Zionsville Redevelopment Commission (ZRDC)

ZIONSVILLE REDEVELOPMENT COMMISSION (“ZRDC”) REGULAR MEETING MEMORANDA FOR Monday, March 28, 2022 at 6:30 pm In-person and Video Conference Meeting THIS REGULAR PUBLIC MEETING WAS CONDUCTED PURSUANT TO VARIOUS EXECUTIVE ORDERS OF THE GOVERNOR OF INDIANA UNDER INDIANA’S EMERGENCY MANAGEMENT AND DISASTER LAW, INDIANA CODE 10-14-3, et seq. Members Present: (in-person) Sanjay Patel - President, Kent Esra - Vice President, Colleen Hittle, and Mike Berg (via Zoom) Jaclyn Spillane and Kate Swanson (absent) -- Also Present: (in-person) Tom Jason – Scannell Properties; Graham Rahal – Graham Rahal Performance & Rahal Ducati Indianapolis; Dale Dillon – Dillon Construction Group; Dan Moriatry – Studio M, Architects; Tom Osborne – Bradley; & Don Williams – Barnes and Thornburg (via Zoom) Wayne DeLong, AICP, CPM Director of Community & Economic Development; Owen Young, Economic Development Manager; Zach Lutz, Planner I - Economic Development; Heather James – Ice Miller; and Tim Berry – Crow 1. Call to Order: Sanjay Patel called the meeting to order (@ 6:30pm; YouTube 00:00:00) 2. Recognition of Attendees who request to be noted 3. Reports A. (YouTube 00:03:00) TIF Report: 4. Old Business A. (YouTube 00:05:58) Approval and Adoption of Minutes: [February 28, 2022], Regular Meeting Motion: Colleen Hittle made a motion (seconded by Kent Esra) to approve the minutes. Roll Call Vote: Jaclyn Spillane (Zoom Video and Audio [A]) – Y Colleen Hittle – Y Kate Swanson – ([V&A]) Y Kent Esra – Y Sanjay Patel – Y The motion was unanimously approved by all members. A. (YouTube 00:07:00) Approval and Adoption of Minutes: [March 4, 2022], Special Meetings Motion: Kent Esra made a motion (seconded by Collen Hittle) to approve the minutes. Roll Call Vote: Jaclyn Spillane (Zoom Video and Audio [V&A]) – Y  Colleen Hittle – Y Kate Swanson – ([V&A]) Y Kent Esra – Y Sanjay Patel – Y The motion was unanimously approved by all members. B. (YouTube 00:07:43) 2022 ZCDC Member Appointment: Sanjay Patel: Recommends appoints two ZRDC members to review the applicants for the ZCDC and submit a short list to the board to review. Colleen Hittle and Kate Swanson volunteered to review the candidates prior to the April 25th meeting. They are to fill one spot on the ZCDC. 5. New Business A. 1. (YouTube 00:09:36) Creekside Corporate Park – Lots 10 & 11 Proposal (Graham Rahal Performance & Rahal Ducati Indianapolis): Graham Rahal (Graham Rahal Performance & Rahal Ducati Indianapolis); Dale Dillon (Dillon Construction Group); Dan Moriarty (Studio M, Architects), Tom Osborne (Bradley), & Don Williams (Barnes and Thornburg) (YouTube 00:14:15) Sanjay Patel states that Graham Rahal has submitted a letter of intent and is here to offer additional details on his proposal. Graham Rahal offers some history and background on his businesses. His company begin in 2017 specializing in vehicle performance parts and installation. The company expanded to vehicle sales. They quickly expanded from the original 8,000 sq. ft. in Brownsburg to 30,000 sq. ft. currently and still need more room to grow. They currently focus on blue chip collector vehicles, and this is currently their primary source of revenue. Ducati of North America approached Mr. Rahal and his business to take over the Indiana franchise. Their first year in operation they doubled sales numbers and led the region in sales. In the last year, due to the growth, Graham Rahal Performance & Rahal Ducati Indianapolis have increased its employment base by 18. The current proposal for Creekside would include an 115,000 sq. ft. facility with a 81,300 sq. ft. floorplate. It would be an all-inclusive automotive center. This primary building will contain Graham Rahal Performance, Rahal Ducati Indianapolis, a café, Rahal Clear Bra Indianapolis, Graham & Courtney Rahal Foundation, and vehicle storage for 90 cars. Rahal Clear Bra Indianapolis is a ceramic paint protection film applied to vehicles to protect the vehicle and improve water shedding. Graham Rahal Performance specializes in selling and servicing rare specialty vehicles. They also host local events which in some cases can have crowds of up to 1,200. They hope to have “Ducks and Donuts” events occur here in Zionsville. The adjacent building will be focused on retail with four total tenant spaces. Two tenants would be Rahal Bar & Grill and a Beer Garden. The remaining two tenant spaces have not been designated. With all of the proposed businesses, there will be no outdoor sales or inventory. Vehicle pricing can range from approximately 100 thousand to five million dollars. Vehicle storage would be on automated racks allowing four vehicles in each bay. (YouTube 00:27:37) Employment. Currently, the companies employ 25. When Rahal Clear Bra Indianapolis begins, these employment numbers will double. Average salaries for these employees are $75,000 with skills positions (i.e. certified technicians; sales professions; marketing and creative professionals). Mr. Rahal anticipates the building at grand opening will have 100 employees. This location will serve as the headquarters for all branch sales facilities. (YouTube 00:29:48) Timeline. The team hopes to close on the property with the RDC within three months. At six months Mr. Rahal hopes to have engineering completed. After these steps, construction could begin and have the project completed in 18 months’ time. Mr. Rahal anticipates 25 to 30 million dollars in investment on both lots. The only financial support that Mr. Rahal desires from the RDC is associated with the detention pond. He hopes this can be accommodated through the property’s price or financed with the RDC through an agreement. (YouTube 00:31:) Questions. Sanjay Patel: brings up the necessary rezoning that would need to occur for this project to be permissible. Kate Swanson: What would need to be changed in the PUD? The Rahal team states that the general retail and automotive sales would have to added to the list of permitted uses  in the Creekside Corporate Park PUD. Sanjay Patel: You are looking for an additional curb cut onto 106th Street? The current proposal includes an additional curb cut off 106th Street. This is in contrast to previous shared renderings. Jaclyn Spillane: asks how many events occur on a regular basis. Mr. Rahal states that Cars and Coffee occurs once per month between March and October, but they do not need to occur in Zionsville. Currently, they are only occurring in Brownsburg and often require South Point Circle to be shut down due to its popularity. Three events currently occur in Zionsville Park every summer. Jaclyn Spillane asks about the employment hiring timeframe. Mr. Rahal is prepared to have 100 employees at opening of the facility. He believes these numbers are conservative. (YouTube 00:40:09) Sanjay Patel expresses the need for the RDC to host an executive session to better understand and address questions and concerns associated with this proposal. The RDC can invite Town Council members and administrative staff. (YouTube 00:41:35) Josh Garrett (Town Council, District 5) and Jason Plunkett (Town Council, District 2) spoke, on the record, in support of the project. A. 2. (YouTube 00:50:33) Creekside Corporate Park – Lots 2 & 3 Proposal (Lauth): Brady Jacob (Lauth) elaborates on his development plan. 29,250 sq. ft. single-story medical office building (MOB) “Dock in a Box” with a dentist and orthodontist looking to locate in the building and potentially a second dentist. This building could also house other professional office uses. Lauth estimates 120 jobs with an average wage of $70,000 annual income. $9 million investment in building. (YouTube 00:54:05) Questions. Colleen Hittle: requests more information on the timeline. Lauth has requested a due diligence period of 180 days to begin design and engage brokers to market the spaces to get it pre-leased to about 60 percent. If this cannot be accomplished within 180 days Lauth would request an additional 180 days to complete this work. Sanjay Patel: expresses that Lauth is offering $10,000 for the two lots (4.88 acres). They are also requesting that all commercial building permit fees such as improvement location permit fees, road impact fees, sewer connection fees, etc. be waived. Sajay Patel recommends the RDC appoints two members to work with Lauth to create an appropriate term sheet. Sanjay Patel and Kent Esra are nominated to coordinate with the applicant. Motion: Colleen Hittle made a motion (seconded by Kent Esra) to have Sanjay Patel and Kent Esra coordinate with Lauth to create a standardized term sheet for the RDC and continue negotiations. Roll Call Vote: Jaclyn Spillane (Zoom Video and Audio [V&A]) – Y Colleen Hittle – Y Kate Swanson – ([V&A]) Y Kent Esra – Y Sanjay Patel – Y The motion was unanimously approved by all members. A. 3. (YouTube 00:58:22) Creekside Marketing (Lot Signage). Wayne expresses that this additional ask is for identifying each lot via vinyl yard signs and sold stickers expressing which lots are sold and still on the market. The cost for this marketing effort is $210. Motion: Sanjay Patel made a motion (seconded by Colleen Hittle) to approve the request by staff for the $210 for marketing signage. Roll Call Vote: Jaclyn Spillane (Zoom Video and Audio [V&A]) – Y Colleen Hittle – Y Kate Swanson – ([V&A]) Y Kent Esra – Y Sanjay Patel – Y The motion was unanimously approved by all members. B. (YouTube 01:00:17) Consideration of Declaratory Resolution 2022-01 (Michigan EDA), supporting factual report and economic development plan. The Economic Development Area (EDA) has had discussions to expand beyond the Pittman Properties PUD development area north along State Road 421/Michigan Road up to 121st Street / Greenfield Avenue. Wayne DeLong and Sanjay Patel expresses that the name should be altered to Michigan Road EDA and that the 16.5 million dollar amount to be associated with the EDA’s incurred costs should be reevaluated. (YouTube 01:00:17) Heather James of Ice Miller explains the Declaratory Resolution in detail. This is the first step in the process of establishing a TIF. Included in this resolution is also a map of the parcels which are to be included in the EDA and the allocation area anticipated for the TIF; a letter from the developer team explaining the need for the Tax Increment Financing; a factual report; and an economic development plan. Heather also included a timeline of the bonding and TIF timetable. Discussion occurs concerning the timeline and how the TIF creation and bonding process could be more separated or could be timed to occur simultaneously. Sanjay Patel states the timeline should remain concurrent and not parallel. This is due to additional questions regarding the projected cost estimates. (YouTube 01:08:24) Tom Jason of Scannell Properties discusses the current state of their project. They believe Crow has all it needs to do its analysis except a few items related to the cost projections which Scannell is still completing. An additional school referendum rate was not in their initial projections. This would modify the phase one TIF request of 95 percent. With the new referendum it would be effectively decreased from 80 percent to 76 percent. (YouTube 01:11:10) Motion: Colleen Hittle made a motion (seconded by Kent Esra) to: Adopt Resolution 2022-01 to establish the Economic Development Area. Roll Call Vote: Sanjay Patel – Y Kent Esra – Y Kate Swanson (Zoom Video and Audio [V&A]) - Y Colleen Hittle – Y Jaclyn Spillane ([V&A]) – Y The motion was unanimously approved by all members. (YouTube 01:12:18) Crow representative expresses that they performed an initial analysis based on the proforma data but has not done an analysis on the construction cost data. The county will likely based the properties value on the construction costs. Initial data was received on Friday, March 25. Crow plans to continue working with Scannell to resolve their questions. (YouTube 01:13:45) Motion: Kent Esra made a motion (seconded by Colleen Hittle) to: Accept the alterations to Resolution 2022-01. These alterations include a name change to Michigan Road EDA and increasing the estimated funds impact to $18.5 million. Roll Call Vote: Sanjay Patel – Y Kent Esra – Y Kate Swanson (Zoom Video and Audio [V&A]) - Y Colleen Hittle – Y Jaclyn Spillane ([V&A]) – Y The motion was unanimously approved by all members. C. (YouTube 01:15:23) Claims for Approval Sanjay describes the claims for the board. Kent Esra expresses interest in a more detailed or comprehensive breakdown of costs associated with claims. Wayne expressed that this should be possible for next month’s meeting as the Town’s new CFO will be starting soon.  Motion: Colleen Hittle made a motion (seconded by Kent Esra) to: Approve all the claims as provided to the RDC. Roll Call Vote: Sanjay Patel – Y Kent Esra – Y Kate Swanson (Zoom Video and Audio [V&A]) - Y Colleen Hittle – Y Jaclyn Spillane ([V&A]) – Y The motion was unanimously approved by all members. 6. Other Business: A. (YouTube 01:19:32) Update on appraisals (Town Hall EDA) Wayne DeLong describes the results of the two appraisals for Lot #2 of the Town Hall’s EDA. The average of the two appraisals came out to be $545,000. Next steps are for the RDC to work with Ice Miller to prepare the property for sale in a public offering process. Discussion occurs on the potential uses of Lot #2. Wayne DeLong expresses that the PUD defaults to B-2 Zoning District for allowable uses. 7. (YouTube 01:22:20) Adjourn Motion: Sanjay Patel made a motion (so moved by Kent Esra) Meeting Adjourned at 7:52pm (YouTube 01:22:39 meeting duration) The next regular meeting of the Redevelopment Commission is scheduled for [Monday, April 25, 2022], at 6:30 pm.