Council nearly balks at backing of TIF bonding (03/15/07)

A request to back bonds with property tax revenue was met with concern and resistance by several members of the county's fiscal body.

Members of the Jay County Council, asked Wednesday to pledge up to $2 million in tax revenue towards repayment of bonds issued by the county redevelopment commission, reluctantly agreed following a sometimes-heated discussion.

Adoption of the resolution insures that the holders of bonds expected to be issued by the redevelopment commission for work in and around a tax increment financing (TIF) district southwest of Portland will be paid.

The amount of the request caught several in attendance at Wednesday's meeting off guard.

"This was a surprise to me. This is the first time I've seen this," said local attorney Brad Burkett, who explained the resolution Wednesday.

Burkett, a member of the redevelopment commission, was filling in for Sue Beesley, an attorney with Bingham-McHale of Indianapolis, who is helping the county in the formation of the TIF district and the resulting bonding process.

The TIF is being created for the Premier Ethanol plant southwest of Portland to help with infrastructure costs at the new plant site - including a share of the cost of extending a sewer line from the plant to the Portland wastewater treatment plant.

The county has agreed to extend the sewer line from a site near the Salamonia River along county road 150 South to the wastewater treatment plant in Portland

Premier will pay the cost for bringing the line from the plant to that site.

While estimates have been set at less than $1 for the county's portion of the cost, Beesley informed the council in a phone conversation that the $2 million figure will help cover any unforeseen costs related to the project.

"I'm very uncomfortable with that (figure)," councilman Gerald Kirby said.

Earlier in the meeting and after much discussion, council members waived the rules and passed on first reading a motion to amend the resolution to $1 million.

If additional money was needed they felt officials could come back to the council with that request.

But after contacting Beesley by phone, council members were reluctantly persuaded to rescind the motion and adopt the resolution as written.

Beesley also told council members that by amending the resolution, that move could delay the bonding process which she plans to offer in April.

Commissioner's president Milo Miller Jr., defending the resolution, said, "We don't know what it will cost to get the bonds."

Beesley said the $2 million will "cover all bases," and will allow the county to sell the bonds faster and at a cheaper interest rate.

"This is unpleasant for several reasons," Kirby said. "There a lot of horrendous assumptions being made and we're being drug in the middle of it."

Concerning the TIF, the council also adopted an ordinance creating a department of economic development within the redevelopment commission and nominated councilman Jim Zimmerman to serve on the three-member board.

Final approval for the members, which will also include the commissioner's representative (Auditor Freda Corwin), and a representative nominated by the Portland City Council, will be made by redevelopment commission members.

Additionally Wednesday night the council agreed that repairs in the Jay Circuit Court room be undertaken as soon as possible.

Brian Hutchison, judge of the circuit court told council members that "the courtroom's falling apart and really needs work."

He said small pieces of plaster are found regularly in some of the areas but added that most of the work is cosmetic.

"Something needs to be done," he said.

"We need to take care of it," said Marilyn Coleman, president of the council.

"The people around this table are committed," Kirby agreed.

Courthouse superintendent Roger McBride, will be asked to make the repairs as soon as possible.

In other business Wednesday night the council received tax abatement requests from:

•Red Gold Geneva LLC, Elwood, for a warehouse at 957 South 200 West, Portland, estimated to cost $2,110,000. That project will add three employees.

•Penn Manufacturing Inc., 355 S. Broadway St., Pennville, on $40,000 for a lathe mill, surface grinder, cut off saw, and welder.

•Minnich Poultry LLC, 8563 East 300 North, Portland, on $615,000 for a new poultry building to house 300,000 laying hens for the table egg market. That addition is expected to add 12 new employees to the current 24 workers.

Those requests will be forwarded to the county's tax abatement advisory board for a recommendation.

Council also approved a transfer of $3,439.80 requested by Corwin from wages for her second deputy to clerical wages for the hiring of a new payroll clerk.

Corwin's request for an additional appropriation of $12,775 for rebinding permanent records was also approved from the county's general fund.[[In-content Ad]]Upgrading the Jay County Jail is becoming a financial concern for sheriff Ray Newton, as he asked members of the Jay County Council Wednesday for more money for maintenance and repairs.

When Newton took office Jan. 1, part of his new job included changes from the State Department of Correction in the way inspections and required repairs are handled.

"I'm having to do a lot of repairs (to meet state inspections)," Newton told council members.

Newton addressed Jay County Commissioners recently about his concerns for additional space at the jail and commissioners are beginning to consider expansion of the West Water Street location.

Commissioner's president Milo Miller Jr. told council members Wednesday night that, "if we're going to start putting money in repairs we may think of expansion. The county's gotta keep movin' forward."

Miller said he has asked Jeff Badders, an representative of SchenkelShultz Architects, Indianapolis, who was involved with the construction of the jail, to look at ways to enlarge the facility.

Discussion has included the purchase of a residence on South Commerce Street, just north of the jail as well as the use of a building on West Main Street that commissioners purchased a few years ago for a possible expansion.

Newton told council members that changes from the DOC now include on-site and documented inspections. In the past those inspections have been completed with a general yes or no checklist.

Newton said he has been cited in several areas and to address those violations, it has involved expenditures.

That department was budgeted $15,000 in maintenance costs for 2007 and Newton said repairs on cell doors took $10,000 of that.

Council approved his request Wednesday night for an additional $15,000.

"I don't know how far $15,000 will take me," Newton said about future repairs.

"But I'm not the only sheriff doing this," he said about the DOC changes throughout the state.

"I don't have a problem with updating the jail," councilman Mike Leonhard said.

"Maintenance is a must," added councilman Gerald Kirby.

Kirby suggested Newton look at maintenance contracts, and Newton said that many of the repairs are handled through those agreements.

"The hardest part is finding somebody to do the repairs," he said.