By VICKI URBANIK

It’s official: Porter County will team with Lake County to form the new Northwest Indiana Regional Development Authority aimed at enhancing the region’s economy through improved air, rail and bus transportation and other development projects.

The Porter County Council voted 4-3 Tuesday to join the RDA by doubling the county’s current income tax rate.

As a result, beginning July 1, those who live or work in Porter County will pay a 0.5 percent County Economic Development Income Tax, with the first $3.5 million going to the RDA and the rest, estimated at about $4 million, toward property tax cuts for homeowners.

A standing-room-only, overflow crowd gathered at the Porter County Administration Center erupted into a standing ovation following the council’s vote.

The crowd was clearly more pro-RDA. Of the 54 audience members who spoke, 41 urged Porter County to join the RDA.

Supporters hailed the RDA as the best economic tool for Northwest Indiana in decades, a way to create good-paying jobs for today’s youth and to tap federal dollars now being lost to other parts of the country that already have a local match for transportation projects. Many supporters were real estate agents, builders, union representatives, and business leaders, with support voiced from Democrats and Republicans alike.

Opponents, on the other hand, raised fears about partnering with Lake County, increasing taxes, and eroding the last of Porter County’s open space and farmland through urban sprawl.

Jobs, Jobs, Jobs

A recurring theme for supporters was that the RDA is crucial to the region’s economic future, because the anticipated improvements at the Gary-Chicago International Airport, South Shore commuter service and regional bus services will create jobs and attract employers.

It’s well documented that an area’s transportation network has a great impact on business relocation plans, said Vince Galbiati, executive director of the Northwest Indiana Forum.

“We shouldn’t fear expansion. We should fear unplanned growth,” he said.

Gary Green, past president of the Porter County Builders Association, said the homestead credits allowed by the RDA-CEDIT plan will increase housing affordability, noting that property taxes are not geared toward one’s ability to pay. The RDA represents a planning mechanism for the region’s future transportation system, he said. “We can either be part of the planning or not.”

Joe Zimmer, president of the PCBA, said he wants his children to have the ability to keep living in their home county with high-quality jobs. “What we need are companies of the 21st century to locate here,” he said.

Linda Woloshansky, executive director of the Center for Workforce Innovations, said she’s tried of advising her clients to move out of the area in order to put their talents to their best potential. Similarly, Valparaiso City Council member and Porter County GOP Chair Chuck Williams said he can count on this fingers and toes the number of his fellow student colleagues who have stayed in Porter County.

Family Express President Gus Olympidis said no one likes higher taxes, but that the RDA represents the first time in four decades that a bipartisan coalition of leaders -- from the team of U.S. Rep. Pete Visclosky and Gov. Mitch Daniels to State Representatives Ralph Ayres and Chet Dobis -- “did the people’s work.”

Fear the Devil

Several opponents reminded council members that some of them were elected on the platform of no new taxes. Fear of Lake County was a recurring theme.

Virgil Gassoway of Chesterton said Lake County needs Porter County’s money and integrity “to legitimize this attempt to help pull Gary out of a very deep hole.”

“That giant sucking sound that you’ll hear will be the millions of state and federal tax dollars once again being sucked into that bottomless hole of need called Gary -- only this time the sucking sound will be even louder because this time our money will be siphoned off if we sign on,” he said.

John Robbins of Chesterton said people are in and of themselves an economic engine if they’re given the chance to “spend our own money.” He said there have been too many tax increases, including property taxes that have gone “through the roof.”’

“Let’s give tax increases a rest,” he said.

St. John Republican Party Chair Joe Hero of Lake County said the $3.5 million put up by Porter County will be only the “first ante” toward helping Lake County, where officials “will steal” Porter County’s share.

“You’re getting married to the devil,” he said.

The concern for Richard Wheeler was one of “moving too fast, too quickly.” Wheeler said he’s unhappy to see so much support for the RDA from real estate agents and builders, saying that development will “gobble up” the last of Porter County’s open space.

Similarly, Lois Covel of Kouts said if the RDA goes through, officials will need to protect the farmers and not allow economic development to pave over the remaining farm fields. “Sprawl is going to destroy us,” she said.

A Question of Access

For at least a few speakers, the issue of joining the RDA has a fundamental human element.

Rev. Patrick Omos of St. Andrews Church cited the importance of mass transportation as providing a vital link to help lift people from poverty and get them to jobs and services they need. “Not everyone in Valparaiso owns a car,” he said.

Similarly, Raymond Fletcher of Indiana Democrats for Accessibility said the RDA’s focus on mass transit will enhance people’s mobility. Fletcher, who uses a wheelchair, said he is able to drive, but many others cannot get around as easily.

Westchester Township resident Herb Read said in order to develop the lakefront recreationally as envisioned in the RDA plan, the lands must be purchased with federal funds matched by a local share. And in order to reduce the nation’s reliance on Middle East oil, efforts must be made to expand public transportation, he said, adding that he’s glad the South Shore rail service was there for him when he needed it over the last 50 years.

Heavy Hitters

Among the governmental leaders who spoke Tuesday was Indiana Department of Commerce Secretary Pat Miller, a Northwest Indiana native who said the region has the chance to turn the state’s economy around.

“I believe Northwest Indiana has more potential than any other part of the state. And you deserve the best,” she said.

On the other side was South County Commissioner Carole Knoblock, who said that doubling CEDIT is “an insult” in the wake of property tax hikes. If Porter County wants to join the RDA, she said, it should cut its budget by $3.5 million to come up with the necessary funds.

Other officials who spoke were Ayres, who cited the homestead credit package as most benefiting those with high assessed valuations and low incomes, and Rep. Bob Kuzman, D-Crown Point, who said: “This is not a Lake County issue or a Porter County issue. This is a regional issue.”

Porter County’s two mayors addressed the council jointly. Portage Mayor Doug Olson said the RDA will improve the region’s quality of life with its expanded air and rail service. The three top reasons for Porter County to join, he said, are “jobs, jobs, jobs.”

Valparaiso Mayor Jon Costas spoke of how his city just recently lost out in its bid to attract the corporate headquarters of one of its businesses, with a Chicago suburb chosen instead due to its proximity to a major airport. The strong, non-partisan support shown for the RDA represents a unique opportunity for Northwest Indiana, he said. “There’s great synergy here,” he said, promoting sustained applause.

Posted 5/25/2005