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City Economic Development Commission reactivated with housing project pending
When last the Greencastle Economic Development Commission (EDC) convened, the iPhone had yet to make its calling, young people were about to be consumed by MySpace and Peyton Manning had yet to lead the Indianapolis Colts to their first Super Bowl.
Monday evening Mayor Bill Dory got the reconstituted EDC together at City Hall after the city was contacted by developers interested in using industrial revenue bonds and/or tax abatement to finance a new housing project.
“It could be 30 or 40 years since this board met,” Dory told new members Mark Hammer, Ken Eitel, Brian Cox and Laura Monnett. A fifth member, Tosh Everson, was unable to attend.
Dory went on to explain that the EDC --- not to be confused with the Greencastle Redevelopment Commission (RDC) or the Citizens Advisory Commission for Industrial Development (CACFID) -- is “one of those boards we call together as needed.”
Upon further review, it turns out the EDC likely met in 2002 -- still more than 20 years ago when Nancy Michael was mayor -- as Pedcor Investments was refinancing its Round Barn Manor apartment project. City Attorney Laurie Hardwick was able to find a November 2002 document about that issue.
Getting to the nitty-gritty, Mayor Dory said the reason he asked everyone to serve is that the city has had a request come in asking for tax abatement on a residential project.
Indiana statute allows for the creation of an Economic Development Target Area to provide local property tax abatement for non-industrial projects such as commercial and rental housing projects. The process is similar to the traditional tax abatement process but requires an extra step. Before the City Council can take action, the Economic Development Commission must make a favorable recommendation based on certain criteria.
The criteria include that the target area has become undesirable or impossible for economic development because of a lack of development, cessation of growth, deterioration of improvements or character of occupancy, age, obsolescence, substandard buildings or other factors that have impaired values or prevent normal development or use of the property.
The fiscal body of a city may designate a maximum of 15 percent of the total geographic territory of the municipality. The area of Greencastle is approximately 5.26 square miles or 3,366 acres. The statute would thus limit the total area of the city that could be designated as approximately 504 acres.
Dory noted that “up until recently interest rates have been so favorable that people have just gone with conventional financing.”
Greencastle does have a housing shortage, the mayor said, “based on several studies.”
Hammer, who also serves as City Council president, agreed.
“There is a need,” he said. ”It’d be nice if a builder here wanted to build single-family dwellings, add to the tax base, get the children in the school corporation and all.”
The city has never done tax abatement with housing, the mayor noted.
“We do have a request that’s come in from a developer for a specific project,” Dory added, noting that the developer has not yet submitted an official application.
“Once we open the door,” the mayor continued, “there could be some additional interest and some other projects come in.”
The EDC did elect officers as its first official action. On a motion by Cox, Hammer was elected president with Eitel as vice president and Monnett as secretary.
The terms of the five board members are staggered with Monnett and Everson serving three-year terms appointed by the mayor, Hammer a two-year term appointed by the City Council, Eitel a one-year term appointed by the County Council and Cox a one-year term appointed by the mayor.
No new meeting date was set for the commission.