Chesterton Tribune                                                                                   Adv.

County to form redevelopment agency without tax powers

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By VICKI URBANIK

The Porter County Commissioners gave preliminary approval Tuesday to the establishment of a countywide redevelopment commission to advise the county on how to revitalize sites in the unincorporated areas.

But unlike the redevelopment commissions that now exist in several municipalities, the new agency would not have the power to tax or create new Tax Increment Finance districts. Instead, the new commission would serve in an advisory role in planning and would work to seek grants to carry out identified projects.

The idea of establishing a county redevelopment commission originated  with the Porter County Economic Development Alliance, which presented its proposal to the commissioners in September. 

The commissioners gave first-reading approval to an ordinance Tuesday establishing a Porter County Department of Redevelopment, which would be overseen by a new redevelopment commission. The purpose of both would be to “promote sound and planned redevelopment” in the unincorporated areas.

The new redevelopment commission will consist of five advisory board members, three of whom will be appointed by the commissioners and two by the county council. The ordinance allows one of the members to be a commissioner and one a council member. In accordance with state law, a representative from a school corporation will also serve as a non-voting member.

The redevelopment commission will have the authority to hire a part-time executive director and part-time staff, as well as receive assistance from the county engineer, county planner and county attorney, under the ordinance. The commission is to meet at least once monthly, under the ordinance.

The ordinance also notes that the commissioners have “reservations” about some of the powers that state law gives to redevelopment commissions. As such, the new agency would be specifically prohibited from being able to condemn property, levy a countywide tax or establish TIF districts.

In a TIF district, the commercial properties pay their normal share of property taxes, but the tax money from any new development isn’t distributed to the school, library, county, township and other units as usual but instead is  “captured” to pay for infrastructure or other improvements in the TIF district.

County Commissioner President Robert Harper said TIF districts have evolved into a type of a “third government,” often resulting in departments with huge budgets but with little oversight by elected officials. He said one of the main reasons given for promoting economic development is to expand the tax base, but he questioned the value to the taxpayer if the revenue from the improvements in a TIF district doesn’t actually help the tax base.

“It’s sort of a slight of hand thing,” he said.

But while the new redevelopment commission will be advisory only, both Harper and North Porter County Commissioner John Evans expressed high hopes for the  agency.

“I don’t think it lowers the expectations of what we want them to do,” Evans said.

He said he believes it’s better to have an advisory body in place, because taxpayers would prefer to have elected officials make tax-related decisions. 

Harper also said he feels that the county in general hasn’t been aggressive enough in seeking grants for improvement projects, and that the new redevelopment commission should fill that void. He also said he can see the redevelopment commission working closing with the county’s ongoing corridor planning project as well as the PCEDA, which gets a share of county income tax funds and which might fund the new redevelopment staff.

“Hopefully this is going to take it to a new level,” he said of improving the unincorporated areas.

Final adoption of the ordinance is set for Feb. 3, at which time the commissioners might appoint its members to the commission.

 

Posted 1/21/2009

 

 

 

 

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