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HomeMy WebLinkAbout11-13-1990COUNCIL PROCEEDINGS OF THE COMMON COUNCIL OF THE CITY OF JEFFERSONVILLE, INDIANA NOVEMBER 13, 1990 in the amount development in Commission. The Common Council of the City of Jeffersonville, Indiana met in Council Chambers, in the City-County Building in Jeffersonville, Indiana, on the 13th day of November, 1990, at 7:30 o'ctock P.M. The meeting in conjunction with the Redevelopment Commission was called to order by Mayor Dale Orem and C. Richard Spencer Jr. at the desk. Mayor Orem asked all those present to stand and pledge allegiance to the flag. The roll was called and those present were: Councilpersons Jimmy Carter, Marie Clapp, Ron Grooms, Tony Harrod, John Perkins, and Andrew Williams. Absent: Council President Robert Waiz. Mayor Orem introduced Mr. Don Day of the Redevelopment Commission who gave opening remarks explaining the purpose of tonights meeting is to go over the financing of the DeMars Haka Development Project. Mr. Carrol Gowens, Director of the Department of Redevelopment gave a brief history of the project to date. Mr. Rich Starkey, of Baker and Daniels Law Firm gave a general overview of Tax Increment Financing (T.I.F.). Mr. Day then introduced Mr. Myron Frasier C.P.A. of H. J. Umbaugh & Associates who reviewed and explained many financial charts. (Copy attached) Ne explained the phases and tax dates, capital appreciation bonds, and what tax abatement and T.I.F. mean to the project. The meeting was then opened to questions from the Council. Councilperson Harrod was told the original $6,000,000 that was called for was to come from T.I.F. He was told also the City is limited of general obligation bonds. The tax money from new the T.I.F. District would go to the Redevelopment Councitperson Grooms asked was told it would be investment bankers that would nd bonds would then be resold to customers. The insurance has not been addressed yet. who the bond bidders would be and do the underwriting question of bond PAGE 2 NOVEMBER 13, 1990 Councilperson Carter money coming into the City from happen if delays were incurred and there 1991. Mr. Frasier explained explained the reserve. Councilperson Carter Mr. Gowens was told what properties would have tax the District. He then asked what would was not value as of March 1, this is what the reserve is for, and questioned the past debts and was told asked they be included. Mr. Gowens explained the debts in the area, and the need for the developers to have "clean title" to the property. Councilperson Clapp inquired how many would be employed in the area. Mr. Carley projects around 550 for Phase I. Councilperson Carter questioned how many T.I.F. programs in the State are in trouble. Mr. Cartey introduced Mr. Tom Downs who answered he knows of no T.I.F. areas in default. Councilperson Carter believes there is a problem in Miami County. Councilperson Perkins explained he and Councilperson Carter went to Indianapolis to meet with Mr. McIntyre and Ms. Bickle of the State Tax Commission to ask about areas with tax abatement and T.I.F. together. Councilperson Perkins reviewed this meeting stating he still has a real question with granting both. Ne has worked with the figures and believes over a 20 year period this could cost the taxpayers of Jeffersonville $17.8.million. He believes this will be a hardship on City services, schools, library, township, etc. He is in favor of development, however he feels the figures n~ed to be studied to find the best way to do the financing, and at what cost to the taxpayer. Dialogue continued with Mr. Downs stating examples of projects. Mr. Frasier told the Council there is a minimum risk. Tax abatement without T.I.F. allows more exposure to the City. Mr. Carley gave projections of other income outside of property taxes as well as property taxes. He intends to use all local construction firms and to run the project locally. Councilperson Williams asked how crucial the abatement/T.I.F. package is to the project. Mr. Carley explained there are alternatives, however they are distastefull to the project and the City. DeMars Haka has stretched and they are asking the City to do the same. PAGE 3 NOVEMBER 13, 1990 Mr. Reisert feels there surrounding areas as well as Spring examples. Mr. Reisert is a member of ia a direct tax benefit to the Street, with development, giving the DeMars Team, and as a citizen of Jeffersonville feels this is an excellent opportunity. A recess was asked for and granted at 9:15 o'clock P.M. The meeting resumed at 9:25 o'ctock P.M. When questioned by Councilperson Williams, Mr. Carley said he they are willing to go Mr. Walt Bales, and Mr. support to the Council for this Councilperson Carter asked for Mr. Frasier's opinion if there will be tax increases to the citizens of Jeffersonville if both abatement and T.I.F. are given to the project. Mr. Frasier indicated there is this. the slightest chance as Councilperson Williams made the everything has been done to minimize motion to untable Ordinance No. 90-OR-55, Ordinance Creating Redevelopment Authority, seconded by Councilperson Clapp, with Councilpersons Williams, Clapp, and Grooms voting positive and Councilpersons Carter, Perkins, and Harrod voting negative. Mayor Orem then voted in favor of the motion to untable, therefore breaking the tie to pass the motion. Councilperson Williams then made the motion to pass Ordinance No. 90-OR-55 on the first and second reading, passing with the following roll call vote: Ayes: Councitpersons Grooms, Harrod, Williams, and Clapp. Nays: Councilpersons Carter and Perkins. Mayor Orem reviewed the timetable saying the third reading for this Ordinance will be November 26, 1990. Mr. Frasier stated he will be available to answer questions, or to meet with the Coucitpersons individually or collectively at their convenience.. There being no further business to come before the Council, Councilperson Perkins made the motion to adjourn at 9:45 P.M., seconded by Councilperson Harrod and carried unanimously. ~bALE L. OREM, MAYOR ATTEST~-~ ~ \ / C. RICHARD SP does not know of another alternative, however into the ground before the money is available. Mr. Ron Carroll, Mr. Tom Pangborn, Jack Ragland all gave encouragement and project.