Waiting game

Hurry up and wait.

That’s the situation Jay County Redevelopment Commission members are finding themselves in with tax increment financing (TIF) districts and grant dollars for the county’s 68-acre infrastructure project.

Redevelopment commission members agreed Wednesday to sign an engagement letter with consulting firm Baker Tilly. Specifically, commission members agreed to one section of the proposed agreement, which will involve Jason Semler of Baker Tilly calculating the financial impact if the county enacts TIF districts around the four commercial solar farms that are planned for Jay County.

In March, Jay County Redevelopment Commission talked about receiving estimates from consulting firm Baker Tilly and law firm Barnes & Thornburg for establishing TIF districts in the locations planned for solar farms.

Redevelopment commission president Carl Walker explained Wednesday both companies sent letters of intent to the board. Walker noted Baker Tilly would be providing a preliminary analysis into the potential revenue from the districts, as well as the impact they would have on taxing units in the areas.

“As a part of this, obviously, when you’re taking money out of taxpayer … revenue funds that come in, it’s going to have impacts on other entities, such as schools’ and townships’ budgets,” said Walker. “Because that’s less money that’s going to be left for them.”

Jay County auditor Emily Franks told commission members Semler will need another four to five weeks in order to put together the data, pointing to approval this week of Indiana Senate Bill 1, which makes tax changes in the coming years.

Franks said the soonest Semler would be able to present TIF district information and other data to redevelopment commission is May 22. (He also prepares an annual presentation to the commission on its financials.)

Walker questioned if the board should sign engagement letters with either Baker Tilly or Barnes & Thornburg now, suggesting commission members either approve letters contingent on Semler’s report or hold off until Semler is able to meet with them.

Ed Curtin of CWC Latitudes noted the redevelopment commission would need to engage with Baker Tilly in order to have him present the TIF district data. Commission member Chuck Huffman suggested signing a portion of the letter with Baker Tilly, pointing to a specific service outlined in the letter that he said would involve preparing an analysis on the impact of the proposed TIF areas on the overlapping taxing units.

“I think we need to know,” agreed commission member Doug Horn.

Shannon Current — she’s a nonvoting member of redevelopment commission and represents Jay School Corporation — said she would want to see the financial impact for the school. Pointing to financial unknowns with Senate Bill 1, she expressed concern from the school district with moving forward on establishing new TIF districts until more information is available.

Current noted that as part of the new legislation, in 2028 schools will no longer receive local income tax revenue. That’s more than half a million dollars for Jay Schools, she said.

“So, that’s our concern with TIF districts, what kind of impact is that going to have on the school corporation,” she said.

Walker asked if there is a proposal to replace that revenue, with Current saying she hasn’t heard one.

The redevelopment commission then decided, with Harold Towell dissenting and Ted Champ absent, to move forward with the TIF district impact presentation.

Relatedly, the redevelopment commission tabled decision on moving forward with a letter of intent from Barnes & Thornburg for its legal assistance in creating the TIF districts. (Fees would come out to about $20,000.)

Also Wednesday, Walker informed commission members about an April 8 meeting between county and Portland representatives regarding the county’s infrastructure project on its 68 acres along Indiana 67. (Walker and Huffman attended the meeting for redevelopment commission.)

He said attendees discussed the project and reviewed the proposed plans with Cecil Penland of planning firm Rundell, Ernstberger and Associates. Walker said plans are for Portland Redevelopment Commission to talk about the project at its next meeting on  April 25, and he shared hopes for the city to commit funds toward the effort.

The redevelopment commission discussed the project at length with a few attending public officials, including Portland Mayor Jeff Westlake, Jay County Council president Matt Minnich and Jay County commissioners Chad Aker and Duane Monroe.

Huffman asked if the redevelopment commission needed to take any action on the project.

Curtin noted Jay County Commissioners approved an amended contract Monday with planning firm Rundell, Ernstberger and Associates. The amendment authorizes the project’s topographical survey, which will take between six to eight weeks to complete. 

Responding to a question from Walker, Aker noted Jay County hasn’t heard from Indiana Economic Development Corporation on its request for Regional Economic Acceleration and Development Initiative (READI) 2.0 funds for the 68-acre project.

Questions emerged about redevelopment commission’s $1.5 million commitment in the project and whether it is still valid, with Walker saying it was contingent on receiving grant funding and a contribution from Portland.

Other discussion ensued. No formal decision was made on the matter Wednesday.

In other business, redevelopment commission members Harold Towell, Doug Horn, Carl Walker and Chuck Huffman OK’d paying a $4,576.10 claim from CWC Latitudes.