County settles loan with Omnicity (03/25/08)

Deciding it was better to get something than nothing, county officials have agreed to a settlement with a wireless Internet provider backed by county tax funds.

Jay County Commissioners voted Monday to accept a one-time $150,000 payment from Omnicity Inc. towards $494,500 in loans the company was granted over the past several years.

The company, which offers wireless broadband Internet for homes and businesses, has re-paid approximately $45,000 in principal, but was paying interest only on the loans over the past year or so.

Jay County will also receive $2.50 per month per subscriber to Omnicity's services. The company currently has fewer than 300 customers in Jay County.

"From a bad deal, it's probably the best we can do," Commissioner Gary Theurer said Monday afternoon.

The settlement was presented by Bill Bradley, executive director of Jay County Development Corporation, along with JCDC attorney Phil Frantz. Bradley and other JCDC officers have been working on a resolution to the issue since it came to light last fall.

The loan, using economic development income tax (EDIT) funds, was made through JCDC under late executive director Bob Quadrozzi. The loan agreement between JCDC and Indianapolis-based Omnicity used the company's equipment as collateral.

Also Monday, commissioners were told that the State Board of Accounts has ordered the county to change its distribution of EDIT funds for each of the six incorporated towns and cities in the county.

The EDIT share will now be transferred immediately to Bryant, Dunkirk, Pennville, Portland, Redkey and Salamonia. The county, which divides a portion of its share equally among the six cities and towns, will continue to hold that amount (approximately $36,000) until those funds are requested.

Since the inception of the EDIT tax in the late 1980s, the county has held those funds until requested by the cities and towns. For several years, the interest generated from the EDIT account has been paid to JCDC.

Culy, who took office Jan. 1, said she does not know the origin of the agreement to give the interest to JCDC.

Commissioners Milo Miller Jr., Faron Parr and Theurer also said they were not aware of the circumstances regarding that agreement.

In other business Monday, commissioners were presented a proposed lease by Jay County Community Corrections for an office building on North Commerce Street across from the courthouse.

Commissioners' attorney Bill Hinkle said a new provision in Indiana law requires a petition be signed by 50 county residents approving the lease.

Commissioners also gave permission for community corrections director Yvette Weiland to purchase five Taser units to be carried by members of her staff for personal protection during the course of their duties.

Community corrections staff will be trained by members of the Jay County Sheriff's Department.

Also Monday, commissioners:

•Granted permission to Sheriff Ray Newton to pay retiring deputy Greg Franks for 10 days of vacation carried over from 2007. Newton also told commissioners that employees of the sheriff's department and jail have built up a large amount of compensatory time, which is given in lieu of overtime. Commissioners asked Culy to collect information on the amount of comp time due, along with the county's financial liability.

•Approved moving two Wayne Township voting precincts due to ongoing construction at the former Portland Armory, which was given to Jay School Corporation and which will house the corporation's administrative offices.

Voters in Wayne 1 and Wayne 6 precincts will vote at Portland Place Apartments at 430 W. Lafayette St. in the May primary.

•Learned that Ralph Frazee, director of Jay County Emergency Management, has applied for a $550,000 state grant to purchase 800 megahertz communication equipment for emergency personnel in the county.

•Set Monday, April 14 at 1:30 p.m. to open annual bids for the Jay County Highway Department.

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