Carmel City Council considers $4.5M installment-purchase contract for Monon and Main garage

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The Carmel City Council is considering a $4.5 million installment-purchase contract to pay for a 200-space parking garage for a mixed use development.

Developer Chuck Lazzara is working on the project on the field across from Bub’s Burgers at Main Street and the Monon Trail. The $20 million mixed-used development, called Monon and Main, is planned to include a steakhouse, rooftop dining, an office building and seven town homes.

The City Council voted on Dec. 19 to allow the Carmel Redevelopment Commission to purchase a $1.6 million parcel of land at the Monon Trail and Main Street to build a multi-floor parking structure. CRC Director Corrie Meyer said the city is paying $1.6 million to Lazzara for the land because that money will be needed for Lazzara to complete his project, begin construction on the garage and construct a public plaza.

Meyer said the land was transferred back to Lazzara to help reset the tax increment financing. This would set the property taxes at zero so the maximum tax increment could be raised in order to be used to pay off the parking garage.

Officials decided to use an installment-purchase contract instead of a bond because it’s a small project and it can maximize the amount of the funds available. Meyer said this saves on issuance costs associated with a bond. She estimates more than $100,000 in savings.

“It’s not a bond, and it’s not a loan,” she said. “We use the funds to purchase a completed garage by the developer.”

Lazzara would construct the garage, which will cost between $3.5 million and $4.5 million, and the City of Carmel would make payments, with interest, to pay for the garage, which would become a city asset.

Previously, Meyer said it was likely that tax increment financing wouldn’t be enough to cover the entire cost of the project, but she said at the March 6 City Council meeting that the CRC taking another look at that option. She said there will be levels of developer guarantees in case TIF isn’t sufficient. The project would be supported by the possibility of a special benefits tax, which she said is unlikely but would be used to reduce the interest rate. She said that Lazzara would be responsible for maintaining the garage.

The Finance Committee will discuss this matter at 5:30 p.m. March 14.

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10 Comments

  1. Curious, why is the city wanting to pay for another garage when they are already paying for another one 2 blocks away? This will mean the city/taxpayers have paid for 4 parking garages, each a block away from each other.

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  2. Went back to my notes on the 2012 bailout debts to be refinanced.

    Debt #1 out of 20 that were “Restructured” was an Installment Purchase Contract to Regions for $16,667,601 (10% of the total Bailout amount). What you might wonder was what was the IPC for?
    *”Collateral/Project … VFW, Parcel 7C Garage.”
    This was the start of Bailout 1.0

    The last IPC in the Bailout was Debt #17 of 20 to BMO Harris. The date of this transaction was 12/7/2011. It was for:
    *”Phase 1 Parking Facilities; and various parcels.” The IPC was for $17,000,000 (10% of the total Bailout amount).
    The other involved entities in the last IPC that was the back-breaker for our debt was Pedcor!

    By the date of the last IPC the city KNEW we were insolvent at current debt levels. Indeed talks with City Council began in early 2012, RIGHT AFTER THE MAYOR TOOK OFFICE for his 4th term, discussing the dilemma we were in financially.

    So excuse me if I don’t BUY that the SPECIAL BENEFITS TAX is ONLY being implemented for a better interest rate. The first IPC was at a 4.58% rate and required NO SBT backing. The last IPC was at 3.04% AGAIN WITHOUT BACKING OF A SPECIAL BENEFITS TAX!

    Tell me again WHY is it being backed by a Special Benefit Tax? You’re first excuse for SBT does not hold water!

    What was the conclusion of our experts that helped us through the Bailout?

    First and last page of Frost, Brown, Todd analysis posted below:

    https://uploads.disquscdn.com/images/c74699de7c5eea0ad4c87edd0aa06d6bdfc430eabedb9224d7b659b3f83e81e9.jpg

    https://uploads.disquscdn.com/images/94e61068ea6a0592ba2bd0c4137400dae229f65a26c51e4cb04e9093896a338e.png

  3. Eight days before the Republican primary on May 5, Carmel City Council President Rick Sharp was briefed on an unflattering audit of city finances he believed could have boosted his ultimately unsuccessful bid for mayor….
    http://www.indystar.com/story/behind-closed-doors/2015/06/04/sharp-receives-gag-order-on-carmel-audit-before-election/28422739/

    On the very day Rick was given the Gag Order based on the IndyStar document Mayor Brainard posted the following LIE: https://uploads.disquscdn.com/images/ad4675f3ae27ef9b07070cf4d9e751dae674f3365df9ca18cd75d59777477f24.jpg

    You did have a Tax Increase in 2016 as Rick stated and the Mayor denied. Indeed he called those of us that told the truth Extremists.
    https://uploads.disquscdn.com/images/38f974e02714950b451912f890bc10a4231f6b8dfca5e31aec361906596727cf.jpg

    Fool me once, shame on YOU Fool me TWICE?

    You have been FOOLED Twice so far. Tired of it yet?

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