$$ for sewer project OK’d

A chunk of funding has been committed for a proposed downtown flood mitigation project.

Portland Redevelopment Commission this morning approved $350,000 toward the project that would run a new storm sewer line down Meridian Street in an effort to take pressure off of Millers Branch.

The board also approved moving forward with creating both a residential tax increment financing (TIF) district and a “riverfront” district, and agreed to purchase additional planters to be placed on Meridian Street.

Portland Mayor John Boggs made the request for the sewer project, saying it is essential to address the flooding issue in order to keep and add new businesses in the downtown area.

“There’s probably no other community project that will have as much long-term impact on economic growth and downtown revitalization as this one,” said Boggs. “Flooding on Meridian Street has stifled investment in our downtown … It has increased the risk for entrepreneurs opening a business in Portland.”

The project proposed by Indianapolis-based Wessler Engineering would involve running a new Meridian Street storm sewer line that would begin between Arch and Race streets and go directly to the Salamonie River. Currently, catch basin systems in that area are connected to Millers Branch, a line that runs north-south about a half-block east of Meridian Street, and frequently back up during heavy rain events.

Construction for the project is estimated at just over $1.3 million, though Boggs cautioned that the number could be higher because of a recent increase in the cost of materials. He added that the city has committed to the $125,000 in engineering fees related to the work. The city is applying for a Community Development Block Grant of up to $600,000 for the project through Indiana Office of Community and Rural Affairs and is also looking at several other funding options.

Redevelopment commission members Joe Johnston, Mike Simons and Reda Theurer-Miller, absent Dave Teeter, voted to commit the $350,000 the mayor requested.

Consultant Ed Curtin of CWC Latitudes walked the group through the steps necessary to create a residential TIF district, which would capture the increased taxes on new housing. Those funds can be used by the redevelopment commission to incentivize developers by defraying the cost of infrastructure or other elements of a housing project.

The process starts with approval from the school board. The redevelopment commission would then identify areas that could potentially be used for a residential TIF district and approach property owners about their interest. When such a target area is selected, redevelopment commission would then declare its intent to form a residential TIF district. It would then need approval from Portland’s plan commission and city council, followed by a final confirmation by the redevelopment commission.

Local real estate agent Jack Houck spoke at the meeting, saying he has talked to two developers about property he has for sale in Portland. He said both indicated that a residential TIF district would be key to a housing project.

The redevelopment commission voted to move forward with the process.

Curtin also laid out the potential benefits of creating a “riverfront” district, an economic development tool created by the state. In a riverfront district — area within 1,500 feet (about a quarter mile) of a river is eligible — communities can provide additional liquor licenses, at a lower cost, beyond the standard cap in order to spur restaurant development. The entity overseeing the riverfront district (in this case, Portland Redevelopment Commission) can set standards for the licenses, including percentage of food that must be sold in comparison to alcohol or how many days the business must be open each year. The licenses cannot be sold or transferred.

“It's really not to promote the sale of alcohol,” said Curtin. “But for restaurants to have that ability is the difference between them being profitable and not being profitable.”

The process of creating such a district would involve developing guidelines and an application. Portland City Council would then need to vote to create a district, which would then require state approval.

Redevelopment commission members voted to move forward with creating a riverfront district.

Theurer-Miller presented an update from Portland Main Street Connect, noting that flowers should be in planters in the downtown area by about Mother’s Day. LED lights have been installed downtown and light posts will be painted. Also, additional Christmas lights have been purchased.

She relayed a request from business owners that more planters be added along Meridian Street between Arch and North streets. (They currently run from the Salamonie River to the Arch Street area.) Redevelopment commission voted to spend $10,400 on the additional planters with commission president Rusty Inman, Johnston and Simons in favor and Theurer-Miller abstaining.

In other business, the commission:

•Passed a resolution indicating its intention to continue to collect the entirety of the tax increment generated in the district.

•Discussed the status of the brick alley, which runs east-west between Community Resource Center and the commercial buildings to its north. Boggs noted that the alley is not designed for traffic. He and Inman said they would get together with business owners in the area to discuss keeping traffic off the brick area while still making it accessible for deliveries as needed.

•Heard in the financial update that the district currently has about $764,171.96 available. (Its next tax draw is expected in June.) Inman asked that in the future the commission be provided with a breakdown of each “bucket” (target investment priority) and how much money is currently available in each.