St. Jopseh County approves leasing roads to back $50 million bond that'll aid New Carlisle development

But, to back up the bonds, the county would lease its own roads to itself. That would serve as the asset needed to secure the bonds, attorney Phil Faccenda explained. But the notion of leasing its roads raised concerns by critics of the industrial development — and by council member Joe Thomas, whose district includes New Carlisle.  

As he voted yes for one of the resolutions, Thomas said the mere words “roads as an asset” seem “shocking” and “legalized.” 

“I don’t like it at all,” said Thomas, having to represent a district where several people have expressed worries about industrial encroachment toward their rural homes. “It bothers me.” 

Specifically, the county’s Redevelopment Commission would lease the roads to the county’s Redevelopment Authority. Faccenda, an attorney with Barnes and Thornburg representing the expansion of the New Carlisle Economic Development Area, said this is a common way of backing up bonds that several Indiana counties have used. The bonds financing requires an asset that’s available and ready for use, he said. Without that, he said, the county would have to pay capitalized interest, which is costly.