A $3.65 million tax increment revenue (TIF) bond for
Central Indiana Ethanol was approved by the Marion City Council
Wednesday night.
The council held a public meeting on the bond
after council members reported public pressure to do so, but only a
handful of community members spoke on the issue Wednesday evening at
City Hall.
Several local business leaders turned out in support of
the TIF, including Scott Miller, president of Bowman Construction, Bill
Gartland, president of Atlas Foundry and David Cain, vice president of
distribution and sales at McClure Oil.
“We, the city and county,
are in competition with other cities and counties to create new business
and help out when we can for existing businesses to succeed and
hopefully grow,” David Cain said.
“Do not, and I’m going to say do
not, use past failures from past administrations to condemn the use of
this tool. This is a good use of a TIF district that doesn’t cost the
taxpayers any dollars,” Cain added.
The TIF bond is a first in the
city’s history in that as part of the deal CIE is guaranteeing the city
the first cut of the TIF revenue, providing $500,000 in revenue to the
city in the first years of the bond, later increasing to $1 million and
eventually $1.5 million. The bond’s life is 12 years but the TIF
district will continue funneling revenue to the Marion Redevelopment
Commission for the life of the TIF district, which is substantially
longer.
“I think it’s a good working bond and it’s probably one of a kind,” said City Council member Lynn Johnson.
Johnson suggested the city should pursue similar TIF deals in the future.
“If
there’s a possibility that we can continue to work towards producing
solid TIF bonds so that they return money into the city so that it
satisfies the needs of our schools and actually puts some money back
into the city then I think this is an encouraging thing for the city of
Marion,” Johnson added.
James Sutter spoke in opposition of the
TIF during the hearing, citing some of the social issues the city is
facing including drug abuse, gun violence and childhood poverty and the
need for funding for things like new police vehicles.
“Break the
mold. In 20 years you’ve never turned one of these down, never. Tonight,
break that mold. Say no and say yes to the kids and people of Grant
County,” Sutter said.
Comments were limited to four minutes.
Another man asked to yield his time to Sutter, but Council President
Alan Miller did not allow it.
The council voted 7-1 to pass the
bond financing deal. Council member Steve Henderson cast the sole no
vote. Council member Jim Brunner was absent.
Henderson said he had not received a financial statement from CIE or an impact statement for the TIF.
“As
a member of the Redevelopment Commission and also of the city council,
it’s very hard to make a decision on things when you don’t have
financial papers in front of you. Not a bank in this country would loan
this money without being seen a financial statement,” Henderson said.
Buddy
Downs of Ice Miller told the council that Baker Tilly, formerly Umbaugh
and Associates, did prepare an impact statement for the Redevelopment
Commission. Henderson claims he asked for one and never received one.
The $3.65 million will help finance a $25 million expansion project on CIE’s property on Ind. 18.
Because
part of the project is on a CIE-acquired piece of land outside the City
of Marion, CIE and the city initially went to the Grant County Council
for permission to spend the bond proceeds on county property but the
council failed to garner enough votes to pass it.
The city then
revised the bond documents to say the money will only be spent inside
city limits to get around the need for county approval.
Ryan
Drook, CEO and president of CIE, said Wednesday phases two and three of
the project, grain storage expansion and distillation facilities, are
taking place on CIE’s city property.
Drook said he was “humbled” by the city’s support through the process.
“We hope to lead the way and be an example of the ways (TIF) can work,” Drook said.