Carmel Redevelopment Commission approves Clay Terrace interlocal correction, extends attorney engagement

The Carmel Redevelopment Commission on Wednesday approved a corrected interlocal agreement for the Clay Terrace redevelopment area and renewed outside legal services for 2025.

The commission voted to approve Resolution 2025-01, which amends the Clay Terrace interlocal agreement to clarify that funds collected into the city’s tax-increment financing (TIF) areas and paid over to the county may be used first for debt service and then for improvements along 146th Street. The commission also approved a one-year engagement letter with Wallach, Summers & Haas, with staff noting a $50 increase to the firm’s top partner hourly rate.

The Clay Terrace interlocal agreement governs TIF proceeds and development coordination for two parcels near the intersection of Keystone and U.S. 31 at 146th Street. Executive Director Mestetsky said the change corrects an error in the prior draft by making explicit that both allocation areas are intended to allow funds paid to the county to be used for debt service and for street improvements.

"The intention was for these for the funds collected into the city TIF areas, for which the money is paid over to the county per agreement, is intended to be used for debt service and then for improvements along 146th Street," Director Mestetsky said.

Mestetsky told commissioners the correction simply "trues up" the agreement; Hamilton County elected bodies and the city council had already approved the corrected form. The commission approved the resolution by roll call.

On legal services, Director Mestetsky and staff recommended continuing the commission’s long-standing relationship with Wallach, Summers & Haas. Mestetsky said the firm’s institutional knowledge is important to the commission’s work and described the requested change as modest.

"This is a request to increase the top partner rates by $50, which is a small increase," Mestetsky said. Commissioners approved the engagement letter in a roll-call vote.

Financial and routine business also received unanimous approval. Finance staff member Mr. Lee reported that the commission’s end-of-month balance for December 2024 was $6,743,197 and that, including restricted funds, the total was $18,059,234.

"We have paid all of our bonds, and we received all the TIF," Mr. Lee said during his report. The commission approved two sets of claims that evening: $27,730.29 for non-operating expenses and $340.35 from the 2021 Lehi GO Bonds, both by roll call.

The body re-elected its officers for the coming year: President Hammer, Vice President David Bowers and Secretary Bill Brooks. Commissioners also approved the minutes of the Dec. 18 meeting. Committee reports included that the architectural review committee did not meet in the past month; the executive director presented an update on multiple development projects in the commission’s district, including Wren at City Center, Monon Square, Muse, City Square Condos and Presidium phases.

The commission’s next regular meeting is scheduled for Wednesday, Feb. 19, at 6:30 p.m. in the city council chambers. The meeting adjourned after commissioners closed business and authorized execution of documents related to the approved items.