County approves contract for ARPA funding

County officials finished paperwork in the nick of time.

Just over a week before the deadline, the county’s remaining American Rescue Plan Act (ARPA) dollars have been formally allocated.

Jay County Commissioners approved an inter-local agreement Monday with Jay County Redevelopment Commission. The agreement commits just over $1.28 million in ARPA funds toward development of the county’s 68 acres on the west edge of Portland.

ARPA dollars must be allocated — spent, under contract or committed via an inter-local agreement — by Dec. 31, according to federal guidelines. Several Jay County municipalities have already committed or spent their portions of funding. Portland committed its funding mostly to the Meridian Street storm sewer project more than a year ago, and Redkey allocated the majority of its funding toward installing lead-free water meters throughout town, with its last purchase for equipment related to the project approved Thursday. (Dunkirk has also been chipping away at its ARPA funds in the last few months for various projects, including its storm sewer and detention basin project on the city’s southwest side.)

County attorney Wes Schemenaur gave a presentation to commissioners and Jay County Council in July, sharing their options for spending the funds per federal guidelines.

Although the county had discussed several options, Schemenaur explained in November it was unlikely any of the larger proposed projects would result in a contract before the end of the year. At that time, the county had roughly $2.2 million ARPA funds remaining.

(County officials then agreed to spend just under $1 million of that amount on three smaller projects, which include a bridge replacement on county road 600 West just north of Indiana 26, upgrading Jay County Auditor’s Office and Jay County Treasurer’s Office financial software and purchasing police vehicle cameras and officer body cameras for Jay County Sheriff’s Office.)

Schemenaur asked county officials to make a decision for the remaining funds in November. He suggested they could sign an inter-local agreement with the redevelopment commission. The group will act similar to a pass-through agency in order to allow the county more time to spend the funding.

 The agreement — commissioners, council and redevelopment commission agreed to move forward with it Nov. 20 — obligates redevelopment commission to use the funding for installation of water and wastewater infrastructure and related engineering and design costs for the county’s 68-acre property. Aligning with federal stipulations stating ARPA funds must be spent by Dec. 31, 2026, the agreement is effective for the next two years.

Per the agreement, awarding of ARPA funds may not be assigned by redevelopment commission without prior written consent from commissioners.

Council and commissioners debated Nov. 20 whether to commit the remaining dollars toward the county’s efforts in joining the Integrated Public Safety Commission’s 800 megahertz statewide radio system or developing the 68 acres with infrastructure for housing. 

At that time, county officials talked about an unofficial announcement shared with them about Jay County's allocation of Regional Economic Acceleration and Development Initiative (READI) 2.0 funds. Commissioner Rex Journay told Jay County Development Corporation’s board of directors earlier that month the county declined a $1 million offer from the program for the 68-acre development project, saying the money was not enough to launch the project. 

East Central Indiana Regional Partnership earmarked $1.2 million in READI 2.0 funds as a potential award for Jay County, Schemenaur said at the Nov. 20 meeting. (Council member Cindy Bracy pointed out several times during that meeting that the money had not yet been formally approved by the state.)

The first few phases of the 68-acre project — they came to a total of about $7 million — were included in the county’s READI 2.0 request. A representative from engineering firm Rundell, Ernstberger and Associates estimated installing utilities will cost about $3.6 million, with commissioner Brian McGalliard suggesting the county complete that portion of the project with the last of the ARPA funds.

Overall, the project consists of installing infrastructure for a housing and mixed-used development on the county’s land along Indiana 67. If completed in its entirety, the $25.5 million project would create 76 single-family homes, eight duplexes and 154 multi-family units. (Hopes are to attract a developer to move forward with plans.) County officials have referred to it as a “legacy project” to be worked on for the next several decades.

The redevelopment commission agreed in July to commit up to $1.5 million in tax increment financing (TIF) dollars toward the project, with commissioners agreeing to shell out an additional $1.3 million subject to receiving grant dollars.

Ultimately, council and commissioners decided Nov. 20 to move forward with the 68-acre development project.

Sharing the formal agreement with commissioners Monday, Schemenaur reminded them that redevelopment commission OK’d its president, Carl Walker, to sign the agreement on the board’s behalf once completed. Commissioners then formally agreed to approve the agreement, with commissioner president Chad Aker signing the document.