Friday, March 21, 2014

City Pays Generously, If Surreptitiously, For Parcel

Just days ago, I blogged about the curious relationship between the City of Indianapolis and the Circle Area CDC (see "What Is True Role of Circle Area CDC?").  I mentioned the creation by the CA CDC of a company known as CAC 1440, LLC, where the CA CDC was the sole member of the LLC.  From CDC minutes of a meeting on 9/20/13, the only purpose for setting up the LLC was to buy a property at 1440 N. Meridian Street.  The City would provide the money.  This parcel is the preferred re-location site for the Indianapolis Red Cross; moving this organization is the final domino in the complex Mass Ave TIF and Fire Headquarters relocation deal.

I was unable to locate any Sales Disclosure Form for this property at that time.  Many thanks to Marion County Assessor, Joe O'Connor, and especially Director of Data Analysis, Brenda Erbse, for answering my many questions quickly and pleasantly.

It seems that the last two weeks of September 2013, were busy ones.  The CDC voted to establish the LLC on the 20th.  The LLC was established that same day.  And, it seems from an the Sales Disclosure Form available on the DLGF website, the property was purchased on the 30th, just in the nick of time, by the LLC.

The addresses 1440 and 1500 N. Meridian have been bundled into 1510 N. Meridian Street.  The former owner is William G. Mays.  The gross Assessed Value of the property is noted on the DLGF website as $735,600.

The purchase price from our generous folks at City Hall?  $1,600,000.

It seems the complexity karma that afflicts the Circle Area CDC, also afflicts this property.

Another Sales Disclosure Form from the DLGF, shows that Mays bought a bundle of 8 parcels from a 2010 Sheriff's Tax Sale.  The price tag for that bundle was $2,192,000.  Four of the 8 parcels are included in the purchase by CAC 1440, LLC.  The remaining 4 tax sale parcels are not part of the CAC 1440, LLC, purchase.  Property at 1516 and 1518 N. Illinois Street, and 1423 and 1450 N. Pennsylvania Street are still shown on the Marion County Assessor's website as being owned by Mays.  Those 4 properties have a combined AV of $1,086,300.

Again, I raise the questions.  What utility does the City find in using the Circle Area CDC as a middleman time and time again?  What could possibly justify moving money from the City through the CDC and to a nested LLC for the purchase of a property the City was going to buy for the Red Cross anyway?


Anonymous said...

Is this William Mays from Mays Chemical?

Btw - Did anybody bother to proofread his bio? "Marion" College?

Had Enough Indy? said...

I think he is the same person as the property owner. I can't be 100% sure, though.