New DID Prez Announced

DID Announces Hiring of New President
Link (DID)

"The Fort Wayne, Indiana Downtown Improvement District today announced the hiring of Richard C. Davis as its new President.

Mr. Davis, who will assume his new role on April 28, has served since 2001 as Executive Director of the Pawtucket (RI) Foundation, a privately-sponsored not-for-profit enterprise focused on civic and economic revitalization within Pawtucket and adjacent communities in the Blackstone Valley. He has previously served as Executive Director of Intown Manchester (NH) and of Downtown Columbus (OH), Inc."

[...]

"“We are excited to be bringing Rich to Fort Wayne as our new President”, said Steve Brody, Chair of the Downtown Improvement District. “He impressed us greatly during his interview visit and is the right person to build on our momentum and lead the organization during a truly pivotal and exciting time for downtown Fort Wayne.”"

Image from DID website

From Council

R-07-11-13
A RESOLUTION approving the 2008 budget for the Downtown Fort Wayne Economic Improvement District

Dan Carmody and Steve Brody spoke on the Resolution. Dan Carmody's replacement was assumed to start in February, but Brody said it won't likely be that soon.

A business plan for the DID for 2008 has been drafted up and will be submitted to the DID board soon. Also, a search committee has been formed to find Carmody's replacement, rather than hiring a search firm which could have cost up to $40,000. The response from advertisements in trade magazines and the like has netted 80 to 90 resumes, of which 70 are "readily dismissible". There are 10-15 worthwhile candidates, of which 3-5 will be narrowed in on to pursue further dialogue with. Responses to be the President of the DID have come from both out of town and from within the city.

Carmody mentioned that there will be 2 lofts remaining from the downtown loft competition but that they have been delayed for the time being. Something to expect in 2008 is a marketing campaign for the office sector to bring more entities in need of office space downtown.

Another point was to continue to improve and diversify downtown programming, for which the DID has been successful under Carmody's leadership.

The year 2008 will also see a marketing study for the retail markets in the downtown area and the nearby corridors in order to help boost the presence and traffic to those areas.

Next Wednesday, December 12 from 4:30PM to 7PM will be the second annual Hard Hat awards held at the History Center by the DID. The Hard Hat awards highlight efforts in the downtown area by businesses and investors and acknowledge the work of those who are doing what they can do make downtown better.

Steve Brody made note of an upcoming effort to study the feasibility of a community development corporation, such as those that exist in other cities like Chattanooga. Such an organization would be a tremendous boon to downtown development efforts and should be thoroughly pursued.

The Resolution passed unanimously.

G-07-11-04 (AS AMENDED)
AN ORDINANCE amending Chapter 157 of the City of Fort Wayne Municipal Code
Periodic update of glitches – adding CM5C Neighborhood Commercial Corridor Zoning District

G-07-11-04 deals mostly with corridor development within the framework of the new CM5C zoning classification. Under the classification, parking requirements would be loosened based on real world applications in such areas. The change would be a requirement for less parking while leaving the option open to the property owner or developer to decide whether or not to provide more parking. Also, approval of parking would be moved to staff level approval instead of holding public hearings.

The new corridor classification itself was said to be requested by the Wells St Business Association, but that it would benefit other corridors as well such as Broadway. The intent is to revitalize older commercial corridors while making it easier for the areas to be neighborhood and pedestrian friendly and also support more residential uses.

It was noted that the new zoning classification would be created, but that zoning wouldn't automatically take effect. For an area to fall underneath the new corridor classification, the process for rezoning must be followed.

The plan was supported by the owners on Wells St and the Downtown Improvement District and was also said to be compatible with the Plan-It Allen land use plan.

Passed unanimously.

Redev Press

City hires investor as project manager
Firm to get $1.65 million to handle Harrison Square
Link (JG)

"Fort Wayne on Monday hired one of the major Harrison Square investors to coordinate the entire downtown development.

The city’s redevelopment commission unanimously approved hiring Barry Real Estate, of Atlanta, to be project coordinator for the $120 million project.

The real estate firm will be paid $1.65 million, which city officials said was a good price and had been part of the budget from the beginning.

Steve Brody, a city consultant for Harrison Square, said the city talked to several firms about the work and determined Barry offered the best price for the service"
[...]
"The commission previously hired Weigand Construction as construction manager for the ballpark, at a cost of $400,000. Brody said combining the two contracts still puts the city’s administrative costs at less than 5 percent of the project’s cost, which he said is the industry standard.

The board also approved selling the land for the condominium building to Barry for $675,000 and the land for the hotel to White Lodging for $17.50. Greg Leatherman, redevelopment director, said providing the hotel land for almost nothing has always been a planned incentive.

Brody also said negotiations regarding the walkway from the Courtyard to the Grand Wayne Center, through the Embassy Theatre building, are progressing. He said the sides are finalizing the agreement, which he hopes will be done “much sooner” than the end of the year. The walkway was a deal-breaking incentive required by the hotel developers to build in downtown Fort Wayne."

From Redevelopment Commission

Notes from meeting:

Resolution 2007-85
Approving a responsive bid pursuant to a Public Offering of real estate for the Harrison Square Hotel development project

White Lodging agreed to pay $1, but appraisals came to $17.50, which White Lodging agreed to pay for the real estate for the new hotel

Resolution 2007-86
Approving a responsive bid for the Harrison Square Residential/Retail condominium project

1 bid, Barry Real Estate Companies, $27/square foot
$675,000 based on development agreement, which was less than appraisal value

Resolution 2007-87
Approving a project Coordination Agreement

The Resolution calls for a project coordinator for the Harrison Square project, something that has been planned for since the beginning of the project and has also been previously budgeted for. Mansur was asked if they would be interested because of their involvement in Fort Wayne, most notably Renaissance Pointe. Mansur's response was that Barry Real Estate would be a better choice for project coordinator because of their involvement and investment in the project that would help to make sure the project succeeds.

The cost of the project coordination was said to be $1,650,000 by Steve Brody, which is about 3.75% of $43 million. With Weigand Construction acting as the construction manager for the ballpark, the fees associated with coordination come out to $2,050,000. This amount was said to be 4.66% while the market is generally 5-6% for project coordination.

Resolution 2007-88
Approving an Agency Agreement with the Fort Wayne Redevelopment Authority

Resolution 2007-89Approving the allocation of tax increment generated from the Jefferson/Illinois Road Economic Development Area, as amended

Tax exempt bond has 4.9% net interest rate
Taxable bonds sold in a couple weeks
$1.4M each year from Jefferson Pointe TIF
100% of Jefferson Pointe fund will be taken each year but only about 50% is expected to be used on a yearly basis. Entities will have to come to the Redevelopment body to use the other money and the Commission attorney stated that if the bond can be paid off 15 years earlier because of the 100% capture rate then "that's great".

All Resolutions passed unanimously

Market Evolution

Hotel will have to buck trend
Link

"The new Courtyard by Marriott Hotel would provide the extra rooms adjacent to the Grand Wayne Center city officials say they need to attract larger events.

But unless convention business is enough to sustain both the new hotel and the Hilton Fort Wayne, the two facilities could find themselves desperately competing for business and other travelers."

"City officials said developers White Lodging Services and Acquest Realty are assuming occupancy rates well above 60 percent for the new facility. And given the importance of the hotel to the rest of Harrison Square, which includes a new baseball stadium, retail and housing, large numbers of rooms cannot sit unused."

"The new hotel would have to change the hotel occupancy trend in the Fort Wayne area. Occupancy rates on an annual basis have not risen above 52 percent since 2001, and for the most part have remained between 47 and 51 percent, according to data from Smith Travel Research Inc. Those figures include hotels in and around the city."

"Courtyard is considered Marriott’s upper-moderate-priced brand. It has limited services and is aimed primarily at business travelers, according to research by Reuters."

"Dan O’Connell, president and CEO of the Fort Wayne-Allen County Convention & Visitors Bureau, said the affordability of the hotel will be attractive. He said it is a fit for the Fort Wayne market, but the hotel will not be the same as many Courtyard by Marriott properties, which tend to be located in suburban markets or along interstates."

Harped Out Of Vote

2 ineligible for Harrison Square vote
Tourism panel mulls funding
Link

"Two of the Allen County commissioners’ appointments to the board overseeing Grand Wayne Center will be ineligible to vote today on whether to provide $2.5 million to Harrison Square."

"Brown said the commissioners learned this week that their appointments have to live outside the Fort Wayne city limits. Both Rousseau and Shaffer live in the city. While Rousseau will have to be removed immediately from the board, Brown said, Shaffer’s case isn’t as clear"

"The convention and tourism board today is scheduled to discuss a proposal from city officials to contribute $250,000 a year for 10 years to help finance a part of the $130 million Harrison Square project."

"Harper, a Republican running for the Fort Wayne City Council, said he learned of the rules when doing a broader review of the laws governing the board. He said the county commissioners need to bring geographical diversity to their boards, but they also need to have good people, and Harper thought Shaffer and Rousseau were well qualified."

Deal Fluidity

Harrison Square money
http://www.fortwayne.com/mld/journalgazette/news/editorial/17335679.htm

"Details are being worked out, but city officials told members of the city Redevelopment Commission on Monday that they will very likely ask the Fort Wayne-Allen County Convention and Tourism Authority, which operates Grand Wayne Center, to contribute $250,000 a year for 10 years toward the new hotel. The money would come from innkeeper’s tax revenues the hotel would pay and not cost local residents and property owners."

"Still, Harrison Square organizers are well aware that each new financial curve raises more criticism among the naysayers and, of more concern, has potential to raise the level of skepticism even among supporters. Much of this is due to the nature of negotiating a complex business deal involving a hotel developer, a hotel operator, baseball team owners who are also developers, city government, the city Redevelopment Commission, the government Convention and Tourism Authority – and more."

"Because the new hotel will greatly benefit Grand Wayne Center, it’s not inappropriate for the center’s government operating board to return some of tax revenues the new hotel will generate back into the hotel. But city officials will serve the public and their own credibility best if they can get this deal done soon with minimal additional changes."

It’s OK for Grand Wayne to fund hotel
Convention center needs more rooms downtown to support its events.
http://www.fortwayne.com/mld/fortwayne/news/local/17336462.htm

"In a couple of weeks, Leatherman said, the city and the hotel’s developers, White Lodging Services of Merrillville and Michigan-based Acquest Realty Advisors Inc., will unveil a redesigned Marriott-brand hotel that will be both less expensive to build and more architecturally compatible with the Embassy Theatre and Harrison Square."

"In place of a the original design, the 250-room hotel will have a more “retro” appearance to blend in with the 80-year-old theater and the new baseball stadium, shops, condominiums and other features of the $125 million-to-$160 million Harrison Square project."

"Having just spent $42 million to more than double the convention center’s size, it would make no sense to deter visitors by failing to provide adequate hotel space – especially when tax revenue generated by the hotel would also pay off millions of dollars in Harrison Square debt."

"Leatherman knows some hotel owners won’t like the idea of collecting taxes that will subsidize a new competitor. But the hope is that the new hotel will increase business at the Grand Wayne, attracting more visitors who will pay more taxes at the new Marriott and other hotels, generating extra revenue for everybody."

A Little Help From Our Friends

Grand Wayne’s hotel help sought
$2.5 million would subsidize the project
http://www.fortwayne.com/mld/fortwayne/news/local/17325687.htm

"During the Fort Wayne Redevelopment Commission meeting Monday, city leaders said publicly for the first time they will ask the convention center to help finance the neighboring project."

"In the initial non-binding contract with the hotel developers, the city agreed to work with Grand Wayne’s board of directors to allow the new hotel to recoup some of the room tax charged to hotel guests. Leatherman said the hotel developers will no longer get a direct rebate of the room tax, but the city hopes to use the $2.5 million as additional incentives for the hotel."

"Specifically, Leatherman said Grand Wayne money would pay for public portions of the hotel project, such as a walkway to the publicly owned parking garage. Grand Wayne money would not be used for other portions of the project, such as the baseball stadium, he said."

"Grand Wayne officials have argued the center can’t reach its potential without more hotel rooms. With more hotel rooms available, Leatherman said Grand Wayne should see more room tax revenues, as well as more money for renting space and selling food."

"Ed Rousseau, Grand Wayne board member, said it would be nice to have another hotel downtown, but he has concerns with the increasing subsidies for the project. Rousseau, a previous critic of the ballpark portion of Harrison Square, said many questions would have to be answered before he would support using Grand Wayne’s money for the project."

Hotel Update

Talks on hotel deal 'excellent'
City optimistic despite not meeting deadline
http://www.fortwayne.com/mld/fortwayne/news/local/17303307.htm

"Fort Wayne will not meet its self-imposed deadline to complete a hotel contract for Harrison Square, but city officials said negotiations on the project’s lynchpin component are still going smoothly."

"While not offering a new timeline, Brody said the goal is still to have the projects completed in 2009.

Brody added that a possible lawsuit against the project played no part in missing the deadline. Two residents who filed written protests against the project have until 4:30 p.m. today to file a lawsuit against Harrison Square."

Proof And Assurance

Developers must disclose details
Harrison Square project can withstand scrutiny
http://www.fortwayne.com/mld/fortwayne/news/local/17172662.htm

From the article:

"City Council’s 6-3 vote last month in favor of Harrison Square is widely believed to have cleared the way for the $125 million-$160 million downtown improvement project. But that’s not quite true. Before construction of the $30 million baseball stadium begins – planned for Sept. 1 at the latest – the city’s Atlanta-based private partners must demonstrate they can make good on their multimillion-dollar commitment."

"Councilman Tim Pape, who voted for Harrison Square, said he is convinced taxpayers’ interests are protected despite the lack of a detailed financial statement from Hardball and Barry Real Estate. The developers’ past business performance, he said, indicates they will be forthright and successful partners here, too."

"Consultant Steve Brody said council’s approval simply allows the city to negotiate a more-detailed agreement with the developers “that makes economic sense for Fort Wayne.”"

"If construction does begin, as expected, the city will get Hardball’s $5 million upfront. And even if Hardball would go bankrupt later, a baseball team should remain in Fort Wayne."

"The memorandum is less reassuring in regard to Barry Real Estate’s condominiums and commercial buildings, however. Because they are to be privately funded, the city has less control over their development. But because Harrison Square supporters used Barry’s investment to justify public funding of the stadium, the city must make sure the promised shops and condos are built."

"“Normally, you wait to see what your obligations will be (in the final agreement) before you demonstrate you can fulfill those obligations,” Freier said. The amount of money Hardball and Barry Real Estate can bring to the table far exceeds what was stated on the personal-wealth statements that council received, he added."

Moving Forward

City ready to deal with developers
Seeks talks with Wizards on Harrison Square plan
http://www.fortwayne.com/mld/fortwayne/17137487.htm

From the article:

"Becker said the council approval allows the city to be more aggressive in pursuing final deals with the developers."

"Brody also said Hardball plans to make a trip to Fort Wayne within the next month to talk to potential buyers of luxury suites and businesses interested in buying the naming rights for the stadium. The city and Hardball will split the naming-rights fees up to $300,000, with the city keeping anything above that amount. Those fees will be set aside in a fund dedicated to long-term capital improvements for the stadium."

"Becker said the city plans to meet soon with county and IPFW officials to determine whether there is a desire to create an endowment fund to keep the stadium. The city set aside $1 million that could be put toward that endowment, but the study estimated $2.5 million to $3 million is needed to operate the stadium for 20 more years. The stadium would also need about $2 million in immediate capital repairs, according to the study."

"The demolition of the stadium is estimated to cost $1 million, and Brown said he hopes the city will contribute to that cost."

Council catches breath after vote
Harrison Square decision was still on people’s minds a day after vote
http://www.fortwayne.com/mld/fortwayne/news/local/17138116.htm

From the article:

"While the mayor has his own team of officials to craft the agreements, council members said they’ll do their due diligence by keeping a watchful eye on the process."

"Patrick Stelte, government access coordinator for City TV, which televised Tuesday night’s City Council meeting, said there’s no way to tell for sure how many people watched from their homes. He estimated, however, it was several thousand during the course of the six-hour meeting. Stelte said City Council meetings are the most- watched shows on the station."

"Did you miss the public hearing and discussion on Harrison Square during Tuesday night’s City Council meeting? Here’s when the entire six-hour meeting will be shown on City TV, Comcast Cable channel 58:
10 a.m. Saturday
7 p.m. Sunday
10 a.m. Monday"

Harrison Square advances
http://www.fortwayne.com/mld/journalgazette/news/editorial/17137519.htm

From the article:

"The Tuesday vote wasn’t the last on Harrison Square. By late summer, the council will likely be asked to approve a bond issue of about $46 million, the key piece in the financing puzzle. Council members will still be able to stop the project if they receive information that brings its viability into question."

Save The Dates - Three Local Opportunities

Sound off on stadium
Do you have concerns about the Harrison Square project? Air them at Thursday forum. http://www.fortwayne.com/mld/fortwayne/news/local/16851969.htm

Good Shepherd United Methodist Church
Thursday, March 8, 2007 6:30 pm
"Deputy Mayor Mark Becker will open the meeting with a 20-minute presentation outlining Harrison Square and its proposed financing. Smith will then take comments from the crowd. While he doesn’t expect many questions to be answered Thursday, he said he wants to hear what is on his constitutents’ minds."

IPFW Harrison Square Presentation
IPFW Neff Hall Room 101 Wednesday, March 14, 2007 12:00 noon

*The owners of the Fort Wayne Wizards, Hardball Capital, are expected to attend*

Free for all to attend. Mayor Graham Richard & Deputy Mayor Mark Becker will present plans for Harrison Square, a downtown development initiative. This will be followed by a Q&A/discussion with members of the audience. This is a great opportunity to learn more about the project and have your questions answered firsthand.

Presented by: IPFW College Republicans, Doermer School of Business, America's Renaissance, IPFW Political Science Club, & DFWB blog.

Young Leaders of Northeast Indiana (YLNI) Harrison Square Presentation
Downtown Allen County Public Library Wednesday, March 14, 2007 6:00 pm
A presentation by Mark Becker, Deputy Mayor for the City of Fort Wayne, and Steve Brody, Project Manager for Harrison Square, will begin the evening. Following their presentation, there will be an opportunity to ask questions and share your thoughts with a panel including the owners of the Wizards, Jason Freier of Hardball Capital and Chris Schoen of Barry Real Estate; Mark Pope, Athletic Director of IPFW; Steve Gard, owner of both Oyster Bar locations; and Dan Carmody, President of the Downtown Improvement District.

The Harrison Square discussion is being hosted by the Young Leaders of Northeast Indiana (YLNI) Downtown Development Committee . The goal of the event is to allow the community to learn about the project firsthand and provide an opportunity to ask questions.

New Hotel In Print

New downtown hotel a standout on paper
http://www.fortwayne.com/mld/fortwayne/news/local/16747280.htm

From the article:

"Although the Harrison Square proposal is dependent upon the hotel, Richard said the inverse is not necessarily true. He said the addition of shopping, housing and sports downtown has made building a hotel more attractive, but he does not know whether the hotel is contingent upon the greater project moving forward."

"Leatherman said the hotel developers contacted Hardball so the proposed hotel would be built in a way to best work with the overall project."

Developers propose 250-room hotel
The $47 million project, a key component of Harrison Square, would be privately funded
http://www.fortwayne.com/mld/fortwayne/news/local/16747893.htm

From the article:

"Having only one proposal does not leave the city without any leverage, Leatherman said. If the companies are not flexible, the city could end talks and restart the search for a developer. But Leatherman does not expect that to happen.

“We really don’t have our hands tied to the point it looks like to some people,” he said."

News Release: City Announces Details of Response to Hotel Request for Proposals

City Announces Details of Response to Hotel Request for Proposals
Downtown hotel is key component of Harrison Square development

Fort Wayne, Ind. - The City of Fort Wayne today released more details on the proposal received for the downtown hotel component of the Harrison Square mixed-use development.

Acquest Realty Advisors, Inc. along with White Lodging Services Corporation has submitted a response, which calls for a full-service Marriott-branded hotel.

RFP highlights:
* $47 million private sector development
* 11-story, 250 room hotel tower
* 4,000 square foot junior ballroom
* Two 1,000 square foot meeting rooms
* 4,200 square foot signature restaurant and bar for hotel patrons and residents
* 1,200 square foot specialty coffee shop
* Outdoor pool, year-round spa and fitness center
* Developer supports the overall Harrison Square development and acknowledges the hotel, Grand Wayne Center and mixed-use development along with a baseball stadium would serve as a visitor and local destination place

The City of Fort Wayne now will enter into a negotiation period over the next four to six weeks to work on an agreement with the developer. The City expects to have an agreement in place by the end of the first quarter.

Acquest and White Lodging have hotels in Indianapolis, Chicago, Houston, Louisville, Ky., Austin, Texas, and Trenton, N.J. to name a few. Indiana-based White Lodging and Acquest each bring several years of professional, industry-specific experience to the project.

"We are encouraged to be moving forward as we work to create new catalyst opportunities in downtown Fort Wayne," said Mayor Graham Richard. "This is a great opportunity for our City and region to be a leader in economic development. A centerpiece gathering place that attracts jobs, businesses and residents will leverage existing assets and enhance community vitality."

The hotel would be a priority element in the multifaceted Harrison Square development. Project plans include residential condominiums, street level retail, a new minor league baseball stadium, and a parking garage in the initial $125 million phase.

Taxes generated from the hotel would assist the City in financing the public portion of the Harrison Square development. Harrison Square's first stage calls for a nearly 50/50 split between private and public financing.

Link

Taking A Good Look At Harrison Square

Revitalized Atlanta a blueprint for city
Mixed-use projects inspire $125 million Harrison Square
http://www.fortwayne.com/mld/journalgazette/16566663.htm

Hotel holds the key to downtown plans
http://www.fortwayne.com/mld/journalgazette/16566659.htm

Developer critical of eminent domain
Sided with homeowners in famous case
http://www.fortwayne.com/mld/journalgazette/16566679.htm

Sound financing for development
http://www.fortwayne.com/mld/journalgazette/news/editorial/16566689.htm

We encourage reading each of these articles in their entireties

Does Hardball Capital seem like a good fit for this project?
What do you think about the financing plan being employed?
What's your stance on eminent domain?

Chamber Of Commerce Unanimously Backs Harrison Square

CHAMBER BOARD OF DIRECTORS DEMONSTRATES SUPPORT
FOR DOWNTOWN DEVELOPMENT INITIATIVE

Fort Wayne, IN -- A unanimous show of support for Harrison Square, the City of Fort Wayne’s proposed downtown development initiative, was generated this morning (Tuesday, January 23) at the monthly board meeting of the 2006-2007 Board of Directors of the Greater Fort Wayne Chamber of Commerce.

The Chamber Board of Directors released the following statement:

“We as the Board of Directors of the Greater Fort Wayne Chamber of Commerce strongly support the downtown revitalization project, known as Harrison Square, that has been proposed by Mayor Graham Richard.”

Today’s vote by the Chamber Board of Directors came after a presentation at the board meeting on Harrison Square. The presentation was made by Fort Wayne Mayor Graham Richard along with his deputy mayor, Mark Becker, and Steve Brody, a consultant for the city.

You can read the release for yourself by clicking here