Metropolitan Development Commission Public Meeting, August 21, 2024

The Metropolitan Development Commission (MDC) convened on August 21, 2024, at 6:00 PM for a public meeting chaired by President Dillon. The meeting included the approval of minutes from the August 7, 2024 meeting (6-0), a consent calendar of routine items, multiple public hearings on tax abatements and a rezoning petition, a bid opening, and approvals of continuances. Key decisions included the termination of a tax abatement for Republic Airways with a $247,522.17 clawback, approval of a 10-year tax abatement for a multifamily development, and approval of a rezoning from DA to C1 with added commitments.

Consent Calendar

• Policy Resolution 2024 A28 and 2024 BBO02: Approved together 7-0. 2024 A28 was moved forward by advocate Kathy Battle. 2024 BBO02 authorized the pledge of tax increment and issuance of up to $60 million in Series 2024 D bonds (max 25 years, interest up to 8%) for redevelopment district purposes.
• No-Appeal Petitions (4 items): Recommended for approval by the hearing examiner, approved together 7-0:
  • 2024 MOD 013 (6904 and 6908 North Tacoma Avenue)
  • 2024 ZON 076 (4701 East Thompson Road)
  • 2024 CZN 824 (1402 Shelby Street)
  • 2024 REGO 38 (752 East Market Street and 730 East Washington Street)

Public Comments & Testimony

Public Hearing: Resolution 2024 A26 – Termination of Tax Abatement for Republic Airways

• Petitioner (Republic Airways): Presented by attorney Brant Wright. He argued Republic substantially complied with commitments: over 9 years, they averaged 534 employees (vs. 540 committed), average wage $55,000 (vs. $45,240 required), and capital investment was $3.4 million (vs. $3.8 million projected). He stated that the only non-compliance was in year 9 due to relocation to Carmel, which occurred after exhaustive efforts to find a suitable Indianapolis site (including airport locations with a $20-25 million road cost). He emphasized Republic still operates a backup disaster recovery facility at the site (lease through 2031), employs 149 people in Indianapolis, and runs the Lift Academy training program (145 employees, average wage >$60,000). He requested a pro rata clawback rather than full termination.
• Staff (Letitia Ramsey, DMD Compliance Manager): Presented that Republic failed to submit required CF1 reports for 2023 and 2024, reported an incorrect wage of $7.60/hour for new jobs (vs. $25 committed), and announced cessation of operations at the site in 2021. DMD recommended full termination and repayment of $247,522.17.
• Commission Discussion: Commissioners questioned whether the move was a necessity or choice. Republic’s attorney clarified the move was not driven by a bidding war but by the inability to find a viable Indianapolis site. Staff noted that the company had not communicated until this year.

Public Hearing: Resolution 2024 A27 – Tax Abatement for TWG 412 McCarty LLC

• Petitioner (Grant Deaton, TWG Development): Presented a 10-year real property tax abatement request for a 6-story, 270-unit multifamily building at 412 West McCarty Street, with 41 units set aside at 70% Area Median Income rent limit. The project represents $2 million in investment. The City-County Council approved the statement of benefits on August 12, 2024.
• Staff (Kathy Battle): Recommended approval, noting the project’s commitment to affordability and partnering with local artists for facade artwork.
• Public Testimony: No opposition was voiced.

Public Hearing: Resolution 2024 E029 – Expansion of Greater Martindale Brightwood Redevelopment Area and Creation of Reagan Park TIF Allocation Area

• Staff (Emily Scott, DMD): Presented the resolution to support affordable housing strategies, including down payment assistance, infrastructure improvements, and development around the former Colonial Bakery site (INHP Arnold Place project).
• Public Testimony: No opposition was voiced.

Public Hearing: Rezoning Petition 2024 ZON 059 – 2345 South Arlington Avenue

• Petitioner (Terry Hutchinson, for owner Doris Lambert): Requested rezoning of 5 acres from DA (dwelling agricultural) to C1 (light commercial) to allow future development. He agreed to staff commitments including a 59.5-foot easement, arborist tree survey, and right-of-way dedication. He expressed willingness to forgo a funeral home use.
• Remonstrators (multiple speakers):
  • Mark Bonner: Representing neighbors and the Southeast Marion County Neighbors Association. Cited concerns about excessive commercial aggregate at the intersection (over 20 acres vs. 3.5-acre guideline), lack of a site plan, loss of wildlife habitat, and traffic congestion. Presented 36 signed petitions.
  • Michael Oles (Indiana Forest Alliance): Classified the property as a “good” urban forest (1-10 acres) providing stormwater management and heat island relief. Noted no parks within a 10-minute walk of the neighborhood.
  • Steve Osterchuk (adjacent property owner): Emphasized the rural character of the neighborhood and that the existing tree buffer is the best protection.
  • Eddie Hager (South Side Neighborhood Association): Highlighted continued loss of tree canopy in Warren Township (hundreds of acres since 2016) and urged denial.
• Councilman Michael Paul Hart (District 20): Urged compromise, supporting the remonstrators’ proposed commitments (e.g., prohibition of certain uses like funeral homes, hours of operation, tree replacement). He noted that the commitments provide safeguards for future development.
• Staff (Kathleen, DMD): Recommended approval of C1 as a buffer between the commercial intersection and the residential neighborhood. She acknowledged that the current zoning (DA) allows clear-cutting of trees, while C1 with commitments provides more protection.

Discussion Items

• Republic Airways Tax Abatement Termination: Commissioners debated the extent of non-compliance, the company’s good-faith efforts to stay in Indianapolis, and whether full clawback was appropriate. Commissioner Murphy questioned whether the relocation was a necessity. The commission voted to approve the termination and full repayment.
• Rezoning at 2345 South Arlington: Extensive discussion on the trade-off between development rights and environmental preservation. Commissioner Murphy noted that under current DA zoning, the owner could clear-cut trees, while C1 with commitments requires a tree survey and mitigation. The petitioner added a commitment to prohibit funeral homes. The commission voted 5-2 to approve the rezoning.
• Bid Opening: RFP 13 DMD 2024-1 for Sherman Park Master Developer was opened; the sole respondent was the Stens organization. The bid will be evaluated by staff.

Key Outcomes

• Consent Calendar: Approved 7-0.
• Resolution 2024 A26 (Republic Airways tax abatement termination): Approved 7-0. The company must repay $247,522.17 within 60 days and may appeal to Marion County Superior Court.
• Resolution 2024 A27 (TWG 412 McCarty tax abatement): Approved 6-0-1 (President Dillon recused).
• Resolution 2024 E029 (Martindale Brightwood redevelopment area expansion): Approved 7-0.
• Continuances:
  • 2024 ZON 027 (1101 and 1117 South Sherman Drive): Continued to September 18, 2024, on staff request for corrections to commitments. Approved 7-0.
  • 2024 ZON 079 (2400 and 2406 North Tibbs Avenue): Continued to September 4, 2024, due to staff error in notice. Approved 7-0.
• Rezoning 2024 ZON 059 (2345 South Arlington Avenue): Approved 5-2 to rezone from DA to C1, with commitments including a 59.5-foot easement, arborist tree survey, right-of-way dedication, maintenance, and a prohibition on funeral homes.
• Bid Opening: The RFP for Sherman Park Master Developer was opened; evaluation by staff will follow.
• Adjournment: The meeting was adjourned after all business.