July 23, 2014 at 2:10 p.m.
Councile gets update on TIF (02/22/07)
Jay County Council
By By MARY ANN LEWIS-
As Jay County officials move toward establishing a tax increment financing (TIF) district for Premier Ethanol LLC, Jay County Council members were updated in a special meeting Wednesday at noon about the role they will play as the process moves along.
"We want to let you know where we are," Sue Beesley, attorney with Bingham McHale LLP, told council members, "since there are a couple of scenarios that you will be involved in."
Beesley said the Jay County Redevelopment Commission is still in the process of setting up the area, but "we're not trying to sneak up on anyone. We just want you to know what's going on."
"We're trying to design this to minimize the risk to the county, Broin, and the taxpayer," Greg Guerrettaz of Financial Solutions Group, Inc., Indianapolis, added.
Beesley said Jay County is "ahead of the game" in establishing the TIF since the city of Portland has created a TIF as well to help with redevelopment on Portland's west side.
"You have a track record," she said.
"We have about the best product we can put together," Guerrettaz said of the county's TIF plan, "and you will be a piece of this financing project."
Establishing the TIF district was approved by Jay County Commissioners as well as the council members a few months ago after Premier Ethanol officials requested the district be created to help pay for infrastructure at the ethanol production site.
The county TIF includes 191 acres surrounding the site along county road 200 West, near the Meshberger Brothers Stone Corporation quarry.
Taxes on the rising assessed valuation in the TIF district is captured and used by the redevelopment commission to improve infrastructure and make other improvements within the district. Some of the money will be used to reimburse Premier Ethanol for money it has already spent, or will spend, on infrastructure.
On hand to answer any questions from the council members Wednesday were also several officials from Broin Companies, parent company of the Premier Ethanol production facility.
Bob Berens, director of site development for Broin/Premier, said construction is about one-half completed.
"All is going as projected," he told the council. "It's very promising."
He said company officials are looking at October as a completion date "and we hope to have it turn-key soon after."
Following the meeting with TIF and Broin officials, council members met in regular session. The council's monthly meeting was postponed on Feb. 14 because of the snow storm.
Council members approved several additional appropriations including:
•A request from Sheriff Ray Newton for $35,665.81 for sheriff wages, $1,352 for sheriff chief deputy wages, $4,970 sheriff investigator wages, $7,710.64 for a sheriff department vehicle for use by the drug task force, and $2,759.70 for sheriff department overtime. The amount for sheriff wages is the difference between the previously budgeted salary and a contract agreed to by Newton prior to taking office. Newton has agreed to not keep surplus prisoner meal money as allowed by the state. His salary for this year is $79,000, about $21,000 less than former Sheriff Todd Penrod was making in salary and meal money.
•A request from Al Confer, a member of the Jay County Visitor and Tourism Bureau, for $50,018.69 for the 2007 budget.
•$150,000 from county engineer Dan Watson for the reconstruction of bridge 72, located on county road 350 North west of Pennville.
•A request from Jay County Prosecutor Bob Clamme for $978 for office equipment.
Clamme said the cost would be paid from his department's deferral fund.
In other business Wednesday the council approved putting $282,503.77 into the county's rainy day fund. Included in that fund are county general, health, and Jay Emergency Medical Service.
The money represents 50 percent of funds that were unused by various departments in 2006.
Council members also discussed compliance of benefits inspections for four county businesses and expressed concern about GFT Corporation in Pennville, which produces high-tech insulation products for high asset value applications.
Council member Gerald Kirby said the company has not shown the expected growth that is required when the county provides a tax abatement.
"I'm concerned. Maybe we should take a look at that," Kirby said. "Maybe we should take the abatement away."
A tax abatement is a phasing-in of new taxes that are due on new investment by industrial or agricultural businesses, however, to keep the abatement, a company must show growth.
GFT, started by Phillip Griffith in 2002, was given a five-year abatement on $600,000 worth of equipment and was expected to have as many as 20 employees.
The company also received a $250,000 state technology development grant in July 2005.[[In-content Ad]]
"We want to let you know where we are," Sue Beesley, attorney with Bingham McHale LLP, told council members, "since there are a couple of scenarios that you will be involved in."
Beesley said the Jay County Redevelopment Commission is still in the process of setting up the area, but "we're not trying to sneak up on anyone. We just want you to know what's going on."
"We're trying to design this to minimize the risk to the county, Broin, and the taxpayer," Greg Guerrettaz of Financial Solutions Group, Inc., Indianapolis, added.
Beesley said Jay County is "ahead of the game" in establishing the TIF since the city of Portland has created a TIF as well to help with redevelopment on Portland's west side.
"You have a track record," she said.
"We have about the best product we can put together," Guerrettaz said of the county's TIF plan, "and you will be a piece of this financing project."
Establishing the TIF district was approved by Jay County Commissioners as well as the council members a few months ago after Premier Ethanol officials requested the district be created to help pay for infrastructure at the ethanol production site.
The county TIF includes 191 acres surrounding the site along county road 200 West, near the Meshberger Brothers Stone Corporation quarry.
Taxes on the rising assessed valuation in the TIF district is captured and used by the redevelopment commission to improve infrastructure and make other improvements within the district. Some of the money will be used to reimburse Premier Ethanol for money it has already spent, or will spend, on infrastructure.
On hand to answer any questions from the council members Wednesday were also several officials from Broin Companies, parent company of the Premier Ethanol production facility.
Bob Berens, director of site development for Broin/Premier, said construction is about one-half completed.
"All is going as projected," he told the council. "It's very promising."
He said company officials are looking at October as a completion date "and we hope to have it turn-key soon after."
Following the meeting with TIF and Broin officials, council members met in regular session. The council's monthly meeting was postponed on Feb. 14 because of the snow storm.
Council members approved several additional appropriations including:
•A request from Sheriff Ray Newton for $35,665.81 for sheriff wages, $1,352 for sheriff chief deputy wages, $4,970 sheriff investigator wages, $7,710.64 for a sheriff department vehicle for use by the drug task force, and $2,759.70 for sheriff department overtime. The amount for sheriff wages is the difference between the previously budgeted salary and a contract agreed to by Newton prior to taking office. Newton has agreed to not keep surplus prisoner meal money as allowed by the state. His salary for this year is $79,000, about $21,000 less than former Sheriff Todd Penrod was making in salary and meal money.
•A request from Al Confer, a member of the Jay County Visitor and Tourism Bureau, for $50,018.69 for the 2007 budget.
•$150,000 from county engineer Dan Watson for the reconstruction of bridge 72, located on county road 350 North west of Pennville.
•A request from Jay County Prosecutor Bob Clamme for $978 for office equipment.
Clamme said the cost would be paid from his department's deferral fund.
In other business Wednesday the council approved putting $282,503.77 into the county's rainy day fund. Included in that fund are county general, health, and Jay Emergency Medical Service.
The money represents 50 percent of funds that were unused by various departments in 2006.
Council members also discussed compliance of benefits inspections for four county businesses and expressed concern about GFT Corporation in Pennville, which produces high-tech insulation products for high asset value applications.
Council member Gerald Kirby said the company has not shown the expected growth that is required when the county provides a tax abatement.
"I'm concerned. Maybe we should take a look at that," Kirby said. "Maybe we should take the abatement away."
A tax abatement is a phasing-in of new taxes that are due on new investment by industrial or agricultural businesses, however, to keep the abatement, a company must show growth.
GFT, started by Phillip Griffith in 2002, was given a five-year abatement on $600,000 worth of equipment and was expected to have as many as 20 employees.
The company also received a $250,000 state technology development grant in July 2005.[[In-content Ad]]
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