City commits funding

The city now has a financial stake in a proposed housing project on its west side.

Portland City Council on Monday approved committing $400,000 to the county’s proposed infrastructure project as the first step toward a housing and commercial development, contingent on the county’s redevelopment commission committing the remaining funding for the project.

The council also heard a request from Jay County Commissioners president Chad Aker for the city to pay about $1.12 million for its new radios, related equipment and warranties as part of an overall project that could range as high as $7 million countywide.

Aker also presented the request for $400,000 for the first step toward development of 68 acres on the north side of Votaw Street on the city’s west side. The first phase of the project would involve installing infrastructure — the main road and utilities to the first planned cross road.

The rest of the road and 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.

The county has committed its remaining $1.28 million in federal coronavirus relief funds through the American Rescue Plan Act toward the project. It also expects to receive an additional $1.21 million through the state's Regional Economic Acceleration and Development Initiative (READI) 2.0. During a council meeting last month, Aker said that in addition to the city’s requested contribution, the county’s redevelopment commission would be asked to fund the remaining $235,000. (The redevelopment commission with drew its previous $1.5 million commitment toward the project in July, with some of its members noting the lack of a financial commitment from the city.)

Aker and Jay County Development Corporation executive director Ceann Bales said several developers have expressed interest.

Council members spent more than a half hour discussing the proposal, with Ashley Hilfiker asking about the timeline for the project. Aker responded that construction would likely begin in the spring and be complete by the end of 2026. Proposals from developers are due in early November.

Hilfiker said she feels there is too much uncertainty tied into the project and referred to plans as beautiful but “over the top.” She also questioned long-term viability and added that she feels the city should have been involved in the project earlier in the planning stages.

Council members Ron May, Dave Golden, Kent McClung and Matt Goldsworthy agreed on that last point, with Golden pointing to other known expenses such as wastewater treatment plant upgrades and radios for emergency responders. He referred to the project as a gamble.

Other questions came up, including about the potential of losing the READI 2.0 and American Rescue Plan Act funds. Bales noted that there is a process for reallocating the READI 2.0 funds within the county, though moving American Rescue Plan Act funds would be more difficult.

Aker again argued in favor of the project, saying the city will be the biggest beneficiary in terms of more water and sewer customers, tax increment financing (TIF) income and taxes.

“To me, it’s a win-win for the city,” he said.

Though he said he didn’t like the overall approach to the project thus far, McClung said he was leaning toward voting in favor because the project represents progress.

Goldsworthy talked about all the “wants” there are in the city but that no action has been taken.

“Year after year it comes back to we need housing, we need jobs, we need people to come here,” he said. “But we’re afraid to do anything … in this community because we’re afraid of the what if. … 

“At some point we need to invest in ourselves a little bit to encourage other businesses to want to come here.”

Mayor Jeff Westlake agreed that he would like to see some kind of progress.

Council members Michele Brewster, Mike Aker, McClung, Goldsworthy, Golden, Hilfiker and May ultimately voted 7-0 in favor of the $400,000 contribution toward the first phase of the project, contingent on the county’s redevelopment commission jumping back in with funding. Hilfiker clarified her vote, saying she feels that the city council was backed into a corner and “strong-armed” into providing the money.

After the vote, McClung said that after the city spent $480,000 in late 2023 and early 2024 to demolish two blighted buildings in the downtown area it seemed like a good investment to put $400,000 toward a development project. (The city later spent nearly $110,000 to repair the newly exposed walls of the remaining structures.)

Also Monday, Aker asked city council to consider paying the full amount for new radios for its police and fire departments, related equipment and warranties. The cost came to about $1.2 million, with the first payment to be due in 2027. (He noted that the county would be picking up the cost of a new communications tower as well as the equipment for smaller municipalities — Salamonia, Bryant, Pennville and Redkey — that do not have the financial means to pay.)

He noted that the city could save more than $200,000 in equipment if there was a central dispatch unit at Jay County Sheriff’s Office rather than the county, Portland and Dunkirk each having dispatch units.

May again spoke in favor of the idea, with Westlake said he would need further discussions before considering it.

Council took no action on the request to pay for the radios, though McClung and May said they would be supportive of the city paying its share.

“It’s a lot of money,” said McClung, “but it’s public safety, and I appreciate all the work you guys have put in it. And I don’t want to leave the county high and dry on this.”

In other business, council:

•Heard an update from Bales that she expects to complete coursework to become a certified grant writer by the end of the year. Jay County Development Corporation is also in the process of hiring for its reinstated community developer position, with applications to close Oct. 15, interviews in November and a goal of hiring in December for a start date of Jan. 5. She also noted plans to pursue “infill housing” projects, with municipalities to remove blighted properties and incentivize developers to build on those lots. 

•Approved the 2026 budget of $10.24 million on a 5-1 vote with May dissenting and Aker abstaining.

•Heard May ask about the status of Rollin J Lanes bowling alley, which is closed and up for sale. The city made a $50,000 economic development income tax (EDIT) loan to owners Tammy and David Jellison for improvements to the facility. Clerk-treasurer Lori Phillips said she has reached out to them but does not have any updates.

•Approved an amendment to the city’s development agreement for an economic development income tax (EDIT) loan to Wheel and Spoke Antique Mall owners Gary and Angie Clark. The change will allow them to begin repaying the loan early. All other details of the agreement remain in place.

•Heard from Bales that plans will be presented for a potential project at Harmony Cafe at the next council meeting.

•Set residential trick-or-treat hours for 5 to 7 p.m. Friday, Oct. 31.

•Heard a reminder from Aker that large trash pick-up is this week. Phillips followed with a reminder that Jay County Solid Waste District’s Tox Away Day event is from 8 a.m. to 1 p.m. Saturday in the “driving range” parking lot at Jay County Junior-Senior High School. It offers residents and opportunity to dispose of hazardous materials including paint, fuels, computers, batteries, pesticides, appliances and other items.

•Approved an update to the city's right-of-way ordinance to offer the option of a bond to ensure that any damage to streets is properly repaired and updates to the city’s handbook.

•Heard a reminder from the mayor that Portland Fire Department will host Fire Safety Day from 10 a.m. to 2 p.m. Saturday, Oct. 11, at 1616 N. Franklin St.