Zionsville Redevelopment Commission (ZRDC)

ZIONSVILLE REDEVELOPMENT COMMISSION (“ZRDC”) REGULAR MEETING MEMORANDA FOR Monday, July 25, 2022 at 6:30 pm In-person and Video Conference Meeting In Attendance: Sanjay Patel, Kent Esra, Kate Swanson, Michael Berg There is a quorum. Absent: Colleen Hittle, Jaclyn Spillane Staff attending: Matthew Land, attorney, Brian Crist, attorney, Owen Young, Zach Lutz, John Emery Patel It’s 6:33 p.m. In attendance is Kate Swanson, Kent Esra and Sanjay Patel and I don’t believe we’ll have any RDC members online tonight so. Also, Mike Berg representing the school. Any members online that want to be recognized? John _______ inaudible Patel Well we can advance them. Is Heather online? Crist Yes. Patel Heather. Anyone else? John _______ inaudible Patel Okay. Great. Owen, if you could, the TIF Area Memorandum report on, I think, we’ve, we’ve moved on to just new items right for updates? Young Are we skipping over the report or? Patel No, that’s what I’d like. Thank you. Young Yep. So we’ll go over the TIF Area Memorandum. We’ve got action currently with COhatch latest inspections for zoning they’re okay, they’re into C/O. It’s in our 106th Street TIF. Our Place Coffee they passed their rough. They are moving right along. Also  we’ve got Equiteam, LLC they got a rough that passed earlier this month. Famous Cookie Company commercial remodel that got issued this month. Radiant Skin commercial remodel was issued this month. Moody Butcher commercial remodel was issued at the beginning of this month and Universal Transparent Bag Company commercial remodel issued 06/30/2022. Next TIF is Creekside Corporate Park TIF – RLL Racing Headquarters – they had their, they passed their latest above ceiling. They also had a permit extension assigned and they, I think they were getting close to their one year but they are obviously closing in on completing their current construction. The C.R. 300 South & U.S. 421 TIF – A lot of action happening at Appaloosa Crossing. The Chase Bank was coming in. They went through a replat and development plan for the northwest corner of Appaloosa Crossing. All that, I believe, got approved. Outlot “B Shops” a lot of action has been happening with Aspasia Coffee & Bake Shop. Their tenant finish was issued from late last year but they passed the rough earlier this month. They also had an amendment that went through Plan Commission that also got approved. We also had a development plan amendment for the outdoor seating area in the “B Shops” basically converting a drive-thru into a outdoor seating area. Also had Verde Restaurant commercial tenant finish that was issued earlier this month. Also, Uncle Bills, same thing in Appaloosa commercial tenant finish that was issued last month. The next TIF CR 700 TIF – Hy-Vee they are currently going through development plan and primary plat through Plan Commission. I think they are going to be heard August, so next month. And the two – Last but not least we have Northwest Teck Park TIF – Kirby Realty Group LLC commercial remodel issued earlier this year. Their last inspection was at the end or at the end of last month/beginning of this month for their final so they’re ok for C/O. Same with 2 Burn Boot Camp remodel issued earlier this year. The latest was rough, rough inspection that passed earlier this month. And that’s kind of the rundown. Patel Great. Thank you. Any questions for Owen? All right, Old Business – Approval and Adoption of our Minutes. We have an executive session from June 27, 2022. I need to take these separately, is that right? Land Yeah, vote on them separately. Patel Okay. I’d entertain a motion to approve and adopt the minutes from the June 27, 2022 executive session. Esra So moved. Patel We have a motion. Swanson And I’ll second. Patel Second. Any discussion? All in favor? All Aye. Patel Thank you. Motion carries 3-0. Next up is the Memorandum from the June 27, 2022 regular meeting. Swanson I’ll move to accept those minutes. Esra Second. Patel Motion and a second. Any discussion? All in favor? All Aye. Patel Motion carries 3-0. Thank you. All right, update on Creekside Corporate Park. We have some pending opportunities that we continue to negotiate with the developers. We have Lots 10 and 11 – a term sheet has been provided to us in which we prepared a response to RFPDI, LLC. The intention of that response will be sent to the developer this week with a scheduled meeting on August 1. For Lots 2 and 3 we have a term sheet from Lauth, Inc. which they provided a counter proposal to us. We have a scheduled meeting with Lauth’s team on this Friday to discuss their term sheet. And then Lot 7 EO Advisors & Plow. We met with them but have not heard back from them at this time. So I think that covers all of our active opportunities in Creekside correct, Owen? Young That is correct. Patel Okay. Thank you. New Business – Holliday Farms TIF we have introduction of the developer purchased bond. We have Phil here. Phil is attending? Want to give him some time? We’ll move forward to Michigan Road EDA – The Farm. Zach Is Phil going to be on? Sundling Can you guys hear me? Patel Yes. This is Phil Sundling with Henke Development. Sundling I’m going to share my screen real quick. I’ve got a Power Point I’ll run through. Can you guys see my screen? Patel Yes, thank you. So just before you start, Phil, the goal of Phil’s presentation is to share with us their vision of the TIF boundaries for the Holliday Farms TIF and also some of the potential development in the commercial retail section along 421. Go ahead Phil. Thanks. Sundling Thanks Sanjay. Good evening members of the Redevelopment Commission. For the record, my name is Phil Sundling and I’m with the Henke Development Group. Joining me today, this evening on the call is Doug Fleener from Henke Development. He should be there in the meeting along with Zach Klutz, our attorney with Taft. First of all, thank you for your time and certainly for your consideration of our bond resolution. I’d like to start by providing a brief history of our development at Holliday Farms as it relates specifically to TIF. As many of you already know, we came through originally in early 2018 with our Planned Unit Development. We were successful in getting the development zoned in June of 2018. During this zoning period and working with town staff, it was contemplated and agreed upon at that time that TIF was an essential function for our project to be successful. In fact, the PUD has a provision incorporated recognizing this TIF element. Then in early 2019, we started the process of creating the Economic Development Area as well as the allocation area. We spent a great deal of time working with town staff and with the RDC at that time working through our assessed value projections as well as our proposed capital projects and their associated costs. We went, even went as far as hosting an on-site meeting at Holliday Farms with the RDC and with various staff touring the property on Polaris’s and we worked through a lot of their questions at that time. And then finally after a number of conversations  and meetings in September of 2019 our Economic Development Plan and our EDA was approved and confirmed. The approved plan includes an allocation area that contains almost all of Holliday Farms property as, as shown here in blue. Note that the base assessment was established on the 1st of January, 2019 and this allocation area will expire 25 years after our first debt issuance. The approved plan contemplates a complete listing of projects as shown here in yellow including all of the utility infrastructure, water, sewer, storm, as well as roadways including all the streets, curbs, lighting, sidewalks and, and trails among other things. The approved plan included an estimated cost of roughly $20 million dollars for these listed projects and this was contemplated to be paid for with the TIF revenues created within the Holliday Farms allocation area. All of these details are noted within this approved plan which is, is Resolution #2019-01. Again, we spent well over a year working out many of these details to get us to the point where we’re at today and next I want to go over briefly the assessed value revenue estimates. We are planning roughly 18 commercial lots in, in Holliday Farms Marketplace also known as Holliday Farms Section 7, all of which generate TIF within the allocation area. Conservatively, we are assuming roughly two of these lots will develop annually. Additionally, the golf course which is completed along with the clubhouse which is expected to open early next year are anticipated to generate additional TIF revenue as noted here on the bottom line. At full buildout we are projecting over $2.2 million dollars annually. This shows the first four years of projections here. I know it’s a lot of data here. I’m not expecting you guys to read this here. I think all of this was provided to, to staff earlier in the, a few months back actually. Here’s the remaining TIF projections and over the 25-year life of the TIF, these revenues are anticipated to generate over $46 million dollars. And this leads us to our first bond request at Holliday Farms which is for $9 million dollars. This request includes all of the public trail infrastructure that was contemplated for the development including the Turkey Foot trail, the Holliday trail as well as the Michigan Road trail along U.S. 421. Additionally, this request includes all the public roadway and utility infrastructure associated with the commercial ground all public known as the Holliday Marketplace and all of which is contemplated in the originally approved plan. We are very, very excited to move these commercial projects forward and, frankly, the issuances, the issuance of this bond is critical for us to do so. At this time, I’d be happy to take any questions. I appreciate all your time. Esra So the total amount is $20 and you’re asking for 9 now, is that how I understand it? Sundling That is correct. Patel Kate, do you have any questions? Swanson No I don’t. Patel Okay. I think you’ve provided us good information here, Phil, and, and you’ve coordinated with town staff on some additional data so I appreciate that. I think the next step is to continue conversations with our financial and legal folks to move, to move forward towards a resolution for next month. We do have several questions I’m sure that’ll come up along the way and we’ll coordinate with you. Sundling Sounds good. I, I really appreciate it. Thank you. Patel Thanks Phil. All right – Doug, did you have anything for us on top of that? Fleener No. Patel Okay. Thank you. Okay, The Farm, developer purchased bond. I think we have some representatives from Pittman Partners and Scannell here if you’d like to come on up. Pittman Hello and good evening. For the record, my name is Steve Pittman. I’m with Pittman Partners. I reside at 370 Sanner Court, Carmel, Indiana. With me tonight is the Pittman team and the Scannell team. I have Sam Pittman, Jeff Pittman and Chad Pittman and I’ve got Shawn Hitchcock and Tom Jasin giving you the data. Young Can we get you to move over by the microphone? Pittman Sure. Young I know the people online won’t be able to hear you otherwise. Pittman Sure. Young Thanks. Pittman So tonight, tonight our presentation – I’m, I am going to start the presentation to just give you guys an overview of the project and I apologize too, we’ve given this  presentation a lot of times and going over and over it but I’m, I’m assuming you guys don’t remember it as well as we do and then once I give you an overview of the project then the Scannell guys will come up and we’ll talk about Phase I. So, tonight here you can see a, a presentation or you can see a, a 3-D elevation of what we anticipate this project would look like. So, on this property of about 50 acres we have, we’re showing the area in the front as the Michigan Road commercial block. Along Sycamore we have the, the professional office block and then further to the west which you don’t see in this exhibit or can I move this? Jasin Yes. Pittman What, what do I do here? Okay. And then further to the, further to the west you can see the residential estate block. Back in July/August of 2013 we got the, The Farm Planned Unit Development project approved as a mixed-use PUD and so as we’re going through this process, we’re also going through with your Planning Commission to get our final development plan approved to move forward. Tonight, though, we’re going to talk about the project. Once again, you can see the location at 116th or Sycamore and 421 and you can see our overall site plan area that we have outlined in white is the area that is our, is our Phase I area that Scannell will talk about and the, the rest of the area as part of our project you see the residential estate to the west, you see the Michigan Road commercial block and you see the Sycamore professional use area and so Phase II will be the entire retail area and so that’s an area that, that we’re currently working on but we’re, we’re waiting, and the marketplace is really waiting to see this first phase start. Okay that makes – you ready Shawn? Hitchcock Yeah, absolutely. Pittman Thanks. Hitchcock Good evening. Shawn Hitchcock, Director with Scannell Properties. We are the development partner with Pittman, Pittman Farms, Pittman Partners on Phase I of The Farm project. So, again, apologies – I know you guys have seen some of this before but we thought it would be good to do a quick refresh of just the scope of Phase I as we’ve contemplated it today. Certainly we’re here tonight to request the first issuance of our, of our TIF bonds. We’ll get into that in a minute – a little more specifics about why we feel those are necessary for this project to be successful to the full contemplation of the PUD. Phase I as outlined here is really made up of two components – the master infrastructure which is the infrastructure required for the entirety of the site. So that’s the multi-family portion, the 400 units, as permitted within the PUD as well as all of the infrastructure, road improvements, storm, sewer, gas, water, power, access roads, etc. required for the entire commercial development as well. So we’ll get into that a little bit later. The second part of phase I are the 400 multi-family apartments comprised of three buildings that you’ll see here. We call them Buildings A, B and C, a parking garage at 405 stalls fully wrapped by the apartment units, 250 surface stalls, a parking lot for 650 total and a shared community pavilion, certainly associated landscaping, community assets and features. We’ve got courtyards, etc. with all of the amenities that go along with the apartments. They’re all part of Phase I as a whole. But this is the first part and the tip of the spear for the genesis of The Farm development. A little bit on the residential overview and we’ll zip through this. These are images that were presented a few months ago so nothing should be new here and we’re advancing our design and actually in for development plan approval right now to – it’s in line with these images that you’re seeing. So it’s important to note we consider this to be a generational site. This is a really important corner as a Zionsville resident, probably one of the most important ones that we’ll ever work on in, in partnership with Steve and Pittman Farms and the history that their family has had on that site. What we’re trying to do is steward a generational product onto a generational site. We don’t want to put a 15-year building, a three-story garden-style apartment building on what we believe to be a site that’s going to have a lasting impact on the community in the Michigan Road corridor. So you see the three buildings here – the large building that we call Building A, 267 units. This houses most of the clubhouse features, the amenities. This is, we really designed this to be a best in class and even best in market asset, multi-family asset in the Indianapolis and surrounding areas. One, two and three-bedroom apartments, four stories, wood framed construction with kind of a quasi-basement, 5-story townhomes still for rent on the southern part of Building A. Building B that looks kind of out over the pond down the hill and then Building C to kind of round out the 400 units. That kind of makes up the overall apartment/residential portion of the site. Zooming along here – again, images you’ve seen before, a few maybe you haven’t as the design has continued to advance but we did want to start to show some of the enhanced kind of site design and architectural elements. Those are things that we just believe are important to the site. That’s not what we’re here asking for today. That’s really the design of the project. We hope that this is a cohesive kind of destination. I think the Master Plan in Zionsville calls it hamlet which was a new word to me but we want to create a new destination in Zionsville across the full commercial and multi-family asset on the entire Farm development. So you start to see some of the materiality. We want to be timeless but still relevant. You’ll see cast stone cultured, cultured – sorry – limestone, metal siding, integral, integral colored siding, fiber cement. We’re not, this isn’t a four-sided wrap lap sided buildings the, the short of it. You start to see some of our façade elevations – that’s a screenshot. It’s actually taken from our development plan and then very small but you can see it on your sheet, that doesn’t really show up well in some of the earlier site plans is just the advancement of our landscaping package which we believe to be really important and critical to really the DNA of this entire site, both on the commercial side and the residential. That we want to start that track now with the development of Phase I. A new development is the community pavilion. So this is something that I think showed up on some renderings probably in the first version that we showed to you guys. We’ve started to kind of I’d say hearken that back a little bit to the red barn. So if you remember the barn when you drove by, I used to have my picture taken there – sorry we trespassed, Steve, I think everybody had at one point. As we started thinking through that pavilion that, that’s really meant to be kind of the anchor and the bookend to a greenbelt pathway that’s contemplated for Phase II combining kind of Steve’s restaurant and retail and grocery that this is kind of down the hill, down in the woods, looking over the pond. We really wanted a community asset for both our residents and the community alike. So this is a pretty large structure – probably timber framed is what we’re contemplating now with a fireplace, maybe some ping-pong tables. One of the comments from even Scott Robison was places for students to study or have tutoring, even outdoors, so this is just kind of a space that we believe is important to really link the site as one master development. So that’s kind of a new development that we’re pursuing. A couple of renderings – just kind of the eye candy. These are the same ones that you saw last time with the exception of kind of the, the barn-esque pavilion on the bottom but besides that these haven’t changed and this is still the direction that we’re pursuing with our design today. So we’re here today certainly to pursue our EDA was established over the last couple of months – it’s gone through that process so that’s been ratified and proceeding and so we’re here today to begin the process of the request for TIF bonds Series I for the project developer backed. So I want to talk a little bit about what those are for knowing that, that this is perceived to be in Phase I of the residential project which is really not what the bonds are for. So the goal of really the purpose of Phase I bonds are to attract and lower the barriers of entry for really class A commercial retail development. So what we mean by that is first of all, infrastructure and access. It’s this road that we’re cutting through the site is both the access – it’s the utility main so all of the utilities to service the entire 50-acre site so that the barrier of entry for retail, a grocer or whoever is going to come – they are putting those utilities in for a, a great restaurant if they want to come in – that’s going to be there stubbed in ready to go. Access roads, landscaping, all of those as well as the storm infrastructure. So you’ll see here in a minute a large retention pond, stormwater quality management, all the utility mains and storm are sized for the entirety of the site as part of this first  bond issuance. The density in the garage is really our second point. So our goal of the multi-family – it’s kind of a tricky site – if you’ve driven by it I’m sure you have and looked at it – there’s about 60 to 70 feet of fall over the site to the kind of the southwest corner and our goal has really been to develop the entirety of that site with density number one to attract better retail – they need more density. It’s still kind of a little bit loose with the amount of folks in the area from drive distance and density so we want to bring those 400 units to make this an even more attractive spot for great premier retail and then secondly we want to do that in a way that both utilizes all of the site but minimizes the footprint of the residential portion leaving as much site available for commercial AV. So we did that first and foremost through developing down the hill. There’s a lot of sitework involved with that – retaining walls, it impacted our drainage and then secondly largely through our parking garage. So there’s about a $6.5 million 405-stall parking garage wrapped by the apartments vertically versus sprawling that across the site with the theory being there, again, we want to leave as much land available for commercial development as possible on the site. And then lastly, is just the community architectural and site development elements. Again, we won’t really need to get into those. I think as you start to see the values and the costs of the first two but we just put them on there because we think it’s important for kind of the cohesive and the genesis of where this overall development is headed. A little bit on the costs for those items, so kind of first to the right you start seeing the site infrastructure. That’s everything highlighted in red here so that really shows this infrastructure road. So that’s the access off of Michigan Road, the access off of Sycamore, it’s the internal roundabout and, again, all the utility mains, stormwater infrastructure, paving, landscaping, etc. The pavilion we’ve also lumped into those costs. What we have excluded are things that we would normally do anyways. That’s north of $12 million dollars by itself for just the infrastructure. The garage at 405 stalls, again, wrapped in Building A highlighted off to the left, our current estimates are showing that about $6.5 million dollars for the garage, again, removing things that we would already have done, elevators, etc. This is truly the garage, it’s cost as a whole. Down below we show a little snip-it again of kind of just showing some of these enhanced site pictures but Tom is going to come up here a little bit and talk a little bit more specific numbers about the TIF need but I did want to present just kind of those numbers as a whole as a pure cost. Jasin Thanks Shawn. For the record, I’m Tom Jasin with Scannell Properties, 8801 River Crossing Boulevard in Indianapolis, Indiana. Just to speak to what our specific request tonight is a little bit further, we’re requesting that 95% of the increment generated just within the Phase I allocation area boundaries are pledged towards what we’re calling the Phase I bonds. Now the entirety of the PUD site or the non-estate lot site. The 50  acres has a current base AV of just over $61,000. We’re projecting that once phase one is fully developed and reassessed that the generated incremental assessed value will be roughly $59.5 million dollars. With the pledge of the 95% increment, that results in a bond with a par value of $12,280,000 and, like Shawn mentioned, these will be developer backed and payable solely from the 95% increment. As we discussed, the bonds will allow for the Phase I project to come to market in a timely manner. It’ll provide for some of those high-quality architectural and site design elements that Shawn spoke to. It’ll provide for the master infrastructure that we estimate is about $12 million dollars. We’re requesting a bond in the amount of $12.28 and that infrastructure supports not just Phase I but the Phase II components. Shawn already touched on the density of the garage but one thing that I want to add to that is the garage allows us to build the full 400 units which is the maximum density that’s allowed under the PUD which is also important in order to create an assessed value high enough that creates a bond of sufficient value that allows to pay for this quantity and quality of infrastructure within the first phase. Esra May I ask a quick question? Jasin Sure. Esra The, the PUD is already in place, correct? Jasin Correct Hitchcock Correct. In 2013 I believe when the PUD was created. Esra I, I thought it was I just was curious. Jasin And so the, the time to market, the quality and the scale of what we are proposing is only made possible through the, the TIF pledge. Now similar to a lot of our presentation, I think you all might have seen this exhibit before but I think it does a good job of illustrating the different components and phases of as we have outlined them today but just to run through it quickly, again, the infrastructure is what supports not just the multi-family component but also the Phase II commercial and the multi-family is that essential element that provides the population density that supports the Phase II commercial and helps attract those commercial users and the multi-family is a source of that Phase I tax increment which is a crucial element that we’re requesting tonight and in the bottom left corner of this exhibit that creates the revenue stream that supports  the bond and the bond is what pays for the infrastructure and those other elements that help us bring our proposed development to life. So we have our proposed schedule here tonight. It’s changed a little bit over time but the Economic Development Area has already been established. We’re here tonight requesting the adoption of the TIF resolution. We’ll be at Council and Economic Development Commission a week from today with final adoption of the Bond Ordinance targeting August 15th then a closing shortly thereafter. We’ve already submitted for our development plan and if all goes accordingly, we’ll be at the August 15th Plan Commission meeting. Hopeful to have permits issued by October 2022 and start construction before year end. We anticipate the infrastructure will be completed within 12 months of us starting construction so the Phase II the Pittmans can work concurrently with the remainder of the multi-family development which we expect is going to take 24-26 months. Steve, Shawn and I are happy to answer any questions. Patel Any questions? So we did, on our agenda, we had a resolution taking action on it and Shawn and I talked earlier this afternoon that we have one member of the RDC that must recuse themselves from voting so we only have two present so we will not be able to take a vote on your proposed bond issuance but I, I think we can work on to not delay you, we can work on scheduling a special session for, for this and we can share this presentation with the RDC members that aren’t here today. This would also give our legal and financial folks to take a closer look at the information you provided to us. I guess a question for Brian, and maybe it’s a question for Heather, they have an August 1 introduction of the Bond Ordinance. I guess you can move forward with that with the Council regardless of what’s happening at the RDC at the time. Jasin Yes, I believe so and that was originally scheduled for the last Council meeting so I don’t think those need to – Patel Okay. Jasin Follow that specific order. Patel Okay. I want to make sure we’re not doing that process. James That’s right. We need the Economic Development Commission to act before the Council adopts their final Bond Ordinance but the Redevelopment Commission can meet at any time so if we could hold a special meeting prior to the August 15th Council meeting then it wouldn’t impact our timetable whatsoever. Patel I think we’re looking at a special meeting in general, Heather, so – James Oh great. Patel We’ll get that, we’ll compare calendars and get that on the books here shortly. James Sounds good. Thanks Sanjay. Patel Thank you gentleman. Jasin Thank you. Hitchcock Thanks. Patel Next on our agenda we have the Oak Street TIF Lot 2 Property Offerings and we discussed Lot 2 at prior RDC meetings. I think the plan is, well, Brian, go ahead since you’re here since you’ll be making the property offer. Crist With respect to Lot 2? Patel Lot 2, yes. Crist Yeah it’s just a, it’s just a general offering to engage interest to determine the, you now, if there’s folks out there that have some, some interest in the Lot 2 and what they might do with it. Patel I’ll entertain a motion to have our attorney advertise the property offer. Swanson I’ll move to approve. Esra Second. Patel Motion and second. Discussion? All in favor? All Aye. Patel Thank you. Heather and Tim, I apologize – do, do you all have any updates on The Farm or the Michigan Road EDA that you’d want to share with the RDC and I probably should’ve done this as they were presenting. Berry I don’t think there’s anything now is there? James Nope. Berry If you have any questions that you might have you need to bring them. Patel Okay. James No, we’re in good shape, Sanjay. Whenever, whenever the RDC’s ready to move forward we, I think we have everything we need on my side. Patel Okay. Owen, do we have claims? Young There are no claims this month. Patel Okay. Thank you. Any other business RDC members? Esra No. Patel Hearing none I’d entertain a motion to adjourn. Esra So moved. Patel We’ve got a motion. Swanson I’ll second. Patel Motion and second. All in favor? All Aye. Patel Thank you all. James Thank you all.