Ceasing plans

Planning for infrastructure on the county’s 68 acres on the west side of Portland will come to a halt.

Jay County Commissioners decided in a 2-1 vote Monday to notify planning firm Rundell, Ernstberger and Associates to stop development work on the property along Votaw Street in Portland.

Jay County Council and Jay County Redevelopment Commission also voted earlier this month to stop the development, which involves ceasing payments to the planning firm coordinating efforts to build infrastructure on the property. 

Next steps could include all three entities agreeing to rescind an interlocal agreement that obligated American Rescue Plan funds toward the effort. Approximately $1.2 million in American Rescue Plan Act dollars backed the commercial and housing development project. Additional funding from the Regional Economic Acceleration and Development Initiative (READI) 2.0 grant was expected but hasn’t been formally announced.

The county purchased the 68-acre property for $1.1 million in March 2023. 

Commissioner Duane Monroe explained earlier this month that consulting firm Baker Tilly has indicated the county could reallocate American Rescue Plan Act dollars aimed at the project.

County attorney Wes Schemenaur has cautioned local officials, pointing out American Rescue Plan Act dollars were distributed in a unique fashion to communities and voicing concerns about the county being forced to pay the funds back if an issue comes up in future audits.

He noted at the redevelopment commission’s meeting Thursday that the 68-acre project has been solely paid for with American Rescue Plan Act dollars deemed as revenue replacement, and suggested that if officials choose to reallocate the funds they are cautious how they’re spent. Revenue replacement uses could include payroll or health insurance costs, or other paid obligations prior to Dec. 31, 2024.

County officials have discussed using American Rescue Plan Act dollars to help pay for outfitting emergency responders with new radios, a nearly $7 million project.

Portland City Council agreed earlier this year to contribute $400,000 toward the project, contingent on receiving a match from Jay County Redevelopment Commission. (Commissioners decided in a 2-1 vote not to request redevelopment commission to supply that match.) Portland Redevelopment Commission last week also voted to support moving forward with the project.

In November 2024, commissioners, council and redevelopment commission entered into an interlocal agreement obligating American Rescue Plan Act dollars toward the project.

The redevelopment commission decided last week to send a letter to commissioners and council declaring intent to rescind the agreement.

Commissioners president Chad Aker said he disagreed with plans to reallocate the funds and cease the project, pointing to concerns from Schemenaur.

“I’m going to go with what my attorney’s telling me, and I’m not in favor of trying to reallocate that money because I don’t know if it’s going to bite us in the butt come two, three years down the road,” said Aker.

Commissioners Doug Horn and Monroe then voted to stop further work on the project, with Aker dissenting.

Relatedly, commissioners agreed to rent the 68-acre property out for farming purposes next year to Chris Muhlenkamp at $420 an acre, or $28,560 total.

Other bids submitted for farming were from Steve Schoenlein of Schoenlein Brothers at $376 per acre, Simon Dirksen at $337 per acre and Aaron Post at $330 per acre.