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Setting aside 17% of Carmel’s municipal budget for debt service is fine until it isn’t. Carmel is out of unincorporated space to annex. We’ll find out in the coming years if its infrastructure investments lead to enough population density to pay for infrastructure maintenance and repair. It often costs more to rehabilitate and rebuild old roads than it does to build them in the first place. If it turns out that Carmel can’t make debt service payments faster than it has to pay for the maintenance and repair of the infrastructure for which Carmel went into so much debt in the first place, that could pose serious problems.
I think that Carmel’s future hinges on the US-31 corridor. In the years since COVID, the “North/Carmel” office market has lost roughly four times the amount of occupied office space than Downtown Indianapolis (Cushman & Wakefield). Office buildings are taxed at a higher rate than residential buildings; the abandonment of suburban office space could turn out could be a big issue for Carmel the second that office building owners stop paying taxes or otherwise become delinquent. However, if Carmel is successful in developing high density housing the parking lots of at-risk office buildings, Carmel can come out on top of its debt in a huge way.
It would stand to help Carmel if The State adjusted its road funding formula based on lane miles, as the Hogsett administration has proposed. Additionally, 2020’s HB1113 is the very definition of stupid legislation. I’m a Carmel skeptic and only time will tell who is right, but legislation like HB1113 is completely backwards. It’s just another bill passed by Indiana’s General Assembly that needlessly kneecaps a municipality.
I’m not sure if any of these new folks will ever catch up. Brainard has what, a three car lead?