Zionsville Redevelopment Commission (ZRDC)

ZIONSVILLE REDEVELOPMENT COMMISSION (“ZRDC”) REGULAR MEETING MEMORANDA FOR Tuesday, April 23, 2024 at 9:00 AM In-person and Video Conference Meeting Members Present: (In-Person) David Ober – President, Justin Hage – Vice President, Kent Esra, Deron Kintner, & Katie Aeschliman (Via Zoom) (Absent) Denise Pierce – Secretary 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) Brian Crist – Project Legal Counsel 1. Call to Order: David Ober called the meeting to order (@ 9:01 AM; YouTube 00:00:30) 2. Recognition of Attendees who request to be noted: None. 3. Consent Agenda Items A. (YouTube 00:00:45) David Ober introduces the items on the consent agenda and opens the floor to discussion and questions. None were raised. Approve the Consent Agenda Items as presented. It passed unanimously 5:0. 4. New Business A. (YouTube 00:01:30) Creekside – Lots 4 & 5 – Center for Sight Mr. Ober moved this item up on the agenda do to guest time constraints. He introduced the project and Dr. Michael Behforouz the interested buyer and Center for Sight business owner. Dr. Behforouz described his current ophthalmologist office which is located off of US 421 where he has roughly 10,000 square feet of medical office space which has been in operation since 2003. His business has outgrown the current space. He anticipates the business will hire two additional optometrists and another ophthalmologist. Parking and traffic has been a concern of theirs. Page 1 of 5  Dr. Behforouz plans to build a 20,000 square foot building on Creekside lots four and five. He also is contemplating using lot three for parking and stormwater uses. He anticipates growing to 50 total employees within three years. He anticipates 200 people coming to their site a day. Mr. Ober then introduced the Development Agreement which is before them. Mr. Hage asked Dr. Behforouz what his anticipated timeline is for determining if lot three would be necessary for his development. He stated their team – Cornerstone – is working on drawings and design currently. He anticipates they will have finalized design in the next three months. Parking is one of their biggest concerns with a need for 10 spaces per 1,000 square feet of office spaces. Motion: Deron Kintner made a motion (seconded by Justin Hage) to: Approve the Development Agreement between Center for Sight and the Zionsville Redevelopment Commission. The motion passed unanimously 3:0. 5. Reports B. (YouTube 00:07:05) Director’s Report: Corrie Sharp expressed a few updates on the RDC’s DLGF report, the South Village PUD progress, and the READI Grant status. The RDC’s Treasurer, with the assistance of Crowe submitted their annual report to DLGF on time. This report expresses all the TIF proceeds and expenditures for Zionsville and available for public viewing. Previous reports for the RDC were consolidated with the Town’s report and thus are not visible in the normal portal. Staff is working with DLGF to separate these reports, so past reports are more accessible. The South Village Planned Unit Development is currently being reviewed and refined in preparation for its review at the upcoming Plan Commission meeting on Monday, May 20, 2024. This will establish a vision for the 160 acres of developable land north and south of the creek. It will assimilate the existing PUDs which include “The Cove,” “Creekside,” and “DOW.” All updates and drafts will be available on the website (ZionsvilleSouthVillage.com). Updated drafts will be posted on the website weekly. The Mayor is having South Village Chats throughout the Town to help inform any of the public that wishes to attend and learn more about the project. Throughout the process, Staff has been meeting with Town Council and the RDC to help guide and revise the plan. One major feature that is being updated is how the maximum building height is measured. It will transition from stories to a measurement of feet. Mr. Ober asked what will happen to the existing PUD. Ms. Sharp states that they will be obsolete and the South Village will be the new governing document for these areas. Deron Kintner asked if any projects that are within this PUD area are on hold. Ms. Sharp responded that new development is on hold until the PUD is established. Their design will be shaped by the PUD. The READI Grant 2.0 is beginning CIRTA, the regional agent, was awarded $45 million to allocate to its communities. CIRTA issued criteria to determine which communities and projects will receive portions of this funding. Submissions are due on May 20th. Mayor Stehr is leading this initiative. Ms. Sharp plans to request the funds to reconstruct the First Street to Zionsville Road reconstruction and pathways for pedestrian movements. Individual communities will receive their funding in July. Ms. Aeschliman asked if CIRTA’s criteria is based upon standards set by the State or was it established themselves. She also inquired about the structure of the CIRTA board. Ms. Sharp stated that the governing board and officers is made up of primarily mayors and town managers. The board is made up of all of CIRTA’s membership. Each community has a singular vote. She believes that the director of CIRTA and the executive committee is responsible for the creation of the criteria however, she is not directly involved in the process to be certain. Ms. Aeschliman asked what the money from READI 1.0 was used for. Ms. Sharp explained that it was used to pay for the surveying, engineering, and design of the road realignment and other traffic improvements. Zionsville was awarded $1.9 million to assist in covering this work. 6. Old Business Page 2 of 5  A. (YouTube 00:21:20) Wild Air – Development Agreement Mr. Ober introduced the agreement and Mr. Moffett to discuss the project. He also expressed that there were some questions about the timing associated with the issuance of bonds and the transfer of the civic use site to the RDC. Mr. Moffett of Old Town Development. The Development Agreement has been a collaborative effort between the Town, the landowner, and the developer. Due to the scale of the development, phasing is a necessity. He anticipates a seven to eight year build out from start to finish. Once TIF was an option for funding the project, the two main components that would qualify to be in an allocation area were the mixed-use apartments and the senior living development. Based on the estimated revenues that each would generate their team determined when each should be phased in to support various infrastructure improvements. The multi-family mixed-use development will fund the roundabouts and pedestrian improvements. Currently, the civic site would be donated at the same time the second bond is issued for the senior living development. The funds would go towards improving the civic site and surrounding area. Mr. Kintner asked in the event that the Town is prepared to move forward with the Community Center prior to Old Town Development is ready to begin its phase two of bonding, there should be a mechanism for early transfer of land. Mr. Moffett expressed that he is willing to explore this. The Wild Air PUD has outlined restrictive uses within the civic site to show their intention of donating the land and working towards this collaborative goal. Mr. Moffett stated he would request postponing the development agreement to the RDC’s May meeting. Mr. Ober moves the Wild Air Development Agreement to the RDC’s Tuesday, May 28th meeting. 7. New Business B. (YouTube 00:32:20) Creekside Lots 7 & 8 – Letter of Interest – Exclusive Land LLC Mr. Ober introduced the Letter of Interest from Exclusive Land LLC (Exclusive Autosports) and gives a high level overview. They are offering $294,800 for lots seven and eight. Their goal is to finalize the purchase within 270 days. They also have interest in having first rights of refusal on lots three, four, and five should they be available. Ms. Aeschliman asks if there is a conflict between Center for Sight and Exclusive Autosports with both having interest in lot three. Ms. Sharp expressed that she does not think there is any conflict as the letter of interest only acknowledges the beginning of the negotiation process. There is some interest in parking and or shared detention on lot three. Mr. Ober asked Brian Crist if, by accepting this LOI, would there be a conflict between the two interested parties. Mr. Crist responds stating there is no conflict or reason to prevent the two parties from moving forward in negotiations (not audible). Motion: Deron Kintner made a motion (seconded by Kent Esra) to: Accept the Letter of Interest for Creekside lots seven and eight from Exclusive Land LLC and begin negotiations. The motion passed unanimously 4:0. C. (YouTube 00:39:45) Zionsville RDC 5-Year Projections Ms. Zakowski expressed the timing and reasoning behind the report and how it can allow for the RDC to better plan for future budgetary needs as they grow and evolve. This is only the second year giving the report to the RDC. She offers an overview of Allocation Areas within Zionsville. Some of these Allocation Areas were created with the specific purpose of paying for specific improvements. The Zionsville TIF, which expires in 2030, the first established EDA and Allocation Area which is the higher generating TIF area funding infrastructure and operating budget items. The Oak Street Allocation Area, which does not have an expiration date, currently funds the Town Hall mortgage payments. It has no obligations directly pledged to it. The 334/700 Allocation Area was assumed from Whitestown through annexation. This area will expire in 2047 with a developer backed bond to fun roadway and stormwater infrastructure for the Adler Apartments and Hy-Vee. The Creekside Allocation Area will expire 2040. It was created by bisecting it from the Zionsville Page 3 of 5  EDA. It is pledged to pay obligations towards a Zionsville Community School obligation and some associated with the Zionsville EDA. The Metro FiberNet Allocation Area is capturing personal property of Metro FiberNet to pay a developer backed bond. The 146th Street Allocation Area expires in 2046 and encompasses Appaloosa Crossings. It pledges TIF revenues to support that development. The Holliday Farms Allocation Area does not have an expiration date or pledged funds. The Michigan Road EDA and Allocation Areas which serves the Pittman Farm development. The first Allocation Area expires in 2048 while the second does not have any obligations. The Wild Air Allocation Area 1 and 2 both of which have bonds contemplated for each using the multi-family and senior living facilities to fund infrastructure improvements for the EDA. Ms. Zakowski also notes the future EDA, Allocation Area, and bonds to come in the near future. Ms. Zakowski summarizes the outstanding obligations that currently associated with each of the Allocation Areas and when they mature and will be complete. Mr. Kintner asked about the bond issuance for the Adler project however, there is no work that has been completed at this time. Ms. Sharp confirms this and states the bond was to generate funds from the Adler Apartments to build roadway and stormwater infrastructure. Ms. Sharp has requested an update from their team. Due to Hy-Vee going through redesign, this has help up the project. The new anticipated completion date is 2027. Funds were issued as draw bonds however, there have not been any draws made for the project at this time. Cost of issuance likely is the only cost that has been incurred for this project. Ms. Zakowski summarized the bonding capacity of the Redevelopment Commission (RDC) should it desire to in the near future. The RDC does not have any bonds active that would limit their capacity currently. Currently, the RDC has roughly $28 million in bonding capacity. She then expresses that there was a 30 percent increase in TIF revenues most notably in Creekside and 146th Street Allocation Areas. Finally, she expressed a five-year anticipated cashflow. She covers anticipated revenues, expenses, and other commitments. Ms. Sharp added some additional information to the five-year cashflow. She explained that it has been determined that dollars from Creekside lot sales would go to pay off money owed to ZCS and going forward half of all Creekside TIF revenues collected would be given to the schools per the agreement. David Ober and Katie Aeschliman have some clarifying questions which Ms. Zakowski clears up. Ms. Sharp illustrated that the 5-year plan is a tool for the Commission and is not a requirement of any federal, state or local agency. 8. Other Business: A. (YouTube 01:06:55) Finance Subcommittee Mr. Esra offers a quick update from the committee. He expressed that discussion occurred around the DLGF report submission, the 5-year projections, and the claims which have all been covered during this meeting. He also expressed that the committee anticipates having the parking study as an agenda item for May’s meeting. B. (YouTube 01:08:10) Governance Subcommittee Mr. Ober has shared a draft of the by-laws with Commissioner Hage and Ms. Sharp. Once completed they will be reviewed by Mr. Oberlander, the Town’s Legal Counsel. Afterwards it will be disseminated to the other commissioners for their review. C. (YouTube 01:41:35) CDC Update None D. (YouTube 01:41:35) Other Ms. Sharp expressed that the next scheduled meeting will be on May 28th, the day after Memorial day. There will be some absences so some discussion around moving the date occurs. However, due to a lack of consensus, the date shall remain unless an alternative is determined outside of the meeting. Page 4 of 5 9. (YouTube 01:11:55) Adjourn Meeting Adjourned at 10:12 AM (YouTube 01:15:38 meeting duration) The next meeting of the Redevelopment Commission is scheduled for: Tuesday, May 28, 2024, at 9:00 am. Page 5 of 5