Redevelopment effort moves ahead (01/17/06)

An effort to establish a redevelopment commission in Portland moved a step forward, but not without some council members taking a step back to look at the bigger picture.

Before voting Monday night, two Portland City Council members — Dolphus Stephens and Jim Sanders — voiced concerns about establishing such a commission in the city.

Stephens said three different people have contacted him saying they were worried that establishing tax increment financing (TIF) districts could financially harm the Jay School Corporation and the Jay County Public Library.

Stephens, who eventually voted Monday to approve a related ordinance on first reading, is a teacher at Jay County High School.

Bruce Hosier, mayor of Portland, explained how TIF could benefit the community, then attempted to answer Stephens’ question by saying, “We are in discussions with (school corporation officials) to lessen any financial burden (TIF) will have” on the school system. “This situation needs to be beneficial to the whole community.”

If a TIF district is set up, schools and libraries will still get the same amount of tax dollars as before. However, the school system and library will only get a portion of the tax revenues captured from new development within the TIF district. The rest will go to the redevelopment commission to use.

Sanders said he had heard the same concerns as Stephens.

An ordinance to establish a redevelopment commission in Portland was approved by a 6-1 margin, with Sanders casting the dissenting vote.

After the meeting he said voting in favor of establishing a commission “just didn’t sound like the right thing” to do. Sanders said he was worried TIF would take money away from schools and county government.

Redevelopment commissions set up TIF districts in areas where new businesses are developing or expected to be developed. After the locations of the district or districts are determined, the assessed value is frozen for each property in the district.

After the initial assessed value is determined, the value of the properties in the district is again assessed a year later. The difference between the two values is then multiplied by the current tax rate. This amount can be used by the commission for infrastructure projects within the districts.

The second reading of the ordinance will go before council members at its next meeting, which will be held Monday, Feb. 6, at 7 p.m.

In a related matter, Hosier announced after the meeting that council president Glen Bryant has appointed Stephens and council member Bill Gibson to come up with some nominations for members of the commission.

The council appoints two people to serve on the five-member redevelopment commission. Hosier will appoint the other three. The terms are for one year.

Also Monday, council members:

•Recommended the Jay County Commissioners vote to amend the economic development income tax capital improvement plan.

The change would reduce the amount of EDIT money industrial, commercial, retail and recreational developers will be allowed to borrow to $100,000 from $250,000.

Anyone who takes out such a loan must repay the funds within 90 days with interest. The amendment also limits developers to only one 90-day loan, said Bob Quadrozzi, executive director of Jay County Development Corporation.

Quadrozzi said members of the Portland EDIT Advisory Committee decided to make the changes because they have grown uncomfortable with lending such large amounts of money over long periods of time.

The recommended changes must go before county commissioners for final approval, Quadrozzi said this morning.

•Rezoned two lots earmarked for potential future businesses to highway service from agricultural.

One parcel is located on the north side of West Votaw Street, adjacent to Ja-mar T.V. Appliances and Bedding.

The 80-acre lot is owned by local real estate agent Mel Smitley. He asked the lot be rezoned to make it easier to market the property.

Also, Keith Osterholt asked for 2.69 acres located at 1885 North U.S. 27 to be rezoned so he can have a recreational vehicle sales and repair business.

The lots were rezoned as long as the final plans are submitted to the Portland Planning Commission within a year of rezoning. If this stipulation is not met, the lots revert back to being zoned as agricultural.

•Decided to have city attorney Bill Hinkle create an ordinance vacating the city’s ownership of an alley which runs north and south in between Hickory Court and Canterbury Lane.

Billy Murphy, 107 Canterbury Lane, is asking that the alley be vacated because it begins at his property and has no outlet

Murphy originally asked for a portion of the alley to be vacated. Based on a recommendation by Hinkle for the entire alley to be vacated, the council voted at the Jan. 3 meeting to do such.

Hinkle said he did not create a new ordinance because he thought one of Murphy’s neighbors was going to attend Monday’s meeting to oppose vacating a portion of the alley.

•Gave Linda Kennedy, the city’s clerk-treasurer, permission to void all un-cashed checks the city has written to various people and businesses in the last two years.[[In-content Ad]]