Dunkirk waiting to vote on deal

DUNKIRK — A proposed development agreement for the Todd Opera House did not come to a vote at city council’s Monday evening meeting.

The topic will be revisited in two weeks at council’s next meeting, after members receive additional plans from the project’s developers and further vet the proposed $150,000 forgivable loan.

Council also abolished Dunkirk City Court after finding no lawyer in the city able to perform the duties, approved funds to participate in a study on a change to agricultural base tax rates and how they will effect the city’s future tax revenues and heard an update on work at the city pool.

“I’m really anxious to get this project underway and approved,” said Mayor Gene Ritter at the start of discussion on the proposed development agreement that would provide a $150,000 forgivable loan to Ray Willey and Bill Brown, the owners and developers of the Todd Opera House building. “The city needs a spark. The risk has been minimized, it’s going to bring jobs … going to bring people in to city … If we do nothing, we’re going to end up like Redkey and Pennville.”

Council members Jesse Bivens and Jack Robbins expressed their concerns with the proposal.

Bivens said he wants to see more commitment to the project from the developers, and questioned the extent of the work that has been done to the building.

Robbins told Willey and Brown that they had failed to provide him with copies of their plans, which he had previously requested at an executive session.

Brown and Willey did provide a new letter from their architect explaining why state building permits were not required and a new term sheet from First Liberty Capital outlining preliminary loan approval for a $456,000 loan.

“Are you not satisfied with what they’ve done?” asked Ritter.

“I’m not satisfied,” said Robbins.

“I’m not satisfied either, Gene,” said Bivens.

Robbins and Tom Johnson also cited concerns about changes to the city’s tax revenue as a result of changes to agricultural base rate calculations, and how the city could take a major financial hit from those changes in the coming years.

“I’m all for getting it done,” Johnson said. “But the thing that’s worrying me is this farmer’s property tax … That’s going to chop into our budget in about three years. We’re looking at major, major cuts in the city. That’s what’s got me worried.”

Bryan Jessup said he would vote in favor of the agreement in the future after seeing blueprints, but said he had previously asked that council not be forced to vote on it at Monday’s meeting.

“I kind of feel like it’s being shoved down my throat real quick,” Jessup said. “You’re not going to bully people into saying yes.”

Lisa Street cautioned council from losing a deal by adding new stipulations at each meeting.

“Everything we’re asking for them and (city attorney) Wes (Schemenaur) to do, they’re doing,” Street said. “And I don’t want it to cause them to back out. This is what happened to Family Dollar, and those people stood right there and were ready to walk out the door had we not voted that night.”

“If I have the drawings in two weeks, I’ll make the motion (to approve the deal),” Jessup said.

The development agreement would provide $50,000 up front, $25,000 of which would pay off the already-existing $25,000 loan the city gave in March. The remaining $100,000 would be paid 50/50 on invoices for work done in the building, half from the city and half from the developers.

Council also voted to abolish Dunkirk City Court after it was left without a judge. Former city court judge Tommy “Chip” Phillips resigned in the wake of a guilty plea to a charge of battery against a public safety official stemming from an Aug. 16 incident at Dunkirk Police Department. Because of a new state law, city officials could only replace Phillips with a licensed attorney and were unable to find one in Dunkirk willing to serve as city court judge.

“We’re basically forced at this point to abolish our city court,” said Ritter. “That doesn’t mean we can’t get it back if the city grows and we find someone.”

The effective end date for Dunkirk City Court is Aug. 1.

Dunkirk will participate in a study by Umbaugh and Associates looking into the change in the capitalization formula for calculating base tax rates for agricultural land. The new changes, which will create tax cuts for agricultural land in the foreseeable future, could mean major loss in revenue for municipalities in heavily agricultural counties like Jay.

Council voted to approve $2,500 to pay for one quarter of the study, with Portland, Jay County and Jay School Corporation each contributing $2,500. The results, expected in late June, will be presented to a joint meeting between municipal, county and school officials.

Johnson also discussed the ongoing work at Dunkirk City Pool to fix large cracks in the cement that posed a safety risk. Work crews laid rebar and started pouring cement on Monday.

“They’re moving right ahead with the cement work,” Johnson said.

He hopes work will be completed by the time the pool opens in June, but said it’s possible the pool’s opening could be delayed a few days.

In other business, council:

•Approved $3,573.06 to purchase risers from Utility Supply Company for roads that will be paved this summer.

•Approved the transfer of six properties to Dunkirk Industrial Development Corporation. The development corporation will submit those six homes for demolition funding through the state’s Blight Elimination Program.

•Approved a request from Cindy Shepherd of the Glass Days Committee to have a beer tent on city property, north of city hall and south of the laundromat, provided the committee receives a license, approval from Dunkirk Police Chief Dane Mumbower and insurance approval.

•Voted to vacate an alley bisecting two properties owned by the same individual in the 100 block of Orange Avenue.

•Heard from Bivens that the city’s wastewater department is still seeking an employee.

•Approved $112,281.81 in claims.