Zionsville Redevelopment Commission (ZRDC)

ZIONSVILLE REDEVELOPMENT COMMISSION (“ZRDC”) REGULAR MEETING MEMORANDA FOR Monday, April 25, 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, Kate Swanson, Jaclyn Spillane, Colleen Hittle, and Mike Berg (via Zoom) -- (absent) -- Also Present: (in-person) Wayne DeLong, AICP, CPM Director of Community & Economic Development; Josh Garrett, Town Councilman; Jason Plunkett, Town Council President; JR Kendell, Kendell Property Group; Brady Jacoba, Lauth Inc.; Ryan Thomas, Lauth Inc.; (via Zoom) Owen Young, Economic Development Manager; Zach Lutz, Planner I - Economic Development; Heather James, Ice Miller; 1. Call to Order: Sanjay Patel called the meeting to order (@ 6:31pm; YouTube 00:01:27) 2. Recognition of Attendees who request to be noted: Sally Zelonis and John Tousley 3. Reports A. (YouTube 00:02:05) TIF Report: Wayne DeLong provides a summary of projects, some of which include: CoHatch Ribbon cutting, Michigan Road EDA/TIF, Appaloosa Crossings Bonding Discussion, etc. Discussion occurs around Holliday Farms TIF and the associated Plan Commission petitions for the apartments and Kiddy Academy. 4. Old Business A. (YouTube 00:04:25) Approval and Adoption of Minutes: [March 28, 2022, Regular Meeting] Motion: Colleen Hittle made a motion (seconded by Kent Esra) to approve the minutes. Vote: Sanjay Patel – Y Kent Esra – Y Kate Swanson – Y Colleen Hittle – Y Jaclyn Spillane – Y  The motion was unanimously approved by all members. Approval and Adoption of Minutes: [April 25, 2022, Executive Session] Motion inclusive of updating of Indiana Code citation Motion: Colleen Hittle made a motion (seconded by Kent Esra) to approve the minutes. Vote: Sanjay Patel – Y Kent Esra – Y Kate Swanson – Y Colleen Hittle – Y Jaclyn Spillane – Y The motion was unanimously approved by all members. B. (YouTube 00:05:35) 2022 ZCDC Member Appointment Colleen Hittle and Kate Swanson met and discussed the candidates for potential appointment to the Community Development Corporation (CDC). They recommended Erica Carpenter to the open seat. Motion: Kate Swanson made a motion (seconded by Kent Esra). Vote: Sanjay Patel – Y Kent Esra – Y Kate Swanson – Y Colleen Hittle – Y Jaclyn Spillane – Y The motion was unanimously approved by all members. C. (YouTube 00:06:55) A&F Engineering Intersection Study (Update) Sanjay Patel introduced the study and that Lance Lantz could not be present to discuss the matter. An RFQ is being pursued to determine the cost associated with the road realignment. D. (YouTube 00:08:10) Creekside Corporate Park EDA (Creekside Corporate Park PUD) Lots 10 & 11: Term Sheet – RFPDI, LLC Sanjay Patel introduces the project. Josh Garrett, Town Council District 5, and Jason Plunkett, Town Council President, voice their support for this project. (YouTube 00:15:45) Kent Esra begins the discussion by voicing his support of the RFPDI, LLC proposal for Lots 10 & 11. (YouTube 00:17:25) Colleen Hittle expresses that she shares concerns voiced by Denise K. Pierce. She believes more information is required to assess this project fully. Kent Esra states that these concerns should be addressed; however, they should not halt the project from moving forward. (YouTube 00:21:00) Michael Berg asks about the process and does the RDC have another opportunity to vote on this matter again. Heather James, Ice Miller, states that a few members of the RDC can take the lead on the negotiations. The final version of the term sheet could come before the Zionsville RDC for a final action. Kate Swanson states that the project has  great potential but has concerns about its location. She says her hesitation is due to Creekside Corporate Park was not intended for this particular use which deviates from the original plan. Wayne DeLong had an opportunity to speak with Group 1001’s property management company, Bradford Allen, who states they are aware. (YouTube 00:26:40) Jaclyn Spillane voices that the RDC may not want to deviate from Creekside’s original vision and any long-term goals for the project. Sanjay Patel asks Wayne DeLong what types of uses are currently permitted within Creekside. Wayne explains that a majority of the parcels are zoned for the primary use to be office, with ancillary uses like retail or manufacturing being permitted. RFPDI, LLC’s proposal currently has one multi-tenant retail building, and the other focuses on office, automotive/motorcycle sales, storage, and maintenance. (YouTube 00:29:40) Kent Esra asks - at Creekside Corporate Park's inception - what was the vision illustrated to D.K. Pierce for Creekside? Wayne DeLong states the 2012 Economic Development Strategic Plan identified the Creekside parcel as research, development, and office-based on community input. DK Pierce decided to move to Creekside before the infrastructure was completed. The PUD currently supports retail as a primary use on Lot 9 and an accessory use on lots 10 & 11. Kent Esra voices that one of the major concerns is lots 10 & 11 are not zoned for retail as a primary use. This could be altered with Town Council and Plan Commission support. (YouTube 00:36:35) Josh Garrett states that this is a time-sensitive opportunity since several other communities are vying for it. He encourages the RDC to enter into good faith negotiations with RFPDI, LLC. (YouTube 00:40:35) Colleen Hittle expresses that other Creekside property owners should have an opportunity to voice their concerns to the ZRDC. The ZRDC members determined more time is needed to investigate the project. Jaclyn Spillane asks why this particular parcel is the only one being considered within Zionsville? Sanjay Patel expresses that a motion should be made. (YouTube 00:46:04) Motion: Kent Esra made a motion (seconded by Kate Swanson) to continue to talk with the Creekside Property Owners over the next two weeks about any concerns and hold a Special Meeting to discuss the matter again. Sanjay Patel and Colleen Hittle will be the primary contacts for this effort. Vote: Sanjay Patel – Y Kent Esra – Y Kate Swanson – Y Colleen Hittle – Y Jaclyn Spillane – Y The motion was unanimously approved by all members. E. (YouTube 00:51:30) Creekside Corporate Park EDA (Creekside Corporate Park PUD) Lots 2 & 3: Term Sheet – Lauth Inc. Brady Jacoba and Ryan Thomas with Lauth present their company's background, examples of their work as president studies, info about their proposal, and their term sheet. The proposed  structure would be roughly 30,000 square feet and contain six tenant spaces at just under 5,000 square feet. The tenants would be focused on medical or other professional services. Motion: Colleen Hittle made a motion (seconded by Kate Swanson) to enter into negotiations with Lauth Inc. for the purchase of lots 2 & 3. Sanjay Patel and Kate Swanson will act as the negotiators for the RDC. Vote: Sanjay Patel – Y Kent Esra – Y Kate Swanson – Y Colleen Hittle – Y Jaclyn Spillane – Y The motion was unanimously approved by all members. 5. New Business A. (YouTube 01:00:40) Creekside Corporate Park EDA (Creekside Corporate Park PUD) Lot 9: Letter of Intent – Kendell Property Group JR Kendell, Kendell Property Group, details their company's history and reasoning for desiring to move into Creekside Corporate Park. They hope to build two single-story, 9,600 multi-tenant office buildings. The focus would be on professional services, with Kendell Property Group occupying half of one structure. (YouTube 01:05:13) JR Kendell opens the floor for questions. Kent Esra asks Wayne DeLong if the lot is already written to support JR Kendell’s proposal. Wayne expresses that they are deviating from the PUD’s use requirements of the first floor reserved for retail on lot 9. Each structure would have two to four tenants. (YouTube 01:07:20) Sanjay Patel expresses that lot 9 is a premier lot with a vision of a two-story office/retail space and that what is proposed is a deviation from that vision. Mr. Patel expressed that the Term sheet should be revised to align with the ZRDC's format. Motion: Jaclyn Spillane made a motion (seconded by Colleen Hittle) to continue discussions and negotiations with Kendell Property Group. Vote: Sanjay Patel – Y Kent Esra – Y Kate Swanson – Y Colleen Hittle – Y Jaclyn Spillane – Y The motion was unanimously approved by all members. B. (YouTube 01:08:30) Creekside Corporate Park EDA (Creekside Corporate Park PUD) Lot 4 & 5: Term Sheet – TreSSS Andrew Heard, TreSSS LLC, and Joy Skidmore introduce the company and discuss their proposal for lots 4 & 5 within Creekside Corporate Park. TreSSS is a new business creating  architectural pool safety covers. The plan is to construct two buildings, a two-story office building in the front on lot 4; and an office, manufacturing, and storage facility in the rear on lot 5. The office building would be 17,000 square feet, and the office and manufacturing building would be 43,200 square feet. There are concerns associated with the site's ability to manage stormwater. TreSSS plans to initially occupy 3,000 to 5,000 square feet of the building on lot 5. Some changes to the PUD would be required, such as the ability to use roll doors, building materials, office and manufacturing mix, and setbacks when one owner owns multiple lots. (YouTube 01:16:15) TreSSS opens the floor for questions from the RDC. Discussion occurs regarding the mix of uses and tenants in the two buildings. The flex building on Lot Five would house TreSSS and two other tenants. The assessed value of the lot is estimated at 12 million dollars. TreSSS still needs to provide the proposed number of FTEs. The current proposal depicts five loading bays on the flex building. One potential tenant could include historic car storage. TreSSS is not doing all the manufacturing on site. Assembly will occur in this building. Motion: Colleen Hittle made a motion (seconded by Jaclyn Spillane) to: continue discussions with TreSSS LLC and be led by Sanjay Patel and Kate Swanson. Vote: Sanjay Patel – Y Kent Esra – Y Kate Swanson - Y Colleen Hittle – Y Jaclyn Spillane – Y The motion was unanimously approved by all members. C. (YouTube 01:02:38) Creekside Corporate Park EDA (Creekside Corporate Park PUD) Lot 7: Letter of Intent – EO Advisors & Plow Digital Alexander Shortle, Partner of E.O. Advisors, introduces the project. E.O. Advisors is an investment merchant bank, and their partner, Plow Digital is a UX design firm. They hope to house both businesses in the building with roughly 40 employees. The 20,000-square-foot building would include an office, flex space, shared meeting space, and event space. (YouTube 01:27:52) Alexander opens the floor to questions. Kent Esra asks what the estimated wages of employees are. Alexander states Plow Digital likely is at $125,000 on average, while E.O. Advisors is close to $200,000. Jaclyn Spillane asks about the design of the building. Chris Lake with DELV design explains that they are in the began pre-design. They hope to make the building a sustainable design that takes advantage of the topography. Some changes to the PUD would be desired associated with materials to make the project more sustainable. (YouTube 01:31:30) Sanjay Patel recommends that the applicants work with Staff to create a Term Sheet. The applicants are hoping to lock this property in if possible. Motion: Jaclyn Spillane made a motion (seconded by Kate Swanson) to: Continue discussions and negotiations with EO Advisors and Plow Digital to create a term sheet. Vote: Sanjay Patel – Y Kent Esra – Y Kate Swanson - Y Colleen Hittle– Y Jaclyn Spillane– Y  The motion was unanimously approved by all members. D. (YouTube 01:08:35) Claims for Approval Sanjay describes the claims for the board. Kent Esra suggests that the RDC not approve the claims since the requested budget and invoices for each line item are not provided. Wayne DeLong expresses that the RDC budget is contained in the 2021 Annual Report as an outline. The CFO did not have the time or capacity to provide the requested materials. Wayne Delong goes into additional detail on each line item, its purpose, and explains prior approvals associated with the expense. Sanjay Patel agrees that this data should be provided to the RDC. However, he understands that the RDC should not hold up these expenses for services already been rendered. Motion: Colleen Hittle made a motion (seconded by Kate Swanson) to: Approve all the claims as provided to the RDC. Vote: Sanjay Patel – Y Kent Esra – N Kate Swanson - Y Colleen Hittle – Y Jaclyn Spillane – Y The motion passes 4:1. 6. Other Business: 7. (YouTube 01:49:50) Adjourn Motion: Sanjay Patel made a motion (so moved by Jaclyn Spillane) Meeting Adjourned at 8:20pm (YouTube 01:50:28 meeting duration) The next regular meeting of the Redevelopment Commission is scheduled for [Monday, May 23, 2022], at 6:30 pm.