PCED continues pursuit of tax code change

The Pulaski County Economic Development Commission (PCED) continued its discussion at its February meeting to pursue an Indiana tax code change which would allow Pulaski County to use surplus CAGIT funds to pay the Justice Center lease, thus freeing CEDIT funds for  economic development projects.

Before addressing new concerns on the matter, PCED executive director Nathan Origer reviewed the situation for the commission.

Origer explained that generally, a County Adjusted Gross Income Tax (CAGIT) rate cannot exceed 1.0 percent. By special legislation, Pulaski County has permission to assess up to 1.3 percent, with the extra .3 percent specifically allocated for maintenance and operations of the Justice Center.

The County Economic Development Income Tax (CEDIT) rate, which funds PCED and is also used for the $260,000-plus yearly jail-lease payment, is currently set at .25 percent, annually accruing about $240,000 less than the special .3-percent CAGIT fund. Further, the special CAGIT fund has a surplus of about $500,000 relative to the CEDIT fund, and tends to generate more revenue than is typically expended in a year.

The PCED Commission seeks to have the Indiana Code amended to allow for the lease payments to be made from the special CAGIT fund, so as potentially to free CEDIT funds for economic-development projects.

 Origer, with the approval of the PCED, commissioners, and county council, has approached State Sen. Ed Charbonneau (R-Valparaiso) and State Rep. Doug Gutwein (R-Francesville) about proposing such legislation. Origer reported Sen. Charbonneau was open to helping, but has let Rep. Gutwein take the lead. But Origer said Gutwein has expressed concern that, in light of the 2013 override of a gubernatorial veto pertaining to the special CAGIT fund, such legislation would be toxic. In response to these concerns, Origer has reached out to the Office of the Lieutenant Governor, and contact information was provided for the General Counsel and Policy Director of the Office of Management and Budget. Origer said he anticipates work on the matter will likely continue into 2016.

 

Old Business

Hometown Collaboration Initiative: Origer updated the commission on Pulaski County's selection as a participant in the inaugural round of HCI. Project coordinator Krysten Hinkle said the first meeting was slated to take place on Feb. 16 at Moss Creek Golf Course and would be mostly celebratory and introductory in nature. At this point, the community coach has not been named for Pulaski County. 

Origer requested approval for a $5,000 investment that the state requires for HCI. He clarified that the funds would be returned to Pulaski County, plus potential state funding for a capstone project as the program nears completion. The commission voted to approve the investment.

Pulaski Online: Origer reported the Website will be live this month, but it will be a soft-launch, and that adjustments will still have to be made and content created before the grand launch, which may coincide with the Economic Summit and annual meeting in March.  Furthermore, Origer said he expects the cost to come in slightly under budget.  Crane + Grey will be back in spring to capture more warmer-season, high-quality photos of the county for the website. 

2015 Summit:  The annual Pulaski County Economic Summit and PCED annual meeting will be Tuesday, March 3, in Francesville, at Cornerstone Event Center, with the business meeting starting at 6:30 p.m., and the Summit following at 7. Dinner will be provided, and a keynote speaker from OCRA (Office of Community & Rural Affairs) will talk about the Hometown Collaboration Initiative.  Sandy Saltsman with Celebrations will cater the meal.

Establishment of a Redevelopment Commission:  Origer reported the infrastructure costs of a potential expansion in Winamac could be supported by tax-increment financing (TIF).  He further noted that he had been contacted by Cobblestone Hotels recently in regard to a change of contact/staffing. After further discussion with the new contact, he determined that creating a TIF district could be beneficial in reducing the amount of funding required from investors for a hotel in Winamac.  Additionally, Origer explained that Ball State recently published a study in which TIF funding was presented in a somewhat negative light and he is waiting to see what legislation, if any, comes out of that study before moving forward with TIF districts in Pulaski County. Commission member John Plowman inquired whether a Town or County Redevelopment Commission (RC) would be pursued. Origer responded that, due to the size of the county, it would likely be a County RC, with input from each municipality considered in decision-making.

Career and Technical Education curriculum grant:  Origer said he expected an announcement to be made Feb. 9, as to whether Pulaski County had been selected as a recipient. 

RLF financial administration: Origer met with a representative from the Regional Development Company (RDC) recently. She reported the RDC would be able to pull credit scores (something to which PCED has no access), along with other tools to summarize each applicant for the RDC approval committee’s review, and (depending on multiple factors) complete finalization steps for a maximum of $500 per loan. He emphasized that the final decision would still be the left up to PCED. Origer proposed a restructuring of loan classifications, and to contract RDC for the servicing of loans larger than $20,000. He then proposed that the decision be turned over to the RLF committee and that a moratorium temporarily be put into place on the program until such decisions and changes had been finalized. The commission voted to approve this plan.

Indiana Bicentennial:  Mrs. Hinkle stated that the local committee would meet with Ms. René Stanley, State Bicentennial Coordinator, on Feb. 10.  Mrs. Hinkle also requested assistance from the members in finding committee members from the west side of the county and received several suggestions. Furthermore, she will send out an invitation to the Historical Society annual meeting, of which Ms. Stanley is a guest speaker.

Project Diesel:  Origer reported he has not heard anything since submitting the RFI, but that the appraisals are underway for the industrial park. Origer also reported that a real-estate broker has visited the office on behalf of a company in Elkhart and he was pleasantly surprised about the asking price of land in the industrial park. The company is looking for roughly 10 acres and will be in contact with Origer in the future.

 

New Business

Membership — Confirm term renewals: All five commission members whose terms are ending have expressed willingness to continue into a second term. They are Becky Anspach, Bill Champion, Doug Roth, Dave Zeltwanger, and Derrick Stalbaum. The commission voted its approval.

Membership — Francesville appointment: The commission voted to approve Darlene Mellon to fill the position of Jamie Bales who is resigning for personal reasons, effective Feb. 28.

Membership — At-large slate: Approval was given to the recommendation of Annie Scholz of Alliance Bank to fill one of the two vacant seats, for a one-year term.

Officers will be elected at the March meeting.

2014-2015 Achievements report: This report will be included in the program for the Annual Summit. Commission member Becky Anspach suggested that the benefits of such accomplishments be included in the report. No other suggestions were made.

Chamber after-hours event: Origer proposed to the Pulaski County Chamber of Commerce that this spring, the PCED (with donation funds) will be the first sponsor of a Chamber After-Hours event, on the condition that the Chamber board find two or three other member-organizations to host after-hours events.