The IU Public Policy Institute recently released a comprehensive analysis on the impact public investment and redevelopment into Carmel’s central core has had on the city and it’s taxpayers.
According to an IU press release, the analysis reached the conclusion that due to more private investment, more jobs, less vacant land, more employed persons and more taxable assessed value, Carmel is considered one of the country’s best suburbs.
“The creation of public spaces that contribute to a community’s overall well-being, both economically and socially, can transform a city’s image and density,” study co-author Drew Klacik said in a release. “And while it’s good public policy from both a cost and a revenue perspective, it isn’t easy.”
However, the Public Policy Institute report acknowledges the project did disagree with the development process and concern regarding tax increment financing as a funding source.
The study states Carmel can teach many lessons to other cities, counties and state government policy makers who are considering similar policies.
The institute sought to document the broader ways positive redevelopment was pursued and achieved.
“The development, design and implementation process can affect the volume and intensity of support for, as well as opposition to, any project with public investment,” Klacik said. “The more ambitious and long-term the project is, the more important that process becomes.”
After the approval of a comprehensive plan by the Carmel Plan Commission in 1997, the city decided to avoid focusing on the creation of retail centers and office. Instead, they made downtown a gathering place for visitors and residents to Carmel.
“We looked at the sprawl taking place in other suburbs and decided we wanted to go in a different direction,” said Carmel Mayor Jim Brainard. “Rather than continue to spend millions of dollars on new roads, fire stations and other public services, we chose to invest in the underdeveloped areas of our central core, where we already had police and fire coverage, schools, and utilities. We were also confident that this investment in the city’s future gave us a better chance at attracting private investment.”
The institute also found, due to the development style, the city will spend less to maintain infrastructure and will reduce the cost of public safety.
Other findings from the institute are the investment resulted in $110 million in profit within Hamilton County, more than 3,300 jobs and more than $150 million in new homes around the City Center.
The institute offered the following advice to other government officials: Visionart leaders are vulnerable to claims that things are good enough, rewards associated with being creative can lead to a quick rise in national rankings and it’s difficult to determine when to reduce public involvement and the risks are massive with too-early withdrawal.
Cody Thompson
