SRC Delays Signing Mansur Contract

(posted Nov 20)

The Speedway Redevelopment Commission delayed approving Mansur Real Estate's contract to serve as the master developer for Area Two to further review of the contract.

Mansur is currently serving as the master developer for the Speed Zone under a $100,000 contract for advisory services.

The proposed contract fee for Area Two is $73,500. Executive Director Scott Harris said the Speedway Urban Land Institute report and the market assessment can be used again for Area Two. Mansur has been in contact with Area Two stakeholders, but no property evaluations have been conducted until a contract agreement is reached.

Harris said there are target fees in the contract that serve as incentives to complete the project. The incentives require Mansur to bring $5 million plus of private investment to Area Two by 500 Race Day in 2010 in order to receive $50,000. By 2011, there must be an additional $10 million of private development to receive an additional incentive fee.

"If we don't have things happen, then they lose money," Harris said.

Commissioner Ron Fisher requested that Mansur start attending the SRC meetings at no cost to listen to public concerns. He wanted language to that effect inserted into the contract.

Fisher did not want the Mansur to hear the public concerns "second hand" from the commission. "If I have to be at the meeting at no cost, if they want a contract, they need to be at the meeting at not cost."

Fisher identified Jo Ellen and two others who raise concerns at meetings. He thinks it is important for Mansur to actually see people's expression while discussing their issues.

Fisher was not disputing Mansur's capabilities. "I just want everybody laying hands on the sick right now, OK."

Fisher also recommended hiring developer Mike Higbee to review plans. He wanted "a second set of eyes" to look over the plans to prevent things from falling through the cracks. Fisher did not want to pay on a case by case basis for a project review, but preferred to give Higbee a not to exceed monthly retainer fee of $2,000. He said the monthly fee is to keep Higbee "interested" in the project.

The SRC is running on renewed enthusiasm after a recent editorial in the Indianapolis Business Journal endorsing the redevelopment plan. The SRC mentioned the editorial several times during the November 17 meeting.

Commissioner Bill Jones vowed that he was committed to the editorial comments. Commissioner Benny Grove referred to the editorial as "very very positive."

The SRC also touted the importance of the Urban Land Institute report that supported the project as a reason its project will be able to weather the financial storm and receive money while other developments will not. The SRC paid $60,000 for the ULI members to visit Speedway in May. ULI members reviewed the master plan and toured the town. In October, the ULI submitted a 35 page report evaluating the master plan.

However, the ULI's November report, Real Estate Trends In Indiana 2009, failed to mention Speedway, nor the redevelopment plan.

Bloomington, West Lafayette, and Greensburg received the highest rating in central Indiana, while downtown Indianapolis and Clay Township/Carmel received excellent remarks for development.

The ULI sent out a 51 question survey to 760 individuals. In addition, the survey was sent to 320 members of the Builders Association of Greater Indianapolis. ULI received a 17 percent response rate.

Higbee, ULI Local Charter president, said Speedway was discussed at the November 18 meeting at the Conrad Hotel. There is an awareness about the project.

Speedway was no where on the radar list of the most important development/ redevelopment projects for 2009-2010. The report named Anson in Boone County, and downtown projects including the Convention Center, Cultural Trail and JW Marriott Hotel. The report highlighted the upcoming NCAA Finals and Super Bowl, but nothing about the IMS Centennial Celebration.

The SRC approved to renew its $80,000 one year contract with Hirons & Company to serve as the SRC's marketing public relations firm.

The SRC also renewed its contract with the law firm Ice Miller to continue its lobbying efforts in Washington DC for earmarks. The SRC needs funding assistance for the development of the Holt Road extension to 30th Street once Georgetown Road is vacated.

Jones explained it would be "ludicrous" not to consider federal funds even though there are upfront costs to hire Ice-Miller. Jones said using earmarks to help revitalize Speedway would be prudent.

Ice Miller will serve as the title sponsor to the IMS Feb 27th Centennial Celebration.