No, where's my, where's my gavel? I can get ready. I'm a gavel. Let's go ahead and get our meeting called to order, please, for the September 26, 2024, Economic Development Commission meeting. No need to do a roll call as everybody's here. Here's, correct. We'll move on and take a look at the meeting minutes from March 19th, 2024. After those are reviewed, I'll entertain a motion. So move. Second. Motion is second for approval for the meeting minutes from March 19th, 2024. All in the favor, seated by the same eye. Aye. Post same sign. All right. Motion carries minutes have been passed. the public meeting. The motion carries minutes have been passed. Move on to the public meeting. Public hearing portion of our meeting today. With that, I'll entertain a motion to suspend our regular meeting. Motion to suspend meeting. Is there any public comment? This is the public hearing portion for the public to discuss what's on the dockets. Is there any public comments? Very none and seeing none will entertain a motion to reconvene our meeting. So moved. Thank you. All in favor, Senator Moe, saying aye. Aye. Oh, same sign. Thank you. Our meeting has reconvened. All right. We're ready to hear the EDC resolution number 2024-02, Mr. Carson. Yes, Dennis Carson, economic development director. We have an exciting project here for Lafayette with Iron Man properties. This is going to be on the corner of South Street and 26th Street. It's a multi-family project. And this is on one of the last parcels from the old home hospital sites. So we're really excited to see this redeveloped. So before we get into the resolution, I'm going to bring the developers up here to tell you about the project and it's scope. I'll turn it over to them. Thank you. Thank you, Dennis. Thank you, commission members, for hearing our request this morning. I'd like to tell you I'll be very brief about the project and then be happy to answer any questions you have. My name is Joe Blake. I'm one of the owners of Iron Men properties, along with my partner, Mike Sandrierieves who's here this morning as well. Mike and I bought this property about a year and a half ago and we're proposing a multi-family project on this property. So just a little bit about Iron Men properties. We are Lafayette based. Our niche, if you will, our vision is that we're trying to reinvest in small to mid-size communities to encourage additional revitalization in those communities. So we have properties and have operated in communities such as Frankfurt, Lebanon, Crawfordville, Delphi, and here in Lafayette. So I want to talk to you about a project of the corner of 26th Street and state road 26 or South Street. And here's the location of it. It is on the northwest corner of that intersection of, excuse me, northeast corner of 26th Street and South Street. It's immediately east of the springs and just south of the medical complex there. It's near Columbia Park, Murdoch Park, in a lot of ways I like to view this property as one of the gateways into the downtown from the east. So here's the project. It's 1.3 acres. It's a 91,000 square foot building. There's 78 multifamily units and there are 103 parking spaces. The asterisks there are creating 103 parking spaces, 93 are on site which are accountable for zoning purposes and they were developing 10 additional parking spaces along 27th Street to the east. The building will be a four-story building a, the first floor will be heated podium parking and then three stories of housing up above. It's walkable to amenities like the parks as I mentioned, healthcare obviously right next door, shopping and restaurants. So we think it's a great location. The property is zone, has been zoned to MRU, medical-related urban, and a multifamily is a permitted use on the property. The variances that were approved back in May of this year are 93 parking spaces in lieu of the 122. I'll get into some of the rationale for that. And then 56,000 square foot of lot areas as compared to the required 81,000 square feet. This is the site plan and what you'll notice about the site plan is that the building is set back similar to other residential development in the area. So if you look down South Street, you'd see the face of this building being very similar to the cottages that line South Street, same on 27th Street. It kind of wraps around if you're familiar with the parking garage that sits there today, the IU Health Parking Garage. One other thing I'll note here is that the parking, as you can see on this diagram, about 60% of it is underneath the building and then the other 40% is behind the building. So this is a view of the building from 27th Street and South Street. Again, it's a four-story building, three stories of residential on top of a parking podium. I hope what you notice here is that the first floor is developed intentionally to look like residential. So it's not intended to feel like a parking deck, a podium with residential on top. We thought that was really important in regards to just being sensitive to the neighbors and the neighborhood. So the project amenities, I'll talk about this in just a little bit more detail, but housing density in the right location here in the city. We think part of the urban development philosophy these days is to increase density in our downtowns and in the places where we already have infrastructure and this is one of those in-fill projects to be able to do that. The building is located on two bus routes, one to the north and one to the south. Of course, it's adjacent to the parks, Columbia Park, Murdoch Park, and we're using all of the existing city utilities. The building itself is a class A multifamily project. It's not low income, it's not rent restricted. It is market rate housing. There will be stainless steel appliances, hard service countertops. The things you would expect in that kind of a property. Now a little bit about the demand for housing. This study that was done a year ago, a little bit about the demand for housing, this study that was done a year ago, a year to two years ago, indicates that in Lafayette there will be a demand between now and 2030 of around 11,000 housing units. When asked about what would prevent somebody a business from locating in Lafayette, 38% of the responses were concerned about available housing. And so it's important that with this project and other projects in Lafayette that we continue to increase the amount of housing available in order to attract the businesses which are coming our way. Local jobs will be two full time jobs created here and then construction jobs associated with the 18 almost 19 million dollar project. Again, this is just industry standard. I'm not suggesting that there are going to be 380 construction jobs. But in general, there's a metric that's used of 20 construction jobs created for every million dollars of spend. So there are jobs. There's also increased tax revenue, which I'll let Baker Tilly talk about that. Local impact in regards to infrastructure efficiency. I think it's important to note that what we're trying to do is we're trying to do infill which uses existing water lines, existing sanitary sewer lines, storm lines, fiber optic roads, electric, all of that in addition to the connectivity with the city bus. That is one of the rationale for why we believe that the variance, I know we're not talking zoning or variance here, but what we felt like it was appropriate to ask for the park invariance because of the proximity to bus lines and the use of public transportation. Other things in regards to local impact is just to understand so that you understand a little bit about Ironman properties where we are what I like to call a fully integrated real estate development company meaning that we do everything from this regarding being the owners and standing before you and zoning and other so we do the development work. We also contract for all the design work. We are our own general contractor and we also have our own property management business. So A to Z on this this project we're invested and we'll be the ones accountable to make sure that it happens and it's operated properly. And then also just a connection locally is Mike and I are both Lafayette residents. The ownership is local. All of our construction team is local. Our operations team is local. And so the point is as locals we're highly invested in the community and we'll make sure that we deliver this successfully. To make the connection, we are the developers for Anvil 38 out by the new YMCA on State Road 38. I had a number of staff members that lobbied for a different name for this particular project, but I don't know how we could name it anything other than Anvil 26 being on State Road 26 and 26 Street. So I know that's that that fits. Yeah, there we go. That's that's what we decided on. So we're local people and we care deeply about this. So that's the presentation about the project. I'd be happy to answer any questions that you have. All right. Any questions or comments about the project? I personally would love to see something constructed on that corner and gussie up that part of the neighborhood. That lot has been vacant for far too long. So I'm excited about the project. So very much. Thank you. Yeah, we're very excited as well. I mean, to be able to do a project in your hometown that will be some, I think will be iconic, it'll be something that will be proud of for decades to come. All right. And I just wanna commend you. It's a group for doing it. We have a number of the cities conducted a number of housing studies over the past few years. We did a regional housing study. We do need more housing in our region and that is a particular barrier for growth that we have. And so thank you for putting your capital at risk. I'm sure it'll be ultimately successful. Thank you. Thank you, Scott. And we'd like to do this one. Then we'd like to think about what the next one is as well. And we understand the need here locally and that's why I believe we exist. We exist to meet the needs of the community. So. Very nice. One thing I would like to caution, obviously that's that area is high traffic for a lot of middle school kids, some inside and other areas that walk back and forth to school. So please do your due diligence to protect the sites and protect the kids from wondering on the side and destroying their property. Yeah. Or getting hurt. So. Yeah. And I didn't go into a lot of details. Interesting. But we were very sympathetic and careful about making sure that we had one entrance and exit off of a light, a traffic light controlled street. So the neighbors were concerned about having a flow through there and exiting onto 27th street. So the only exit off the site is onto 26th street there by the park and garage. Very nice, very nice. All right, thank you. Any more comments or questions? Thank you. All right, thank you very much. Mr. Carson. So we are looking to support this project through tax increment financing. So we are looking at a forgivable loan of $2,000,000,000 for this. And this is a process that's going through the redevelopment commission and also through this commission here as well too. So to explain more of the financing because we're gonna be setting this up as that three year for give a loan, and then bring up Greg Balsano from Baker Tilly. Thank you. Good morning, capucho members. My name is Greg Balsano with Baker Tilly, municipal advisors, we assist Dennis, and his department as well as the city with various financial matters, including TIFF and financing related to TIFF. I'm going to hand out a quick just a couple of pages summary of this financing and the TIFF estimates from this project and just walk through those real quickly. Thank you. Thank you. Thank you. So as Mr. Carson mentioned, what we're looking at here is a forgivable loan. And a forgivable loan is a bit different than a traditional style financing where you're going out to a third market, third party purchaser and getting that, them to kind of input money into the bonds and that being repaid over a period of time. Kind of taking a step back as to why we're looking at that here. So as typical with a bond financing when you're going out and getting that structure, getting that money and put into the project, there are other costs associated with that other than just a simple interest rate. You have things such as coverage requirements that they, they will require maybe even a debt service reserve, a fund that you have to set aside in case, you know, funds don't come and it's anticipated. They'll require a fee to purchase those bonds. So there's a lot of other fees associated with that. So as, you know, a cost gets higher and higher, that cost becomes greater and greater and the same thing with it lower. So just because of the amount doesn't necessarily mean that amount is going to decrease. They'll still charge a fee, they'll charge an interest rate, they'll charge things like that. So we were looking at, you know, with this project and saw it is potentially more efficient to do this type of structure where the kind of the TIFF cash on hand is being used and that money will go from the TIF to reimburse the redevelopment commission and the TIF funds over time. So just kind of wanted to take a step back and explain that. Where we're at in the process here is through your guys as approval today. If you guys do move forward with this, it will go to the redevelopment commission after here this morning where they'll look at amending the Tiff area which I'll talk about and then it'll also go to the City Council for their approval as well. So with you guys today, you're looking at you know holding the public hearing has was done adopting an amendment to the EDC resolution and approving the forms of loan agreement and ordinance there. That's where we're kind of at in the timetable. So again just to talk on this analysis that I handed out in front of you, so on page two goes through kind of the assessed value estimates and tip estimates of this project. So we're looking at an assessed value of approximately 14.2 million potentially from this project, which would generate a tip of just over $280,000 annually. Now this is currently in a tip allocation area and we are in the midst of the process of pulling it out and creating its own allocation area. The reason for that is because if we didn't do that, this would expire in 2039 roughly, meaning there would be only approximately 14 years left of this to be able to generate tip and capture money from this. So to be able to generate TIFF and capture money from this. So to be able to fully reimburse through TIFF through this, forgetable loan process, we're pulling this out so it has a new 25 year life. So this will have a 25 year life from the date this loan is issued. Just to give a sense, again, 280,000 roughly from this project is kind of the illustration to give a sense of where your TIFF is at now. So this consolidated kind of crazy area as a whole to see the increases over time. So back in 2018, that area collected about $9.8 million in TIFF. In 2023, we saw about 13.8 million. And in 2024, we estimate that number to be north of 15 million. So we're seeing great increases in TIFF revenues over time. And I hope that trend will continue here. I'm through investments like this. So the TIFF revenues increasing. Page three illustrates what this potential payback structure could look like. As Mr. Carson mentioned, the number we're looking at is two million 80,000 in your approval documents. You'll see that it's a not-to-excite of 2.5 million. Again, that's just the maximum that it could go to. You're looking at about $690,000 in annual payments, but it'll be a payment every six months starting around August 1st, 2025, of $345,000. So six semiannual payments, totaling $2,000,000,000. And on the right-hand side, we kind of just looked at what does that look like as a present value for the developer, and that's about $1,850,000. So just, you know, kind of, what does that mean in today's dollars for them? The last page of our analysis here, page four, just looks at, so okay, for about 25 years you're going to collect that $280,000 from the TIFF. That totals about $6.25 million. And then you're paying out around a little over $2 million including cost of issuance on the financing, about $2.13 million. That includes again cost of issuance on the financing about 2.13 million that includes again cost of issuance so You know generating kind of a cumulative tax increment there at the bottom right of 4.1 million You know is the kind of the net just gross net difference of those two amounts so that great line shows that in 2035 On a gross basis is when you kind of recoup the funds that are given for this project. So, kind of with that I'm happy to answer any questions or go on to anything further if you'd like. Do we have any comments or questions for Baker Tilly? Very none. Seeing none. Thank you for the clear explanation and the paperwork follows. Absolutely. Appreciate that. Thank you for Thank you. Thank you for the clear explanation and the paperwork follows. Thank you for your time. All right. Mr. Carson. So this resolution though before you then is for basically what Craig Balson will talk about. This is the financing for the project through the tips. So this is the step in the process with the redevelopment commission that he's be taken. So we're asking for your consideration approval, this resolution that will help further financing for this project. All right, absolutely. Well, that brings us to the resolution 2024-02 EDC. You guys, we wanna to make the motion? I move the lead for room. I move the lead for room. Support. Motion and a second to approve resolution number 2024-02. All in favor, seated by the saying aye. Aye. Opposed, same sign. Motion carries. Congratulations. Thank you, Dennis. Thank you. With that being said, I don't see any public comment. I'll entertain a motion to adjourn. Some move. Perfect. Thank you. Thanks everybody