Many Connersville residents and businesses can use money that would normally go to taxes to make improvements that benefit themselves and the community.
Most of the city west of the Whitewater River and south of 21st Street is included in the Connersville Urban Enterprise Zone, which can provide grants or low-interest loans to residents or businesses located in it. City Hall and several downtown businesses have received new coats of paint as a result of the program. Factories have used funds to pay for new equipment that creates new jobs or retains existing ones.
Dan Parker, president and CEO of the Fayette County Economic Development Group, says the program is one of the best tools he has when trying to attract a new business to Connersville. By locating in the enterprise zone, they can use taxes from their investment to pay for the improvement.
Diana Phillips, a City Council member who chairs the UEA board, says it is her favorite board because “we can see the improvements that we’ve made.”
Money contributed by UEA members has helped the city renovate downtown. The UEA improved the Oasis Shelter lot in the 500 block of Central Avenue. It also helped in the purchase of the former Burkhardt’s property on West Fifth Street where the city is building a stage and performance venue.
Businesses and residents in the enterprise zone can pay the Connersville Urban Enterprise Association 25 percent of the property tax they would normally pay on a building improvement or, in the case of a business, on new manufacturing equipment. For that, they can then use the other 75 percent of the increased property tax to buy the equipment or make the improvement.
Authorized by the state, this Enterprise Zone Investment Deduction is a 10-year 100 percent property tax deduction for new personal property and a 100 percent real estate tax deduction for new construction or improvements to real estate. The deduction is automatic for businesses or residents who file the proper form with the State of Indiana.
In other words, Parker said, if a business would normally pay $100,000 in additional property tax, they would pay the UEA $25,000 and then have $75,000 to spend on their project. A board composed of local residents serves as a watchdog to ensure the money is spent as intended, reviewing an annual report from participating businesses.
Businesses can also qualify for a 10 percent Qualified Employee Deduction Credit. It is equal to 10 percent of the increase in wages paid to employees who live and work in the enterprise zone.
Residents can also get loans for painting or improving the exterior of their houses or buildings. The UEA will pay half of the project’s cost, up to $2,500, for residential improvements.
The UEA also offers scholarships to residents who are attending college or vocational school.
In 2023, the UEA provided provided $265,253 in grants to businesses and nonprofits within the enterprise zone. Another $9,832.55 provided four residential façade grants.
Local enterprise zones are reviewed and approved by the state. Zones which are not used are allowed to sunset, or disappear.
Applications for the various programs are available online under the business tab of EDG’s website, edgconnersville.com/.
The UEA board meets regularly, Parker said, and acts quickly on applications. Along with Phillips and Parker, board members include Jim Barrett, Ralph Himelick, Sharon McQueen, Bill MacDaniel, Victor Riedman, Brian Robb, Dean Nutty, Jason Morris, Terry Sturgeon, Mayor Chad Frank and Trevor Lane.
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