Apartment abatement request rejected (02/20/07)

A request for tax relief for a potential project in Portland was turned down by a local board Monday night, but that isn't deterring the project's developers.

An employee of Keller Development, Inc., Fort Wayne, said this morning that although the Portland City Council denied a request for a 10-year tax abatement on a proposed apartment complex in the city, the project is still moving forward.

"From our standpoint we're full steam ahead," Bob Mosser, chief financial officer of Keller Development, said this morning.

Keller said there are other ways to provide tax relief for the project, such as a three-year tax abatement granted directly by the state for improvements on personal property and tax credits from the Indiana Housing and Community Development Authority.

Mosser made the original request to the council Feb. 5. Council members asked for time to consider the request and gave Mosser an answer Monday in the form of a unanimous denial.

A request for an abatement on housing has never been granted by the council.

The seven-member council voted unanimously to deny the request after sharing their thoughts.

"I've been contacted by the (Jay County Landlord) association ... and they are very much against it," said council member Glen Bryant, who was the first to speak.

Bill Gibson, also a member of the council, and council president Judy Aker said several people have called them and said they are against the request.

Aker made the motion to deny the request. After the meeting she said, "We just really didn't feel comfortable with it."

She said the council members were afraid that if the request was granted for such a project the council would be obligated to give others such abatements. "We want to be consistent and fair," Aker said.

No audience members commented about the request.

"We do appreciate the opportunity to have addressed the city council" with the request, Mosser said this morning.

The proposed 56-unit complex would be located north of CrownPointe Communities, an assisted living center and condominiums situated between Jay County Hospital and the Wal-Mart Supercenter. Construction costs have been estimated at $4.2 million.

Indiana Code allows tax abatements for housing developments in economic revitalization areas. All of Jay County has been designated as such an area. Tax abatements allow companies to pay taxes on a new investment in increasing increments over several years.

Also Monday, council members:

•Heard Bruce Hosier, mayor of Portland, report that the bonds for the Industrial Park Drive redevelopment commission project were deposited on Feb. 9.

Hosier said the go-ahead for construction to begin was given on Feb. 12. The project includes widening the street to three lanes and relocating a lift station. This is the first project for the commission. Work is expected to begin within the next two weeks, he said this morning.

In a related matter, Hosier said Jay County engineer Dan Watson has agreed to do inspection work for the project at no charge, which will save about $70,000.

•Heard Hosier praise city employees for their hard work in clearing snow away from streets during last week's snowstorm.[[In-content Ad]]