Zionsville council to vote on $650K property deal

May 3, 2013
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The town of Zionsville is poised to buy a former PNC Bank branch at the south end of its historic Main Street.

Town Council members are set to vote May 6 on a $650,000 appropriation to purchase the property, which also includes a parking lot that houses the Zionsville Farmers Market. (Update: Council approved the expense, but the deal has not been finalized.)

The money would come from the town’s Rainy Day Fund, which had a balance of about $1.65 million in April, according to a resolution prepared for the Town Council meeting.

At an agenda-setting meeting this week, council member Steve Mundy said negotiations are ongoing, so the final offer could be lower than PNC's $650,000 asking price, according to the Zionsville Times-Sentinel. Authorizing the maximum possible expenditure would allow the deal to be finalized before the council meets again next month.

Pittsburgh-based PNC Financial Services Group Inc. closed its branch at 390 S. Main St. earlier this year. It has another location on West Oak Street west of downtown.

Zionsville officials expressed interest in buying the property for redevelopment when it went on the market. The lot is at the corner of Main and Sycamore streets, a prime location in the town’s Village Business District.

The town already leases the parking lot to the north of the bank branch for $1,000 a year, making it available for public parking and the farmers market.

“It is very important to businesses to have that parking available,” Town Council President Jeff Papa said.

Plans for the rest of the property weren’t immediately clear.

As IBJ reported April 27, officials are commissioning an extensive market study they hope will identify the right mix of businesses for the downtown district. There’s even talk of extending the brick Main Street south to 106th Street, providing a better link to commercial development expected there.

If that happens, the PNC property could be a key connection. How do you think it should be used?

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  • Property Usage
    I have been saying for years...if Zville had a Handel's it would kill...(way better than the serve-yourself-and-keep-your-kids'-grimy-paws-off-the-buffett frozen yogurt places). But probably better for the operator at the 106th/Michigan corridor...likely wouldn't have as high a lease since the PNC/Main location would be a stand-alone bldg...too bad...
  • Questionable
    Not sure it makes sense to invest in real estate with rainy day funds nor to invest in "developing" the Dow land. Council seems to have lost focus. Money should be used for infrastructure not speculation

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  1. The $104K to CRC would go toward debts service on $486M of existing debt they already have from other things outside this project. Keystone buys the bonds for 3.8M from CRC, and CRC in turn pays for the parking and site work, and some time later CRC buys them back (with interest) from the projected annual property tax revenue from the entire TIF district (est. $415K / yr. from just this property, plus more from all the other property in the TIF district), which in theory would be about a 10-year term, give-or-take. CRC is basically betting on the future, that property values will increase, driving up the tax revenue to the limit of the annual increase cap on commercial property (I think that's 3%). It should be noted that Keystone can't print money (unlike the Federal Treasury) so commercial property tax can only come from consumers, in this case the apartment renters and consumers of the goods and services offered by the ground floor retailers, and employees in the form of lower non-mandatory compensation items, such as bonuses, benefits, 401K match, etc.

  2. $3B would hurt Lilly's bottom line if there were no insurance or Indemnity Agreement, but there is no way that large an award will be upheld on appeal. What's surprising is that the trial judge refused to reduce it. She must have thought there was evidence of a flagrant, unconscionable coverup and wanted to send a message.

  3. As a self-employed individual, I always saw outrageous price increases every year in a health insurance plan with preexisting condition costs -- something most employed groups never had to worry about. With spouse, I saw ALL Indiana "free market answer" plans' premiums raise 25%-45% each year.

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  5. http://www.abcactionnews.com/news/duke-energy-customers-angry-about-money-for-nothing

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