Carmel council approves $8M bond for mixed-use Proscenium project

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The Carmel City Council voted 4-2 on Dec. 7 to approve an $8 million bond to help pay for infrastructure improvements needed to construct a $60 million mixed-use development at the former site of Party Time Rental. The land sits on a grade that isn’t at street level, necessitating many infrastructure changes.

The Anderson Birkla development, called The Proscenium, is on 6.5 acres at 1212 N. Range Line Road across from the Kroger grocery store. The project includes underground parking and several buildings for apartments and office space with retail offerings on the first floor. The buildings will face a center community green with a brewery-style restaurant adjacent. A promenade walkway will led visitors past retail offerings.

Councilors Rick Sharp and Eric Seidensticker voted against the proposal. Councilor Ron Carter was absent.

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Seidensticker said he didn’t feel comfortable voting for the bond because the Carmel Redevelopment Commission already agreed to sell the land to Anderson Birkla for $50,000 even though the CRC purchased the property for $3 million in 2009. As a result, he said Anderson Birkla is already getting a deal and doesn’t need additional incentives.

“Why do we have to give away the store?” he said. “I want to see these developers have some skin in the game.”

The bond would be backed by the developer, which means the city would have less of a risk associated. Tax increment financing, which is a way to capture increases in property taxes to support public improvement, would be used to pay off the bond.

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4 Comments

  1. What a deal……I hear the CRC also has a bridge for sale in New York City……I wonder how much trouble it is for a city to change it’s name?? Scamville comes to mind.

  2. Adam-two points of clarification. First, CC-12-07-15-02 in the paperless packet online from the 12/7 Council Meeting, specifically excludes the parcel that the Arby’s is currently situated on. You may want to ask the A-B principals how they intend to deal with that. Second, also in the paperless packet (page 101) in para. 3.05 the project agreement SPECIFICALLY states that A-B WILL NOT be responsible for the bond payment if the TIF values are not reached. You might want to ask the mayor (when he gets back from Germany-after he went to India) who will be responsible if TIF is not reached.

  3. One observation: It’s a shame this layout does not somehow embrace the beautiful Kawachinagano Japanese Garden immediately to the northwest (upper right corner of the plan). It strikes me as a missed opportunity.

  4. According to the line that I am assuming outlines the 6.5 acre property layout above, Arby’s is not included in said property, but is shown as part of the development. Does the city or Birkla have to buy this property or the CRC or who. Arby’s is not addressed anywhere in the article.

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