Ron Hamilton, Shelbyville News Staff Writer

City officials Monday night made a strong statement supporting the use of racino money for local economic development.

By a 5-2 vote, members of the Shelbyville Common Council passed a resolution allocating 60 percent of the fund to economic development and 15 percent to the redevelopment and capital building fund.

According to the resolution — called a road map and general statement of purpose by several members of the council — 7.5 percent of slot-machine wagering fee revenues would be diverted to both non-safety vehicles — such as snow plows and garbage trucks — and streets, while another 5 percent each would go to a reserve fund and to the Blue River Community Foundation.

The two who voted against the resolution, council members Brian Asher and Val Phares, both said they favored the great majority of the resolution, but they wanted it tweaked a bit with amendments to provide for more immediate needs.

“I’m totally in favor of using this money for economic development,” Asher said. “But I don’t see why we have to separate economic development from economic redevelopment. I also realize there are people and projects who need this money immediately, and they can’t wait another two years down the road until the money becomes available through the foundation.”

Council member Jeff Sponsel was adamant that the two economic development funds remain separate. He said city officials have worked hard over the last several years distinguishing between development and redevelopment.

“I think it’s important to set aside some money specifically for certain blighted areas that need redevelopment, like the Wellman site,” Sponsel said.

Asher suggested designating half of the reserve fund — or 2.5 percent — for immediate relief, and Val Phares agreed, noting that there are people in the community who need help now.

“If this resolution represents only guidelines, then it’s worthless,” Phares said. “I was hoping we’d be voting on more specific uses of this money. I want to vote on specific ways that we can help the people in this community.”

Sponsel replied that the resolution should be “a strong statement to the world that we have cash and want to make a difference.” He said the resolution could be amended or tweaked later.

“It’s important that we make a united statement that the city and the county are beginning to move together toward economic development,” he said, referring to the fact that the county council is scheduled to take up the matter in tonight’s meeting.

Mayor Scott Furgeson, who has no vote in the council, reminded city officials as well as the more than a dozen in attendance that it was “only a resolution.”

“You can pass another resolution at your next meeting,” he said. “It doesn’t change the fact that all of the money still has to be appropriated by the council. These are just guidelines.”

Council member Kim Owens agreed. She said the resolution was a “road map with plenty of flexibility.” Council member David Phares said he was in favor of the resolution as long as the Blue River Community Foundation was the only agency handling relief and charity donations. He has said in the past that he doesn’t like the idea of representatives of dozens of social service agencies and charities lining up at each meeting to ask the council for racino funding.

Also Monday night, council members unanimously agreed to retain tax abatement benefits for Shelbyville Paint and Wallpaper, 235 E. Broadway St., after the business was found to be in continued compliance with the terms of the original agreement in 2000.

Shelbyville Paint and Wallpaper is owned and operated by Ray Wetnight and does business as Parrish Partners LLC. Wetnight said his company is in the eighth year of the 10-year tax abatement for $800,000, which it used to construct the present commercial building in 2000. He told city officials Monday his company moved into the building and opened for business in March 2001.

Wetnight also said the business currently employs one part-time and eight full-time workers earning a total of $318,000 in annual salaries, and pays $244,000 to an additional 19 subcontracted workers each year.