SRC Expands Acquisition Lists

(posted Oct 20)

The Speedway Redevelopment Commission wants to enlarge its current acquisition list by placing all properties in the Speed Zone and Area Two on the lists. The SRC hopes to have the goal accomplished by November.

SRC Executive Director Scott Harris recommended that all the parcels including the IMS, Praxair and Allison Transmission be added to the acquisition list at the commission's October 16 special session. The commission had previously only placed properties that needed to be acquired on a list. The recommendation was based on procedures used by the City of Indianapolis in order to save the city time in the event a property in the redevelopment area comes up for sale.

Harris wanted the SRC to be able to move quickly in case a "fire sale situation" would occur in the allocation area. If the recommendation is approved, the list would contain approximately 200 parcels in zone 1 and 90 in zone 2, with a total assessed value of $165 million, or about 21% of the town's assessed value.

Commission President Vince Noblet explained he did not see any negative aspects by placing the parcels on the acquisition list. Noblet emphasized that it does not mean the SRC will purchase Allison, Praxair and IMS.

The commission voted 4-0, commissioner Steve Bishop missed the vote due to a late arrival. Harris will work with Barnes and Thornburg to create a parcel and owner address list, publish public notices and hold a public hearing. Harris said the list could change based on upon public comment.

The commissioners also gave concurrence to have appraisals performed on Praxair's green space and the parking lot at 1300 Main Street. The SRC needs to acquire the properties for parking. Harris said Praxair has budgeted the improvement changes for diverting traffic off Main Street in its 2009 budget.

Harris' independent contractor's agreement was extended for two years at not-to-exceed 2,080 hours per year at $55 an hour. The contract also includes the ability for him to be reimbursed "but not limited" to meals, office supplies, entertainment, mileage, and cellular phone and wireless connection expenses. Harris' original contract was approved in January 21, 2008 by the commission.

Harris updated the commission about the lack of cash flow coming from the tax distributions due to the reassessment issue. "Our balance as of today is $402,932." He expects the commission to receive $750,000 in December and $750,000 in February from 2008 tax distributions.

Commissioner Ron Fisher introduced the idea of additional help for the redevelopment project. "I think we need a second set of eyes" to point out issues the commissioners might be missing, such as placing all parcels on the acquisition list. He said that the commissioners "might be wondering through the water sometimes," so it might be beneficial to hire a second consultant now that the project is entering the implementation phase. Fisher recommended the commission talk to Mike Higbee. He thinks Higbee will bring "value added" benefits to the project.

Fisher emphasized Higbee's planning experience at the DMD under Hudnut's administration. Higbee is the local Urban Land Institute chapter president. He is also a consultant for the City of Columbus. "He ought to be on our team. He is not an expensive fee."

Fisher indicated that spending $5,000 for Mike Shaver's advice to form a TIF was instrumental in receiving the Allison abatement roll off of $750,000. "I think that is value added."

Fisher said Speedway needs be proactive and do long term planning, pointing out the plan for the downtown Circle Centre Mall was conceived far in advance of construction.

Higbee is the president of Development Concepts, working on the conversion of the former Central State Hospital into the Central Greens mixed use project. At the October 15th 40 West meeting, Mayor Greg Ballard discussed the project's status. "I honestly don't think we are close enough. We are trying to go back to the developer, frankly. Just to north is very poor housing. What they are trying to put there just didn't seem like it is going to be working, so we are trying to come up with a better mix."

Higbee did not respond when asked about a project update.

The commission gave concurrence to interview Higbee. Harris said Higbee needs to develop a defined role to present to the commission.