By DANIEL SUDDEATH
Daniel.Suddeath@newsandtribune.com
May 14, 2008 11:57 am
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Though New Albany Mayor Doug England stopped by the Redevelopment Commission meeting on Tuesday to talk about the need to expand tax-increment-financing districts before July 1, one member was still against some of the enlargements.
City Councilman and Commission member Dan Coffey voted against many of the proposed expansions and the creation of a new TIF district, citing differences on how money would be spent for the proposed projects.
Deputy Mayor and Director of Development Carl Malysz said none of the projects included in the expansion are certain, but needed to be included on the master list in case the council and commission votes for them in the future.
“This is basically a wish list of potential projects that we could fund,” Malysz said. “If we do not act now, we would have a
more difficult process to get these projects under way.”
Beginning July 1, state regulations will make it harder to approve TIF districts. There will also be more precise language, limiting the areas where TIF funding can go.
After July 1, TIF funding can only be used for an area that physically touches a TIF district. Currently, cities can use the funding for areas that service a TIF district.
Coffey did approve an expansion of a TIF district with the stipulation that a two-block area on 8th Street be added to the plan. He said TIF money should go to take care of sidewalks and other improvements needed on the street, not just to serve surrounding corridors.
John Rosenbarger, public works director of facilities, said the area Coffey wanted added was actually already on the map for the district.
“I don’t think there’s an issue here,” Rosenbarger said.
He added that potential projects incorporated into the plan would still have to be passed by the council, redevelopment commission and Plan Commission, as well as go through a public hearing before being approved.
“You’re not making a commitment to do the projects, just adding them to a list of possible projects,” he said. “None of these projects can be undertaken without the commission’s authorization.”
The list of possibilities totals more than $40 million. A sum that revenue captured in the TIF districts will likely be unable to support, according to Malysz.
Basically, getting several TIF districts extended before July 1 is a priority for the England administration so if the outlined projects are approved by the various bodies, they will already be within the necessary district, according to Malysz.
“(TIF) is a way in this day and age to be able to fund projects,” England told the commission. “Beginning July 1, it’s going to be a lot harder and a lot slower to get things done.”
The TIF expansions approved by the redevelopment commission will go before the Plan Commission next, and then on to the council.
Coffey not happy about clean-up for Horizons project
As first reported in The Tribune, New Albany Horizons LLC, a local business group consisting of Steve Goodman, Carl Holliday and Trish and Doug Wampler, agreed recently to purchase city-owned property along Bank Street for $107,500.
The purchase was approved initially by the commission upon review by Rosenbarger and City Attorney Shane Gibson. One of the issues left to be worked out on the property — which Horizons plans to use for a development that will include a 256-car garage, office and retail space and a hotel — was cleaning of the land to pass Indiana Department of Environmental Management specifications.
The commission agreed to flip the bill for the cleanup, and they passed a resolution Tuesday to begin cleaning the property within six months.
The timeline was too long for Coffey.
“People have drug their feet on this project, there’s no ifs, ands or buts about it,” he said.
Coffey recalled the criticism he took for “delaying” the Scribner Place YMCA project but said this situation is different. Horizons is paying for everything with their own money and only need the city to get the property up to code, he said.
Coffey said Horizons has been waiting for over a year to get the project under way and what he defined as a delay by city officials has kept the development from being started.
“We keep playing around and nobody is going to come to this town,” Coffey said.
Gibson responded he was instructed by the commission last month to negotiate with Horizons, and they agreed to what was passed in the resolution.
Though Coffey felt 60 days would be enough time to get the property cleaned to fit IDEM specifications, Rosenbarger and other commissioners said they wanted to allot time in case of “unforeseen situations” that could arise.
Rosenbarger added he wanted Horizons to be in direct contact with IDEM while the cleaning takes place.
Rosenbarger said they hope to have a bid approved by June or July at the latest for the cleanup.
Goodman agreed that six months would be OK.
“We can certainly live with six months as long as we have an update every 30 days,” he said.
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Photos
Dan Coffey