By KEVIN NEVERS

No Chesterton residents appeared at a public hearing Monday night before the Chesterton Town Council to remonstrate against the proposed annexation of 67 acres in Westchester Township.

But a Porter resident did.

Al Rioli, characterizing the annexation as “something more than what Chesterton needs,” urged the Town Council not to “take too much on at one time.”

At issue is the petition of Olson Farms LLC for the annexation of the second and final phase of the property formerly known as the Olson Farm, the easternmost portion of a parcel located at the terminus of East Porter Ave. immediately east of C.R. 250E (Friday Road). The Town Council has already annexed the first phase of the property, the westernmost 67 acres.

Olson Farms LLC, whose principals are Vlad and Eric Gastevich, has proposed construction of a 360-unit single-family planned unit development to be negotiated with the Advisory Plan Commission and approved by the Town Council. For Rioli the sheer size of the project, particularly during a “housing slump,” is the first strike against it. “Consider the repercussions if the economy goes south,” he said.

More to the point, though, Rioli noted, the fiscal plan prepared at the Gasteviches’ expense by H.J. Umbaugh & Associates projects the likelihood of the Town Council’s seeking an excess property-tax levy appeal of nearly $250,000 to defray part of the cost of serving the new subdivision. That, at time when the cost of asphalt has nearly doubled and forced the Town of Chesterton this year to dip into CEDIT and TIF moneys to keep pace with needed paving.

Vlad Gastevich did not respond to Rioli’s comments. Members Frank Sessa, D-2nd, and Mike Bannon, R-5th, did, however.

Sessa, repeating an argument he has made before, compared communities to businesses. “You either grow and go forward or you deteriorate and fall to the wayside,” he said. “Chesterton was a lot more vibrant and healthy and flourishing community in the Fifties than it is today.”

If people are interested in buying new housing in Chesterton, Sessa added, and want to spend their money here rather than somewhere else, they should be encouraged to do so. “If you want to put on blind folds and ignore it, then you can.”

Bannon, on the other hand, told Rioli not to worry too much about the housing slump. “If the housing market goes south,” he said, “they won’t be building any houses until it gets better.”

In any case, Bannon remarked, the Gasteviches have previously made it clear that they intend to develop their property whether it’s in the corporate limits of Chesterton or not. “There’s no reason for us to walk away from tax dollars,” he said, especially when the Chesterton Fire and Police departments already respond to calls in that unincorporated area.

No one spoke in favor of the annexation at the public hearing.

Under state statute the Town Council must wait 14 days before considering an annexation ordinance. That ordinance will be on the agenda of its July 9 meeting.

Under the terms of the annexation agreement the Gasteviches have committed to the following:

•A donation of 20 acres, located in the area of C.R. 1050N and C.R. 250E, to the Parks and Recreation Department, to jump-start a park east of Ind. 49, exceeding the minimum donation required under Town Code by 13 acres.

•A payment of $200 per unit, for a total of $68,400, to defray the cost of acquiring new equipment to serve the subdivision.

•The payment of any parks and recreation impact fee which may be enacted.

According to the fiscal plan prepared by Umbaugh, the annual cost of hiring new municipal employees to serve the subdivision would total $428,108, with vehicle and equipment purchases totaling at least $228,000 in additional expense. To fund those employees and acquisitions, the Town Council is contemplating an excess levy appeal for pay-2009 of $264,651, the fiscal plan states.

Posted 6/26/2007