Commission voices support

The status of a proposed commercial and housing development project is in flux.

After one local governmental board voted last week for development to be halted, another voted Tuesday to express support.

Portland Redevelopment Commission voted Tuesday to support proceeding with the project, which calls for housing and commercial development on 68 acres of county-owned land on the city's west side.

The county has spearheaded the project, with the county council and commissioners having allocated $1.24 million in federal funding through Jay County Redevelopment Commission to cover a portion of the cost. Portland City Council committed $400,000, contingent on a match from the county’s redevelopment commission that has not yet been made. The city’s redevelopment commission currently has no financial stake in the project.

Tuesday’s vote from the city’s redevelopment commission followed a vote last week by Jay County Council to instruct urban design, planning, and landscape architecture firm Rundell, Ernstberger and Associates to cease work on the project. 

The council discussion involved the county’s remaining $1.24 million in coronavirus relief dollars through the federal American Rescue Plan Act. Those funds are allocated to the 68-acre development project through Jay County Redevelopment Commission. (Federal guidelines stated that the funds had to be committed by the end of 2024 and spent by the end of 2026.) Council members said that following a conversation with financial consulting firm Baker Tilly, they believe the funds could be shifted to another county project. The purchase of a new radio system for first responders was discussed as a potential option.

Redirecting the American Rescue Plan Act dollars would require action from the county redevelopment commission, which meets Thursday, and county commissioners, who meet Monday, in addition to the council.

CWC Latitudes consultant Ed Curtin expressed concern to the Portland Redevelopment Commission on Tuesday that halting the project would be negative to Portland because, if completed, housing development would increase the city’s tax base. He asked if city officials had been consulted.

“It’s kind of a big decision that affects the city as well,” he said.

He suggested that if the redevelopment commission is supportive of the project, its members should voice that support in an effort to get city and county officials on the same page.

Portland Redevelopment Commission members Rusty Inman, Reda Theurer-Miller, Joe Johnston and Mike Simons voted in support of the project. Dave Teeter was absent from the meeting.

Cecil Penland of Rundell, Ernstberger and Associates and Curtin also explained that the cost of the first phase of the project is now estimated at $2.65 million, which is down from previous estimates. 

The first phase of the project involves installing utilities.

The road and additional utilities would follow in later phases of an overall project estimated at more than $25 million. The ultimate vision for the project includes commercial space along Votaw Street (Indiana 26/67), 210 multi-family housing units, 76 single-family homes and 53 townhomes/duplexes.

Curtin said that if the remaining funds from the American Rescue Plan Act and $1.21 million through the state's Regional Economic Acceleration and Development Initiative (READI) 2.0 are used for the project, the remaining amount needed would be $162,309. Penland and Curtin explained after the meeting that the reduction in cost of the project has come mostly because of a change in work related to a wastewater lift station.

Previous estimates left a gap of about $750,000. Portland City Council had committed $400,000 to help cover that gap, contingent on Jay County Redevelopment Commission contributing the other $400,000. Jay County Commissioners voted 2-1 against making such a funding request to the county redevelopment commission.

Also Tuesday, the redevelopment commission extended a lease with The Graphic Printing Company, parent company of The Commercial Review, for the Hood Building for an additional two years. The company sold the building to the redevelopment commission in late 2023 for potential development. At that time, the company and the redevelopment commission signed a two-year lease with an option for an additional two years, if needed.

Curtin explained to the council that an environmental test for vinyl chloride is needed before the potential developer will proceed with the project. The redevelopment commission hired Environforensics to handle the testing at a cost of $6,850.

Plans for the building call for development of apartments on the second, third and fourth floors, with The Graphic Printing Company to continue to operate out of the first floor and basement.

Curtin said negotiations with the developer are nearly complete and that he is hopeful an agreement can be reached in early 2026.

In other business, the commission:

•Approved a $15,200 contract with consulting firm Synthesis Incorporated to evaluate, develop a concept and estimate a construction cost for the building at 105 W. Main St. The redevelopment commission is considering purchasing the building from Smutstock Entertainment and rehabilitating it for commercial use. Dave Smuts and Treaver Schmit had planned to develop a music performance venue in the building, but those plans are no longer moving forward.

•Approved the financial report, which showed a cash balance of $910,817.65. Portland clerk-treasurer Lori Phillips noted that since the report was distributed, the commission has received its annual tax draw of $172,409, which brings the balance to $1.08 million.