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.