Council sets precedent with tax abatement approvals

The Greencastle City Council didn’t just approve a pair of tax abatement requests, it set a precedent at its April meeting one councilman stressed.

Making history by approving tax abatement on two residential enterprises -- abatements are most readily associated with industrial development -- city officials may never see another residential developer come forward with a project for which tax abatement is no requested.

Councilman Dave Murray called the move “unprecedented.”

“There won’t be another developer come in who won’t ask for some abatement,” Murray offered.

Councilor Veronica Pejril suggested tax abatement for residential projects is now “common practice.”

“We’ve been late to the game,” she added.

Murray was quick to respond that he was “ready to support it,” but wanted the City Council and others “to understand what we’re doing tonight.”

The projects approved for abatement are:

-- Woodshire Place, a 39-unit development in 13 triplex buildings on 3.05 acres off Woodhaven Drive, east of U.S. 231 and adjacent to Southwood Village on the city’s south side. DSD Real Estate Holdings, represented by Adam D’Angelo, purchased the property from John Wood and received Zoning Board approval for development standard variances on the property last May.

-- Indian Springs North Apartments, a 25-unit complex at North Arlington Street and Houck Road, purchased by Global Construction Management and Jared Grable from the Greencastle Housing Authority scheduled to be returned to the tax rolls after 40 years.

Both projects were endorsed by the Greencastle Economic Commission at its Feb. 22 meeting and forwarded to the City Council for final approval.

The two projects are polar opposites with the Woodshire development targeting DePauw University faculty and staff among other young professional, while the Indian Springs development will remain as HUD subsidized housing for at least another year.

Earlier in the meeting, the Council conducted public hearings on both projects without a single negative comment forthcoming. Following that, by unanimous vote, the Council adopted Ordinances 2023-1 and 2023-2 on second reading for creation of an Economic Development Target Area on the two residential projects and passed resolutions 2023-4 and 2023-5, establishing tax abatement for the same developments.

Both Woodshire Place and Indian Springs North were approved for 10-year tax abatement on a sliding scale from 10 percent the first year to 90 percent in year 10.

Councilman Murray asked D’Angelo about how during initial executive session discussions with the Council up in the conference room at City Hall, the Woodshire original request had been for six-year abatement but later evolved into a full 10-year abatement request.

D’Angelo explained that construction costs have gone up, interest rates have gone up and projects costs have grown with the addition of a second exit/driveway on property to the north that accesses South Street.

“Believe it or not, we’ve been working on this for a year and a half,” D’Angelo summarized. “We’re very excited to bring it to fruition.”

Part of that successful ending was an agreement for a 50-by-200-foot lawn paver strip on the north side that has been worked out with property owner Mike Poor, D’Angelo said.

“We heard from the community about all the children in the neighborhood,” D’Angelo added. “We wanted to accommodate that and we’re able to so with this agreement for new access.”

To everyone else, the access will look like grass but it will actually be semi-grade grass pavers that Woodshire residents will be driving on for access to and from the property.

Meanwhile, local developer Grable said Indian Spring North will need “a million dollars worth of work to bring it up to HUD standards.”

Even if there is a subsidy program change, Grable said “all of the tenants who are there now will be able to qualify.”

Grable said that during the clean-up at Indian Springs he’s killed “seven rats the size of raccoons.” There is carpeting in some areas that has been there 40 years, and it has baseboard heating, “some work, some don’t,” he added.

None of the units has central air, which he hopes to rectify with installation of a heat pump during the renovation.

Grable said he’s not adding more units or more bedrooms or bathrooms.

“We’re not expanding the footprint,” he said. “We’re not trying to get it back to an ‘A’ property but to a level that you’d be fine having your daughter live there,” he told the Council.

Prior to making the motion for approval, Councilman Murray told Grable, “Thank you for doing what you’re doing.”

In other business, the City Council:

-- Heard Mayor Bill Dory report that an agreement with Putnam County Hospital on the new wellness center/community center is “very, very close to getting done.” Groundbreaking for the facility on a site just east of the Walmart Supercenter is expected to occur yet this spring.

-- Heard Mayor Dory announce that Duke Energy has begun installation of LED streetlights around Greencastle. The installation “will probably come in waves,” the mayor said.

-- Heard the mayor report that construction work currently occurring on Franklin Street just west of Locust Street will move to Locust Street in the near future. That may cause the Utilities Department drive-through and the City Hall parking lot to be closed for a few days.

-- Heard Clerk-Treasurer Lynda Dunbar announce that Saturday, May 20 at Republic Services will be Greencastle Heavy Trash Day for city residential utility customers. Eligible residents will receive a letter with all the details in the near future. The annual Tox-Away Day, meanwhile, is set for May 13 at the Area 30 Career Center.

-- Approved rolling street closures for the 5K Recovery Run on June 11 as requested by Sheila Holloway, who previously received approval from the Park Board to begin and end the run at Robe-Ann Park.

-- Approved Second Saturday street closures of South Indiana Street between Washington and Walnut streets for May through October from 6-11 p.m. with the exception of June 10, which has already been set aside for the annual CARR Run after party.

-- Approved extension of the street closures for the monthly First Friday events to include the part of the block that includes the old Wasser Brewhouse building for events from May to October. New Council member Russell Harvey made the request in his role as Main Street Greencastle executive director. He abstained from the vote.

-- Approved the closure of South Locust Street between Hanna and Elm streets for a Sigma Alpha Epsilon block party 4-8 p.m. April 29. All proceeds will benefit the Beyond Homeless shelter.

Joining Council members Murray, Harvey and Pejril for the hour and 15-minute meeting at City Hall were Councilors Stacie Langdon, Darrel Thomas, Cory Eckert and Mark Hammer.

The City Council will next meet in regular session at 7 p.m. May 11 at City Hall.