Porter County may
not see new tax revenue right away from Porter Regional Hospital as it
catches up with the abatement, but it will be able to net $600,000 from a
provision in the tax abatement agreement requiring the hospital to dish out
funds for economic development, according to Porter County Auditor Robert
Wichlinski.
In June, the county
came to an agreement with hospital officials to set the ten-year tax
abatement starting in 2012 at an assessment of $117 million and $130 million
for years 2013 and 2014.
But the hospital
had been paying $297,717 per year on a prior assessment for $38 million
while under appeals during those years.
After a series of
discussions with the County Assessor and hospital tax representatives,
Wichlinski arrived at the conclusion that the county currently owes the
hospital $512,151 in tax refunds once the abatement is retroactively applied
abatement, which is phased in over ten years. That does not include,
however, the $105,326 the hospital will owe this year for its fall tax
installment.
The hospital
received its tax notices one week ago, Wichlinski said, and has a few days
to decide whether its wishes for the county to write it a check to refund
the taxes or to apply the balance as a credit for next year.
Wichlinski said the
latter, in his opinion, would be a more preferable option because then the
county would not have to take back revenues that were given to the
corresponding taxing units for the refund. Porter Regional Hospital is
located at U.S. Highway 6 and Ind. 49 in Liberty Township within the
boundaries of the Duneland School Corporation.
The auditor's
office will also be mailing a tax bill possibly today to TST Porter LLC
Sanders Trust for the 60,000 square-foot medical office plaza next to the
hospital. That, though, is not being abated as was determined in recent
discussions between the County Council and the hospital.
TST will owe $8,729
on the 2012 pay 2013 assessment of $501,100 and $64,771 for taxes due this
year on an assessment of $4,049,400.
The assessment for
2014 pay 2015 on the plaza has been set at $4,138,000. That includes just
the real property--the building itself and improvements--and not personal
property, the auditor's office said. The hospital is paying the taxes on the
assessment for the land.
By the end of the
year this year, however, the hospital is to dole out a lump sum of $600,000
which the county can put toward economic development.
According to the
original abatement resolution that was approved by the County Council in
2009, the county may charge a fee during the ten years of the abatement,
either $100,000 or a percentage multiplied by the amount of additional
property taxes that would have been paid by the hospital had the abatement
not been granted, whichever is the lesser value.
That would be for
both real property values and personal property values which makes the
amount owed to the County $200,000 over three years.
The resolution
states that the money could be given to “one or more public or non-profit
entities established to promote economic development,” but points to no one
in particular.
The question came
up at Thursday's County Redevelopment Commission of whether that board would
be receiving the funds. Wichlinski told the RDC he believes that the County
Commissioners have the power to decide since the charge of economic
development falls under their auspices. Copies of the hospital bill were
passed along to the Council and Commissioners last week but Wichlinski said
he's heard no response from either as to what is to be done with the money.
The Commissioners
would be able to pass an ordinance creating an account to hold the money but
the County Council would get to vote on appropriating the money, he said.
Redevelopment
Commissions have the power to create economic development areas and capture
tax dollars to build infrastructure in those areas. Members are appointed by
the County Commissioners and the Council.