Officials: Fort Wayne has surplus of incentive money

BY DERRICK GINGERY, Greater Fort Wayne Business Weekly

City officials expect to have an agreement ready to present to the Fort Wayne Redevelopment Commission on Monday and the City Council on Tuesday for the proposed hotel and other portions of the Harrison Square project.

According to city leaders, not only will there be enough economic development funding for all of Harrison Square, but projections show there are enough incentives for developing the 29-acre OmniSource Corp. property north of the St. Marys River, with some money left over.

City Controller Pat Roller today said County Economic Development Income Tax (CEDIT) funding, Tax Increment Financing (TIF) dollars and Community Trust Fund money, which is revenue from the city's lease of its light and power utility to Indiana Michigan Power, all are projected to have more than enough money for the two major downtown redevelopment projects and other initiatives.

Cumulative CEDIT receipts are expected to be $111 million over the next five years. The Jefferson Pointe TIF district, which includes Harrison Square, has a projected gross balance of $50 million, with $25 million already allocated to Harrison Square. The rest could be used over the remaining life of the district for other projects. The Community Trust Fund is projected to have a balance of more than $50 million over the next five years that can be used for additional projects.

Roller said the projections were conservative and did not assume Harrison Square would be built.

The Harrison Square project would include a new baseball stadium, hotel, parking garage, condominiums and retail space just south of the Grand Wayne Center. Forty-nine percent of the total cost would come from public sources, but not property taxes. About $160 million in total investment is expected if all phases of the project are completed.

The projected surplus takes into account the $4.3 million the city would spend to buy the OmniSource property. The city purchased an option for the property in January.

Mayor Graham Richard said the numbers should allay concerns about spending all available economic incentive funds on Harrison Square and leaving nothing for other projects.

City officials are hoping for a favorable vote from the Redevelopment Commission Monday and would like the City Council to vote on the Harrison Square project Tuesday.

There is no deadline for City Council action, but Deputy Mayor Mark Becker said Fort Wayne Wizards owner Hardball Capital LLC has to begin planning for improvements to Memorial Stadium at the end of the baseball season if no deal for a downtown stadium can be reached.