Council cool on TIF idea (09/14/06)

Jay County Council members want to know more before they decide to create a Tax Increment Financing (TIF) district for the new Premier Ethanol LLC plant.

Following an at-times heated discussion about creating a district for the new operation, council members Wednesday night tabled a decision on the request.

In a letter to Jay County Commissioners dated in July and presented by Jay County Economic Development executive director, Bob Quadrozzi, Premier officials requested the TIF to provide on-site infrastructure to the nearly 180-acre site southwest of Portland.

Commissioners, who have suggested using TIF revenue to help pay for at least some of the costs of a regional sewage district being formed southwest of Portland, then agreed to meet with county council members to discuss the possibility of forming the district through an interlocal agreement with Portland, since the city currently has a TIF in place.

That move might save the county time and money, commissioners agreed at that time.

But several members of the council balked Wednesday at giving up control of a TIF district, if established.

At Wednesday's council meeting, Sue Beesley, an attorney with Bingham-McHale LLP, Indianapolis, told the council that such interlocal agreements are permitted by the state.

"In fact Clay County and Dubois County are doing it right now," she said.

Also speaking to the council was financial consultant, Greg Guerrettaz, of the FSG Corp., Indianapolis.

Both worked with Portland in establishing the TIF district earlier this year.

Beesley explained that the county could appoint representatives to an interlocal board, but would not have a vote on decisions about how the money would be used.

As council members discussed the county's loss of control, council president Marilyn Coleman said, "I would prefer to have our own. I prefer it be by the county."

"I'm with Marilyn," said councilman Jim Zimmerman. "I have nothing against the (Portland Redevelopment Commission) board. I just want the county to have it's own."

Commissioner's president Milo Miller Jr., explained to council members that the state has ordered the county to correct a sewage problem in the Foxfire addition, near the site of the ethanol plant, and if a TIF would help Premier to install a sewer line to its site, that would also help the county with its costs of extending a sewer line to that addition.

"Premier's coming in ... softened the blow," Miller said about the cost that could be as much as $1.6 million to the county.

"I'd like to know the total of dollars that are going to be spent (by Premier)," Zimmerman said.

Guerrettaz told the council that through a TIF, taxes captured on real property could generate $460,000 per year and on personal property, as much as $250,000 annually.

If the county decides to put a TIF in place, it must be done by March 1 to capture 2006 taxes due in May and November of 2007, he explained.

"If you decide, we will need to act quickly," he continued, "March 1 will be here before you know it."

"They came to us, let them pay for it," said councilman Jack Houck about Premier's request. "When they first came to us they said they didn't need a thing from us. Now this comes up all of a sudden."

"I hate to think what it's going to cost these people (in the Foxfire addition and other nearby homes) to hook into a sewer," Miller said about the county funding the sewage project alone.

"The county doesn't have to build a sewage treatment plant," Houck said, "they have to stop the pollution."

A county redevelopment commission, which governs a TIF district, has the authority to issue bonds to finance large project. Some have estimated the cost of extending city sewers to the Premier site and the Foxfire area homes at $3.5 to $4 million

"Floating those kinds of bonds for a sewage system to Premier seems like a big leap to me," said councilman Gerald Kirby about projected costs of $3.5 to $4 million for infrastructure.

"I'd like to sit down with these people and see what they need," Houck said.

Commissioner Faron Parr agreed. "I'd like to set up a meeting with the ethanol people."

"The state's gonna stay on us like they are," said commissioner Gary Theurer about the Foxfire problem. "They're not going to go away."

Coleman was asked to contact Premier officials and set up a meeting to have some of the council's questions answered before making a decision.

In other business Wednesday night the council adopted the budget for 2007 as well as the salary ordinance that provides an average 3 percent increase in pay for all county employees.

Also Wednesday night the council approved additional appropriations for $1,950 for prosecutor witness fees; $70,000 for the highway department for gas, oil and lubricants; $3,000 and $1,024 to the Jay County Sheriff's department for deputy overtime; and $38,000 for contractual services for the demolition of the building north of the courthouse on West Walnut Street.

A request from the surveyor for $2,000 for location of cornerstones was tabled because no one was present from that department to ask for the additional money.

The salary ordinance for the county treasurer's position was amended to allow first deputy, Sandy Cadwallader, to be paid as treasurer.

Cadwallader is serving as county treasurer following the death of Frances "Fran" Milthaler, who died in an auto accident Sunday in Orange County. Milthaler's replacement is expected to be made within 30 days of her death.[[In-content Ad]]It looks like the county's request for a grant to help build Dunkirk a new fire station/EMS base can be submitted by the Sept. 22 deadline.

Jay County Council members voted 5-1 Wednesday night to provide $50,000 in matching grant money to seek a $500,000 grant from the state for the construction.

Councilman Jack Houck voted against the request.

Jay County has been asked to serve as the grant applicant since Dunkirk is not eligible to apply because of the incomplete Quincy Place housing project.

"Both places are absolute trash," councilman Gerald Kirby said about the condition of the fire station as well as the JEMS base in Dunkirk.

Ami Davidson, director of Jay County Community Development, addressed council members and explained the county's involvement in the project.

"The county did something similar in Salamonia," Kirby said about that community's sewer project. "They are paying it back through EDIT monies. I hope Dunkirk can do the same."

Councilman Jack Houck questioned when the project was first brought to Davidson's attention and why a $50,000 planning grant was not sought.

"They came to me last August. It was December or January before we began to talk," she said, explaining that the state then changed its policy during the summer for granting such requests, and a Jan. 1 deadline was imposed for receiving the $500,000 grant. After that date only $350,000 will be allowed for assisting such projects.

"They're not asking for a handout," Kirby said of the Dunkirk request. "They just need to be fronted."

There has been no public discussion between county and Dunkirk officials regarding repyament of the $50,000 amount.

Since the additional appropriation was not put on the agenda for Wednesday's meeting, and cannot be formally approved until the October meeting, council members voted by consensus to approve the request.

"If there's a consensus I'm certainly in favor," Kirby said, "with the provision they pay it back."