USE THE 500 THROUGHOUT THE YEAR TO BE ABLE TO REPLACE THINGS . YOU KNOW, TO PURCHASE NEW THINGS FOR THE ROOMS, CARPET, ALL THAT KIND OF STUFF. AND ALSO ADDING AS WE NEED TO ADD SOME THINGS AND EQUIPMENT. THAT CAN ALSO BE USED FOR THAT. DEBT SERVICE.

OBVIOUSLY , BRUCE TALKED ABOUT THE INTEREST. 225 BASIS POINTS WITH THE CURRENT MORTGAGE IS MATURE APRIL 2026.

THE FIRST AND SECOND MORTGAGE HAVE THE EXACT TERMS ON THEM .

SO THEY WILL NOT MATURE AT THE SAME TIME. I'M ALREADY , WE HAVE ALREADY, IT'LL, STARTED CONVERSATIONS WITH OUR FIRST MORTGAGE LENDER. THEY ARE VERY PLEASED WITH THE HOTEL AND I

[00:45:04]

I WAS NOT AT THE HOTEL IS STILL OPERATING. WE WERE ABLE TO USE THE FUNDS YOU ARE NOT PULLING OPERATING CASH TO DO THAT. HOWEVER, THERE WAS ABOUT $85,000 THAT DID GO INTO, NOT 85. 288 THAT WAS PART OF THE OPERATING CASH BUT WHAT YOU SEE IN THE TOTAL DEBT FOR 2021, THAT IS WHAT HIT OUR CASH THE COUNT TO BE ABLE TO PAY FOR THE DEBT . PRINCIPAL PAYMENTS STARTED IN MAY OF 2022. WHAT YOU SEE IN 2021 IS ALSO INTEREST ONLY. AND MOVING TO 2022, WE STARTED PRINCIPAL PAYMENTS IN MAY OF 2022. THE DEBT HAS INCREASED BASED ON THE INTEREST RATE. YOU CAN SEE IT GO FROM ONE .3 TO THE 2.4 AND IS ESTIMATED AT TWO POINT FOR AGAIN IN 2024. WE ASSUMED WE WOULD KIND OF STAY THE SAME WITH THE INTEREST RATE TO HAVE A CONSERVATIVE ESTIMATE . I'VE LAID OUT THE RATIO FOR THE FIRST AND ALSO ON THE SECOND. THAT IS THE TWO COMBINED. THE BOTTOM NUMBER, SO THE FIRST AND THE SECOND. YOU CAN SEE EVEN FROM A DEBT SERVICE COVERAGE RATIO WHICH IS VERY MUCH A BANK KIND OF FORMULA. KIND OF A BANK TAKER THEY WANT TO SEE THAT CHECKED OFF THE BOX WOULD 2023, WE WERE 1.5 SEVEN TWO ONE ON THE FIRST MORTGAGE WHICH WAS VERY GOOD.

THERE WE GO. CASH FLOW. TAKING ALL THE NUMBERS WE HAVE TALKED ABOUT AND ROLLING INTO A CASH FLOW. ONE OF THE THINGS I WANT TOPOINT OUT, YOU CAN SEE IN 2021, BECAUSE WE WERE STILL INTEREST ONLY AND IS ABLE TO THE CONSTRUCTION RESERVE, WE HAD AN ADJUSTED NET INCOME OF THE REPLACEMENT SERVE OF 1.6 MILLION. WE THEN HAD DEBT SERVICE PAYMENTS OF THE 200 88.

WE HAD ABOUT 1 POINT FOR IN SURPLUS CASH. WHAT WE ENDE UP, BECAUSE OF THE NATURE OF 2021, IN THAT PANDEMIC, THAT LOW INTEREST RATE AT THAT TIME HAS ALLOWED US TO BE ABLE TO KIND OF BUILD UP SOME SURPLUS CASH. THIS ALLOWED US TO ABSORB THAT HIGHER INTEREST RATE, THE HIGHER COST OF GOODS WE STARTED TO EXPERIENCE AS HE ROLLED INTO 2022 AND EVEN 2023 AND THE HIGHER INTEREST RATE ÚNOW. SO THAT , ALL OF THOSE MARKET FACTORS TOGETHER. BECAUSE WE HAVE SOME OF THOSE THINGS BUILT IN AND IT WAS LOWER INTEREST RATES AT THAT TIME, IT GAVE US A NICE KIND OF NEST EGG TO BE ABLE TO END ALL THE MARKET FACTORS WE WERE KIND OF GETTING TO EXPERIENCE AS WE WERE COMING OUT OF THE GLOBAL PANDEMIC. IN 2022, YOU CAN SEE THE CASH FLOW DROP-DOWN TO 343. A LOT OF THAT IS THE INCREASE OF THE DEBT SERVICE PAYMENTS AS WE START TO SEE THE INTEREST RATE RISE. IN 2023, THE DEBT IS 2.4. WHEN THE CASH FLOW OF 180. WE ARE PROJECTED BECAUSE OF THE HIGHER INTEREST RATES AND BECAUSE WE ARE STARTING TO SEE SOME SAVINGS WITHIN THE EXPENSES, TO HAVE A PROJECTED CASH FLOW OF ABOUT $600,000. I WILL SAY, LOOKING AT BOTH THE JANUARY AND FEBRUARY, WE ARE CURRENTLY ABOUT 90,000 AHEAD OF BUDGET ALREADY. THAT IS A GOOD SIGN AS WE MOVE. JANUARY AND FEBRUARY ARE USUALLY THE HARDER PERIODS FOR HOTELS IN THEIR NATURAL KIND OF CYCLE.

JUST A FEW ACCOLADES OF HOW WELL THE HOTEL HAS DONE. THIS IS ONE OF THE THINGS THAT SPEAKS BACK TO BRUCE AND HENRY AND THE FACT OF WE HAVE DONE A LOT OF, YOU KNOW, NOMINATED FOR BEST HOTEL AND THINGS LIKE THAT.

THIS HOTEL AND THESE ACCOLADES HELP DRIVE THAT REVENUE AND DRIVE PEOPLE TO THE HOTEL . IT HAS REALLY MADE SOMETHING VERY

SUCCESSFUL. THAT IS ALL I HAVE. >> CURRENTLY IN THE WORLD IT IS 307. TO MAKE IT REPEAT THE

QUESTION? >> TYPE IT HE ASKED HOW MANY AUTOGRAPHS WE WILL SEE IN SOME OF THE ACCOLADES I SAID MARRIOTT AUTOGRAPH HOTELS VERSUS MARRIOTT ALL BRANDS.

>> THE AUTOGRAPH IS THE KIND OF ONE OF THEIR HIGHER END. IN THE

[00:50:03]

LORI? OR BRUCE? >> I DON'T KNOW WHO WILL ANSWER THIS BUT THIS MAY BE A TOUGH QUESTION. BUT WHEN THIS WAS FIRST PROPOSED, ONE OF THE CONCERNS PEOPLE WE BROUGHT UP, AND I'M GLAD IT IS DOING WELL AND I'M NOT SURPRISED IT IS DOING WELL. BUT IT MIGHT CANNIBALIZE SOME OF OUR EXISTING MARKET. AT THIS HOTEL DID WELL, WOULD NEGATIVELY AFFECT THE OTHER HOTELS THAT EXIST IN CARMEL. I KNOW YOU MAY NOT BE PRIVY TO THEIR SALES OR DATA. BUT WHAT ARE YOU KIND

OF SEEING THERE? >> THAT IS ONE OF THE REASONS IT IS JUST AT THE BEGINNING OF MY PRESENTATION OF HOW I THINK WE ARE ATTRACTING BUSINESS TO CARMEL THAT WE DID NOT HAVE OR PREVIOUSLY EXIST FOR THAT WAS OUR GOAL. THE RATES WE CHARGE WOULD NOT MAKE US IN THE SAME COMPETITIVE ENVIRONMENT AS THE RATES OF THE OTHER HOTELS. WE ARE DRAMATICALLY HIGHER THAN THEM. WE ARE ATTRACTING PEOPLE TO THE COMMITTEE WERE PREPARED TO PAY FOR A SERVICE THAT PREVIOUSLY WAS NOT THE CASE.

HAVE A LOT OF PEOPLE DOING STAYCATIONS. MY WIFE AND I AND TWO OF HER GRANDCHILDREN HAVE DONE IT THREE TIMES. IT IS KIND OF AMAZING TO DRIVE FIVE MILES TO THE HOTEL. YOU DO NOT HAVE TO WORRY TOO MUCH AS IT IS NOT TOO FAR TO DRIVE BACK HOME AND PICK UP SOMETHING IF YOU FORGOT IT. WE ARE FINDING A LOT OF PEOPLE ARE DOING THAT. OTHERS WOULD HAVE -- THE BUSINESSES WE ARE ATTRACTING THROUGHOUT THE COUNTRY WOULD NOT HAVE COME TO ANY OTHER HOTEL OR BUSINESS IN THE COMMUNITY. GIVEN MY, WITH 1 TO 2 ROOMS, IT MAY BECOME 155. I THINK IT IS OVER 2000 ROOMS, BASICALLY IN -- COUNTY AND MOST OF WHAT IS IN CARMEL. I THINK WE ARE ADDING TO THE BUSINESS DEVELOPMENT, AND ECONOMIC DEVELOPMENT OF THE CITY. THAT DIRECTLY OR INDIRECTLY , I THINK IT IS HELPING THE OTHER HOTELS. OUR GOAL WAS TO PROVIDE A SERVICE THAT CLEARLY DID NOT EXIST. IN INDIANA FOR THAT MATTER. THE CONRAD HILTON IN DOWNTOWN INDIANAPOLIS MIGHT BE A ONE COMPETITOR. BUT THAT PERSON IS NOT HERE IN CARMEL AND THAT IS NOT THE COMPETITOR HERE. IT IS NOT THE GOAL FOR US TO COMPETE WITH ANYBODY ELSE THAT IS HERE IN CARMEL. IT WAS TO BE A BUSINESS DEVELOPMENT TOOL AND TO CREATE A LEVEL OF SERVICE AND ACTIVITY THAT OTHERS WERE NOT CREATING. IS ANOTHER OPPORTUNITY FOR YOUR CONSTITUENTS AS OPPOSED TO COMPETITION FOR THE 2000 OTHER ROOMS IN THE AREA.

>> I AM THRILLED IT IS DOING WONDERFUL. THAT IT IS DOING AS GREAT AS IT APPEARS. ARE YOU WILLING TO HELP THE

TAXPAYER'S PORTION ? >> WE PROBABLY WOULD. I WOULD SEE THAT HAPPENING SOMEDAY. I DO NOT THINK THIS IS THE RIGHT TIME. IF YOU WANT TO SELL ENTITY'S RICES NOTWITHSTANDING MY, THE CARMEL DOES BETTER THAN I THINK THE REST OF THE COUNTRY AS FAR AS ECONOMICS. I AM NOT SURE THIS IS THE RIGHT TIME. AT THE RIGHT TIME, YES, WE WOULD BE VERY

INTERESTED. >> IF YOU DO THE EXPANSION FROM THE 122 TO 150, WOULD THAT BE PART OF THE HOTEL CARMICHAEL THAT CARMEL HAS A VESTED INTEREST IN?

>> IT CERTAINLY CAN BE. IT CAN BE IN DIFFERENT WAYS. SO YOU DID NOT -- YOU WOULD NOT HAVE TO PUT ANY ADDITIONAL MONEY IN IT, OKAY? WHAT I HAD SUGGESTED TO HENRY WAS -- BASICALLY OWNS THE REALM ON WHICH THE NORTHERN 33 UNITS ARE PART OF THE REALM.

WE WOULD PAY THE HOTEL FOR THE SERVICES THEY PROVIDE. MAKE SURE YOU COVER THEIR COSTS AND PROVIDE AN ADDITIONAL PROCESS TO THEM. AND MAKING THE NUMBERS WITH RESPECT TO THE INVESTMENT YOU ARE IN, ASSUMING WE DO NOT GO INTO THE 33 BUT I THINK THAT IS PROBABLY WHAT YOU DO NOT WANT TO DO.

SO THE 122 YOU HAVE WILL MAKE THE PROPERTY MORE VALUABLE.

>> THANK YOU. >> I HAD A VERY SIMILAR QUESTION. SORT OF WHAT WAS THE STRATEGY TO THINK ABOUT HOW WE KEEP THE TAXPAYER FROM BEING PART OF ANOTHER EXPANSION, IF YOU WILL? THAT WAS SORT OF MY QUESTION . DIRECT THE HOTEL IS IN THE INTEREST OF PROVIDING SERVICES ALL KINDS TO ALL PEOPLE THAT COME BY. SO THIS WOULD BE AN EXPANSION OF THAT.

DONE IN A WAY THAT IS MONITORED WELL AND TO MAKE SURE THE INVESTMENT PART YOU ARE IN IS, IN FACT, ENHANCED BY THIS

[00:55:04]

>> MINE IS MORE OF A COMMENT. AS A MEMBER, BOARD MEMBER OF THE CARMEL THINKING ORCHESTRA, WE TEND TO GO UP TO THE BAR AT THE CARMICHAEL AFTER CONCERTS. IT IS A BEAUTIFUL PLACE. IT IS NICE TO SIT IN THAT AREA AT THE BAR DOWNSTAIRS AS WELL. IT IS A FIVE-STAR HOTEL, IN MY OPINION.

>> YOU'RE WELCOME. >> I APPRECIATE YOUR WORK WITH

THE SYMPHONY AS WELL. >> I APPRECIATE YOUR WORK WITH

THE SYMPHONY AS WELL. >> ANY OTHER QUESTIONS?

COUNSELOR TAYLOR? >> THANK YOU.

THANK YOU, BRUCE. THANK YOU, MAIER, FOR HELPING US CORRELATE THIS PRESENTATION TODAY. SO I MAYBE HAVE A COUPLE TECHNICAL QUESTIONS AND THEN ONE MORE MAYBE PHILOSOPHICAL . WHAT WOULD CREATE THE OPTIMAL ENVIRONMENT

IN YOUR MIND FOR THE EXIT? >> WELL, IF YOU WANT TO SELL SOONER, I SUPPOSE WE COULD DO THAT. I THINK YOUR TIMING WOULD BE BETTER TO LET THE FOLKS ARE GETTING INTEREST RATES DOWN.

CARMEL IS BLESSED WITH REALLY UNUSUAL ECONOMICS BUT IT IS EVEN MORE BLESSED WHEN THE REST OF THE COUNTRY IS DOING

BETTER THAN IT IS DOING. >> SO YOU'RE LOOKING AT IT FROM JUST A STRAIGHT INVESTOR'S STANDPOINT AS WHEN THE CITY OF CARMEL AS AN INVESTOR WOULD WANT TO EXIT TWO MAXIMIZE THEIR CONTRIBUTION AND PROFFERED INTO THE HOTEL?

>> WELL, IF I BUY YOU OUT, I'M LOOKING AT IT --

>>

PARTNER AT THAT POINT. >> YES, THAT IS IS WHAT I'M

TRYING TO CLARIFY, SIR. >> I WANT TO BE HONEST. YOU HAVE NOT ASKED THE QUESTION AND DECIDED I WOULD ANSWER BUT I WILL ASK AND ANSWER. YOU ARE ASKING A QUESTION.

>> I'VE A COUPLE OF MORE. >> LET'S SEE IF YOU GET TO ALL

OF THEM. >>

>> WHAT I WANTED TO TALK ABOUT, THE TYPICAL NET PROFIT MARGIN FOR A HOTEL IN THE INDUSTRY. MANY TIMES, YOU KNOW, YOU ARE LEVERAGING THE DEPRECIATION EXPENSE, RIGHT? TO HIT THE RETURN YOU WANT. SO TAKING THAT PROFIT MARGIN BETWEEN WHAT WE DO SAY? 5-20%? HOW WOULD YOU SAY THE HOTEL

CARMICHAEL IS PERFORMING? >> YOU'RE GETTING PRETTY CLOSE TO THE QUESTION I THOUGHT YOU'RE GOING TO ASK LET ME TRY IT THIS WAY TO GIVE YOU MORE INFORMATION. SO I SAID TO LORI THIS AFTERNOON, OKAY. BUT, THE DEBT SERVICE COVERS RATIOS PRETTY GOOD AND GETTING BETTER. WHY DID -- THE CITY? WELL, BECAUSE IT IS A LOT OF EQUITY IN THE PROJECT. THAT HAS RECEIVED LOW RETURN. WHETHER THAT IS -- WE MET CASH ON

CASH RETURN. >> THERE IS BEEN DONE, OKAY? THE CASH IS BEEN KEPT IN THE HOTEL TO PROTECT , BASICALLY, THE MORTGAGES BUT I THINK WE'RE GETTING CLOSE TO A WE CAN START DISTRIBUTING. KEEP IN MIND THE CITY AND HEAD ARE PUTTING MONEY IN THE DECADE PRIOR TO 2017. THE CITY ON THIS PARTICULAR PROJECT STARTED IN 2017. BETWEEN YOU AND US, AND FINANCIAL CAPITAL, ENTREPRENEURIAL AND MANAGERIAL P I DON'T KNOW IF THE NUMBER IS $1 MILLION BUT LET'S SAY IT IS IN THAT RANGE, OKAY? YOU AND WE DID IT CORRECTLY OR INCORRECTLY. I THINK FROM OUR POINT OF VIEW, WE DID IT CORRECTLY. AND I THINK YOU DID A CORRECTLY, OKAY?

>> INDIANAPOLIS IS LOOKING AT -- NOT BETTER FINANCING THAN EVEN CARMEL, BUT NOT AS GOOD . THERE IS A TRADE-OFF BUT IT IS -- YOU ARE RIGHT. INDIANAPOLIS WOULD PROVIDE A ONE-TIME , THE CITY PROVIDED THE FINANCING AND DID FOR THE HOTEL CARMICHAEL AND INDIANAPOLIS IS PROVIDING 100 PERCENT FINANCING.

ALLOWING THE DEVELOPER, IT WAS A MUCH BETTER DEAL. WE WERE HERE AT CITY CENTER. OUR OFFICES ARE KEPT MORE SQUARE.

THIS IS WHAT I WANTED TO MAKE HAPPEN. I WANTED A DEAL THAT WAS FAIR BOTH WAYS BUT I THINK AT SOME POINT IN TIME, YOU AND WE WILL GET OUR $20 MILLION BACK . THAT MAY BE 10-15 YEARS, OKAY? I DO NOT KNOW WILL NECESSARILY GET A RETURN ON THAT INVESTMENT AS OPPOSED TO A RETURN OF THAT INVESTMENT. I CAN TRUST, FOR EXAMPLE, AGAINSTO THE -- OKAY? YOU ARE IN THAT FOREVER. THERE IS NO PRIVATE FOR-PROFIT ENTITY THAT IS GOING TO COME IN AND BAIL YOU OUT OF THAT AND SHOULD NOT. THAT IS A

[01:00:02]

I WANTED YOU TO FEEL THAT I WANTED LORI TO SHARE THE ACCOLADES. I WANTED A FLAVOR OF HOW I THINK IT WAS THE RIGHT DECISION. I THINK IT IS ADDING TO THE ECONOMIC DEVELOPMENT AND BUSINESS DEVELOPMENT OF THE CITY. I THINK IT WAS IMPORTANT TO DO AND I AM GLAD WE DID IT. I')M GLAD -- THAT EVEN JUST FOR CITY CENTER. QUEBEC YOUR GOAL AND SPECTRUM IS CITY CENTER AND THE WHOLE CITY OKAY? IT'S IN THAT REGARD, MY WIFE AND ALL OF HER THINGS, AND ALL THE FEEDBACK SHE HAS, IF YOU HAVE NOT DONE IT YOURSELF, BELIEVE ME, SHE DOES IT EVERY WEEKEND WHILE I AM READING MY BOOK, OKAY? IT IS ALL FANTASTIC FEEDBACK. IT IS THE WAY A LOT OF PEOPLE ARE BEING INTRODUCED TO CARMEL IS THROUGH THE HOTEL CARMICHAEL FOR SOMETHING I DO NOT BELIEVE WHAT HAPPENED TO ANY OTHER HOTEL ETHICALLY IN TRENTON OR IN INDIANA, FOR THAT MATTER. SO IN THAT CONTEXT, YOU WANT TO WAIT UNTIL YOU CAN GET YOUR SHARE OF THE 20 MILLION BACK? WANT TO TAKE A BIG DISCOUNT? WHAT? I THINK WE ARE TRYING TO SHOW YOU WHERE WE ARE AT TODAY. SO YOU CAN HAVE A BASIS AND ASK THESE QUESTIONS AND WE CAN START THIS DISCUSSION. WE WILL SEE WHERE IT GOES FROM THERE, I GUESS BUT

IF THAT HELPS? >> YES, SIR. THAT IS RELATED TO MY TECHNICAL QUESTION. I GENERALLY KNOW FOR OTHER INDUSTRIES, BUT THE HOTEL INDUSTRY, I AM NOT AS FAMILIAR WITH THE TYPICAL NET PROFIT MARGIN.

I AM NOT, I WAS IN BANKING FOR MANY YEARS BUT I DO NOT KNOW TYPICALLY IF THEY REQUIRE HIGHER DEBT SERVICE COUPLE -- COVERT RATIO THAN 120 FOR OTHER TRADITIONAL COMMERCIAL REAL ESTATE CONCERNS. WHEN I SAW THAT NICE , THE SERVICE COVERAGE RATIO AND NET PROFIT MARGIN, I WAS TRYING TO GET AN IDEA OF WHERE THAT FALLS WITHIN THE INDUSTRY.

>> I THINK NEW FINANCING FIXED RATE WOULD BE IN THE 125

RANGE. >>'S A LITTLE BIT HIGHER .

>> MULTI FAMILY IS HIGHER THAN SOME GOOD IN THE CITY OF CARMEL IT MIGHT BE A LITTLE LOWER OTHERWISE FOR THE REASONS I MENTIONED AND WE ALL UNDERSTAND ABOUT CARMEL BEING

A GOOD PLACE TO INVEST. >> YUP. IN THE COURSE OF WHAT IS THE CITY'S RESPONSIBILITY IN THE COURSE OF THE REFINANCE? WHAT WAS THE TERM OF THE ARM? IT MATURES NEXT YEAR? THAT IS

FIRST-HAND. >> APRIL 26. BOTH LENDERS , I

HAVE HIGH CONFIDENCE . >> THANK YOU.

>> I DO NOT THINK WILL HAVE REFINANCING. TO MAKE THAT WAS

BOTH THE FIRST ON THE SECOND. >> I CANNOT SPEAK FOR EITHER OF THEM, BUT WE HAVE SPOKEN TO BOTH OF THEM AND THERE IS NO REASON NOT TO. IT IS A GOOD INVESTMENT FOR THEM.

>> AND THE TERMS OF THE MORTGAGE ARE NOT DRIVEN BY ANY

GUARANTEES FROM THE CITY? >> ECONOMICALLY, THERE IS A COVENANT OF A GUARANTEE FOR REDEVELOPMENT ON BOTH OF THEM.

IT IS DONE IN THE FORM OF A GRANT, OKAY? I DO NOT THINK THE REDEVELOPMENT COMMISSION HAS THE AUTHORITYTO ACTUALLY

DO A GUARANTEE. >> THE GRANT TO THE NONPROFIT A

PARTIAL OWNER OF THE CITY? >> I THINK YOU CAN SAY IT

BETTER THAN I CAN. >>

>> THERE'S A GRANT FROM THE CRC TO THE CDC AS YOU IDENTIFIED. ESSENTIALLY, IF THERE IS EVER A GAP IN THE DEBT SERVICE THAT NEEDS TO MADE, THE CRC HAS AN OBLIGATION TO PUT MONEY INTO THE THE COUNT THAT WOULD FILL THE GAP.

>> OKAY. SO AT A CERTAIN POINT, AS THAT SERVICE GETS PAID OUT AND WE ARE IN A BETTER AND BETTER LOAN VALUE HERE, IT MAKES SENSE TO REFINANCE THESE LOANS AT THAT POINT, TAKE THE

CITY GUARANTEE OFF. >> I WOULD THINK IT IS A BETTER TIME FOR THE CITY TO SELL ITS SHARE ONCE THE GUARANTEE IS NO LONGER ALSO THEY ARE.

>> AND A LOT OF, SORRY. I HAVE ONE MORE QUESTION. A LOT OF TIMES, SO THE INVESTOR WILL CASH OUT THEIR EQUITY DURING A REFINANCE PERIOD. TO REPAY INVESTORS TO ACHIEVE SOME OF THE CASH ON CASH RETURN. IS THERE ANY INTENT TO DO THAT DURING THIS REFINANCE IN APRIL OF 2026?

>> LET'S ASSUME THERE IS A 50/50 OWNERSHIP BUT AT SOME POINT, THE CITY IS CASHING OUT ITS SHARE AND REALIZING ON ITS INVESTMENT . WE DO NOT KNOW WHAT THAT CASH OUT LOOKS LIKE.

TODAY, WE GET THE MEANS OF REVENUE. WE HAVE SOME CONTROL TO MAKE SURE THE HOTEL STAYS AT THE LEVEL OF QUALITY THE WAY

IT IS RUN. >> THE CAST WOULD BE PULLING

OUT ADDITIONAL EQUITY. YUP. >> WHAT I'M TRYING TO SAY IS MAYBE THE CITY'S EXIT IS -- TO PULL ALL OF IT AND WE JUST

[01:05:01]

THAT CAN BE TALKED ABOUT.

WITH ANNETTE, WE CAN SET PARAMETERS FOR THE PARTNERSHIP GOING FORWARD. THAT CAN ALL GET FIGURED OUT.

>> OKAY. THANK YOU FOR COMMENTING ON MY QUESTIONS.

THANK YOU. COUNSELOR SNYDER?

>> I LOVE THE LAST QUESTION. AND HE SAID GETTING CLOSE TO STARTING TO DO DISTRIBUTIONS. IT IS MY UNDERSTANDING THAT -- GETS THE FIRST PERCENTAGE OF ALL PROFITS BUT SINCE WE'RE DOING DISTRIBUTIONS BASED ON DEBT, THERE WOULD BE EQUAL DISTRIBUTION IS BASED ON EQUITY AND THE PROJECT? SO FOR THE FIRST 11 YEARS , THE THREE TOOK HER FOR YEARS INTO THAT, WE ARE ONE THIRD AND THE CITY IS TWO THIRDS. THE CITY ACTUALLY GOT 75% OF THE CASH FLOW TO REPAY THEM FOR, I THINK, $12 MILLION OF CASH. OUT OF 75% OF THE CASH FLOW, IN PERPETUITY, I GUESS.

YOU GET 75% OF THE CASH FLOW UNTIL YOU HIT THE $12 MILLION BACK WITHOUT INTEREST, OKAY? ANYTHING ON THE 25% THEN YOU GET TWO THIRDS AND WE GET ONE THIRD. UNTIL WE GET TO THE END OF 11 YEARS. THAT IS 50/50. HENRY THINKS OF IT AS A 50, 50 KILOBIT AND 11 YEARS, IT WILL BE 50/50. THAT WILL ONLY BE ON MORE THAN THE 25% IF YOU HAVE GOTTEN BACK HER $12 MILLION.

HOPEFULLY YOU WILL. I DO NOT FINISH THIS, BUT I THINK AS YOU CAN SEE FROM LAURA'S NUMBER, BUT I KNOW I SHOULD CONTINUE TO GO UP AND I THINK INTEREST RATES WILL COME DOWN AND THE CASH FLOW WILL INCREASE. AT A COMFORT LEVEL TO LOOK. I WOULD BE FINE IF YOU PAID OUT CASH FLOW. GETTING A .3% OF IT. NOT A HUGE AMOUNT , A POINT TO A PERCENT OF $500,000 OF CASH FLOW. $40,000. I HAVE NOT PUSHED FOR IT BUT I THINK HENRY CAN VOUCH FOR IT. I'VE NEVER PUSHED FOR PLAYING OFF THE CASH FLOW. I WANTED THE HOTEL TO BUILD UP CASH.

I THINK IT HAS. $2 MILLION IN CASH. EVEN BEYOND THE REPLACEMENT RESERVE SO THERE IS A CUSHION TO PROTECT THE CITY GUARANTEE OR THE OBLIGATION TO MAKE A GRANT.

TRYING TO BE A GOOD PARTNER. AND TO REFER TO THE CITIES , I ASSUME, DESIRE TO MAKE SURE YOU HAD A GOOD -- SO YOUR GUARANTEE WOULD NOT BE CALLED UPON.

>> FINAL QUESTION. THIS IS JUST A COMMENT. SORRY. THIS IS JUST A COMMENT. I SHOULD'VE SAID SOMETHING TO THE MAYOR THAT I WANTED TO SAY THANK YOU TO THE MAYOR AND BRUCE FOR YOU GUYS COMING. YOU WILL NOT SEE THIS TYPE OF TRANSPARENCY I BET ON ANY OTHER HOTEL DEAL IN INDIANAPOLIS GOING ON RIGHT

NOW. >> THANK YOU FOR THAT COMMENT.

I APPRECIATE YOU COMING HERE AND PRESENTING.

>> I'VE ALWAYS PREFERRED NOT TO DO THIS BUT WAS COMPELLED BECAUSE , NOT FORCED. ENCOURAGED. UNDERSTOOD WHAT THE RECENT CAMPAIGN WAS ON. I WAS OUT OF YOU AS A PARTNER.

IF IT COST ME A DOLLAR I OUGHT TO DO IT. AND SOMEDAY WHEN I CAN MAKE $10, MAYBE THEY WILL REMEMBER THAT. NOT THAT THAT IS AN OBLIGATION. TO SHOW YOU HOW I APPROACH THIS. IT WOULD'VE BEEN PERFECT TO NOT HAVE THIS. I WILL HAVE TO SEE WHAT HAPPENS AFTER THIS BUT IS THERE AN ADVERSE AFFECT TO THE HOTEL? I HOPE NOT. BUT IT IS A RISK WE ARE SHARING.

UNDERSTANDING HAVING THE NEED SO WE HAVE TRIED TO HELP YOU IN

THAT REGARD. >> THANK YOU.

>> I WILL GO TO COUNCILOR WORRELL , BUT BEFORE I DO, I WANT TO REITERATE WHAT WAS JUST THAT. THANK YOU, MAYOR, FOR LETTING THIS HAPPEN. I MEAN, I'VE BEEN HEARING THE TERM "UNPRECEDENTED" A LOT LATELY. THIS IS KIND OF UNPRECEDENTED BUT I REALLY APPRECIATE YOU MAKING THIS HAPPEN. LORI AND BRUCE, FOR STANDING THERE TAKING THE QUESTIONS WOULD YOU KNOW, BEING HERE AND TAKING THE QUESTIONS. FOR THE QUESTIONS THAT WERE ASKED, RIGHT JOB. FLUSHING EVERYTHING OUT FOR THE PUBLIC WITH AND ASKING HER WONDERING THESE TYPES OF

QUESTIONS . >> YOU, THANK YOU, MR. PRESIDENT. AS I WANTED TO SAY THANK YOU TO THE MAYOR FOR MAKING THIS HAPPEN. THERE WERE REPORTS THAT WERE GOING OUT BUT THEY WERE ALL VERBAL AND KIND OF DIRECTIONAL AND NOT REAL DETAIL. THIS IS AMAZING. COMING UP EVEN LATER TONIGHT AND WHAT I HEAR FROM THE PUBLIC IS WHY DO WE CONTINUE TO WORK WITH -- AND I THINK THIS IS PROBABLY A GREAT EXAMPLE OF WHY

[01:10:04]

>> COUNSELORS? >> QUICKLY, I WOULD LIKE TO SAY

THANK YOU TO YOUR WIFE. >>

>> THANK YOU SO MUCH. AND MAYOR, THANK YOU VERY MUCH FOR

THE TRANSPARENCY. THANK YOU. >> COUNCILOR LOCKE?

>> YES, I HAVE ONE CLOSING THOUGHT STRUCTURE CONCEPT IN QUESTION. I WILL GO BACK TO RICHARD GO THROUGH MY WHOLE GAMUT. LOOKING AT THIS STRATEGICALLY. IN THAT TIMEFRAME WHEN IT WAS PLAYING AND EVERYBODY'S MINES IN 2007 TWO KIND OF GETTING UP AND RUNNING IN 2017 WITH THE PANDEMIC. EVERYTHING THAT IS HAPPENED. THE OVERARCHING COSTS AND THEIR RENEWALS DURING THE BUILD TYPE IT I THINK THE HESITATION AND THE STRUCTURE AND CONCEPT OF THIS BEING SOMETHING NOVEL , IT BRINGS NOVEL QUESTIONS AND ISSUES. I GUESS MY ONLY HAD TO PROCESS HERE WOULD BE, HOW DOES THAT TIMEFRAME LOOK? HOW DOES THAT TERM OF THIS INVESTMENT FROM THE PRIVATE SECTOR SITE EVEN LOOK, LOOKING AT PULLING IN THE PUBLIC IN KNOWING ABOUT POLAND AND EXTRA SCRUTINY AND STRUCTURE? THE EXTRA BENEFIT, OBVIOUSLY, GETTING IT UP OFF THE GROUND. HAVE TO SIT HERE IN FRONT OF THE COUNCIL OF PEOPLE AND ANSWER QUESTIONS. BUT I WOULD LOVE TO KNOW FROM THAT PERSPECTIVE, HOW THE TIMELINE FOR THE HOTEL LOOK? HOW DOES THAT KIND OF LEAD PATHWAYS TO FUTURE POTENTIAL INVESTMENTS IN THE CITY AND PROJECTS YOU ARE GOING TO BRING. I THINK FOR ME, WHAT THAT DOES IS IT GIVES ME CONFIDENCE, KNOWING WE ARE LOOKING AT THIS NOT JUST TODAY. YOU KNOW, NOT JUST THE SHORT TERM AND HOW WE CAN CASH IN ON THE POTENTIAL OF THE GOVERNMENT GOING TO SUPPORT US. WHAT DOES THIS PARTNERSHIP LOOK LIKE? TO GIVE US CONFIDENCETO SAY THAT THIS IS OUR HOTEL.

>> AS A CITY, THIS IS THE PLAN WE HAVE HAD WHEN MOVING IN THIS DIRECTION. HERE'S THE ECONOMIC DEVELOPMENT. HERE IS WHY FUTURE PROJECTS THAT COME FORWARD THAT ARE LOOKING AT THIS EXACT SAME STRUCTURE CONCEPT , MAYBE NOT A HOTEL, BUT OTHER THINGS, SHOULD BE SOMETHING THAT WE AS THE PEOPLE OF CARMEL SHOULD SUPPORT. I GUESS BACK TO THE QUESTION. WHAT IS THE VISION AND MISSION? WHAT DOES IT LOOK? HOW IS IT IN 2017 WHEN THIS WAS ALL SIGNED? HOW DOES A LOOK TODAY AND HOW MUCH IS YOUR CONFIDENCE IN THIS MOVING FORWARD?

>> THE CONFIDENCE OF THE CITY IS HUGE. PEOPLE OF DONE EXTRAORDINARY THINGS. I THINK PUTTING THAT YOUR PREDECESSORS, INCLUDING THE MAYOR AND HIS COUNCILMEMBERS HAVE CONTRIBUTED TO, THEIR POSITION THE CITY IN AN EXTRAORDINARY PLACE. I SEE IT REALLY FROM,, KEEP IN MIND AFFORDABLE HOUSING IS WHAT WE NORMALLY DO. THIS HOTEL MAY BE OUR FIRST AND OUR LAST BIT STARTING WITH THE SUCCESS IN THAT REGARD. OUR HEADQUARTERS ARE HERE. WE CONTINUED TO WANT TO CONTRIBUTE BACK TO THE CITY IN WAYS THAT ARE MEANINGFUL TO OTHERS OF THE PROJECT BEEN CONSIDERED BUT WERE HAPPY TO BE A PART OF IT BUT I WOULD NOT FEEL BAD IF WE WERE NOT A PART OF IT. AFFORDABLE HOUSING IS OUR PRINCIPAL IS MR. THERE'S A LOT OF OTHER LAND IS IN THIS CITY AS YOU MAY KNOW. I'M HOPING IN YEARS AHEAD, WE WILL BE DEVELOPING IT SIMILAR TO HOW WE DEVELOPED CITY CENTER, THE DESIGN JOBS, WHAT HAVE YOU. WE HAVE BEEN VERY PROUD TO BE A PART OF WHAT THE CITY HAS DONE IN CREATING WHAT WE HAVE CREATED COLLECTIVELY. THE EXTENT THAT OUR INVOLVEMENT HAS BEEN A CATALYST FOR OTHER DEVELOPERS TO COME IN AND DO SPECIAL THINGS. YOUR CITY LEADERS APPROACHED ME FROM TIME TO TIME AND SAY, MY CONCERN WITH THE LEVEL OF ACTIVITY THAT IS GOING ON. MY ANSWER HAS BEEN NOTED AS LONG AS YOU REQUIRE THE QUALITY THAT WE HAVE OTHERWISE ESTABLISHED. IF YOU DO, THEN YOU WAS A CITY WILL CONTINUE TO ATTRACT EXTRA NERI TALENT, EXTRA INVESTMENT,

EXTRAORDINARY PEOPLE. >> I AM SURE YOU ARE PROUD OF THE DIFFERENT NATIONAL RATING AGENCIES -- .COM. RANKING

[01:15:02]

>> ALL RIGHT, THANK YOU. ANYTHING TO CLOSE? OR HAVE YOU

CLOSED? >> THANK YOU SO MUCH.

>> ALL RIGHT. NEXT ON THE AGENDA, THE CARMEL STRIKE PRESERVATION COMMISSION FOR THEIR QUARTERLY REPORT.

I AM GOING TO START OFF BY TALKING A LITTLE BIT ABOUT THE TRANSITION OF THE COMMISSION. WE HAD A COUPLE OF , FIRST, A VACANCY ON THE COMMISSION AT THE END OF 2023. WE ALSO HAD A COMMISSIONER LEAVE. MICK DAVIS WHO HAD BEEN THE CHAIR OF THE PRESERVATION COMMISSION FOR ANY YEARS. AN ARCHITECT WHO PRESIDED HERE IN CARMEL BUT WAS MOVING OUT OF THE COMMUNITY. WE WORKED WITH MAYOR FINKAM'S OFFICE ON TWO NEW APPOINTMENTS. -- AND ELLIE. BOTH OF WHICH CAME TO YOU ALL FOR APPROVAL. THOSE WERE TWO NEW COMMISSIONERS.

ADDITIONALLY, ROSEMARY DUNKEL WHO WAS TERMINATED AT THE END OF 2023 WAS REAPPOINTED BY MAYOR FINKAM. SO WE HAD A CONTINUANCE OF HER PRESENCE ON THE COMMISSION. WHAT WE DID JUST TO ADDRESS THE TWO NEW CANDIDATES WAS TO SPEND SOME TIME WITH THE COMMISSION AT THEIR LAST MEETING.

SOME TRAINING. JUST DOING A LITTLE BIT OF WHAT IS THE ORDINANCE? WHAT DOES IT MEAN? WHAT DOES THE DESIGNATION MEAN? HOW DO YOU REVIEW APPLICANTS WHO COME BEFORE THE COMMISSION FOR A CERTIFICATE OF APPROPRIATENESS? WE JUST SPENT SOME TIME AND SOME EDUCATION. WE ALSO HAVE A NEW CHAIR, JUST AHEAD , WHO WAS ELECTED TO TAKE ITS PLACE. TEARING THE COMMISSION AS WELL. I ALSO ON MY NOTE, THERE IS THE TERM TRANSPARENCY USED A FEW TIMES TONIGHT ALREADY. WE HAD OUR FIRST RECORDED MEETING IN 12 YEARS.

NEVER HAD ONE SINCE OUR CREATION. SO THEY MET HERE IN CHAMBERS AND I HAD THAT OPPORTUNITY. IF ANYBODY IS EVER INTERESTED, FOR NOW AND GOING FORWARD, YOU WILL BE ABLE TO WATCH MEETINGS OF THE PRESERVATION COMMISSION.

YOU'VE ALL HEARD ME TALK BEFORE ABOUT THE SURVEY WE HAVE OF ALL OF THE HISTORIC SITES IN THE COMMUNITY. BY THE END OF 2023, THE PLATFORM IT WAS ON WAS GOING OUT OF BUSINESS. WE WERE SHIFTING OVER TO RGIS. THAT HAS BEEN COMPLETED ONTO RGIS WITH THE ASSISTANCE OF THE CITY I.T.

STAFF. THE ONLY THING WE ARE STILL WORKING TO COMPLETE IS TO MAKE ALL OF THAT DATA AND OVERLAY TO THE INFORMATION THAT ALL CITY STAFF WILL BE ABLE TO ACCESS WHETHER YOU ARE IN PERMITTING , SOMEBODY IS PURSUING A DEMOLITION PERMIT, WANTING TO PURSUE REHABILITATION OF A PROPERTY AND A BUILDING PERMIT, OR IF YOU'RE IN THE OCS. ALL OF THAT INFORMATION WILL THEN BE AVAILABLE. THE COMMISSION ALSO APPROVED THE CREATION OF A NEW PROGRAM TO ASSIST PROPERTY OWNERS IN THE CITY OF CARMEL TO PURSUE LISTING OF THEIR PROPERTY ON THE NATIONAL REGISTER OF HISTORIC PLACES IF THEY ARE INTERESTED AND IF THEY ARE ELIGIBLE. FRANKLY, FROM OUR NUMBERS OF SURVEYED PROPERTIES, AND THE TYPICAL PERCENTAGE THAT YOU LOOK AT OF BEING ELIGIBLE, WE ARE PROBABLY TALKING NO MORE THAN 100, INDIVIDUAL PROPERTY OWNERS IN THE CITY. CERTAINLY, THERE ARE A FEW NEIGHBORHOODS, IF THEY WANTED TO PURSUE THAT KIND OF LISTING AS WELL, THEY COULD. WE

[01:20:01]

LET'S SEE. FINALLY, TO MAKE SURE EVERYBODY IS AWARE, WE ARE CURRENTLY IN THE CYCLE FOR OUR SPRING ROUND OF OUR FACADE GRANT PROGRAM. IF YOU HAVE PROPERTY OWNERS IN YOUR DISTRICTS THAT ARE INTERESTED IN APPLYING FOR FACADE GRANT MONEY, FOR ELIGIBLE PROPERTIES, THOSE APPLICATIONS ARE DUE MAY 1ST. SO AT THE MAY MEETING, THE COMMISSION WILL REVIEW AND APPROVE THOSE FACADE GRANT APPLICATIONS THAT ARE ELIGIBLE FOR FUNDING. THAT IS ALL I HAVE. ARE THERE ANY QUESTIONS FROM ANY COUNCILMEMBERS?

>> ANY QUESTIONS? >> THAT YOU MENTION IT, YOU MEETINGS ON THE 16TH OF MAY? WHAT TIME DO YOU GUYS NORMALLY

START? >> 6:00 P.M. WE HAD GONE BACK AWAY BECAUSE WITH THE SHIFTING OF LOCATIONS FOR MEETINGS, WE TYPICALLY MEET ON THE SECOND THURSDAY OF THE MONTH . BUT MAY 9TH WAS NOT AVAILABLE IN COUNCIL CHAMBERS SO WE MOVED IT

BACK A WEEK. YES, MAY 16TH. >> VERY GOOD. THANK YOU.

>> THANK YOU. >> NEXT ON THE AGENDA IS THE REDEVELOPMENT AUTHORITY. I SEE HENRY STEPPED OUT SO WE WILL MOVE ON. CARMEL CABLE AND TELECOMMUNICATIONS MISSION IS

[12. OLD BUSINESS]

SPONSORED BY VICE PRESIDENT AASEN. THIS REMAINS IN THE FINANCING UTILITIES COMMITTEE. THE NEXT MEETING IS ON MAY

14TH. >> WELL, WE'RE PROBABLY GOING TO HAVE TO POSTPONE. ARE MULTIPLE PEOPLE AT A CONFERENCE. I AM LOOKING FOR A NEW DATE.

>> RIGHT. 20. MOVING ON TO SECOND READING OF ORDINANCE CAPITAL D-2710-24 , AND THE CORNERS OF THE COMMON SINGLE TO SEEK CARMEL -- REVENUE BOND TO SUPPORT THE GRAMERCY PROJECT IN AUTHORIZING AND APPROVING OTHER ACTIONS AND RESPECT THERETO. SPONSORING -- REMAINS IN THE LAND-USE AND SPECIAL STUDIES COMMITTEE. THE NEXT MEETING IS APRIL 17, 2024,

IN A COUPLE DAYS. >> MOVING ONTO THE NEXT ITEM.

SECOND READING OF ORDINANCE D-2709-24. AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF CARMEL COME INDIANA, WITH THE REFUNDING OF PRIOR WATERWORKS REVENUE BONDS. TAXABLE WATERWORKS REFUNDING THE REVENUE BONDS, SERIES 2020 4A.

AND THE CITY OF CARMEL, INDIANA, TAX-EXEMPT WATER REVENUE AND REFUNDING REVENUE BONDS. SERIES 2020 4B TO PROVIDE FUNDS FOR THE PAYMENT OF COSTS AND ADDRESSING OTHER MATTERS CONNECTED. SPONSORED BY PRESIDENT GREEN. COUNCILOR

WORRELL? >> THANK YOU. WE MET TO DISCUSS THIS. WE HAD OUR COMMITTEE PRESENTS. ALL THE CONSULTANTS AND MR. DUFFY FROM UTILITIES. WE DID GO OVER ALL THE DOCUMENTS THAT WERE PRESENTED. WE LEFT THE MEETING

[01:25:04]

3-0 POSITIVE RECOMMENDATION. >> THANK YOU.

>> IF I COULD ASK JOHN DUFFY TO COME UP AND KIND OF DISCUSS SOME OF THE QUESTIONS THAT HAVE ARISEN SINCE THE COMMITTEE

MEETING? >> YES. THANK YOU AND GOOD EVENING, COUNCILMEMBERS. AFTER THE FINANCE COMMITTEE MEETING, THERE WAS A PHONE CALL WITH THE UNDERWRITER THAT HAS BEEN WORKING WITH US ON THE BONDS. A LOT OF CONVERSATION. IT WAS FELT THAT, I WILL LET SCOTT MILLER ADDRESS THIS. BUT BY EXTENDING THE POSSIBLE MATURITY DATE OF THE TAX-EXEMPT BONDS, FIVE YEARS, 2049-2054 , WE WOULD SEE SUBSTANTIAL SAVINGS BY DOING THAT. THAT IS WHAT WE WANT TO CHANGE. THE ORDINANCE THINKS THAT IS THE ONLY THING IN THE ORDINANCE, BASICALLY SAYING THAT PAYMENT DATE. IF YOU HAVE ANY QUESTIONS MORE SPECIFIC ABOUT THE SAVINGS ,

SCOTT CAN ADDRESS THOSE. >> YOUR REQUEST IS AFTER WE DISCUSSED, WE WILL HAVE TO AMEND THIS. THAT IS ONLINE 182.

THAT IS SIMPLY ADDING FIVE MORE YEARS TO CHANGE THE FINAL

MATURITY DATE FROM MAY 1 -- >> THAT IS CORRECT.

>>, MR. PRESIDENT. WE DID HAVE A COUNSELOR REACH OUT AND WANTED TO KNOW THE COST TO DO THAT. SO IF YOU COULD DOCUMENT

THAT COST? >> OKAY. I THINK THE COST SHE MAY BE REFERRING TO IS MORE THE AND . THAT WILL BE THE ADD-ON CONVERSATION. OKAY, THAT IS ADD ON. ANY QUESTIONS FOR MR.

DUFFY? >> LOOKING FOR A MOTION TO

AMEND. >> SO MOVED.

>> YET. HOLD ON.

CHANGE THE FINAL MATURITY DATE SUPPOSED TAX-EXEMPT BONDS FROM 2049 TWO 2054. AS AMENDING LINE 182 OF THE

ORDINANCE. >> ALL RIGHT. THAT IS A MOTION. I HAVE A SECOND? ALL RIGHT. DISCUSSION. PLEASE VOTE.

OH, SORRY. I JUST GET BLOCKED? WE WILL TOTAL THE VOTES WHICH ARE AT LEAST 8-0.

>> TO APPROVE. >> WELL , NO, WE ALREADY -- SET THE MOTION? OKAY, THE MOTION TO AMEND IS 9-0. GO

AHEAD. >> SECOND.

>> ALL RIGHT. DISCUSSION. PLEASE VOTE. THE ORDINANCE , THE AMENDED ORDINANCE IS APPROVED 90. THANK YOU, JOHN.

[14. NEW BUSINESS]

>> THAT IS IT FOR OLD BUSINESS. MOVING ON. PUBLIC HEARINGS.

THERE ARE NONE. MOVING ONTO THE NEW BUSINESS.

>> RESOLUTION CC-04-15-TO 4-01. RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF CARMEL, INDIANA, IN SUPPORT OF THE UNION AND THE SQUARE SOUTH PROJECT SPONSORED VICE

PRESIDENT AASEN. >> SO MOVED.

>> OKAY, CAN YOU PLEASE WITH THE ANALYSIS?

>> THIS ENCOURAGES REQUESTING OUTSIDE FUNDING SOURCES FOR THAT UNION PROJECT AND COMMIT TO FULLY EVALUATING AND CONSIDERING ISSUANCE OF CITY FUNDING SOURCES IF THE OUTSIDE FUNDING SOURCES ARE SUCCESSFULLY SECURED.

>> THANK YOU SO MUCH. DEVELOPMENT DIRECTOR. I WILL BEGIN AND END THIS PRESENTATION WITH EVERYTHING IS PRELIMINARY. EVERYTHING IS ESTIMATED.

I WANTED TO INTRODUCE A CONCEPT THAT WE HAVE BEEN WORKING ON

[01:30:02]

THE NORTHERN TWO WATERFALL CALLED THE MONON PROJECT IN THE SOUTHERN TWO ARE THE SUBJECT OF THIS CONVERSATION.

AS A REFRESHER, THIS IS MONON SQUARE NORTH AND APPROVED BY CITY COUNCIL. APARTMENTS OVER RETAIL AND THE MORE YELLOW BUILDING . THE BASE BUILDING IS AN ALL CONDO BUILDING. AS PART OF THAT, THE MONON ITSELF IS BEING EXPANDED . TO MATCH WHAT THE CONDITION IS THAT EXISTS TODAY BUT I WILL SO THIS A LITTLE BIT MORE. FOR REFERENCE HERE, THIS IS THE TUNNEL FROM CITY CENTER. HERE IS THE BIG BIKE STATUE YOU ALWAYS SEE PEOPLE CLIMBING AND TAKING PICTURES ON.

>> SO MONON SQUARE NORTH IS SOMEWHAT INDEPENDENT OF THIS .

IT IS EXPECTED TO START CONSTRUCTION LATE THIRD QUARTER OF THIS YEAR. THIS IS REALLY A CONVERSATION ABOUT THE SOUTHERN HALF OF MONON SQUARE. SO THE PROPOSAL IS TO WORK WITH PET CORE AND ESSENTIALLY ON THE SOUTHERN HALF OF MONON SQUARE AND THE 200S, ONE QUADRANT WOULD HAVE WHAT WE ARE CALLING THE UNION WHICH WOULD HAVE A FOOD HOLE IN IT. IT IS REALLY MORE THAN A FOOD HALL. I WILL TALK ABOUT THAT A LITTLE LATER. IT HAS AN OFFICE COMPONENT BUT AT LEAST 45,000 SQUARE FEET . TOGETHER, THAT MAKES UP THE SOUTHWEST QUADRANT. THE SOUTHEAST QUADRANT WOULD HAVE A DISTRICT PARKING GARAGE AND APARTMENTS. THIS IS ANOTHER VIEW OF THAT. THIS IS THE VIEW OF PLAZA STREET. THIS IS JUST TO THE NORTH OF THIS AREA. THIS IS A CORDLESS ENVIRONMENT, FULLY ACTIVATED. SO I WILL TALK BRIEFLY ABOUT WHY IT IS WE ARE DOING THIS. AND WHAT THE DESIGN, THE LUMINARY DESIGNS KIND OF LOOK LIKE AND WE WILL TALK ABOUT NUMBERS AND MY FAVORITE THING, OTHER PEOPLE'S MONEY. OUTSIDE FUNDING SOURCES OUTSIDE OF THE CITY. I THINK THIS PROJECT HEDGES ON. BASICALLY, THE IDEA IS TO CREATE AN INDOOR CIVICS LEASE THAT ANCHORS OUR CENTRAL CORE THE WAY FROM OUR EXTERIOR SPACE AND OUTER SPACE THE WAY -- AND MIDTOWN ANCHOR OUR CENTRAL CORE. KIND OF, YOU COULD SAY IT IS IMAGINED IF THE MONON VEERED INDOORS FOR A MOMENT. IMAGINE IT BEING KIND OF LIKE A STUDENT UNION FOR THE WHOLE CITY. THE GOAL IS TO BRING THE KIND OF COMMERCIAL VIBRANCY WE ARE USED TO IN MIDTOWN AND CITY CENTER. OR IN MIDTOWN AND MAIN STREET AND BRING IT ALL THE WAY DOWN THROUGH THE SQUARE DOWN TO THE CITY CENTER SO THE WAY WE ARE USED TO. THE KIND OF ACTIVITY ARE USED TO ALONG THE MONON AND MIDTOWN, WE WANT TO SEE EVERYWHERE IN THE WHOLE CENTRAL COURT TO EXTEND WINTER AN OTHERWISE BAD WEATHER ACTIVITY AND COMPLEMENT THE CHRISTKINDLMARKET. WANT TO GIVE PEOPLE A REASON TO VISIT AND SPEND TIME IN OUR DOWNTOWN. SOMEWHAT ANALOGOUS TO THIS IS THE MODEL WORKS FOOD HALL IS CALLED THE GARAGE DOWN IN INDIANAPOLIS BUT YOU CAN IMAGINE THE NORTH SIDE OF THE CITY INSTEAD OF THE CITY OF INDIANAPOLIS MINUTES OF DRIVING TO DOWNTOWN INDIANAPOLIS, YOU CAN HAVE THE SAME KIND OF COMING TO CARMEL INSTEAD WHICH IS WHAT WE WANT TO ENCOURAGE.

PLEASE COME AND SPEND YOUR MONEY HERE, PEOPLE. CARMEL HAS KIND OF LOOK FORWARD IN BUILDING OUT THIS KIND OF A SMALL CONFERENCE SPACE FACILITY. WHETHER IT IS THE -- AND THE KIND OF CONFERENCES THEY CAN HAVE THERE. THE HOTEL CARMICHAEL WHICH HAS CONFERENCE SPACE AND ALSO HOTEL ROOMS. A FUTURE MUSEUM WHICH IS VERY MUCH PART OF THE CONVERSATION WE ARE WORKING TOWARDS. THEY'LL ALSO HAVE CONFERENCE SPACE. THE HOPE IS THAT THIS WILL ALSO HAVE SOME MORE OF THAT CONFERENCE SPACE WE CAN CREATE. NOT ONE GIANT BIG EMBASSY

[01:35:04]

THEY HAVE A NUMBER OF LOCATIONS FOR DIFFERENT CONFERENCES, ALL WITHIN THE SAME KIND OF WALKABLE CORPORATE IT JUST GRATES ALL SORTS OF ACTIVITY. FINALLY, .6 IS THERE IS A VISION OF WHAT HIGHLY AMENDED TIES DO OFFICE WANTS TO SEE.

AND WE WANT TO MAKE SURE THAT CARMEL IS THE TOP DESTINAION FOR OFFICE IN THIS STATE. I WOULD SAY TODAY, CARMEL IS ONE OF THE TOP. ALL THE FISSURES DOWNTOWN ALONG WITH -- IN DOWNTOWN INDY, WE WANT TO BE THE PREMIER OFFICE LOCATION.

THESE KIND OF AMENITIES HELP ADD TO THAT. WHAT YOU'RE LOOKING AT THE BOTTOM LEFT IN THAT PICTURE ARE THE PLANS FOR THE AMENITY SPACE ALONG THE FOOD HALL. AS PART OF THE INDIANAPOLIS EXPANSION. ON THE BOTTOM RIGHT, IT IS A PICTURE OF THE LEGACY -- THIS LEGACY FOOD HALL, ESSENTIALLY, PAYS FOR AN OUTDOOR AMENITY SPACE TO HELP ACTIVATE THE FOOD HALL WHERE HERE, THE UNION/FOOD HALL WOULD BE ALONG A FULLY ACTIVATED SPACE. THE REDEVELOPMENT MISSION ENGAGED A LEADING FOOD HALL CONSULTANT TO DO SOME FEASIBILITY STUDIES, PROGRAMMING. WHEN HIS DATA SHOWED CAME BACK IS VERY POSITIVE FOR SOMETHING LIKE THIS TO SUCCEED IN THE CITY OF CARMEL. IT ALSO HAD CARMEL OF TOURISM TO STUDY. THEY ALSO FIND IT IS GOING TO BE A SUCCESS. BASICALLY, WE ARE THINKING FOR THE FOOD HALL PORTION, ABOUT SIX SPECIALTY VENDORS BUT WHAT WE ARE TALKING ABOUT IS THE HOT TO VENDORS IS USUALLY SOMEBODY YOU WOULD BE GOING FOR LUNCH TIME IF YOU'RE HUNGRY. SPECIALTY FOOD THE KIND OF VENDORS THAT CAN PULL AN ACTIVITY THROUGHOUT THE DAY. WE VISITED THE GRAND RAPIDS MARKET RECENTLY. THEY ALSO HAVE FANCY POPCORN PLACE, FANCY SODA POP PLACE. THE KIND OF THING THAT PULLS PEOPLE IN OUTSIDE OF JUST LUNCH HOURS. AND AS WE HAVE BEEN STUDYING THIS, IF YOU KEYS TO SUCCESS HAVE RISEN UP. FIRST, EVERYTHING IS ABOUT PROGRAMMING THE SPACE, ACTIVATING THE SPACE. CREATING A NUMBER OF DRAWS TO THIS PLACE THAT MAKE PEOPLE WANT TO GO THERE. CURATING THE GREAT MIX OF HIGH FEUD VENDORS IS KEY TO EVERYTHING. FRANKLY, IT CANNOT BE ANOTHER PIZZA AND BURGER PLACE. IT HAS TO BE TRUE , MAKE VENDORS THAT GENERALLY DO NOT EXIST. ANOTHER THING THAT IS REALLY MISSING IN THIS MARKET , AS WE HAVE LEARNED FROM OUR STUDIES IS THAT IF YOU WANT TO SIT DOWN FOR AN HOUR AND 15 MINUTES TO EAT, THERE ARE PLENTY OF OPTIONS. BUT IF YOU WANT A QUICK REALLY GOOD REALLY QUALITY QUICK FOOD, IT BASICALLY DOES NOT EXIST. SO INSTEAD OF COMPETING WITH EXISTING RESTAURANTS , THIS WOULD BE ADDING TO WHAT WE ALREADY HAVE. IF A THOUGHT IN SOMEONE OF HIS MIND IS, I AM HUNGRY, THEN GO TO HOTEL CARMICHAEL IF YOU'RE IN TRENTON. IF YOU ARE NOT, THEN COME TO CARMEL. THE NEXT BULLET POINT IS I THINK THE MOST IMPORTANT ONE. IN A PLACE WHERE PEOPLE WANT TO SPEND TIME WHETHER THEY ARE HUNGRY OR NOT . THAT'S THE DIFFERENCE BETWEEN JUST A FOOD HALL AND A TRUE CIVIC SPACE THAT FITS THE ENTIRE CITY. ALSO NEEDS TO CATER TO THOSE OF PEOPLE, INCLUDING FAMILIES AND HAVING A UNIQUE EXPENSE AS PART OF THE ACTIVATION. WE SPENT SOME TIME TRYING TO THINK ABOUT WHAT KIND OF SPACE MORE THAN JUST A FOOD HALL VIBE ? THE UNION FIVE WERE GOING FOR. WE WENT THROUGH A COUPLE OF DESIGN ITERATIONS.

EVENTUALLY, IT GOT TO A POINT WHERE IT MADE SENSE AND IT HAD A NUMBER OF ELEMENTS . I WILL GO THROUGH THE NUMBER OF ELEMENTS AND SHOW A PROPOSED KIND OF LAYOUT TO HELP PAINT THE PICTURE OF WHAT WE ARE TRYING TO DO. WE WANT TO INCLUDE A LARGE SOCIAL STARED. BUT HERE ARE SOME PICTURES OF

[01:40:03]

>> FORGET THAT FLIGHT. THERE IS ALSO A CONCEPT WE HAVE BEEN WORKING THROUGH. THIS IS A CONCEPT. IT DOES NOT HAVE TO BE THE CONCEPT. IT IS CALLED THE COMMONS. IT IS ESSENTIALLY SEIZING ON, YOU KNOW, KIND OF LIKE THE INDOOR PART. THE REAL PLANTS AND ARTIFICIAL PLANTS. SOMETHING PLAYFUL WITH TURF.

KIND OF DINING UNDER STARS KIND OF FIBER. THIS IS I FORGOT -- INITIAL LAYOUT . FOR REFERENCE, WHILE WE ARE HERE, IT IS RIGHT UP AGAINST THE CURB LIST STREET TO THE NORTH.

JUST TO THE LEFT IN THIS PICTURE. AND ALL OF THE MONON GETTING STARTED . THE BOTTOM IS THE WEST. I WILL QUICKLY WALK US THROUGH WHAT WE ARE LOOKING AT HERE. WE SEE 14 VENDORS , COMBINATION OF HOT AND COLD. THIS IS AT THE MONON LEVEL. CENTRAL TO THIS IS THE SOCIAL STARED. IT TAKES PEOPLE HAVE TO KIND OF A SECOND LEVEL THAT OVERSEES EVERYTHING. THE MIDDLE, THERE IS A TURF LAWN WITH SOME OF THOSE PLAYFUL ELEMENTS. STAGE WITH THE TV SCREEN. I THINK YOU CAN JUST, A KID'S MOSH PIT AREA. WE ARE NOT SURE WHAT THIS IS GOING TO BE YET. WE KNOW HOW IMPORTANT A PLACE FOR FAMILIES IS HERE IN CARMEL. YOU KNOW, HOW THAT IS SUCH AN IMPORTANT PART WE SEE ALONG THE MONON ALL THE TIME. WE WANT TO CATER TO THAT AND BUILD ON WHAT WE HAVE. SO YOUR STANDARD BACK OF HOUSE, 14 VENDORS , THE PLAYGROUND IS JUST OUT HERE. WE HAVE CREATED THIS INTERSPACE THAT IS MORE THAN JUST -- IT IS SPACE YOU CAN SEE PEOPLE WANTING TO SPEND TIME. I HAVE A, IF BOB IS LISTENING? SOMETIMES I WILL TAKE MY CHILD TO THE LIBRARY OF AN EIGHT-YEAR-OLD WHERE I JUST SIT THERE AND LET MY CHILD DO WHATEVER IT IS LIKE A BABYSITTING SERVICE. THANK YOU, BOBBY. YEAH, I AM. WE PUT THE BOOKS BACK. WE PUT THE BOOKS BACK. THEY COME WITH THEIR FAMILIES AND THEY SPEND TIME THERE. THIS CAN BE A SIMILAR KIND OF VENUE WHERE WHETHER YOU ARE HUNGRY OR NOT, THIS MIGHT BE A PLACE YOU WANT TO GO. THIS PLACE, ALONG WITH ALL THOSE OTHER POINTS I LISTED PREVIOUSLY, YOU CAN EVEN IMAGINE DURING THE CHRISTKINDLMARKET BUT IF A FAMILY IS ALSO SOME LITTLE KIDS, OR WELL, MAYBE THEY WANT TO SPEND ABOUT HALF AN HOUR BACK INDOORS UNTIL THEY COME TO DO SOMETHING. THIS IS THE PLACE FOR THAT. THE SECOND FLOOR , SO NOW, WE ARE ON THE SECOND LEVEL. THIS IS THE CITY CENTER LEVEL OVERLOOKING OUT THE MONON. WE HAVE HERE IS IT IS OPEN BELOW YOU CAN STILL SEE SKS. IF YOU'RE WATCHING THE INDIANA GAME FEATURING CAITLIN CLARK. OH, MAN. TIMELY, TIMELY. SO FOR WATCHING A CAITLIN CLARK LED INDIANA FEVER GAME, SORRY, EVERYONE. WOMEN'S BASKETBALL HERE. YOU CAN IMAGINE WITH THE STAGE OF THE SCREEN SO EVERYBODY CAN. IT IS ALMOST LIKE IT IS MIDTOWN BUT INDOORS. I WANT TO POINT OUT A COUPLE THINGS. DURING THE SECOND FLOOR, THERE IS A ROOF DECK AND AN EVENT SPACE. THIS SPACE IS ABOUT 3000 SQUARE FEET . THERE IS ALSO A LEASABLE OFFICE. BY THE WAY, ON THE TOP THREE FLOORS ABOVE THAT, THERE ARE THREE MORE FLOORS OF OFFICE. THE STEAMER FLOWS OF OFFICE WOULD BE A SEPARATE COMPONENT BUT THIS OFFICE WOULD BE PART OF THE FOOD HALL. THE UNION. AND THE POINT OF THAT IS, WE ARE HERE TO BUILD A SUSTAINABLE GROWING CONCERNED BUSINESS. A QUESTION SOMEONE

[01:45:05]

WE HAVE SEEN HOW MANY AND HOW SUCCESSFUL THESE CAN BE ALONG THE MONON. IT IS PURE OFFICE SPACE. THERE ARE MULTIPLE REVENUE STREAMS TO MAKE SURE THIS GETS BUILT, THEY NEVER HAVE TO GO BACK FOR THE CITY FOR ANYTHING. THIS CAN BE A FULLY SELF FUNDING AUTHORIZATION ONCE BUILT THAT CONTINUES TO PROVIDE A UNION KIND OF VIBE FOR THE CITY.

THIS IS AN EXAMPLE OF MAYBE YOU HAVE BEEN HERE. THIS IS CALLED TIME-OUT CHICAGO TIME-OUT MARKET IS A COMPANY THAT GOES ON DOES FOOD HALLS. I HAVE THIS YEAR TO POINT OUT THAT IT IS BETWEEN JUST A FOOD HALL AND A TRUE CIVIC SPACE WHERE YOU MAY WANT TO SPEND TIME WHETHER YOU ARE HUNGRY OR NOT. THIS IS JUST A FOOD HALL. I DON'T WANT TO SPEND A SINGLE MINUTE HERE BEYOND THAT. WITH THAT, IN CONTRAST WITH THE CIVIC SPACE, ARTIFICIAL TURF, REAL TREES AND A STAGE.

SOMETHING FOR KIDS TO DO. BREAKFAST BAR, THE SOCIAL SPHERE THAT OVERLOOKS IT ALL. YOU CAN SEE HOW THAT IS JUST A DIFFERENT VIBE THEN JUST A FOOD HALL WHERE YOU SIT AT A TABLE AND YOU EAT AND YOU LEAVE. THIS IS A PLACE THAT IS STICKY. IT MAKES YOU WANT TO STAY HERE EVEN WHEN YOU ARE DONE EATING.

STUDENT UNION FOR THE CITY. INDOOR. JUST LIKE THE TOWN PLAZA PROVIDES OUTDOOR HEART SALON. SO IN THE DEAL STRUCTURE, THERE WOULD BE A FOOD HALL. PROBABLY THE PORTION OF THIS PARCEL IS OWNED BY -- IN THIS PORTION OF THIS PARCEL IS OWNED BY THE PROPOSAL WOULD BE A PARTNERSHIP WITH PEDDICORD. WERE THEY OWNED THE MULTIFAMILY OPERATES THE DISTRICT PARKING GARAGE. AND AS A PARTNER WITH THE CITY/WOODHULL ON THE UNION.

THERE WOULD ALSO BE AN OFFICE COMPONENT AS WELL. I KNOW, WE'RE LOOKING ABOUT 602 PARKING SPACES.

SO TO TALK NUMBERS. WE HAVE IDENTIFIED A NUMBER OF FUNDING SOURCES AND I WANT TO GO THROUGH THEM. THE FIRST TWO LISTED THERE AS SOURCES ARE WHAT I WOULD CALL ON SUNDAY FUNDING SOURCES. THOSE ARE NOT CITY FUNDING SOURCES. FIRST AND FOREMOST OF THOSE IS ECONOMIC DEVELOPMENT CORPORATION. IDC STATE. THEY'RE DOING A PROGRAM CALLED READY. TO POINT OUT. THEY RECENTLY ANNOUNCED THE NUMBER OF MILLIONS OF DOLLARS THAT WOULD BE GIVEN AWAY TO -- PRINCIPALITIES ACROSS THE STATE AND ALSO SENTRY -- CENTRAL INDIANA FOR THE RIGHT KIND OF PROJECT. WE'VE APPLIED FOR $10 MILLION OF THAT GRANT. THERE IS A SEPARATE WITH THE TOURISM GRANT. THE APPLICATIONS THAT ARE HAPPENING NOW, THE SAME WITH IBC. THERE IS POTENTIALLY IS A $7 MILLION GRANT WE COULD GET FROM THEM. WE ARE FIGURING ABOUT $8 MILLION CONSTRUCTION LOAN AND THEN BOND PROCEEDS TO FUND THE REST. THESE NUMBERS ARE INCREDIBLY PRELIMINARY. THEY ARE ESTIMATES. WE ARE COSTING US FORTHCOMING. UPDATED NUMBERS ON THE TIF ARE FORTHCOMING. WE WILL HAVE A WILD TO TALK ABOUT THOSE. LET ME JUMP INTO THE POSSIBLE TIMELINE. SECOND AND THIRD OF THIS YEAR IS WHEN THE OUTSIDE FUNDING SOURCES APPLICATION AND AWARDS ARE HAPPENING. THAT IS THE IBC . ASSUMING THOSE SOURCES COME IN AND WE HAVE THIS OUTSIDE FUNDING SOURCES, THEN IN THE FOURTH QUARTER OF THIS YEAR, AND THE BEGINNING OF NEXT YEAR, COUNCIL WOULD DISCUSS AND CONSIDER TIF , THE CITY FUNDING SOURCE FOR THIS PROJECT, OBVIOUSLY CONTINGENT ON THE OTHER SOURCES COMING IN. ROUTE 2025, WE WOULD HAVE DESIGN AND SECURING THE CONSTRUCTION LOAN. A POTENTIAL

[01:50:01]

AGAIN, I HAVE TO REPEAT THAT OUR COST ESTIMATE FOR THIS ARE INCREDIBLY ELIMINATED. WE HAVE DONE ENOUGH TO KNOW WE ARE IN A GOOD BALLPARK. WE HAVE DONE ENOUGH RESEARCH TO , IN GOOD FAITH, PUT TOGETHER FULL APPLICATIONS FOR THE -- GRANT AND THE -- GRANT. SO THE RESOLUTION IN FRONT OF YOU TODAY KIND OF SPEAKS TO THIS AS THE COUNCIL IS WILLING TO HAVE THIS CONVERSATION AND HAVE THESE DISCUSSIONS ABOUT CITY FUNDING SOURCES. WHEN THE OUTSIDE POTENTIAL FUNDING SOURCES COME IN. THIS PROJECT IS CONTINGENT ON THAT. AT THE SAME TIME, I KNOW OUR FRIENDS FROM THE STATE AND THE IDC ARE WATCHING. IT IS IMPORTANT THE CITY SPEAK WITH ONE VOICE AND COMMUNICATE TO OUR FRIENDS AT THE STATE. HOW IMPORTANT A PROJECT LIKE THIS WOULD BE FOR THE CITY OF CARMEL TO ENCOURAGE OUR FRIENDS AT THE STATE AND AT THE COUNTY TO GRANT US AS MUCH MONEY AS POSSIBLE. WITHOUT THE HELP OF THE EXTERNAL OUTSIDE FUNDING SOURCES, THIS PROJECT IS NOT GOING TO HAPPEN. THIS PROJECT WAS FORWARD, IT WOULD BE A TRUE PARTNERSHIP BETWEEN THE CITY, THE PRIVATE SECTOR, THE CITY, AND THE STATE. AND SO, I BELIEVE IT IS IMPORTANT. EVEN AS THERE IS A NEW ADMINISTRATION AND OPEN DISCUSSION WITH THE PUBLIC IS ONE OF THE BASIC TENETS OF MAYOR COMES -- MAYOR FINKAM . EVEN THOUGH THESE ARE VERY ROUGH, WE WANTED TO HAVE A PUBLIC CONVERSATION ABOUT THIS.

WE HOPE TO CONTINUE THAT CONVERSATION FOR THE REST OF THIS YEAR AS THE APPLICATIONS CONTINUE FOR THESE OUTSIDE FUNDING SOURCES. WITH THE HOPE THAT OUR FRIENDS AT THE STATE, FRIENDS OF THE COUNTY GRANT US THESE OUTSIDE FUNDING SOURCES.

WE CAN -- LEVERAGE THOSE FUNDS TO BUILD SOMETHING REALLY GREAT. I WILL PUT THIS PICTURE BACK UP. I THINK EVEN THIS SITE PLAN, THIS LAYOUT , SHOWS WHY THIS IS NOT JUST A FOOD HALL , RIGHT? THIS IS A TRUE CIVIC SPACE THAT WOULD BE A HUGE ADDITION TO OUR CITY. THAT WAS THE INTRODUCTION AND I'M HAPPY TO ANSWER ANY QUESTIONS. OR TO READ THE LANGUAGE OF THE ORDINANCE OR ANYTHING YOU MIGHT -- AN JUST TO BE CLEAR, TONIGHT, IF PEOPLE VOTE ON THIS RESOLUTION AND VOTE IN SUPPORT OF IT, IT IS NONBINDING, THERE IS NOTHING TYING ANYONE HERE TO LATER ON WHEN AN ACTUAL RHONDA COMES TO US TO HAVE TO VOTE YES OR NO. RIGHT NOW, ALL WE ARE DOING IS SUPPORTING THE IDEA TO HELP US TRY TO SECURE OUTSIDE FUNDING. DO NOT CORRECT .? I WANT TO MAKE ONE COMMENT ABOUT WHEN IS THAT IT IS NOT JUST GOING TO BE PIZZAS AND BURGERS . THAT IS SOMETHING MY CONSTITUENTS SAY ALL THE TIME.

I LOVE THE RESTAURANT IN CARMEL, BUT THEY WANT MORE VARIETY.

I UNDERSTAND HOW TOUGH IT CAN BE FOR RESTAURANTS. MY DAD WAS IN THE RESTAURANT INDUSTRY FOR MORE THAN 40 YEARS AND I HELPED HIM ON ONE FOR ABOUT 10 YEARS. IT IS REALLY TOUGH FOR A LOT OF CHEF DRIVEN RESTAURANT TO HAVE LARGE SPACES . SO WE SEE LARGE SQUARE FOOTAGE AND A LOT OF THESE NEW RESTAURANT HOLDOUTS.

HAVING THE SMALLER SPACES I THINK WILL BE CONDUCIVE AND MORE CREATIVE FOOD OPTIONS FOR THE CITY THAT PEOPLE REALLY ENJOY. I HAVE ONE OTHER QUESTION. IMAGINE THE PARKING GARAGE.

SO THERE ARE APARTMENTS . I SAID THAT IS TO HELP SUPPORT

THE FINANCING OF THE GARAGE? >> CORRECT .

>> WHAT KIND OF PERCENTAGE WOULD BE SHOOTING FOR WITH PUBLIC USE SPACES FOR THIS GARAGE?

>> THE CONVERSATIONS WE HAVE HAD SO FAR, GENERALLY , THE REDEVELOPMENT PROJECTS HAVE A 25/75 PARKING SPLIT . 75% OF THE PARKING SPACES ARE OPEN TO ANYONE IN THE PUBLIC. THAT IS GENERALLY UNHEARD OF IN AMERICA. AND PEOPLE CANNOT BELIEVE WE HAVE THAT IN CARMEL. WE HAVE 15 GRASSES THAT ARE MOSTLY OPEN TO THE PUBLIC AND ARE FREE TO PARKING. THAT IS JUST NOT NORMAL. WE SHOULD ACKNOWLEDGE THAT. HAVING SAID

[01:55:03]

SO WE ARE TALKING ABOUT A TINY , TINY NUMBER OF SPACES, ALMOST NONE THAT ARE RESERVED. THIS IS A TRUE DISTRICT GARAGE. PUBLIC SPACES THAT ARE NOT RESERVED .

>> THIS WOULD SUPPORT THE FOOT HELP IT LET'S SAY I WAS GOING TO THE MARKET AND IT WAS PACKED. I CAN CROSS THE STREET

ARE GOING TO -- OR ANY KIND OF >> YES . I WAS THE, THE PARKING GARAGES TO THE NORTH OF THIS, THEY ALSO HAVE 75% OPEN TO THE

PUBLIC PARKING AS WELL. >> I THINK YOU BROUGHT UP A REALLY GOOD POINT THAT I DID NOT POINT OUT SO I WOULD LIKE TO. SOME MODELS OF FOOD HALLS YOU HAVE SEEN HAVE A LARGE ANCHORED TENANTS. IT IS THE THREE OR 4000 SQUARE-FOOT RESTAURANTS YOU WERE TALKING ABOUT. BUT SPECIFICALLY, THAT IS NOT PART OF THE CONVERSATION HERE BECAUSE WE HAVE MANY OF THOSE SPACES ALL ALONG THE MONON. THERE ARE MANY, MANY 3000 SQUARE FOOT AND LARGER RESTAURANTS THAT EXIST HERE.

THIS IS NOT TO COMPETE WITH THAT. THIS IS TO PROVIDE SOMETHING BRAND-NEW. THAT IS WHY THE LARGE ANCHORS ARE NOT PART OF THIS. OUR ACRES ARE EVENT SPACES AND OFFICE SPACE TO HELP SUPPORT THE REVENUE. THIS GOES TO ANOTHER QUESTION.

WE WANT . UNIQUE AND VERY CURATED MIX OF TENANTS. THAT MEANS SOMEONE THAT IS MAYBE A LITTLE FURTHER THAN A TRUCK OR AT FOOT TRUCK LEVEL. THEY DO NOT HAVE THEIR OWN PERMANENT BRICK-AND-MORTAR. SOMETIMES THEY WILL AND THEY WILL HAVE A SMALLER VENUE THERE. BUT THE OPERATIONS OF THIS DOES NOT ENTIRELY RELY ON THE REVENUE FROM THE TENANTS. THERE IS AN OFFICE COMPONENT THAT PROVIDES REVENUE TO THE FOOD HALL.

BECAUSE THERE IS REVENUES TO THE FOOD HALL, WE DO NOT HAVE TO PUT ALL THAT STRAIN AND BURDEN ON JUST THE 14 TENANTS.

THAT MEANS WE CAN BE MORE FLEXIBLE FROM A COST STANDPOINT OR RENT STANDPOINT IN CURATING THE PERFECT MIX .

IF YOU DO NOT HAVE THE TENANTS TO DRIVE PEOPLE IN, IF THE EXPERIENCE IS NOT RIGHT, IT IS NOT GOING TO WORK. SO HAVING THAT FLEXIBILITY IS CERTAINLY BENEFICIAL.

THANK YOU. DIRECTOR? TWO QUESTIONS. ONE IS , HOW DIFFICULT IS IT TO RECEIVE THIS READY GRANT? WHAT IS THE TIMELINE FOR THAT PROPOSED GRANT PROCESS? THAT IS NUMBER ONE. NUMBER TWO. THIS IS MAYBE A LITTLE TOO EARLY TO ASK BUT I WILL ANYWAY. WHAT TYPE, WHEN TALKING ABOUT THE 14 TENANTS, ARE YOU TALKING ABOUT, WHAT WOULD THAT MIX LOOK LIKE OUT OF CURIOSITY? YOU TOUCH ON IT A LITTLE BIT BUT NOT 100 PERCENT.

>> YEAH, EIGHT OR NINE HOT FOOD VENDORS. FIVE, SIX, SEVEN SPECIALTY VENDORS. SOMETHING THAT BRINGS PEOPLE IN DURING LUNCH. BUT IT ALSO BRINGS PEOPLE IN AT ALL TIMES. THAT IS PROBABLY THE MIX. TO YOUR FIRST QUESTION, APPLICATIONS FOR THE READY GRANT ARE OCCURRING NOW . IT WILL PROBABLY BE MADE OVER THE NEXT FEW MONTHS BUT IT IS DIFFICULT TO GET A LOT OF MONEY. THE STATE RECENTLY ANNOUNCED THAT CENTRAL MONON IS GOING TO GET -- FOR ALL THE CITIES. THERE IS ALSO LILY MONEY THAT HAS BEEN SET ASIDE FOR KIND OF A SIMILAR TO READY PROCESS THAT IEDC WILL ALSO CONTROL . ALSO THE MUNICIPALITIES ARE GOING FOR READY. YOU CAN IMAGINE THEM IN HIS ABILITIES THAT HAVE NOT HAD A LOT OF DEVELOPMENT.

THEY ARE GOING FOR THE FIRST BIG APARTMENT PROJECT WITH THE PARKING GARAGE. SOMETHING WE HAVE A LOT OF BUT SMALLER PRINCIPALITIES ARE GOING TO GO FOR THAT. THIS PROJECT IS A COMPLETELY UNIQUE THING THAT NOBODY HAS PROPOSE BUT IT IS SOMETHING EVEN CLOSE TO THAT. MY HOPE IS THE STATE SEES THE IMPORTANCE OF A PROJECT LIKE THIS. IT GIVES US AS MUCH

MONEY AS POSSIBLE. >> THANK YOU, DIRECTOR.

>> JUST ONE COMMENT. OBVIOUSLY, WE ARE VOTING ON THE IDEA AND THE CONCEPT. BUT THE NUMBERS AS YOU PRESENT THEM, AS I UNDERSTAND, YOU ARE BASICALLY SAYING WE ARE CLOSE TO LOOKING FOR CLOSE TO 50% OF THE FUNDING FOR THIS PROJECT

[02:00:04]

GIVE AS MUCH MONEY AS POSSIBLE. >> I AGREE.

>> ALL RIGHT. ANY OTHER QUESTIONS? COUNSELOR SNYDER ,

GO AHEAD. >> SO SOMEONE WHO HAS WRITTEN APPLICATIONS, TYPICALLY YOU NEED TO SHOW PLENTY OF COLLABORATION WITHIN YOUR DISTRICT. RIGHT NOW, YOU HAVE YOU AND THE COUNTY OF TOURISM AND THEIR ABILITIES , THE CRITERIA ARE HOW MANY PEOPLE YOU HAVE TESTED. I DO NOT KNOW HOW TO DO THAT. TO GET BUY-IN FROM, WE HAVE DONE IT BEFORE.

WE BROUGHT THE PARKS AND TO SECURE SOME MONEY. THERE ARE MULTIPLE ENTITIES I THINK WOULD HELP BEEF UP THIS APPLICATION.

SECONDLY, BECAUSE HE HAS BEEN INVOLVED IN AFFORDABLE HOUSING AT LEAST 25 TIMES EARLIER. WHAT KIND OF HOUSING

WE HAVE AVAILABLE, PLEASE? >> MARKET RATE APARTMENTS THAT

ARE VERY NICE . >> THANK YOU BID AND TO REITERATE, THIS COMES IN WAY OVER BUDGET. SHOULD IT COME IN WAY OVER THESE ESTIMATES, WE CAN CLEARLY KIND OF RESET AT

SOME POINT? >> YES .

>> THANK YOU. >> COUNCILOR WORRELL?

>> THANK YOU, MR. PRESIDENT. I THINK WHEN YOU ARE PRESENTING THIS TO ME, WE HAVE ALL HEARD THE APARTMENT REFRAIN FROM OUR CONSTITUENTS. THIS PROJECT CANNOT HAPPEN WITHOUT 190 APARTMENTS. IS THAT TRUE?

YOU STILL STAND BY THAT? >> YES.

>> I THINK THAT IS A POINT OF REFERENCE FOR THIS DISCUSSION RIGHT NOW. NUMBER TWO, MR. PRESIDENT .

I THINK WE SHOULD READ THE RESOLUTION. HAVE IT READ INTO THE RECORD OR READ OUT LOUD. I GUESS THE POINT I WANT TO MAKE TO COUNCILOR AASEN'S POINT. I TAKE THIS VERY SERIOUSLY. I DO NOT TAKE ANY VOTE LATELY. I WOULD HOPE THE WHOLE, THIS BODY DOES SO BECAUSE THIS WILL BE PROBABLY ONE OF THE FIRST TIMES EVER. I APPLAUD PRESIDENT GREENE FOR DOING THIS BUT I THINK THIS IS BRILLIANT FOR THE FIRST AMENDMENT REMEMBER IN MY TIME ON COUNCIL WHERE WE ARE PUBLICLY STATING WHETHER OR NOT WE CAN , BASED ON OUR PERSONAL PHILOSOPHIES, OUR CONSTITUENTS, WHETHER WE CAN OR CANNOT GET BEHIND THIS CONCEPT. OR GET BEHIND THIS PROJECT IN CONCEPT. I THINK THAT IS KIND OF A GROUNDBREAKING STRATEGY. AND SOMETHING THAT I WILL BE VERY CURIOUS TO SEE HOW THIS GOES. BECAUSE TO ME, THIS SAYS I WANT TO SPEAK WITH ONE VOICE AS WAS SAID. I WANT TO SEE THIS PROJECT CONTINUE THROUGH THE PROCESS OF GOOD DELIBERATION, GOOD STUDY, GETTING IT TO COUNCIL OR TO COMMITTEE. ALL THE THINGS, ALL THE DUE DILIGENCE WE HAVE DONE THROUGHOUT THE YEARS. BUT THAT WE ARE IN AGREEMENT THAT THIS IS SOMETHING OUR COMMUNITY SHOULD HAVE, WHETHER WE CAN AFFORD IT OR NOT, MAY COME LATER. BUT SOMETHING WE SHOULD HAVE. THAT IS HOW I AM APPROACHING THIS VOTE.

SOMETHING WE DESIRED. SOMETHING WE WOULD LIKE TO SEE IN OUR COMMUNITY IF WE CAN MAKE IT WORK FOR THAT IS HOW I AM

VIEWING THIS VOTE. >> ANYTHING ELSE?

COUNCILOR SNYDER? >> HAVE DONE A GREAT JOB EXPLAINING THE REST OF THAT BUT I WOULD LIKE TO KNOW, DOES ANYBODY HERE DISAGREE WITH THIS INTERPRETATION? THE SAME INTERPRETATION I HAVE OF THE DOCUMENT. I THINK SO LONG AS WE ALL UNDERSTAND IT AND THE INTERPRETATION IS WITH COUNCILOR WORRELL, WE CAN MAKE A REASONABLE DECISION ON THIS .

THE LANGUAGE OF THE ORDINANCE?

>> GO AHEAD. FOR THE RESOLUTION.

>> RESOLUTION OF THE COMIC COUNCIL IN THIS PART OF THE UNION ON MONON SQUARE SOUTH PROJECT BUT THE SYNOPSIS WAS READ ALREADY SO I WILL SKIP IT. THE TRENCH WAS REPUBLICAN PARTNER --

[02:05:02]

WHEREAS THE UNION WILL BE PART OF A LARGER MONON SQUARE SOUTH PROJECT THAT INCLUDES THE UNION AND AN OFFICE COMPONENT IN THE SOUTHWEST CORNER OF THE MONON SQUARE. DISTRICT PARKING GARAGE AND MULTIFAMILY COMPONENT ON THE SOUTHEAST QUADRANT OF MONON SQUARE. WHEREAS THE UNIT AND MONON SQUARE SOUTH PROJECT WOULD ONLY BE POSSIBLE BY UTILIZING A NUMBER OF FUNDING SOURCES APART FROM ADDITIONAL CONSTRUCTED LENDING, BOTH ONE, WITHIN THE CONTROL OF THE CITY OF CARMEL , SUCH AS BONDS , THE CITY FUNDING SOURCES. AND TWO, BY WAY OF GRANTS FROM OUTSIDE AGENCIES, SPECIFICALLY FROM A, INDIANA ECONOMIC DEVELOPMENT CORPORATION'S, READY GRANT , B, TOURISM'S BEST INVESTMENT FUND , COLLECTIVELY WE CALL THESE OUTSIDE FUNDING SOURCES. WHEREAS THE COMIC COUNCIL BELIEVES THE UNION AND THE MONON SQUARE SALTS PROJECT WILL SERVE AS A FUTURE AS A FURTHER ECONOMIC DEVELOPMENT AND TOURISM CATALYST FOR THE CITY CENTRAL CORE. IT DESIRES TO DO ALL IT CAN TO BRING IT TO FRUITION AND AGREES TO FULLY EVALUATE, AND CONSIDER FUNDING SOURCES FOR THAT UNIT IN MONON SOUTH PROJECT UPON OUTSIDE FUNDING SOURCES BEING SUCCESSFULLY SECURED. AND NOW RESOLVED BY THE COMMON COUNCIL OF THE CITY OF CARMEL AS FOLLOWS. ONE. UNINCORPORATED HERE AND BY REFERENCE FOR TWO WITH THE COMMON COUNCIL AGREES TO FULLY EVALUATE AND CONSIDER THE CITY FUNDING SOURCES FOR THAT UNIT IN MONON SQUARE SOUTH PROJECT UPON OUTSIDE FUNDING SOURCES BEING SUCCESSFULLY SECURED. THREE. THIS RESOLUTION SHALL TAKE EFFECT IMMEDIATELY UPON PASSAGE.

APPROVE THE RESOLUTION AS JUST READ INTO THE RECORD.

>> SECOND. >> ANY DISCUSSION? PLEASE

VOTE. >> THANK YOU . APPROVED, 9-0. THAT COMPLETES NEW BUSINESS.

[15. AGENDA ADD-ON ITEMS]

TONIGHT OR ADD TO THE AGENDA? >> MR. PRESIDENT? I LIKE TO MAKE A MOTION TO ADD AN ORDINANCE D27-24 BUT AS THE MENTAL PLACING 2019 BOND ANTICIPATION ORDINANCE WITH THE MATURITY DATE FROM MAY 1, 2024, TO JULY 1, 2024.

>> IS THERE A SECOND? PLEASE VOTE.

9-0. OKAY. THANK YOU. NOW THAT WE ADDED THIS TO THE AGENDA , I WILL GO AHEAD AND READ IT. ORDINANCE D- 27-TO HER. THE ORDINANCE OF THE COMIC COUNCIL OF THE CITY OF CARMEL, INDIANA, BENDING ORDINANCE D-2689-23. THE SPONSOR IS COUNSELOR GREEN. COULD I GET A MOTION TO INTRODUCE?

>> INTRODUCE. >> SECOND READ

>> OKAY, THOUGH NOT IMMENSE PRIOR ORDINANCE NUMBER D-2689-23 TO AUTHORIZE MAXIMUM INTEREST RATES OF 7% RATHER THAN 6% AND EXTENDING THE MATURITY DATE OF THE BOND ANTICIPATION NOTES OF THE WATERWORKS TO JULY 31, 2024, FROM MAY 1, 2024.

[02:10:07]

WATER BAND IS PART OF THE RESTRUCTURING AND THE REFINANCING WE ARE TRYING TO ACCOMPLISH IN THE BIG PICTURE.

EVERYBODY WANTED THIS DONE AND CLOSED BY MAY 1ST. CERTAINLY BY THE MAYOR AND I AM SURE THE COUNCIL. AND IN DISCUSSIONS WITH THE UNDERWRITER IT BECAME VERY OBVIOUS TO ME THAT WE NEEDED A LITTLE MORE TIME AND IT IS VERY COMPLEX. THE GOOD NEWS IS BY TAKING A LITTLE MORE TIME AND WORKING WITH THE UNDERWRITER, WAS A SUBSTANTIAL SAVINGS. IF YOU DO NOT MIND, I WOULD LIKE TO BRING UP SCOTT MILLER AND HE CAN EXPLAIN A LITTLE MORE DETAIL WHAT THOSE SAVINGS ARE.

>> THANK YOU. >> THANK YOU, JOHN. SCOTT MILLER WITH -- I APPRECIATE YOUR TIME THIS EVENING.

APOLOGIES TO COUNCILOR WORRELL AND THE FINANCE COMMITTEE. IT IS IRONIC IT AWAY BECAUSE THIS HAS TAKEN A LONG TIME. WE NEED MORE TIME. THIS IS MOVING VERY QUICKLY.

AS A BRIEF SUMMARY, WE HAVE THE FINANCE COMMITTEE MEETING TUESDAY OF LAST WEEK. WE HAD A CALL WITH -- WEDNESDAY OF LAST WEEK THAT WENT VERY WELL. WE FOUND OUT FROM THEM THAT WE LIKELY WILL NOT GET THAT RATING AND TELL WEDNESDAY OF THIS WEEK. CHECK WITH THEM AND TELL EVEN JUST A FEW MINUTES AGO BUT I DO NOT HAVE AN UPDATE FOR THEM. SO HOPEFULLY WE'LL GET THAT RATING ON WEDNESDAY. WE MET AS JOHN MENTIONED WITH THE FINANCE TEAM THURSDAY INCLUDING THE UNDERWRITER. IT IS TALKING THROUGH THINGS AND FELT LIKE IT WOULD BE EXTREMELY HELPFUL AND GET US A BETTER OUTCOME BY EXTENDING THIS A FEW MONTHS WITH THE ORDINANCE GOES THROUGH OR EXTENDS THE DUE DATE THROUGH JULY 31ST. I THINK FROM THE MEMO THAT WAS CIRCULATED, WE DO NOT ANTICIPATE NEEDING THAT AMOUNT OF TIME . WE JUST DO NOT WANT TO HAVE TO COME BACK TO YOU AND GO THROUGH THIS AGAIN. OUR TIMING RIGHT NOW IS WE ANTICIPATE RECEIVING THE RATING FROM STANDARD AND POOR'S THIS WEDNESDAY. THEY WILL COMPLETE THE DUE DILIGENCE THAT NEEDS TO BE DONE FOR THIS TYPE OF FUN WRITING AND FROM THE CITY PERSPECTIVE AND UNDERWRITING PERSPECTIVE BY APRIL 26. WE WOULD CIRCULATE A PRELIMINARY OFFICIAL STATEMENT MAY 1ST. WE WOULD PRICE THE BONDS THE WEEK OF MAY 13TH AND CLOSE ON MAY 29TH. WE ARE GIVING OURSELVES ANOTHER COUPLE OF EXTRA MONTHS THERE. AGAIN, TO TRY TO AVOID HAVING TO GO THROUGH THIS AGAIN. IF WE COULD BRING UP THE OVERHEAD, I HAVE A COUPLE THINGS TO SHOW YOU. THE QUESTION WAS ASKED EARLIER AND IT WAS ASKED IN THE FINANCE COMMITTEE MEETING AS WELL.

WHAT DOES THIS EXTENSION COST US? LET ME TRY TO QUANTIFY THAT FOR YOU. I WILL ALSO KIND OF TRY TO QUANTIFY WHAT WE HOPE TO GAIN FROM THIS. RIGHT NOW, THIS CURRENT COLUMN IS THAT WE HAVE OUTSTANDING. WE HAVE $17,745,000 OF PRINCIPAL OUTSTANDING RIGHT NOW. THAT WAS USED TO FUND PRIOR IMPROVEMENTS. THAT IS CURRENTLY AT AN INTEREST RATE A 5.63% AND ON A DAILY BASIS, WE HAVE INTEREST EXPENSE OF A LITTLE OVER $2700 THERE. WE ARE ASKING FOR 2800 DAY EXTENSION.

WE WOULD INCUR 76 THOUSAND $638 OF INTEREST EXPENSE DURING THAT 28 DAY TIME PERIOD. THAT IS THE BAND OF THE CURRENT RIGHT. 70 MILLION DOES NOT GO AWAY. WE WILL INTEREST ON BONDS. SO WHAT WE REALLY NEED TO DO IS COMPARE WHAT IS THE INTEREST WE WOULD HAVE PAID IF WE WERE ABLE TO ISSUE THE BONDS BY THE END OF THE EVENT. WE REACHED OUT TO THE HOLDER OF THE BAND RIGHT NOW SEEING IF THEY COULD GIVE US AN INDICATION OF WHAT THE INTEREST RATE MIGHT BE IF WE DID THIS EXTENSION FOR THEY DID NOTGET BACK TO ME TODAY. AND TALKING TO OUR PRICING FOLKS, WE THINK THERE IS A GOOD CHANCE THAT IT ACTUALLY MIGHT BE LESS BUT I'VE INCLUDED 5.6% AND 2.5% AS POSSIBLE OPTIONS OF WHERE THE INTEREST RATE RESET

[02:15:02]

EITHER OF THESE THREE NUMBERS TO THE $60,000. THE TRAILER REALLY TALKING ABOUT HIS ADDITIONAL COST OF DOING THIS .

THE SUMMER BETWEEN 3500 AND $8500 WITH INTEREST EXPENSE .

PROBABLY NOT MORE THAN $10,000 OF COST ASSOCIATED WITH JUST PAPERING THE EXTENSION. IN TOTAL, ABOUT 13,000-$18,500.

THAT IS THE COST.

NOT A WHOLE LOT. WHAT WE ARE TRYING TO BUY WITHOUT ADDITIONAL TIME IS A LOT BIGGER BANG FOR THE BUCK. UNDER OUR CURRENT ASSUMPTIONS WHERE WE JUST DO A STRAIGHT TAXABLE BOND ISSUE FOR THE RESTRUCTURING OF THE TWO 2008 BOND ISSUES, THE SERIAL BONDS, CURRENT INTEREST BONDS, AND THEN HAVE A TAX-EXEMPT PIECE FOR THE REPLACEMENT OF THE VAN AND THE NEW MONEY COMPONENT , THIS IS JUST A COMBINED SCHEDULE BASED ON ASSUMED INTEREST RATES . UNDER THAT SCENARIO WE HAVE BEEN WORKING WITH UP TO THIS POINT, WE ARE LOOKING AT OVER THE LIFE OF THOSE NEW BONDS , PLUS THE REMAINING LIFE OF THE TWO BONDS WE WOULD STILL HAVE OUTSTANDING ALREADY, WE'RE LOOKING AT TOTAL DEBT SERVICE OF ABOUT $302 MILLION GOING OUT TO 2053. SO ALL OF THAT PRINCIPAL AND INTEREST FOR THE NEW BONDS PLUS THE EXISTING BONDS. HAVING A LITTLE MORE TIME TO WORK THROUGH THIS AND GET A STRUCTURE THAT WE THINK WE ARE GOING TO BE ABLE TO GET WITH THE HELP OF THE UNDERWRITER , WE CAN HOPEFULLY REDUCE THAT DOWN TO $271 MILLION. SO WE ARE GOING TO SPEND 13,005 TO 18,005 ON ADDITIONAL COST TO TRY TO SAVE YOU $30 MILLION IN LONG-TERM FINANCE THING. THE WAY WE ARE GOING TO DO THAT IS A DIFFERENT TYPE OF STRUCTURE TO A PIECE OF THIS. WE HAVE NOT ASSUMED UP TO THIS POINT BECAUSE WE DID NOT KNOW IF WE WOULD HAVE A BUYER. IN TALKING WITH THE UNDERLYING , THERE'S A VERY GOOD CHANCE AND I GOT AN UPDATE FROM THEM AGAIN TODAY. WE HAVE A BANK THAT WOULD BE INTERESTED IN DOING THE CURRENT INTEREST BONDS FOR THAT IS ABOUT $40 MILLION OUTSTANDING RIGHT NOW. DOING THAT WITH A CINDERELLA REFINANCING STRUCTURE. WHAT THAT MEANS IS, WE WOULD ISSUE THAT PIECE AS A SERIES B BOND ISSUE. IT WOULD BE A TAXABLE INTEREST RATES . THE WAY THIS ESTIMATE IS NOW, IS ABOUT 6.47% BUT IT WOULD BE TAXABLE FOR TWO YEARS UNTIL THE FIRST CALL DATE WHICH IS MAY 1, 2026 FOR THE INTEREST RATE WOULD AUTOMATICALLY SWITCH TO TAX-EXEMPT INTEREST RATE.

ASSUMING 4.9%.

THOSE ARE THE KINDS OF THINGS AND NUANCES WE ARE WORKING THROUGH AND WHY WE NEED THAT ADDITIONAL TIME TO WORK THROUGH AND GET ALL OF THAT PUT TOGETHER. LIKE I SAID, HOPEFULLY SAVE QUITE A BIT OF MONEY TO THE OVERALL TRANSACTION BY WORKING THROUGH SOME OF THESE DETAILS.

>> QUESTIONS, COUNCILLOR TAYLOR?

>> THAT IS LEADING WITH THE CURRENT STRATEGY OF A FULL

REFUND? >> YEAH, WE'RE LOOKING TO REFUND ALL OF THE 2008 , BOTH THEORIES OF 2008 PLUS THE 2012 AND WE HAVE TO DO THE TAKE OUT IN ADVANCE.

>> IS THERE ANY SUGGESTION ABOUT PARTIAL EPHESIANS?

>> THAT IS CERTAINLY A POSSIBILITY. THE PROBLEM IS WE STILL ARE LEFT WITH A SENIOR LIEN THAT OUTSTANDING. WE HAVE OTHER BONDS OUTSTANDING. WE END UP AT A POSITION WHERE WE DO NOT HAVE ALL OF THE DEBT OUTSTANDING FOR THE WATER UTILITY WITH THE SAME STATUS OF PRIORITY OF THE NET REVENUES.

SO THAT LEAVES US IN A POSITION WHERE WE WOULD STILL NEED TO ISSUE JUNIOR BONDS FOR FUTURE IMPROVEMENTS AND PAY A HIGHER

INTEREST RATE. >> WHEN I SAW THE TIMELINE THAT YOU ORIGINALLY PROPOSED , OR WHAT I HEARD FROM THE

[02:20:05]

OF THE EXTENSION . >> IF I COULD GO BACK IN TIME, THAT IS ONE THING I WOULD DO DIFFERENTLY BUT DOING A BETTER JOB CONTROLLING EXPECTATIONS AT THIS LEVEL AND TIMING.

>> THIS PROCESS IS TAKEN YOUNGER THAN I EXPECTED IT TO TO GET FROM THIS POINT FROM ADOPTION OF THE GRADE ORDINANCE ON DECEMBER 18TH TO WHERE WE ARE AT TODAY. EVERY BIT OF IT HAS TAKEN LONGER THAN I EXPECTED IT TO.

>> COULD YOU TOUCH ON THE IMPLICATION ON THE SENIOR LIENS? THOSE REMAINING OUTSTANDING VERSUS PARTIAL

RATE? >> THE 2008 BOND HAVE THE SENIOR LIEN PRIORITY. ANYTIME WE GO TO MARKET TO ISSUE NEW DEBT, WE HAVE GOT TO DO THAT ON A JUNIOR BASIS. THAT SITUATION HAS HELPED NOW BECAUSE WE HAVE INCREASED THE USER RATES. NOW WE DO HAVE A LITTLE BIT BETTER CHANCE OF MEETING THE PARITY TEST BUT AS LONG AS WE HAVE SOME OF THE SENIOR LIEN DEBT OUTSTANDING, EVERYTHING ELSE WE HAVE IS GOING TO BE JUNIOR TO THAT WHICH MEANS HIGHER INTEREST RIGHT . AND CLEARING ALL OF THAT OUT, RESETTING ALL OF THAT, THAT HELPS US WITH FUTURE ISSUANCE, HELPS OF WITH CASH FLOW, HELPS US WITH READING. BOTH RATINGS ON FUTURE DEBT AND RATING ON EXISTING DEBT FOR THE UTILITY.

>> LET ME ASK THIS. I WANT TO MAKE SURE, SO WE KNEW THAT THIS WAS COMING WHEN WE DID THE RATE INCREASE LAST YEAR? THIS WAS ALWAYS PART OF THE PLAN. IF THE KIND OF KNEW THIS WAS COMING, WHAT IS THE REASON WE ARE KIND OF MEETING THE EXTENSION RIGHT NOW IF WE KNEW THIS WAS ALL ALONG WHAT WE ARE

GOING TO DO? >> TO GET TO THIS POINT IT IS TAKEN LONGER THAN I THOUGHT IT WOULD. SINCE THE ADOPTION OF THAT ORDINANCE, WE HAVE BEEN WORKING ON , NUMBER ONE. IT DOES NOT TAKE A WHOLE LOT OF TIME TO CLOSE YOUR END. BUT WE NEED TO GET 2023 CLOSE AND UPDATE THE ANALYSIS TO MAKE SURE EVERYTHING STILL WORKS BASED ON ACTUAL 2023 DATA. FROM THERE, WE MOVE INTO STRUCTURING AND WORKING ON STRUCTURING THE

TRANSACTION. >> WE PREPARED THE OFFICIAL STATEMENT AND PREPARED THE REQUEST FOR PROPOSALS THAT WENT OUT TO UNDERWRITERS. WE CAME BACK, ANALYZE THOSE, MET WITH THE CITY FINANCE TEAM TO GO OVER THOSE. PREPARE THE PRESENTATION FOR THE RATING PROCESS AND GONE THROUGH THAT PROCESS. IT IS ALL THOSE THINGS YOU DO ON A BOND ISSUE BUT IT HAS TAKEN, LIKE I SAID, MORE TIME THAN I THOUGHT IT

WOULD GET TO THIS POINT. >> OKAY.

>> ANY OTHER QUESTIONS? >> I AM REALLY, THE BOTTOM LINE IS WE HAVE TO WAIT FOR SNP ?

>> WE DO NOT WANT TO ISSUE WITHOUT THAT RATING . WE HAVE

TO HAVE THAT. >> ANY OTHER QUESTIONS? ALL RIGHT. THIS COULD EITHER GO TO COMMITTEE OR WE CAN SUSPEND THE RULES. DOES ANYBODY WANT TO TAKE A MOTION? OH. GO AHEAD.

>> SOME OF THIS WAS KIND OF TALKED ABOUT PRELIMINARY IN COMMITTEE BUT I WOULD MAKE A MOTION WE SUSPEND THE RULES AND

ACT ON THIS THIS EVENING. >> IS THERE A SECOND?

>> SECOND. >> DISCUSSION? PLEASE VOTE.

DIDN'T GO THROUGH? OKAY. 9-0. LOOKING FOR ANOTHER MOTION.

>> SECOND. >> DISCUSSION? PLEASE VOTE.

IT IS APPROVED , 9-0. THANK YOU.

[16. OTHER BUSINESS]

>> THANK YOU. >> MOVING ONTO THE NEXT ITEM.

AGENDA ITEM NUMBER 16, OTHER BUSINESS. ON THE AGENDA WE HAVE LEGAL SERVICES AGREEMENT TO KROGER AND RGIS LLP. THIS IS A CONTRACT FOR LEGAL SERVICES TO HELP US WITH OUTSIDE LEGAL SERVICES TO HELP US WITH OUR EDO RESEARCH REVISING TESTIMONY AND EXPERT ADVICE. IT WOULD BE CIRCULATED TO ALL THE COUNSELORS. WE HAVE THE ATTORNEY HERE. DOES ANYBODY

[02:25:05]

COMMENTS? >> MR. PRESIDENT, YOU HAVE SOME LIMITATIONS BUT DID YOU WANT TO COVER THOSE? SOME OF THE LIMITATIONS THE $45,000 THAT IS ALREADY IN THE BUDGET FOR OUTSIDE COUNCIL. SO THAT IS THE LIMITATION ON THE AMOUNT. AND IN THE CONTRACT YOU SAW IT IS SPECIFICALLY FOR HELP WITH UDY O.R. THINGS RELATED AND OTHER ITEMS THE PRESIDENT MIGHT NEED HELP WITH. COUNCILOR TAYLOR?

>> HIDING -- ADDING THIS AND SEE -- WITH THE SCOPE OF WORK OF CONTRACT. IT IS MORE COMMON FOR A CITY COUNCIL TO HAVE THEIR LEGAL REPRESENTATION THAN NOT. IT IS VERY RARE I GO TO A COMMUNITY. AND EVEN COUNTY COUNCILS THAT ARE ONLY PHYSICAL, NOT LEGISLATIVE LIKE CITY COUNCILS ARE OR ATONE COUNCILS. ANY OF THEM, THE CITY COUNCIL IN PARTICULAR, THEY HAVE THEIR OWN LEGAL REPRESENTATION. I AM GLAD WE ARE TAKING THIS STEP . HOPEFULLY WE CONTINUE TO CONSIDER THIS AS WE MOVE FORWARD AS A COUNCIL IN YEARS

TO COME. >> THANK YOU, COUNCILOR TAYLOR. THIS IS FOR BASICALLY THE JUDEO AND WE HAVE A LIMITED AMOUNT OF FUNDS IN OUR BUDGET SO FOR FUTURE DISCUSSION. THANK YOU. ANY OTHER QUESTIONS? ALL RIGHT.

LOOKING FOR A MOTION. >> I MOVED TO APPROVE IT.

>> SECOND. >> DISCUSSION. ALL RIGHT.

PLEASE VOTE. THAT PASSES 8-1. THAT IS IT FOR OTHER BUSINESS.

MOVING ONTO ANNOUNCEMENTS. ITEM 17. ARE THERE ANY ANNOUNCEMENTS? NO ANNOUNCEMENTS.

* This transcript was compiled from uncorrected Closed Captioning.