NICKEL PLATE DISTRICT DOWNTOWN FISHERS, INDIANA Fishers Community Meeting December 10, 2012
DOWNTOWN REDEVELOPMENT STRATEGY Goal: vibrant, walkable and sustainable downtown Key strategies: People living People working People coming downtown for events People eating and shopping People enjoying public spaces and public art People walking & biking (i.e., parking and walkable)
Downtown Redevelopment 2014-2015 Nickel Plate Amphitheater The Depot: 241 apartments, 16,000sf retail, 430-space public/private garage The Station:120 apartments, 10,000st retail, 20,000st office, 430-space public/private garage Meyer Najem Headquarters: 40,000sf, 120 space public/private parking lot (surface) Yeager/Community Health Building: 34,000sf medical office, 17,000st retail, 9,000st retail/office, 330-space public/private garage
Downtown Redevelopment Infrastructure Goal: vibrant, walkable and sustainable downtown Key Strategies: Master Utility Planning Traffic improvements 106 th Street Interchange 116 th Street Real Time Signal System Lantern and Commercial Intersection Improvements Flashers at RR tracks on Lantern Road 106 th and Crosspoint Blvd Roundabout Fishers Corner Blvd Extension Maple Street Improvements I-69 Improvements Lantern Road Improvements 116 th and USA Pkwy Improvements
Road Improvements
Train Station and Future Mass Transit Coordinating with Indy MPO related to future mass transit Coordinating with Hoosier Heritage Port Authority 2014 Fair Train 2015 Fair Train operates from new station
Train Station and Future Mass Transit
Central Green
Meyer Najem Building
PROJECT OVERVIEW 40,000 square foot, 2-story office building 22,500 square foot first floor Occupied by Meyer Najem 17,500 square foot second floor with roof terrace Leased by Town RDC Subleased by Town RDC to target businesses Shared building amenities +/-150 parking spaces +/-115 available for public parking after hours Town retains ownership to south parking lot and can convert to garage parking with future redevelopment
PUBLIC-PRIVATE PARTNERSHIP Project Basics: Approximately $7 million total project costs (including land and parking lot) This project will not happen without public investment Project return would be in the mid 6% range Public investment/incentives fills gap to allow developer to earn reasonable return Developer s return after public investment will be in the 8 to 10% range Developer investment projected to be approximately $5.2 million
PUBLIC-PRIVATE PARTNERSHIP Economic Development Agreement Basics: Town contributes building parcel at no cost and waives $194,933 in development fees MN builds project (including parking) pursuant to approved plans Town owns south parking lot and leases spaces to MN at no cost Town can convert south parking lot to garage in future Town contributes $1.4 million to project costs Town RDC leases 17,500 sf. at $14 per sf. MN pays defined amount of property taxes even if assessed at lower amount - $90,000 Town shares in gain on sale of building Approximately 25%
PUBLIC-PRIVATE PARTNERSHIP TIF Cash Flow: Annual debt service on $1.4M Approximately $130,000 Projected new tax increment Approximately $108,000 Difference to be paid from existing tax increment
Yeager Building
Project Overview 116 th St. Bldg: 51,045 square feet, 3-story office building with medical and retail uses 22,000 square feet leased by Community Health Network 3 rd floor and part of 2 nd Lantern Bldg: 9,142 square feet, 3-story retail/office wrap Garage: 330-space public/private parking garage Used by office buildings from 7am 6pm (M-F) Public parking available all other times
Public Private Partnership Project Basics: Approximately $18 million total project costs (including land, site improvements, buildings and parking garage) This project will not happen without public investment Project return would be in the low 5% range Public investment/incentives fills gap to allow developer to earn reasonable return Developer s return after public investment will be in the 8 to 9% range Developer investment projected to be approximately $12 million
Public Private Partnership Project Agreement Basics: Town contributes KFC parcel and waives $223,244 in development fees Yeager contributes garage parcel Yeager builds project (including parking garage) pursuant to approved plans Town owns parking garage Yeager takes ownership of garage after 25 years Town retains parking rights Town contributes $6.5 million to fund garage and site improvements Town RDC master leases 29,045 sf. Yeager pays minimum amount of property taxes even if assessed at lower amount - $140,000 Town shares in gain on sale of building (first 5 years) Approximately 10%
Public Private Partnership Master Lease Basics: RDC master leases 29,045 square feet of first/second floor of 116 th St. Bldg Master lease rent is set at 1.25 times the project s debt service less the NOI from the CNH lease Estimated at $393,000 per year, plus allocated taxes and expenses Reduced by NOI from future leases Yeager does not make any profit until RDC s obligation is reduced to zero If RDC is obligated to pay master lease rent, the Yeager must pay the rent amount to the RDC 5 days before the rent is due If Yeager does not make required payments, RDC gets equity in project If RDC is owed more than $377,000 at any one time, RDC can take ownership of project from Yeager
Public Private Partnership TIF Cash Flow: Annual debt service on $6M Approximately $570,000 Projected new tax increment Approximately $140,000 Difference to be paid from existing tax increment Other TIF Impacts: Schools - Referendum amounts are not captured in TIF Capital referendums new AV reduced tax rate Operating referendums new AV same tax rate, increased revenue
The Depot
PUBLIC-PRIVATE PARTNERSHIP Project Basics: $34 million total project costs (including garage) This project will not happen without public investment Project return would be approximately 5% Public investment/incentives Land contributed at no cost to developer (not including land on which garage sits which remains owned by Town) Town does not charge impact fees Town contributes $10.75 million from bond proceeds Developer investment will be approximately $23.65 million Developer s return after public investment will be in the 7% to 9% range
PUBLIC-PRIVATE PARTNERSHIP Economic Development Agreement Basics: Town contributes non-garage land at no cost and waives $1,027,339 in development impact fees F&C builds $34M project (including garage) pursuant to detailed plans approved by the Town Town has inspection rights and must approve material changes Town owns garage and leases residential spaces to F&C at no cost F&C pays defined amount of property taxes even if assessed at lower amount - $546,000 Town contributes $10.75 million to project costs from bond proceeds Town completes necessary public improvements to Municipal Drive and Post Office Drive (adding parking) and to green space in surrounding liberty plaza.
PUBLIC-PRIVATE PARTNERSHIP Town Bond Basics: $10,750,000 (est.) with 25-year term Backed by Town s County Option Income Tax revenues For marketability reasons But to be paid with TIF from project and other existing TIF revenue Bond coverage (annual basis) Projected annual debt service: $1,130,000 Projected TIF from project: $532,000 Projected 2013 existing TIF (not pledged to other bonds): $808,000
PUBLIC-PRIVATE PARTNERSHIP Benefits to the Town of Fishers Major step toward achieving residents desire to have a vibrant downtown Establishes to the market that downtown redevelopment is real Encourages additional investment Town owns garage (only during financing) Approximately 200 new public parking spaces in downtown Including garage and new street parking Furthers economic development strategy to create places that attract the 21 st century worker Once bonds are paid, adds +/- $30M of new assessed value to Fishers tax roles for the benefit of future generations
Loftus Robinson Building
Project Overview 116 th St. Bldg: 33,150 square feet, 3-story office building with first floor retail Multi-family Bldg: 120+/- Class A Apartment Units (Studio, 1BR & 2BR) Garage: 430-space public/private parking garage 120 spaces used by office and retail 150 spaces used by multi-family 130 spaces available for public 24 hours per day
Public Private Partnership Project Basics: Approximately $28 million total project costs (including land, site improvements, buildings and parking garage) This project will not happen without public investment Part of project is pure public infrastructure (public parking and plaza) Project return would be below 5% Public investment/incentives fills gap to allow developer to earn reasonable return Developer s return after public investment will be in the 7 to 9% range Developer investment projected to be approximately $18.5 million
Public Private Partnership Project Agreement Basics: Town contributes multi-family and office parcels and waives $779,694 in development fees LR builds project (including parking garage) pursuant to approved plans Town owns parking garage LR takes ownership of garage after 25 years Town retains parking rights Town contributes an amount not to exceed $9.5 million to fund garage and public infrastructure Town RDC master leases 33,150 sf LR pays minimum amount of property taxes even if assessed at lower amount - $288,000 Town shares in gain on sale of building (first 5 years) Approximately 5%
Public Private Partnership Master Lease Basics: RDC master leases 33,150 square feet of 116 th St. Bldg Master lease rent is set at 1.25 times the project s debt service less the NOI from all future leases Estimated at $465,094 per year Town does not pay any expenses or taxes Reduced by NOI from future leases LR does not make any profit until RDC s obligation is reduced to zero Blast Media EDA Committed to take at least 6,500 sf
Public Private Partnership TIF Cash Flow: Annual debt service on $9.5M Approximately $780,000 Projected new tax increment Approximately $297,000 Difference to be paid from existing tax increment Other TIF Impacts: Schools - Referendum amounts are not captured in TIF Capital referendums new AV reduced tax rate Operating referendums new AV same tax rate, increased revenue
Bub s Burgers & Ice Cream
Bub s Parcel
Bub s Site Plan
Project Overview Bub s Burgers and Ice Cream, a locally-owned restaurant established in May of 2003, is a familyfriendly restaurant with an emphasis on quality food and a fun atmosphere. Centrally located in the heart of the Nickel Plate District (not on 116 th street corridor frontage). Surface, street, and garage parking. Walkable, bikeable, destination restaurant. Fits with vision for entrepreneurial ecosystem for downtown. Market-driver for additional retail growth in Maple Street Village (Maple & North Streets).
Public Private Partnership Project Basics: Approximately $1.7 million total project costs (including land, site improvements, buildings, and parking) This project will not happen without public investment Waiver of impact fees (approximately $122,000) Need for additional public parking Town owns public parking lot
Development Area Before and After Cumulative BEFORE AFTER AV: $1,901,000 $49,607,000 RE Taxes: $42,000 $1,023,000 Jobs: 35-50 520-615 Payroll: $1,700,000 $22,700,000 Office/retail SF: 8,000 sf 125,000 sf Residential: 4 units 347 units Parking: 105 1,320 School Operating Levy: $0 $49,607 * Estimates as of May 2014 (does not include Bub s Burgers & Ice Cream)