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HomeMy WebLinkAbout2006-R-35 FAILED Resolution No: -~~:~ Resolution Withdrawing $5 Million Dollar Tax Payer Funded Incentives for Development of jeffersonville Town Cent~er Whereas, on April 13, 2005 jeffersonvilie Mayor Rob Waiz stated that he had ,'personally negotiated the deaf to offer Five Million Dollars in future tax revenues to develop the jeffersonville Town Center. (Exhibit "A"). Whereas, on that same date in 2005 SITUS Realty Corp. stated that, "an announcement about the center's lead tenant could be made as soon as tomorrow (.Aprit 14, 2005). Whereas, jeffersonville City Attorney, Les Merkley, has stated that, ,,jeffersonviile's proposal is one of the city's largest commitments of property tax-revenue in recent years." Merkley said, "We're not going to pledge $5 Million for a Target. All along the city could have gone with a developer and started putting up shopping strips, but we wanted to do something that would be unique and different." (Exhibit "A"). Whereas, on April 15, 2005 Kent Arnold informed Business First , ent has leases signed or in negotiations with that, "Vision Land Devet_c~pm ace." Arnold told Business tenants for about 265,000 square feet of sp including First that he had commitments from a variety o! restaurants, casual and fine dining establ~shmem · (Exhibit "B") Whereas, on April 15, 2005 Arnold told Business First that, "The first retailers are expected to open by May 2006...the remaining town square tenants are scheduled to open between late 2006 and mid-2007." Whereas, on April 15, 2005 Kent Arnold informed the Louisville Courier. Journal that Vison Land Development had reached an · ,, ' a with 12 to 14 screens." However, he refused to agreementw~th a cmem ,, ke details" and refused to reveal the "names of other reveal several Y tenants at the center." (Exhibit "C") Whereas, on August 10, 2005 Arnold informed the American City Business Journals, Inc. That construction on the Jeffersonville Town Center was set to begin on August 11, 2005 at 11:00 a.m. He further stated that, "Leasing commitments are in place for 35,000 square feet of restaurant space, and another 25,000 square feet of restaurant space is nearing final commitment." He further stated that, "The movie theater and Page 1 of 3 first phase of restaurants are scheduled to open in summer 2006, and the majority of the center will be finished by mid-2007". (Exhibit "D") Whereas, on January 12, 2006 Kent Arnold informed the Louisville Oourier-Joumalthat, "The first buildings in the Jeffersonville Town Center are expected to be under construction by the end of the month (January 2006) and a grand opening of the 153 acre mall is scheduled for September (2006)." (Exhibit "E") Whereas, on January 12, 2006 Kent Arnold informed the public that, "The names of as many as 30 restaurants and retail stores at the site also will be announced in the coming weeks." (Exhibit "E") Whereas, on January 12, 2006 Kent Arnold stated that if the City Council would approve committing Five Million Dollars ($5,000,000) of tax funded incentives contractors would begin "cutting loose" on about 300,000 to 400,000 square feet of space.." (Exhibit "E") Whereas, Kent Arnold has failed to fulfill any of those promises that he has made to the Jeffersonvilte City Council, the Mayor and the citizens and taxpayers of the City of Jeffersonville, Indiana. Whereas, he has failed to complete a single building, shed or hog- stand on the site of the Jeffersonville Town Center. Whereas, he has failed to produce a single lease agreement from a single restaurant, retail business or produce stand. Whereas, Kent Arnold continues to make unfulfilled promises to the Jeffersonville City Council and the citizens of Jeffersonville in an effort to induce the Council to commit Five Million Dollars ($5,000,000) to project that has no tenants, no buildings and apparently no future. Whereas, Kent Arnold has breached every promise made, refused to provide information on those "signed" tenants and made countless representations that have yet to come true. BElT RESOLVED THAT: Kent Arnold has broken countless promises and failed to meet innumerable self-imposed deadlines for ground breaking, construction, grand openings and completion. Kent Arnold has promised to produce innumerable leases, Page 2 of 3 documents, financing certificates and other documents to the Jeffersonville City Council. Kent Arnold has not fulfilled any of those agreements or promises made to Jeffersonville. BE IT SO RESOLVED THAT: The Jeffersonville City Council finds and determines that the taxpayers and citizens of the City of Jeffersonville cannot rely upon the promises of Kent Arnold. Therefore, it is not in the best interest of the taxpayers and citizens of Jeffersonville to commit Five Million Dollars ($5,000,000) to this ,,project. Barbara Wilson, President ~onnie Sel~ erkins ~hil McCauley, Men~er ,Mem~ber Yes ~,/ Keith F~etz, Memb, br Yes ~ Ron~ooms, Member (~No Mayor Robert L. Waiz, Jr. Attested by: Approved Vetoed Peggy Wilder, Clerk-Treasurer Page 3 of 3 Exhibit "A" Jeff may lend developer $5 million Tax advance would go to Town Center By Alex Davis alexdavis~cou rier-journal.com The Courier-Journal JeffersonviJle plans to offer a developer $5 million in future tax revenue to build sewers, roads and other infrastructure for a planned shopping center on Veterans Parkway. Details of the offer are still b~eing worked out, and they must be approved by both the City Council and the five-member Jeffersonville Redevelopment Commission. But Mayor Rob Waiz, who has personally negotiated the deal. for the: shopping center, over the la, st 12 months, said yesferday that other elected leaders wiii bl "~e~y pleased with what they'll be seeing" of the project in coming weeks. The shopping complex, to be called Jeffersonville Town Cente~, was announced in September 2003. Plans call for it to take up ro 140 acres on both sides of Veterans Parkway, just east of Imerstare 65. It will be about 800,000 square feet and include clothing stores, restaurants, cafes and offices -- large enough in size to rival Clarksville's nearby Green Tree and River Fails malls. Kent Arnold, president of Cincinnati-based Vision Land Development, the project's lead developer, has said investment at the site could reach $100 million. Arnold could not be reached for comment yesterday. But Keith Stark of SITUS Realty Corp. of Indianapolis, which is handling leasing and marketing for the project, said an announcement about the center's lead tenant could be made as soon as tomorrow. A ground-breaking will be held in the next 45 days, Stark said. He declined to offer additional details. The city's $5 million commitment would come from bonds, which would be paid with future property taxes from the shopping center. City Attorney Les Merkley said the developer would be responsible for making the bond payments if the tax revenue isn't sufficient to do so. The Town Center site is now a vacant field, but the other side of the parkway in Clarksville has seen explosive growth over the last 18 months. John Minta, president of the Clarksville Town Council, said the town has made almost no f'mancial concessions to the shopping centers and businesses that have sprouted on ks side of the parkway. It is, however, spending about $430,000 to build a new road from the parkway to River Fails Mall. Merkley said Jeffersonville's proposal is one of the city's largest commitments of property-tax revenue in recent years. But he defended the plan, saying it would creme a major destination for Southern Indiana. "We're not going to pledge $5 million for a Target," he said. "All along .~4ae city could haVe gone with a developer and started putting up shopping strips, but we wanted to do~'~3~[nething that would be unique and different." Merktey said the Town Center will be modeled after The Summit in eastern Jefferson County, Ky., and Clay Terrace in Carmel, Ind. The Summit opened in November 2001 at Ky. 22 and the Gene Snyder Freeway. Clay Terrace, located just north of Indianapolis, opened last October and will feature 530,000 square feet of retail space on 80 acres when finished later this year. Pam Ferguson, the center's manager, said it employs a "Main Street" concept, with a public boulevard down the center and shops on both sides. Such developments are often called "lifestyle centers," and they are part of a growing trend, according to Partite Duker of the International Council of Shopping Centers. There are now about 130 lifestyle centers nationally, Duker said, compared to 1,130 traditional enclosed mails. Most lifestyle centers draW fr0TM an upscale market She said with household incomes of at least $70,000. The potential of the Southern Indiana market to support such a project was an early concern for Ron Grooms, president of the Jeffersonville City Council. Grooms said in an interview yesterday that he still believes the Town Center is "a little bit of a gamble for Jeffersonville," but he noted that the land is hardly producing any revenue for the city at present. He said he wants to see more details of the project before voting on the $5 million tax proposal. He also said it will "require some educating of the council and some explanation" before it approves the plan. Final plans for the shopping center also would have to be approved by the city's Plan Commission. Exhibit "B" Jeffersonville Town Center plan outlined $10 million movie theater slated for new $100 million-plus project Sarah J eft'ords Business First Staff Writer Clarksville already has had a string of developments surface with the recent completion of Veterans Parkway, but some Southern Indiana residents and economic development officials have been wondering when Jeffersonville will start to reap the benefits from the new roadway, as well. In 2003, Cincinnati-based Vision Laud Development LLC announced plans to build an 800,000-square- foot shopping Center, which was to be located in Jeffersnnville, east of Interstate 65 on Veterans Parkway. Since then, there have been no visible signs that the project was moving forward, and many had begun to speculate about the fate of that prime stretch of real estate. But Vision Land president Kent Arnold said he has signed some anchor tenants, including a multiscreen movie theater, ad is in negOtiations to bring a mix of retail, restaurants, offide s~a~ Ed entertainment to the long-promised Jeffersonville Town Center. It has taken longer than anticipated to negotiate tenant deals, especially because some of the companies with which he was in talks opted to locate to the west of 1-65 in Clarksville centers that akeady are in progress, he said. In that process of attracting tenants, the plans for Jeffersnnville Town Center have evolved, both growing in size and targeting a more upscale m/x of tenants, Arnold said. Now Vision Land is ready to move forward with one of the largest planned developments in Southern Indiana. Four main sections Arnold said his company will not oversee the entke development, but Vision Land has been the driving rome behind the 153-acre project, which is located north and south of Veterans Parkway, bordered by Hamburg Pike on the east and Indiana 31 on the west. A total of four entities own the property, which Arnold declined to identify. The Cincinnati company has worked with local development fmu Koetter ReaI Estate Services LLC to create a master plan. The parmers divided the project into four sectors, as shown in the map on this page. · Project One will be a old-fashioned, town square concept, consisting of 760,000 square feet of retail, restaurants, office space and the cinema. Vision Land will develop this segment of the project, which is located south of Veterans Parkway. Vision Land has an option to purchase the 70 acres on which this portion of the project will be located. · Project Two will be a 350,000-square-foot "power center" on the north side of Veterans Parkway that will be anchored by a discount retailer. Koetter Real Estate is developing this sector. Project Tkree will have 50,000 square feet along the southern portion of the property that will include retail, restaurants, a hotel and possibly an auto dealership. The development partner has not yet been determined. And Project Four will be 115,000 square feet of Class A office space on the northern portion of the property. Koetter Real Estate also will oversee development of this section, and the company is in negotiations with potential tenants that John Walling, executive director of Koetter Real Estate Services, declined to identify. The em/re Jeffersonville Town Center project will take nearly five years to complete, Arnold said, adding that the total cost of the development will range from $100 million to $120 million. Hear~ of project will be the town square Vision Land has worked with Columbus, Ohio-based Meacham & Apel Architects on the design of the project, specifically on what Arnold calls the town square in Project One. The town square will feature primarily brick and stone structures with upscale shops on the lower level and offices on the upper level. Pittsburgh-based Jenco Cinemas LP will operate the 50,000-square-foot cinema, which will have 12 to 14 theaters with stadium-style seating and digital sound. In front of the cinema, Arnold said, plans call for a landscaped, multipurpose park that will be used for seasonal events, such as outdoor movies in the summer, art shows and Christmas light displays. Besides the theater, Arnold declined to identify any of the other tenants slated for the project. Vision Land Development has leases signed or in negotiations with tenants for about 265,000 square feet of space, and Arnold plans to make several ,nnouncemems within the next month. In particular, he said, he has commitments from a variety of restaurants, including casual and fine-dining establishments. There will be no fast-food restaurants in the town square itself, although some are slated for other sections of the Jeffersonville Town Center project. Keith Stark, owner and president of Indianapolis-based Sims Realm Corp., is oversee/rig the marketing, leasing and sales efforts of the project for Vision Land. Plans require approval The plans are contingent upon planning and zoning approvals. The laud already is zoned for commercial use, bui ~e building ~i~ Wiii need robe appr0v~d by city Officials. Arnold said he expects to submit his proposals in mid-May. Once approved, site work is expected to get under way in June. The f~rst retailers and restaurants are expected to open by May 2006, Arnold said, adding that the remaining town square tenants are scheduled to open between late 2006 and mid-2007. City might issue bonds for the developer Arnold said he is in the process of securing fmancing from a national bank, which he declined to identify. Two of the Companies that have agreed to sell land to Vision Land also are investing in the project, but Arnold also declined to identify them. In addition, Arnold said, his company is in the process of negotiating a $5 million financing deal with the city officials. The Jeffersonvilte Town Center site already holds the designation of a tax incremental financing district, said Barry CahiI1, executive director of Jeffersonville's Redevelopment Commission. One way to take advantage of that TIF designation, he said, is for the city to issue bonds, which would not need to be guaranteed by the city. Revenue generated by the sale of the bonds would give the developer money upfront to pay for the installation of roads, sewers and other infrastructure. The additional taxes generated in that TIF district as a result of the new development would go toward the repayment of those bonds. The deal between the city and the developer has not been finalized. The Redevelopment Commission must approve the issuance of bonds, and Cahill said he expects the request to be reviewed at a commission meeting on April 25. Jeffersonville's Common Council, or city council, also must sign off on the arrangement. City officials evaluating project's impact Mayor Rob Waiz has had ~c0nom/c advisers review the project to ensure that it can support repayment of the bonds, CahilI said. Also, city officials, including CahilI, have v/sited Carmel, Ind., to review another development similar to Jeffersonville Town Center. If everything comes together as planned, Cahill said, the Jeffersonville project will be different from what currently is available, not only in Southern Indiana but in the entire Greater Louisville region. "We would like something more unique that would draw from a large area," Cahill said. "And the mayor has spent a lot of time and effort to ensure that we get a project that sets us apart." Contact the writer via e-mail at sjeffords~bizjournals, com. Exhibit "C" Jeff complex to include cinema unit Site will contain retail, office space By Alex Davis alexdavis@couder-jo urnal.com The Courier-Journal A cinema With 12 to 14 screens will be the first tenant ata planned shopping and office complex on Veterans parkway in Jeffersonville, supporters of the project said yesterday. Architectural drawings for the Jeffarsonville Town Center also show a five-lane public boulevard nmning through the middle of the planned 153-acre development just east of Interstate 65. Plans cai1 for restaurants, a large bookstore and fashion outlets lining both sides of the boulevard, with corporate offices on the second floor of some buildings and a hotel, a department store and a sporting-goods outlet on surrounding property. According to plans unveiled yesterday, the property eventually could have more than 1.2 million square feet of commercial and retail space, making it one of the largest mixed-use developments in the Louisville mntm area. In announcing the project at a press conference, Jeffarsonville Mayor Rob Waiz predicted that the town center will be "a showcase and destination point in Snnthem Indiana." Wa/z also said the suburban complex would not hurt the city's downtown district or nearby retail developments, because many of the planned stores currently don't have a presence in Clark or Floyd counties. An investment of up to $125 million will be made in the land, buildings and infrastructure for the center, said Kent Arnold, president of Cincinnati-based Vision Land Development and the lead developer. A~c~rding to a timeline laid out by Am0!¢~and other Pr0J~.~upP0rtcrs, me ~e~ ~ ~ f~r~} r~an? be mostly finished by 2010. Shoppers would be drawn from across north-central Kentucky, Arnold said, and from a wide swath of Southern Indiana. Some city officials welcomed yesterday's proposal, saying it would boost the area's economy and generate more tax dollars. Louise Gaither, 69, who drove to the new Wal-Mart on Veterans Parkway yesterday, said she'd like to see a shrdlar development in western Louisville, whare she lives. She said she travels to the Wal-Mart in Clarksville about once a week. Mark Duellman of Sellersburg said a new shopping destination on the parkway would mean few,e.r trips to Louisville's east end, where he now goes to buy clothes and other items. "It's a good thing," said Duellman, 44, adding that the proposed shopping center also might drive down prices through increased competition· Obstacles remain The center still faces several hurdles. A financing package for the project's infrastructure worth an estimated $5 million must be approved by the Jeffersonville Redevelopment Commission and the City Council. The money would come from future property taxes generated by the center's stores and offices. John Perkins, a member of both panels, attended yesterday's press conference and said it was "a concern" that he and some other city officials hadn't previously been told about the details of the project. 'Tm not saying it's a bad deal," he said of the town center. "This is the frrst time I've seen it." City Councilwoman Connie Sellers, whose district on the city's north side includes the center% property, said her neighbors are excited about a new shopping destination. She described her reaction to the proposal as "very positive" so far. Several key details or,he project w,e~e not ~de aVailable yesterday· Among th~m are the names Of other tenants a~th~ ~ente~; and the project s private-sector financing. Arnold smd that he ~s m negot~atmus for 285,000 square feet of space Kd that names of some tenants will be announced in the next 45 days. The main town center site covers about 70 acres, Arnold said, and will have about 760,000 square feet of shops and restaurants. The remaining acreage will be developed in phases, he said, with the market dictating the pace of construction and the types of businesses. A group called Koetter Five Star Properties Indiana LLC owns part of the town center property, Arnold said, and has options to buy the rest of the land. Koetter Five Star is owned by five brothers who mn a collection of constmctian and real estate businesses based in Floyds Knobs. Development continues Jeffersonville Town Center is the latest development proposed along the parkway, which has opened in phases over the last two years and connects Jeffersonvllle and Clarkswlle' Wal-Mart' Sam Club' Target' L°we*s home-improvement store and other national retailers, restaurants and offices are open or in the planning stages. Arnold said the town center's design incorporates principles of"New Urbanism," by seeking to create a downtown-like atmosphere with places to both work and shop. "We know there's enough people in the trade area" to support the project, he said. "We've done exhaustive studies." Exhibit "D" Construction on Jeffersonville Town Center to begin Thursday August 10, 2005 Construction 0fthe Jeffersonville Town Center will begin Thursday, Aug. 11, at 11 a.m. The 153-acre center will be home to a 10-screen movie theater, restaurants, retailers and offices. Leasing commitments are in place for 35,000 square feet of restaurant space, and another 25,000 square feet of restaurant space is near/rig final cOmmitment, acc0rdin~ to a newt release. Negotiations are under way with two potential department store tenants, the release said. The movie theater ~hd firS~ phase of restaurant~ ar~ ~che}:lfiied tO °Pen in ~er 2006, and the majority Of the Cent~ Wli~ be fmished by mid-2007. © 2005 American City Business Journals Inc. Exhibit "E" Town Center bailding may begin in Jeff amid funding dispute Page 1 0£3 courier-journal.eom ~ Weather ~ Jobs Cars ~ Real Estate Apartments ~- Shopping Customer Servic Classifieds ~ £ HOME I LOCALNEWS I NATION/WORLD I SPORTS I BUSINESS I FEATURES I LOUISVILLE SCENE I VELO¢ View 7 days > E-mailthis I ~ Print page courier-journaLcom > Indiana Thursday, .lanuary/.2, 2066 Town Center building may begin in Jeff amid funding dispute By Alex Davis alexdavis @courier-journal.com The Courier-Journal The firSt bui dings in the JefferSonville TOWn Center are expected to be under ~nstruCti0n by the ~nd o~ the ~h~fi ~nda grand opening for the i 53:acre mall is scheduled fo~ SePtember. FIND A SECTION !;;~ The names of as many as 30 restaurants and retail stores at the site also will be annOunced in the coming weeks, said K~ht Arnc)i'dl ohs 6f the ~roj~t,s lead QUICK LINKS · Election 2006 · Crime reports · AP state wire · ~ndiana WeeMy · Kentucky news · Nation / World · Business · Weather · Search/Archive · Special reports · Obituaries · Opinion/Editorials · Comics ·Coiumnists · TrafficCam · Reader forums · USA TODAY Hoosier voices · Dale Moss · Lesley Stedman Weidenbener ~ RSS feeds developers. But while the Town Center appeam to be moving forward along Veterans Parkway east of Interstate 65, a major piece of the project's financing -- a $5 million package of incentives from the city -- still has not been approved. Jeffersonville Mayor Rob Waiz announced some terms of the deal last Apdl, 18 months after plans for the complex were first unveiled. Construction Center shoppi begin this mo~ Waiz said at the time that the city,s money would pay for infrastructure along Veterans Parkway, such as sewer lines and new connecting roads. Bonds would be issued and they would be paid off using property-tax revenue from the proposed stores. Some members of the City Council balked at the commitment, saying they wanted to see signed leases w~th the center s tenant before agreeing to the deal. In addition to < restaurants ar will be annour of the project'~ Journal) - : ~ ~ Town Center building may begin in Jeff amid funding dispute Page 2 of 3 Barbara Wilson, this year's council president, said she remains confident that the project will succeed. But she added that she hasn't changed her opinion about the terms of the financing. "1 don't think the council is going to go along without commitments" from the stores, she said. "We need names of tenants." Wilson also said some of her constituents are "getting pretty upset" at the lack of progress on Jeffersonville's side of the parkway, which connects the city to nearby Clarksville and offers access to 1-65. The Clarksville side has seen an explosion of growth over the last two years, with a new Wal-Mart Supercenter, a Lowe's home-improvement store, Target and dozens of smaller developments. · ' Work n to ut the f n sh ng touches on the tax-inCentive deal, Amgld sad h~ g ~ ~ ~ hfid;~etaii~ ~h6~l~ 5~"~§~fited tothe C~ Councd before me ena ct me ~onth. He smd a i~m~ted amount of braiding can beg~n w~thout the financing m place· His company, Vision Land Development of Cincinnati, will be required to meet construction benchmarks to receive the city's financial aid, he said· if thb ~ a~p~6~e~ the d~al in th~ ~omin~ W~e~;Arnold said; contractdrs Will beg fi Cuming Io°Se" 6fi ~b~fit ~0;O~o t6 400;000 Square feet 8f s~bb this year; When it is finished in 2010, the Town Center is expected to offer up to 1.2 million square feet of space, making it one of the largest retail developments in the metro Louisville area. Some of the space will be used for offices and hotels. The general contractor for the project is The Koetter Group, a FIoyds Knobs company that also owns some of the Town Center property through a subsidiary. Jack Koetter, the company's chief executive officer, predicted that the project's construction crew "should easily exceed 100 workers" at any given time over the next two years. "We're bu d~ng a m m-c~ty here overmght, he said in an interview. "It's going to be pretty nice when it's finished." Waiz said he received a final draft of the financing deal from Arnold a couple of weeks ago. He said he forwarded the document to the city's legal consultants in indianapolis and is awaiting their final approval. Reporter Alex Davis can be reached at (812) 949~4031. ^^ Back to top ~ E-mailthis ~ Printthis ~ Subscribe ~ RSSfeeds RELATED Latest headli · Home · Home Ret Powered by TNTRCI THE 31 z O/o MORT{ NEVER REI AGAIN AM lO/oCHOI( HERE! mo~gage Home I News I Sports I Business [ Features I Travel I Scene I Velocity ] Classifieds I Jobs I Cars I Horn Classified Partners: Jobs: CareerBuilder.com ] Cars: Cars.corn I Apartments: Apartments.corn I SI Copyright 2005 The Courier-Journal, Use of this site signifies your agreement to the Terms of Service and Privacy Policy (updated 6/7/; Send questions and comments to The Webmaster,