Questions greet new commission (02/14/06)

Appointed to oversee tax increment financing (TIF) funds for Portland’s redevelopment, the Portland Redevelopment Commission met for the first time Monday evening to organize and tried to smooth the ruffled feathers of some county officials.

“Perception is reality,” Jay County Council member Gerald Kirby said, “and it does not strike a good chord with this individual.”

Kirby expressed his concerns during the county council’s meeting last week and attended Monday’s meeting to relay those concerns.

Last week, Kirby said he was concerned about how the TIF would impact the county’s financial future.

Jay County Commissioner Milo Miller Jr. also presented his concerns Monday with figures.

“The county gets $500 (annually) off the 23 acres (of farm ground where the Wal-Mart Super Center is being constructed) now,” Miller said. “We would get an estimated $200,000 (annually from Wal-Mart, the strip mall, and FCC Indiana, if the TIF was not in place). That’s an estimated $190,500 we’re not going to get.”

Jay County would actually get 20 percent of that estimated amount, with the rest being distributed to other taxing entities such as the Jay School Corporation (50-plus percent) and the city of Portland, among others.

Quadrozzi and Hosier each repeatedly tried to assure county office holders that the TIF would prove beneficial for everyone through future development and would provide additional money in the long run.

“Over 10 years we could lose over $2 million,” said commissioner Gary Theurer, “but our costs go up three to four percent every year.”

Barbara Downing, superintendent of Jay School Corporation, also expressed her concerns.

“I still believe a percentage should go to the schools. I appeal to the commission to consider a percentage. From Wal-Mart alone $115,000 (annually) would go to the schools in personal property tax. I’m worried about our capital needs.”

“If Wal-Mart had not decided to come here, would you still do bonding?” Hosier asked Downing about the corporation’s decision to undertake an $18 million renovation project at the Jay County High School.

“Yes,” she answered.

“The perception from the outside area is, they are not going to get any development,” Kirby said about other communities in the county. “The other areas get nothing from it.”

Hosier and Quadrozzi each explained that while a preliminary TIF district has been drawn, there are still many areas inside the Portland city limits that have not been included, such as the XPLEX Extreme Competition Park, and the sites for proposed hotel construction, as well as areas west of Portland.

“You will still capture the money from those,” he told county representatives.

And the TIF captures additional taxes only from real property and not from personal property, Greg Guerrettaz, president of Financial Solutions Group, Inc., who also is serving as an advisor, explained.

The proposed district begins at an 80-acre parcel located on the north side of West Votaw Street, adjacent to Ja-mar T.V. Appliances and Bedding. It would then extend east on Votaw Street to the site of the new Wal-Mart SuperCenter then go north on Industrial Park Drive and capture some land which is for sale and a few industries. The district would then extend east on Lafayette Street to Meridian Street, go north on Meridian Street to about county road 100 North, and south to the Salamonie River.

TIF districts typically are established in areas targeted for future development. The taxes on the rising assessed valuation in the districts is used by the commission members to improve infrastructure within the districts.

Guerrettaz said only estimated figures have been put together about how much the city will receive from the fund. “These are the best estimates I can put together,” he said, “and they will be wrong.”

“This will be a lengthy process and tonight is just the beginning,” Guerrettaz said about the commission’s role. “Things need to be done in Portland and now you will have a tool to fund those improvements. None of this gets done without your vote. The mayor has nothing in this now, but this will help you maintain what the mayor has started.”

“After March 1, you will want to move with the same caution to make sure we’re heading in the right direction and don’t put a burden on taxpayers,” Guerrettaz explained. “This has been moving so fast.”

It was important to have the plan in motion by March 1 in order to be able to capture 2005-06 personal property taxes on new developments — including the Wal-Mart project.

Members of the commission will be bonded through the city’s insurance coverage for $15,000 each. There will be no cost to those members.

Three members of the commission — Lola Joy, a former council, park board and planning commission member, and a business owner; Joe Johnston, the chief executive officer of Jay County Hospital and vice president of the Jay County Development Corporation board; and Bob Quadrozzi, JCDC executive director — were appointed by Mayor Bruce Hosier. The two appointed by the Portland City Council were Randy Wehrly, an employee of Portland Forge, and Mike Simons, a retired teacher.

During the organization of the commission, Quadrozzi was elected president, Simons was named vice-president, and Joy, who was out of town and not in attendance at Monday night’s meeting, was named secretary.

Administering the oath of office, Hosier said he “appreciated the members’ commitment to serve” on the newly-formed commission.

The commission took no final action on any plans at Monday’s meeting, but some plans are expected to be ready for adoption at the next meeting set for Feb. 23, at 5 p.m. in the conference room at the Community Resource Center.[[In-content Ad]]