The Carmel City Council is expected to introduce four ordinances at its April 18 meeting that would authorize the city to issue up to $54.5 million in developer-backed tax increment financing bonds to help fund the projects, which are being developed in conjunction with the Carmel Redevelopment Commission.
CRC Director Henry Mestetsky described the proposals as the “best slate of projects we’ve introduced yet,” noting that – unlike some past redevelopment projects – the bonds are not backed by taxpayer dollars.
“We’re now doing deals where we get to keep a part of the TIF and we don’t give away land, and it’s all developer backed,” he said. “It’s an evolution of what we’ve been doing for 20 years.”
Because the bonds are backed by developers, taxpayers would not be responsible for covering any of the costs if TIF revenues don’t cover them. TIF captures tax revenue generated because of redevelopment in a designated area to help pay for the improvements.
Descriptions of the proposed projects are below.
The Concourse is a $55 million mixed-use project developed by Pedcor and set to include 99 luxury apartments, 23,000 square feet of office and commercial space and a 229-space public parking garage to be constructed along the Monon Greenway south of the water tower in Carmel’s Midtown.
More than 20 percent of the apartments are designated as workforce housing, meaning the units will be offered at a reduced rate for qualifying residents making 50 percent of the area median income.
“Front and center on the monon is where we get to put our new workforce development,” Mestetsky said. “Whatever someone has negative to say about workforce development (housing), this will shatter any of those notions.”
The council will consider a bond amount not to exceed $9 million. According to the proposed ordinance, Pedcor would receive 90 percent of the TIF funds for the life of the bond, up to 25 years.
AT&T site redevelopment
Pure, Buckingham and Merchants Bank are partnering to redevelop the site of a former AT&T building at 210 3rd Ave. SW and two homes on Emerson Road behind it.
The $133 million project is set to include 244 luxury apartments, an 80,000-square-foot Merchants Bank headquarters expansion, 37,000 square feet for boutique headquarters (including Pure Development), a 443-space parking garage and two single-family homes to replace the homes to be demolished on Emerson Road.
The proposed bond amount for the project is up to $20.5 million. Developers will receive 95 percent of the TIF revenues for the life of the bond, up to 25 years.
Old Meridian and Main
Developer Edward Rose & Sons is proposing a $76 million mixed-use development on the southeast corner of Old Meridian and Main streets that would include 266 luxury apartments, 22 for-sale condo units, 9,720 square feet of office and commercial space and a 581-space public parking garage. The project would replace an aging shopping center on the site.
The proposed bond is not to exceed $15.5 million. The developer would receive 90 percent of TIF funds for the life of the bond, up to 25 years.
Old Meridian Apartments
A $60 million mixed-use development with 263 luxury apartments, 10 for-sale condos, 9,000 square feet of office and commercial space and a 395-space parking garage is proposed on the east side of Old Meridian Street south of BRU Burger Bar.
Cross Development, which is developing the project, is set to receive 75 percent of TIF funds for the life of the bond, up to 25 years. The bond amount is not to exceed $9.5 million.