The Carmel City Council is considering whether to amend a previous agreement for economic development revenue bonds for The Proscenium project.
Previously, it was decided The Proscenium would only get 75 percent of tax increment finance funds raised to pay for the project and the Carmel Redevelopment Commission would get the remaining 25 percent to pay off other debt. The proposed amendment would change the agreement so The Proscenium would receive 100 percent of the TIF revenues.
Anderson Birkla is developing the $70-million mixed-used development along Range Line Road where Party Time Rental used to be located.
The CRC previously sold the Party Time Rental land to Anderson Birkla for $50,000 even though the CRC purchased the property for $3 million in 2009. The City Council approved $8 million in municipal bonds to pay for the infrastructure improvements, which include roads and parking.
“The TIF share has changed due to a change in the project,” said City Councilor Jeff Worrell, citing the addition of land that used to be the site of an Arby’s restaurant.
The Arby’s was adjacent to Party Time Rental. It closed and was sold to the City of Carmel prior to the construction of the Carmel Drive and Range Line Road roundabout. The City purchased the site for $2.5 million and sold it to Anderson Birkla for $100 with the understanding that Anderson Birkla would construct two new roads as part of the project and transfer the right-of-way to the city at no cost.
Now that Arby’s has been added to the project, Anderson Birkla is planning for an additional 30,000-square-foot building. The proposed change in the TIF is related to an increase in the underground parking, which means 70 new parking spaces.
CRC Director Corrie Meyer said in total $14 million will be invested in the project for infrastructure, which will be repaid using TIF funds. With 100 percent of the TIF, about $11 million will be raised, so the project will still be short, Meyer said, and Anderson Birkla will make up the difference. With the 75-25 split, only $8 million would have been available for the project. The Carmel City Council will also likely increase the maximum size of the municipal bonds so it can reach $11 million. Meyer said without the additional TIF, Anderson Birkla can complete its original plan for 608 parking spaces but couldn’t proceed with the additional 70 spaces to support the additional building.
The ordinance was sent to the council’s finance committee.