Zionsville Redevelopment Commission (ZRDC)

ZIONSVILLE REDEVELOPMENT COMMISSION (“ZRDC”) REGULAR MEETING MEMORANDA FOR Tuesday, March 26, 2024 at 9:00 AM In-person and Video Conference Meeting Members Present: (In-Person) David Ober – President, Justin Hage – Vice President, Denise Pierce – Secretary, Kent Esra, Deron Kintner, & Katie Aeschliman (Via Zoom) (Absent) Also Present: (In-Person) Corrie Sharp – RDC Executive Director, Owen Young – Economic Development Manager, & Zach Lutz – Associate Planner, Cindy Poore – Treasurer, Jon Oberlander – Chief legal Counsel (Via Zoom) 1. Call to Order: David Ober called the meeting to order (@ 9:02 AM; YouTube 00:01:55) 2. Recognition of Attendees who request to be noted: None. 3. Consent Agenda Items A. (YouTube 00:02:15) President Ober describes the new agenda structure and approval process for the “Consent Agenda Items” which include the Minutes, Claims, and TIF Area Report. Justin Hage clarifies in relation to the Ice Miller Invoice that they are only paying the $8,000 retainer fee and no interest as included on their invoice. Approve the Consent Agenda Items as presented. It passed unanimously 5:0. 4. Old Business None. 5. New Business Page 1 of 5 A. (YouTube 00:03:35) Sentry – Declaratory Resolution Mr. Ober opens a public hearing for the Holliday Farms Amending Declaratory Resolution at 9:04 AM, March 26, 2024. He then invites Jordon Dorsey with Sentry Development to offer an overview of the proposed project and request. The project is a 156-unit senior independent- and, assisted- living; and memory care facility. It will employ about 75 employees with a payroll of over three million dollars. The Tax Increment Financing (TIF) dollars are going to be used for infrastructure and utility costs, and a trail connection which would span from Willow Road to the south up to the southern edge of Appaloosa Crossings. A cash transaction at closing would occur to fund a Town owned account to allow the Department of Public Works to perform the work associated with the trail connection. Mr. Ober opens the floor for questions and discussion. Justin Hage asks about the allocation area and its relationship with the outlot parcels which are separate from the senior living use parcel. Becca Zakowski of Crowe states that the TIF allocation area will only encompass the Sentry Senior Living facility. The outlots will remain within the Holliday Farms Economic Development Area (EDA) and allocation area. Mr. Ober asked how this would work as the parcels are currently not subdivided. Mr. Dorsey expressed that their team has submitted for a Primary Plat and Development Plan with the Plan Commission and is scheduled to be heard on April 15. Mr. Hage asked if there is an anticipated timeline for when the outlots would be developed. Mr. Dorsey explained that Henke Development would be retaining ownership of the outlots along US 421. There are no concrete timelines set to develop these lots. Deron Kintner expresses that there are some discrepancies between it and the Declaratory Resolution and Crowe Projections. He also asks if they are approving interest rates, bond amounts, etc. at this meeting. Heather James of Ice Miller and Ms. Zakowski explained that the RDC is only reviewing the Declaratory Resolution which begins the process to expand the Holliday Farms EDA. Additional discussion occurs to clarify the process, assessment dates, increment generation, and obligations associated with the Holliday Farms EDA and Allocation Area. Mr. Ober asked if there is a TIF split between the development and the RDC. Ms. Zakowski confirmed that there is a 90:10 split with the majority being pledged to the Sentry developments bonds. Mr. Kintner expressed that if interest rates change, the developer should get the total amount of tax revenue generated or the amount needed to service the bonds, whichever is less. Ms. Zakowski stated that this can be done in the TIF Pledge Resolution where 90 percent of the increment or debt service on the bonds, whichever is the lessor. Ms. James confirmed this. Ms. James expressed that the TIF Pledge Resolution and Confirmatory Resolution are currently scheduled to be heard by the RDC on May 28th meeting. Mr. Ober opened the floor to the public comment which there was none. Motion: Kent Esra made a motion (seconded by Deron Kintner) to: To close the public hearing for the Sentry Declaratory Resolution. The motion passed unanimously 5:0 closing the public meeting at 9:17 AM. Motion: Deron Kintner made a motion (seconded by Kent Esra) to: To approve Resolution 2024- 01: The Amending Declaratory Resolution of the Zionsville Redevelopment Commission for the Holliday Farms Economic Development Area. The motion passed unanimously 5:0. B. (YouTube 00:18:10) Wild Air – Public Hearing & Confirmatory Resolution Mr. Ober introduces the resolution and opens the public hearing for the Confirmatory Resolution at 9:18 AM on March 26, 2024. He invites Mr. Justin Moffet to offer an overview of his project, Wild Air. He states that this project is a collaboration between the land owner, community stakeholders, and the Town to develop what Wild Air has been shaped into. Some major contributions that have contributed to the Tax increment financing ask include the two roundabouts on Marysville Road, public road pedestrian improvements, utility infrastructure, the Archer Park donation and improvements, and the donation of the civic site. Mr. Moffet opens the floor for questions. Mr. Ober asked if there has been a decision on what kind of crossing would be installed for crossing Marysville Road. Mr. Moffet stated an at grade rapid Page 2 of 5  flashing beacon will be installed for crossings. Mr. Ober also asked if the two TIF Allocation Areas would be phased which Mr. Moffet confirmed. It would be about two years before construction on the senior housing component begins. Mr. Ober and Mr. Kintner asked about the capitalized interest on the bonds and if it is included in Old Town Development’s bond request amount. Kyle Mae, the CFO of Old Town, states that roughly two million dollars of the bond request will be capitalized interest. The total bond value of both bonds will come to about 10.9 million dollars with each phase being around 5.5 million dollars. These numbers are an exhibit within the project agreement. Mr. Esra and Mr. Kintner asked if the Town had not asked for the park and roadway improvements to be done by the developer, would they be requesting TIF for their project would you still be before the RDC? Mr. Moffet stated yes, but there would be a TIF split close to 65:35. Mr. Esra stated he believes there is a disconnect between the Plan Commission processes and requests and the RDC. The RDC should have a better understanding of what requests are being made which could come before the RDC for TIF. Mr. Ober offers a quick overview of the function of the EDA and Allocation Areas for the benefit of the RDC members and public. If there was any kind of TIF split, the RDC and the Department of Public Works (DPW) would have used the remaining dollars to construct the infrastructure which has been requested. Ms. Aeschliman added that their tax impact statement shows no impact to the Zionsville Community Schools (ZCS) which she disagreed with. They anticipate the multi-family development would produce 55 to 60 kids which would enter their system. There was discussion on if actual dollars that ZCS will be impact. Due to the tax structure, ZCS will continue to receive their levied dollars which they need it just will not come from this development. Tax caps, due to low tax rates in Zionsville, will not be reached. Additional discussion occurred about the rest of the development and its impact on ZCS. Mr. Ober calls for comments by the public which there are none. The public hearing to be closed with Mr. Kintner motioned and Mr. Hage seconded the motion. The public hearing is closed at 9:57 AM with a unanimous vote. Motion: Deron Kintner made a motion (seconded by Denise Pierce) to: To approve Resolution 2024-02: the Resolution Confirming the Resolution of the Zionsville RDC Adopted on 12/20/2023. The motion passed unanimously 5:0. C. (YouTube 00:59:05) Wild Air – TIF Pledge Resolution Motion: Deron Kintner made a motion (seconded by Denise Pierce) to: To approve Resolution 2024-03: Resolution of the Zionsville RDC Pledging TIF Revenues. The motion passed unanimously 5:0. D. (YouTube 00:59:30) Wild Air – Development Agreement Ms. Sharp requests that this item be continued to the April meeting. Mr. Ober agrees and moves it to their next regularly scheduled meeting. 6. Reports B. (YouTube 01:00:00) Director’s Report: Corrie Sharp, the Director of the Redevelopment Commission, offers her directors report covering several proposals and agreements including the Planned Unit Development Legal Council, Village Parking Study Proposal, Economic Development Impact Study Proposal, and South Village Branding. These proposals are in an effort to push forward the South Village initiative and guide its efforts. Jeff Jacobs, from Hackman Hullett, is the chosen legal council to review and assist with the Planned Unit Development (PUD). He will also help facilitate the Plan Commission petition. The new PUD will be consolidating and replacing three separate existing PUDs. This has been a collaborative effort between many Town departments. This will be an extension and enhancement Page 3 of 5  to the Village Business District. The contract with Hackman Hullett has been executed at this time by Mr. Ober. Ms. Sharp’s report also included a Parking Study Update from the study done in 2014 which would not be out of date. She requested this study to determine the actual parking demands and perceived parking concerns. It would illustrate how many additional spaces would be required to meet any anticipated growth within the Village. She acquired a proposal from Hitchcock Design Group who she has worked with in the past for a fee of $48,600. She requested this item be considered for approval. The final item was an Economic Impact Study focused on the Village Business District and South Village. She has a proposal from Genovis which would illustrate the tax impacts on property taxes, income taxes, sales taxes, etc.; new residents; job growth; and student population. This would be a $35,000 fee. All of these items would come out of the Professional Services line item under the Zionsville (106th Street) TIF District. She then opens the floor for discussion and questions. Mr. Ober asks if the Hitchcock Design Group would be capable of performing a daylight study as well. Ms. Sharp confirms that this has been discussed but it was not included in this proposal. Ms. Sharp anticipated engaging this group on a project-to-project basis for daylight studies. She also stated that it is anticipated that new projects, in addition to a traffic impact study, would be required to provide a daylight study. There is some discussion on the scope and extent of these studies. Mr. Kintner asked if this was the only proposal she sought. Ms. Sharp, due to her experience with this group and the pace of the South Village project, did not seek other quotes at this time but is willing to do so. Mr. Esra brings up a discussion about the existing traffic study being preformed by A&F in relation to the road realignment. Concerns are raised about the high dollar amount for the study. Mr. Kintner requested that one of the proposals should come from the company who created the 2014 parking study. Mr. Ober requested that the Parking Study be continued and forwarded to the Finance Subcommittee for review once additional proposals have been gathered. Ms. Sharp requested that the Economic Development Plan be approved at this meeting. Mr. Kintner supported this decision. Motion: Denise Pierce made a motion (seconded by Kent Esra) to: Approve the proposal by Genovis to perform an economic development study for the South Village developments. The motion passed unanimously 5:0. 7. New Business C. (YouTube 01:32:25) Ice Miller – Engagement Letter Mr. Ober introduces the matter. The RDC has requested that Ice Miller revise their engagement letter to eliminate the reoccurring retainer and focus on project specific work. In theory, as long as reimbursement agreements are prepared and signed with prospective partners, those costs would not be bore by the RDC. Mr. Ober opens the floor for discussion. Mr. Hage noted that with a new in-house attorney, Mr. Oberlander can manage day to day procedural matters at their regular meetings. Motion: Deron Kintner made a motion (seconded by Justin Hage) to: Approve the Engagement Letter for Ice Miller’s legal services. The motion passed unanimously 5:0. 8. Other Business: A. (YouTube 01:34:50) Staff Direction – Lot 2, of Zionsville Town Centre Page 4 of 5  Ms. Sharp summarized the progress that has occurred thus far. An Request for Information (RFI) was issued in June of 2023 and a number of responses were received. One was a commercial office building, two were general and broad suggestions for development and a final one which was for townhomes. Ms. Sharp is working alongside the Townhome developer to see if there is a better location within Zionsville for their product. SEAKE was the group who submitted for a commercial office building and currently owns the lot across the shared access drive. They would build two separate buildings on Lot Two. Ms. Sharp is now seeking direction from the RDC on if she should pursue this proposal. SEAKE is interested and ready to move forward with a public private partnership on this lot. Mr. Ober recommends this be a discussion with the Liaison Committee which are a set of small group meetings comprised of Town Counselors and Redevelopment Commissioners. Some additional discussions occur around the original responses that were submitted and the commissioners’ preferences. B. (YouTube 01:39:45) Finance Subcommittee No updates. C. (YouTube 01:40:45) Governance Subcommittee Mr. Ober stated that the subcommittee is working alongside Ms. Sharp and Mr. Oberlander to draft a set of by-laws for the RDC to review and approve. They are looking at neighboring communities RDCs to get examples and a base for what Zionsville will use. D. (YouTube 01:41:35) CDC Update Ms. Pierce summarizes the meeting which included one grant application and discussion around revising the criteria to review applications by. E. (YouTube 01:42:20) ZCS Creekside Agreement Ms. Aeschliman stated that she is seeking a formal direction so she can appropriately report back to the School Board. The direction she was given is that the agreement shall remain as is. The RDC is working to arrange for the payment of all due amounts to this date. Mr. Ober expresses that once properties are sold in Creekside, these funds would be used to fund the gap that is currently still owed. 9. (YouTube 01:44:20) Adjourn Motion: Kent Esra made a motion (seconded by Deron Kintner) to: Adjourn. The motion passed unanimously 5:0. Meeting Adjourned at 9:30 AM (YouTube 01:44:50 meeting duration) The next meeting of the Redevelopment Commission is scheduled for: Tuesday, April 23, 2024, at 9:00 am. Page 5 of 5