Plant site may become TIF district (07/18/06)

A city commission may soon have jurisdiction over a piece of the county that is the proposed site for an ethanol plant.

Members of the Portland Redevelopment Commission agreed to begin the process to form a contract to preside over an approximately 180-acre tax increment financing (TIF) district southwest of Portland.

Officials with Premier Ethanol LLC, who plan to build an ethanol plant on that site, have not yet asked for a TIF district to be set up for their plant, said Jay County Commissioners president Milo Miller Jr.

If such district is established, it could be used to fund infrastructure which will serve the plant, Miller told redevelopment commission members at Monday’s meeting.

The plant site, which is located along the southeast side of Ind. 67, near Meshberger Brothers Stone Corp., is outside the city limits, said Sue Beesley, attorney with Indianapolis law firm Bingham McHale LLP.

If the county should choose to do so, the county commissioners could vote to establish a county redevelopment commission. However, the process to pass an ordinance creating a county commission could take 30 to 60 days to complete, she said.

Miller said he thought it best to form an agreement to have the city’s redevelopment commission preside over the TIF district, if one is established. “Why would I go establish some commission just for an 180-acre lot?” he said.

If county commissioners chose to form a contract with the city to preside over the district, the county could have some advisory members come to the redevelopment commission meetings and serve as advisors, Beesley said.

To set up the contract for the city to preside over the TIF district, the commission would have to approve the agreement, and so would the county commissioners, she said. The process to set up the district could take about 60 days, she added.

Commission members agreed it would be a good idea for the city’s redevelopment commission to preside over the TIF district for the ethanol plant.

“Personally, I think it’s an efficient way to operate,” said commission member Joe Johnston.

See TIF page 5

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Miller said he would speak to county commissioners about forming an agreement.

Also Monday, redevelopment commission members heard Beesley and Greg Guerrettaz of Financial Solutions Group, Inc., Indianapolis, say they have reviewed the commission’s timeline and decided it best to seek construction bids for the commission’s first project before issuing bonds.

At the June 12 meeting, commission members voted to have the widening of Industrial Park Drive and the relocation of a lift station be the board’s first projects. Total cost of the projects was estimated at about $1.15 million.

Guerrettaz said this morning he wants to know the actual cost of the construction before issuing bonds for the projects.

He also said there would be no reason to issue bonds for the projects if funds are not needed until several months after bids have been received.

“I want to be able to pull the trigger (on the bonds) once we do have the bids and know the amount” needed, Beesley said Monday.

Johnston asked when the bidding process for the projects might begin. Bruce Hosier, mayor of Portland, said he wasn’t sure.

Hosier said this morning that an official with The Schneider Corporation of Indianapolis said that bid letting for the Industrial Drive and lift station relocation projects is expected in December.

Schneider is doing the engineering work for the projects.

Commission members did not voice any opposition on the matter.[[In-content Ad]]