Sep 16, 2026 Carmel Redevelopment Commission

[00:00:04]

WELL, I THINK WE'RE ABOUT READY HERE.

[1. PLEDGE OF ALLEGIANCE ]

>> I PLEDGE OF ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA AND TO THE REPUBLIC FOR WHICH IT STANDS, ONE NATION UNDER GOD, INDIVIDUAL WITH LIBERTY AND JUSTICE FOR ALL.

>> PRESIDENT HAMMER: BEFORE WE MOVE ON TO OUR NEXT AGENDA ITEM, I'D LIKE TO REMIND EVERYONE, OF COURSE THAT THE OTHER DAY WAS THE 25TH ANNIVERSARY OF SEPTEMBER 11TH ATTACKS.

AND WE CAN ALL REMEMBER THE BRAVE FIREMEN AND OTHER FIRST RESPONDERS THAT WERE RUNNING INTO THE BUILDING AS A NEW YORK AND WHEREVER. WE SAW SOMETHING LIKE THAT HAPPENING HERE IN CARMEL NOT LONG AGO WITH THE FLOODS.

WE SAW OUR BRAVE FIRE DEPARTMENT, LADIES AND GENTLEMEN RESCUING RESIDENTS OF OUR FAIR COMMUNITY FROM THE FLOODS, AND WE ARE PROUD OF THEM FOR THAT.

ALSO, PLEASE A SITUATION, DOWN WHERE THE -- NEAR THE BLUE CREEK WOODS OR BLUE WOODS CREEK WAS EVENTUALLY TEARING UP THE BRIDGE OVER HAZEL DELL ROAD WHERE CARMEL'S MAJOR SEWER LINE.

THAT 90% PLUS OF THE RAW SEWAGE IN THIS TOWN, RUNS THROUGH THAT AREA OVER TO THE SEWAGE TREATMENT PLANT THAT WAS THREATENED BY THE FLOODS. AND SO THE -- AGAIN, THE WONDERFUL LADIES AND GENTLEMEN IN THE STREETS DEPARTMENT SAID, HEY, WE GOT TO DO SOMETHING, AND SO THEY DEVISED A METHOD OF PUTTING IN SOME OF THE CONCRETE BAGS TO STEM THE FLOW AWAY FROM THIS MAJOR SEWAGE LINE. TO PREVENT IT FROM BREAKING.

AND SO YOU HEARD THIS STORY ABOUT THE HELICOPTERS BEING THERE. WELL, THEY WERE THE ONES THE NATIONAL GUARD CAME IN AND BLACKHAWK HELICOPTERS, THEY WERE DROPPING THE BAGS INTO THE WATER.

THE PROBLEM WAS THAT SLINGS THAT THEY HAD THAT THEY DROPPED FROM THE HELICOPTER, THEY HAVE FOUR OF THEM AND THEY WERE OVER 100 BAGS THAT HAD TO GO INTO THE WATER.

SO ONCE AGAIN, OUR BRAVE MEMBERS OF OUR CARMEL FIRE DEPARTMENT AND MEMBERS OF OUR STREET DEPARTMENT WERE IN THAT WATER RETRIEVING THOSE SLINGS, SO THAT THE BAGS COULD BE PUT INTO THE WATER AND AS A RESULT OF THEIR BRAVE ACTIONS, THEY SAVED THAT SEWER LINE AND THEY SAVED A WHOLE LOT OF MESS DOWNSTREAM FROM ALL OF THAT. AND SO I JUST WANTED EVERYBODY TO TAKE NOTE OF THAT AND WE SEE TIME AFTER TIME THE GOOD THINGS THAT THESE FOLKS DO AND THAT REDEVELOPMENT COMMISSION WOULD LIKE TO THANK OUR BRAVE. FIRE FOLKS AND STREET FOLKS FOR THEIR ACTIONS DURING THAT TERRIBLE TIME.

[2. APPROVAL OF MINUTES ]

>> SO MOVED. >> PRESIDENT HAMMER: THANK YOU.

IS THERE A SECOND? MOVED AND SECONDED.

ALL IN FAVOR, PLEASE SAY AYE. AYE.

[3.a. Cash Flow Report ]

THE MINUTES ARE APPROVED. THANK YOU VERY MUCH.

WE WILL NOW MOVE ON TO OUR NEXT ITEM, WHICH IS FINANCIAL MATTERS. MR. LI.

THE CASH FLOW REPORT. >> THANK YOU THE COMMISSIONS IN THE BALANCE FOR AUGUST WAS $9,001,903 AND INCLUDING THE RESTRICTED FUNDS IT WAS $240,262,000,269.

[3.b. Approval of Claims ]

>> PRESIDENT HAMMER: MR. LEE. ANY QUESTIONS FOR MR. LEE REGARDING THE CASH FLOW REPORT? NONE WE WILL MOVE ON TO THE APPROVALS OF CLAIMS, ONCE AGAIN, MR. LEE.

>> WE HAVE TWO SETS OF CLAIMS FOR YOU TONIGHT.

THE FIRST ONE FOR NON OPERATING EXPENSES IN THE AMOUNT OF $10,788.97, AND THE SECOND ONE FOR THE 2021 TIFF BOND CLAIMS THE AMOUNT OF $7,500. PLEASE LET ME KNOW IF YOU HAVE

ANY QUESTIONS. >> WE.

QUESTIONS FOR MR. LEE. SEEING NONE, TO THE CHAIR WOULD

ENTERTAIN A MOTION OF APPROVAL. >> MOVE.

>> PRESIDENT HAMMER: THANK YOU. >> ALL IN FAVOR, PLEASE SAY I.

[00:05:01]

IT IS APPROVED. THANK YOU VERY MUCH.

[4. EXECUTIVE DIRECTOR REPORT ]

COME BEFORE US? >> NOT AT THIS TIME.

>> PRESIDENT HAMMER: THANK YOU, SIR WE WILL NOW MOVE ON TO OUR EXECUTIVE DIRECTOR'S REPORT. MR. DIRECTOR.

>> THANK YOU, MR. PRESIDENT, AND WONDERFUL WORDS TO OPEN THE MEETING AND THANK OUR FIRST RESPONDERS STREETS DID A LOT OF WORK FIRE DID A LOT OF WORK. OBVIOUSLY WE CAN'T FORGET OUR ENGINEERING FRIENDS WHO WERE ALSO ON SITE THAT ENTIRE TIME, AND WE CAN'T FORGET OUR UTILITIES FRIENDS THAT WERE ON SITE THAT ENTIRE TIME, AND I THINK THERE WAS ALSO SOME HEROIC ACTIONS BY THE POLICE TO PREVENT PEOPLE FROM DRIVING INTO THE WATER. REDEVELOPMENT STAFF SLEPT PEACEFULLY AT NIGHT. WE DID NOT HELP ON THIS ONE.

WE HELPED EVERYTHING ELSE. WHEN THERE'S A FLOOD, WE ALL HAVE OUR STRENGTHS. OKAY.

YES. ALL RIGHT, LET'S JUST QUICKLY GO THROUGH THE ACTIVITIES OF THIS MONTH, LAST MONTH, AND IN TERMS OF REDEVELOPMENT, RENT IS UP. LEASING OUT.

WINDSOR IS UP. LEASING OUT.

LOTS OF GREAT CONSTRUCTION WORK GOING ON ON ONE ON SQUARE NORTH.

SO SOME PHOTOS ARE COMPLIMENTS OF DAVID WHICH I APPRECIATE.

REALLY LOOKS GOOD. MAGNOLIA IS WORKING ON THEIR FINAL TWO BUILDINGS. THAT IS THAT PHOTO UP THERE IS COMPLIMENTS OF OLD TOWN DESIGN GROUP.

AND USES LEASING OUT PACIFIC SQUARE CONDOS, I THINK THERE'S ONE MORE LEFT THAT HASN'T BEEN SOLD.

LOTS OF GREAT WORK HAPPENING WITH THE GARAGE PREP.

LOOKING REALLY GOOD. BEHIND THE SCENES WORK HAPPENING LOTS OF BEHIND-THE-SCENES WORK HAPPENING ON THREE OTHER THAN OUR IMAGE HERE FROM AUGUST IS OUTDATED.

THE ENTIRE BUILDING AT THE CORNER IS GONE NOW.

>> SO WE WILL BE WORKING TOWARDS STARTING THAT PROJECT.

LOTS OF WORK ON ICON TO PICK UP WE REALLY ARE GOING TO SEE THAT PLAZA TAKE SHAPE OVER THE NEXT FEW MONTHS.

THAT'S GOING TO BE REALLY NEAT. THE CONDOS AT THE AT&T SITE ARE UNDER CONSTRUCTION. IF YOU HAVEN'T LOOKED PAST THAT FENCE, GOOD. DON'T GO INTO CONSTRUCTION ZONES. BUT THIS IS UNDERGROUND PARKING UNDER THAT CONDO BUILDING BEING BUILT.

HUGE PROGRESS GOING ON AT OUR LONG LHASA.

IN THE COURSE OF LAST MONTH, THE NUMBER OF DIGNITARIES AND PEOPLE INVOLVED WITH THE CITY HAVE HAD A CHANCE TO WALK THROUGH THAT BUILDING. COUNCILWOMAN MONNOT WAS THERE AS PART OF THAT TOUR, AND IT'S REALLY COOL TO SEE WHAT'S HAPPENING THERE AS WE MOVE TOWARDS COMPLETION THERE.

HERON CLUB CONTINUES TO BE A DESIGN AS WE'RE LOOKING ON -- WITH -- ON THAT WITH OUR PARKS DEPARTMENT AND OF CONSTRUCTION GOING ON AT THE NORTH END PHASE TWO WITH THAT AGE RESTRICTED COMING UP. WITH THAT, I'M HAPPY TO ANSWER ANY QUESTIONS BUT THAT MIGHT CONCLUDES MY DIRECTIONS REPORT.

>> PRESIDENT HAMMER: THANK YOU. COMMISSIONERS, QUESTIONS FOR THE DIRECTOR ON ANY OF THE ITEMS IN HIS REPORT? SEEING NONE, THEN WE SHALL MOVE ON TO OUR NEXT ACTION ITEM,

[5. COMMITTEE REPORTS ]

ARCHITECTURAL COMMITTEE? >> SECRETARY CRISWELL: NO

[6. OLD BUSINESS ]

ACTIVITY. >> PRESIDENT HAMMER: THANK YOU VERY MUCH WITH THAT, WE WILL NOW MOVE ON.

IS THERE ANY OLD BUSINESS, BEFORE US TODAY?

>> DIRECTOR MESTETSKY: THERE'S NOT ANY FORMAL OLD BUSINESS.

THERE'S NEW BUSINESS, THAT'S A BIT OLD.

[7. NEW BUSINESS]

>> PRESIDENT HAMMER: NO, WELL, WE'LL MOVE ON TO ACTION ITEM NUMBER ONE, WHICH IS RESOLUTION 2026-06 REGARDING THE EXPANSION OF THE HOTEL CARMICAEL. MR. DIRECTOR?

>> DIRECTOR MESTETSKY: OKAY, LET'S JUST START THIS WAY.

FOR EVERYONE WATCHING, EARLIER ACTUALLY AT THE END OF LAST YEAR, I THINK, NO, EARLIER THIS YEAR, THE REDEVELOPMENT COMMISSION STAFF WAS IN FRONT OF THIS COMMISSION AND WE VOTED ON AN EXPANSION AND EXPANSION OF THE CARMICHAEL HOTEL.

SO THE EXPANSION IN TERMS OF WHAT'S ACTUALLY GOING TO GET DONE IS THE SAME MECHANISM TO ACCOMPLISH THAT EXPANSION HAS SHIFTED SLIGHTLY. SO I'M GOING TO TALK BRIEFLY ABOUT WHAT'S BEING BUILT, THAT SLIGHT SHIFT IN THE WAY THIS IS

[00:10:03]

BUT ESSENTIALLY THE ACTION ITEM IN FRONT OF YOU REPRESENTED BY THE RESOLUTION THAT YOU HAVE IS AN APPROVAL OF THE EXPANSION OF THE CARMICHAEL HOTEL. SO AS YOU KNOW, THE CARMICHAEL'S 120 KEYS, 5,000 SQUARE FEET OF RETAIL SPACE AND THE INTENT OF THIS HAS BEEN WRITTEN BY IN OTHER NEWSPAPERS IS TO ADD A NUMBER OF ADDITIONAL ROOMS, MEETING ROOMS TO CONTINUE MAKING THIS -- I MEAN, THIS HOTEL IS ALREADY THE MARKET HOTEL IS A CITY. SO WHY NOT GROW IT, MAKE IT GRANDER, BENEFIT OUR REDEVELOPMENT AREAS? SO WHEN WE TALK ABOUT HOTEL EXPANSION, THERE'S FIVE COMPONENTS. THE CURRENT LOUNGE, THE CURRENT AD-DAJJAL AND JUST HAD AN EXPANSION OF THE BAR AND THE SEATING AND AS PART OF THAT HAS HAPPENED ALREADY BUT AS PART OF THIS EXPANSION PROJECT, THAT IS GOING TO -- THAT'S THE FIRST FLOOR RESTAURANT -- SORRY, FIRST FLOOR LOUNGE IS GOING TO EXPAND INTO A BOARDROOM. OKAY.

THERE'S A PICTURE OF THAT, FORMER JAMES HALEY BOARDROOM WILL BECOME ADDITIONAL SPACE FOR LOUNGE.

THAT'S GOING TO ALLOW THAT -- LOUNGE TO MAKE MORE MONEY, ESSENTIALLY. THE SECOND THING THAT'S HAPPENING IS -- IGNORE THIS. THE SECOND THING THAT'S HAPPENING IS BECAUSE OF THE LOUNGE IS MOVING INTO AN EXISTING BOARDROOM, THAT JAMES IS GOING TO GO INTO THAT BUILDING, INTO THE EXPANDED SPACE.

SO WE'LL CATER BOARDROOM, IT'S NOT LARGER.

IT'S GOING TO CREATE A MORE ABILITY FOR US TO MONETIZE.

EVEN BETTER. THE CURRENT BALLROOM IS CONSTANTLY FILLED WITH USES, AND SO THIS PROVIDES ANOTHER 3637 SQUARE FEET OF PRE-FUNCTION SPACE, AND ADDITIONAL BALLROOM.

IN THEIR -- I MEAN, ALL SORTS OF MEETINGS AND ALL SORTS OF WEDDINGS THAT WE JUST ARE THAT ARE ESSENTIALLY FORECLOSED FROM BECAUSE WE DIDN'T HAVE THIS ADDITIONAL SPACE.

THIS ISN'T NECESSARILY A TWO WEDDINGS AT THE SAME TIME, KIND OF ALWAYS, BUT IT'S LIKE YOU CAN IMAGINE A CEREMONY IN ONE AND THEN THE FOOD IN THE OTHER. BECAUSE YOU HAVE BOTH SPACES, THEY'RE BOTH RENTED OUT PER. AND IT MAKES THAT WEDDING A LOGISTICALLY MUCH MORE POSSIBLE TO HAPPEN.

SO THIS WILL ADD ALL SORTS OF BENEFITS TO THE HOTEL ESSENTIALLY DOUBLING ITS MEETING SPACE CAPACITY.

ADDITION, THERE'S GOING TO BE 60 NEW HOTEL ROOMS, 60 NEW KEYS, WHICH DOUBLES WILL BE LATENT WOULD BE EXECUTIVES.

AND THREE WILL BE PRESIDENTIAL SUITES.

SO THIS IS ADDING TO OUR MIX ALREADY.

WE'LL HAVE 180 ROOMS WHEN ALL IS SAID AND DONE, BECAUSE THAT REALLY PUTS THE HOTEL IN A NICE SPOT IN TERMS OF ECONOMIES OF SCALE. THE BEST WAY TO THINK OF THIS IS YOU ARE GETTING THE LUXURY PRODUCT, SO WHEN YOU'RE WALKING INTO THAT HOTEL THE PERSON WILL OPEN THE DOOR FOR YOU AND STATE 120 ROOMS ARE PAYING FOR THAT PERSON TO OPEN THE DOOR FOR YOU.

AND WHEN THIS IS DONE, 180 ROOMS ARE GOING TO BE PAYING FOR THAT SAME LEVEL EXPERIENCE, SO THE ECONOMIES OF SCALE MAKE THE WHOLE THING WORK, JUST MUCH NICER BECAUSE THERE'S GOING TO BE ADDITIONAL BACK OF HOUSE SUPPORT AS WELL, KITCHEN AND LAUNDRY SPACE TO ESSENTIALLY KEEP COSTS IN HOUSE, OR LESS INSTEAD OF FARMING OUT SOME OF THESE OPERATIONS.

SO EVERYTHING I'VE JUST TALKED ABOUT IS WHAT HAS BEEN PRESENTED IN FRONT OF THIS COMMISSION, WHAT HAS BEEN WRITTEN ABOUT EXTENSIVELY. THE PREVIOUS VERSION THAT WE PRESENTED TO THE COUNCIL OR -- WELL, DISCUSSED AT THE COUNCIL, REALLY PRESENTED TO THAT REDEVELOPMENT COMMISSION BASICALLY INCLUDED A NUMBER OF LEASES BETWEEN THE CURRENT HOTEL AND THE EXPANSION SPACE THAT MADE FOR QUITE CUMBERSOME COMBINATION OF OWNERSHIP AND LEASE RELATIONSHIPS.

THERE WAS A WAY TO MAKE IT ALL EASIER, WHICH IS YOU TAKE THE WHOLE THING, YOU PUT IT ALL INTO ONE GROUP, AND THEN YOU HAVE YOUR OWNERS IN THAT GROUP. SO THAT'S HOW WE'RE LOOKING AT THIS. SO LET ME JUST GO THROUGH THE FOUR "OWNERS/COMPONENTS." FIRST IS THE DOWNTOWN CITY CENTER DEVELOPMENT CORPORATION. THAT'S THE CRC AFFILIATED ENTITY THAT IS THE MEANS BY WHICH WE HAVE CONTROL AND A STAKE IN THIS HOTEL. IT'S STAKE IN THE MUCH LARGER HOTEL IS GOING TO BE 45%. THE STAKE.

[00:15:03]

FIRST IS 14 -- SO WHAT THAT IS, IS AGAIN, AS WE ENVISIONED THE HOTEL CARMICHAEL AND IS EXPANDING INTO A BUILDING, OF AR AND YOU'RE STANDING IN THE PLAZA, THAT RENT BUILDING EXISTS TODAY. IT'S BUILT.

THE INSIDE OF IT NEEDS WORK. TO BUILD THESE ROOMS OUT.

BUT THE FACADE IS FULLY BUILT. SO THIS ESSENTIALLY IS THE COST OF THE ASSET BEING CONTRIBUTED TO THE DEAL BY THE OWNER OF THE WREN BUILDING. WREN BOUTIQUE HOTEL LLC.

ANOTHER THING IS HAPPENING IS OUR LONG TIME MANAGER OF THE HOTEL IS COMING IN WITH A 2 MILLION-DOLLAR EQUITY INVESTMENT. THIS PROVIDES A NUMBER OF BENEFITS, INCLUDING AN OUTSIDE EVALUATION ABOUT WITHOUT THE NEED TO ACTUALLY TAKE THIS TO FULL MARKET KIND OF THING, AND THERE'S PROBABLY NO ONE BETTER TO TEST THE MARKET THAN A WORLD CLASS LIKE MANAGER OF THE YEAR MANAGER OF LUXURY PRODUCT THAT ACTUALLY WANTS TO BUY IN. THAT'S A GOOD TEST OF VALUATION.

SO THIS IS ALL FAIRLY CUMBERSOME, AND THERE'S PROBABLY AN OVERALL QUESTION OF WHAT'S THE BIG POINT? SO THIS IS THE SLIDE ANSWERING THE QUESTION OF WHAT'S THE BIG POINT? TODAY, THE CITY'S VALUE IN THE CURRENT 122 EXISTING KEY HOTEL IS ABOUT $21 MILLION.

THE EXPANSION WE'RE TALKING ABOUT IS THERE'S NOT A SINGLE DOLLAR COMING FROM THIS CRC OR THE CITY.

THIS IS ESSENTIALLY NEW LOANS AND EXISTING CASH HOTEL, BUT ALSO MOSTLY NEW LOANS BEING TAKEN OUT IN ORDER AND NEW EQUITY BEING CONTRIBUTED. ALL NOT BY THE CRC.

SO WITHOUT ANY NEW MONEY, FROM THE CRC, JUST BY ALLOWING OUR PARTNER PEPKOR TO MOVE FORWARD WITH THIS EXPANSION, THE VALUE OF OUR STAKE IS GOING TO GROW BY ALMOST $5 MILLION WITHOUT US SPITTING IN A SINGLE DOLLAR. THAT'S THE BIG PICTURE, BECAUSE THAT'S THE BIG POINT OF WHAT'S HAPPENING HERE.

TO BUILD AN INITIAL HOTEL CARMICHAEL, THE CITY PUT IN SOME ASSETS TO GET THIS EXPANSION AND TO GET ANOTHER $5 MILLION OF EQUITY, THAT CITY'S PUTTING IN NOTHING.

WE'RE JUST ALLOWING THIS TRANSACTION TO OCCUR.

THERE'S TWO OTHER REALLY BIG POINTS THAT I NEED TO NOTE.

LET'S START WITH THIS ONE. FIRST, ASTUTE LISTENERS MIGHT SAY, HEY, ISN'T HOTEL LAND A PEDCOR ENTITY? AND ISN'T BOUTIQUE HOTEL TOGETHER A.

ENTITY IN THE OVERALL STRUCTURE AND OVERALL PROJECT? ORDER FOR ANY VOTE ON ANY MATERIAL ISSUE OR ANY DECISION TO BE MADE WITH REGARD TO THE MANAGEMENT AND THE OPERATIONS OF THIS HOTEL IN PERPETUITY, 66% OF THE EQUITY WILL NEED TO VOTE IN THE AFFIRMATIVE.

THAT MEANS THAT CITY'S STAKE WILL ALWAYS HAVE TO BE CONSIDERED FOR ANY VOTE. THERE IS NO OPPORTUNITY FOR SOMEONE TO SAY, CITY OWNS LESS THAN 50%, CITY DOESN'T GET CONTROL. CITY WILL MAINTAIN THEIR CONTROL AND THEIR VETO RIGHTS OVER ANY DECISION, EVEN THOUGH WE WON'T HAVE MAJORITY OWNERSHIP. THAT'S NOT NORMAL IN A BUSINESS SENSE, BUT IT'S QUITE NORMAL FOR PROTECTING THE TAXPAYERS HERE.

SO THAT'S .1. .2 IS PROBABLY EQUALLY IMPORTANT. THE NEW HOTEL IS GOING TO BE THE NEW EXPANSION. THE RESULT OF THE EXPANSION AND THE EXISTING HOTEL IS GOING TO RESULT IN THE CAPITAL STACK THAT ESSENTIALLY LOOKED LIKE THIS. VERSUS A SENIOR MARKET.

THIS IS ESSENTIALLY THE FACILITY THAT THE CRC HAD ITS INITIAL GRANT AGREEMENT, THAT FUNCTIONED KIND OF LIKE A GUARANTEE.

RELATED TO THIS LOAN. WE ALSO HAD $3.8 MILLION LOAN.

THE CONSTRUCTION FACILITY IS FACILITY SEPARATE WITH THE CRC HAVING NO OBLIGATION RELATED TO IT, NO GUARANTEE RELATED TO IT.

THE BIG THING THAT'S HAPPENING, THOUGH, IS THE SENIOR MORTGAGE FOR WHICH WE WERE ESSENTIALLY FULLY GUARANTEEING OUR GUARANTEE DROPS FROM $23 MILLION TO 40% OF THE OUTSTANDING PRINCIPAL, WHICH AT THE, MOMENT IS 10 MILLION BUCKS.

SO WE ESSENTIALLY THE HOTEL GROWS FROM 120 ROOMS TO 180 ROOMS. IT DOUBLES IN MEETING SPACE.

EQUITY IN THE HOTEL GROWS BY $5 MILLION, AND OUR OBLIGATION

[00:20:04]

IS THESE ARE THE KIND OF STUFF THAT THAT THIS IS THE KIND OF STUFF THAT IN ANY OTHER SETTING WOULD BE TOTALLY SECRET.

BECAUSE THIS IS PUBLIC-PRIVATE PARTNERSHIP AND BECAUSE PEDCOR HAS BEEN A LONG-TIME PARTNER, WE ARE SHOWING THESE NUMBERS BECAUSE THIS IS PRETTY SELF-EXPLANATORY, BUT I'LL WALK THROUGH IT. SO 2026, THIS IS THE PROJECTED CASH FLOW OF THE HOTEL. SO LET'S TALK ABOUT WHAT'S HAPPENING HERE. 2026, IF THIS BODY ALLOWS AND VOTES IN THE AFFIRMATIVE, UNDER CONSTRUCTION IN 2026 UNER CONSTRUCTION, BASICALLY ALL OF 2027.

IN 2028, WE ARE NOW RECEIVING FUNDS FROM THE FULLY OPERATING EXPANDED HOTEL. IN 2028, WE'RE PROBABLY DEALING WITH SOME INTEREST ONLY REPAYMENT, NOT YET PRINCIPAL REPAYMENTS, WHICH IS WHY THERE'S THIS GIANT 100% INCREASE IN REVENUE. THAT'S NICE.

BUT LET'S JUST GET BACK TO NORMAL, PRINCIPAL REPAYMENT, PRINCIPAL AND INTEREST REPAYMENT ON THE CONSTRUCTION LOAN FOR 2029 WILL FULLY OPERATIONAL. THE HOTEL IS MAKING EXTRA 50% REVENUE. THE CITY GETS THE BENEFIT OF THAT WITHOUT A DOLLAR BEING PUT IN.

THAT IS IN ESSENCE THE SUMMARY OF THE EXPANSION AND THE SLIGHTLY UPDATED TERMS. WE'VE BEEN DISCUSSING THIS FOR QUITE A WHILE. OUR ATTORNEYS HAVE BEEN INVOLVED FOR REALLY THIS HAS BEEN A MULTI-YEAR EFFORT.

I DID -- THIS CONCLUDES KIND OF MY INTRODUCTORY COMMENTS.

BUT I DID WANT CHUCK TO ALSO SAY A FEW WORDS BECAUSE WE'VE HAD CHUCK AND DAVE AND LABELED IN ALL OF THESE CONVERSATIONS.

DAVE BOWERS, OUR VICE PRESIDENT, IS CURRENTLY ON A PLANE THAT HAD TO CHANGE FLIGHT TIME, SO WE DID NOT ASK THEM TO CALL US OVER THE ATLANTIC OCEAN OR WHATEVER SO WITH THAT, --

>> PRESIDENT HAMMER: HENRY SAID ALMOST EVERYTHING I WANTED TO COVER FOR AS WE SAID VICE PRESIDENT BOWERS AND I WON'T BE ABLE TO INVOLVE IN THE REVIEW OF ALL THE DOCUMENTS AND THE PROCESS WITH PEDCOR, AND LORI HERE FROM -- IF THERE ARE ANY QUESTIONS. THIS IS OBVIOUSLY A GOOD DEAL FOR THE CITY AND THE COMMUNITY AND EXPANDED HOTEL NEXT, BETTER ACCESS FOR THE PALLADIUM AND OTHER EVENTS GOING ON IN CARMEL AS WELL. THE HIGH OCCUPANCY OF THE HOTEL CONVINCES ME THAT THIS KIND OF EXPANSION IS JUSTIFIABLE, IF WE HAD LOW OCCUPANCY, YOU'D SAY, G, WHO WANTS TO ADD ROOMS? BUT WE HAVE VERY HIGH OCCUPANCY AND THE PROJECTIONS THAT THAT ARE USED ARE CONSERVATIVE GOING FORWARD I WANTED TO HIGHLIGHT TWO THINGS, HENRY ALSO SAID, WHICH IS THAT OBLIGATION AS A CITY GOES DOWN WHICH IS SOMETHING LESS PLEASANT, HAS BEEN ON FOR ALL THE YEARS I'VE KNOWN HIM.

AND I THINK IT'S ALSO PARTICULARLY SIGNIFICANT AND HAD WE DID MENTION THIS, THAT THE OPERATOR IS PUTTING EQUITY IN ITS. AND IN OTHER WORDS, THEY BELIEVE THAT THIS IS SUCCESSFUL ENOUGH THAT THEY'RE WILLING TO RISK THEIR MONEY ON IT. SO MY FEELING IS IT EVERYTHING THAT HENRY SAID THAT THIS REALLY IS A GOOD DEAL, FOR THE COMMUNITY AND THE CITY. THAT'S ALL I'LL SAY.

>> DIRECTOR MESTETSKY: SORRY, CAN I SAY ONE MORE THING.

THIS CONVERSATION, OBVIOUSLY IT'S HAVING HAPPENING AT THE REDEVELOPMENT COMMISSION BECAUSE THERE IS NOT A COUNCIL VOTE ON THIS. IT'S JUST A REDEVELOPMENT COMMISSION VOTE. I WILL BE IN FRONT OF COUNCIL ON MONDAY WITH REPORTING ON THIS AS PART OF THE STANDARD CRC

PRESENTATION AS WELL. >> COMMISSIONER SCHALLIOL: WE DO HAVE A REPRESENTATIVE HERE. IS THERE ANYTHING YOU WANTED TO ADD? GOT IT.

THANK YOU. VERY GOOD WE APPRECIATE YOU

>> PRESIDENT HAMMER: COMMISSION ERS, QUESTION?

>> THANKS FOR THAT TRANSPARENCY. I KNOW THIS STRUCTURE COULD BE COMPLICATED TO SOME, SO APPRECIATIVE OF THE TRANSPARENCY. I'VE BEEN FORTUNATE TO ATTEND SEVERAL EVENTS AT THE HOTEL. I LIVE FIVE MINUTES FROM THERE SO I DON'T STAY THERE. BUT ATTENDING THE EVENTS I'VE LEFT EXTREMELY EXCITED FROM THE OPPORTUNITY OF GROWTH, ESPECIALLY THAT CORRIDOR. SO YEAH.

>> PRESIDENT HAMMER: VERY GOOD. COMMISSIONERS, ANY OTHER

[00:25:02]

QUESTIONS? >> YEAH.

FIRST OF ALL, THANK YOU AND EVERYONE IN THIS ROOM, AND THANK YOU FOR THE HARD WORK. YOU TOO.

I KNOW YOU WERE BEATING THE DRUM ABOUT GETTING OUR INTEREST DOWN ON THAT, SO I APPRECIATE THAT AND ESPECIALLY WHEN IT COMES TO TAXPAYER DOLLARS. SO THE GUARANTEE BEING DRAFTED 10 MILLION IS A WIN FOR ME, AS A COUNCIL, AS THE COUNCIL REPRESENTATIVE FOR THE CRC I FEEL VERY CONFIDENT, COMFORTABLE IN MAKING THAT YES, VOTE FOR THIS REASON.

WE ARE PROTECTING TAXPAYER DOLLARS.

SO I WANT TO THANK YOU FOR THAT. AND I WISH THE CARMEL CONTINUED SUCCESS AND I LOOK FORWARD TO SOMEDAY NO OFFENSE, BUT SOMEDAY YOU GUYS WILL QUIET FROM US. [LAUGHTER] AND WE CAN HAVE OUR MONEY BACK. [LAUGHTER] COULD NOT NOT SAY IT. [LAUGHTER] IT SURE DOES. IT SURE DOES.

SO THANK YOU SO MUCH FOR THAT. >> PRESIDENT HAMMER: THANK YOU.

COMMISSIONERS, ANY OTHER THOUGHTS OR COMMENTS? IF NOT, IF IT'S YOUR PLEASURE TO CHAIR WILL ENTERTAIN A MOTION OF APPROVAL. IT'S BEEN MOVED AND SECONDED.

ALL IN FAVOR PLEASE SAY AYE. >> I.

>> PRESIDENT HAMMER: ANY OPPOSED, AT THE SAME SIDE? IT IS APPROVED. THANK YOU VERY MUCH, COMMISSIONERS. THANK YOU, AND I WANT TO THANK THE STAFF BECAUSE I KNOW THIS SPENT A LOT OF TIME ON THIS AND LOOKING FORWARD TO THE CONTINUED SUCCESS.

[8. OTHER BUSINESS ]

>> DIRECTOR MESTETSKY: NOT THIS AFTERNOON.

HOPEFULLY WE'LL HAVE SOME ACTION ITEMS IN THE NEXT FEW MONTHS.

[9. EXECUTION OF DOCUMENTS ]

>> PRESIDENT HAMMER: OKAY, THREE GOOD.

LET'S SEE. NEXT REGULAR MEETING WILL BE HERE ON OCTOBER 21ST. IN THE CITY COUNCIL CHAMBERS AT 4:00 PM. SO THAT WITHOUT OBJECTION, I'M GOING TO DECLARE US TO BE IN A GERMAN PENDING THE EXECUTION OF DOCUMENTS. WE ARE

* This transcript was compiled from uncorrected Closed Captioning.