Two county government units have decided to stop paying for planning a housing infrastructure project.

Jay County Redevelopment Commission agreed Thursday to cease funding the proposed 68-acre development along Votaw Street (Indiana 67) on the west side of Portland. Its motion included plans to notify planning firm Rundell Ernstberger Associates to halt development work.

The redevelopment commission also voted to send a letter to Jay County Commissioners and Jay County Council declaring intent to rescind an interlocal agreement obligating American Rescue Plan Act dollars toward the project.

Also, commission members accepted a resolution enacting three new tax increment financing (TIF) districts in Jay County.

Jay County Council on Dec. 10 made a similar decision, voting to “pull the plug” on the 68-acre commercial and housing development project, which has approximately $1.2 million in American Rescue Plan Act dollars backing it. Jay County Commissioners had discussed the topic Dec. 8 and will likely revisit the discussion Monday.

Redevelopment commission president Carl Walker suggested the group consider taking action, either voting to continue with the project or following suit with council’s decision.

Last week, commissioner Duane Monroe referenced a conference call between county officials and consulting firm Baker Tilly, saying the discussion indicated the county could reallocate American Rescue Plan Act dollars dedicated to the project.

County attorney Wes Schemenaur has cautioned officials, noting American Rescue Plan Act dollars were given to communities in a unique fashion. He has voiced concerns about the county being forced to pay the funds back if an issue arises in a future audit.

Schemenaur shared similar worries with redevelopment commission Thursday, saying the process “probably will work” but that it isn’t a great position for the county to be in. He also advocated for being cautious about how the American Rescue Plan Act dollars are spent, pointing out the 68-acre project has been solely paid for with American Rescue Plan Act dollars deemed as revenue replacement.

He said Baker Tilly had suggested the county could reallocate the dollars as another revenue replacement, finding paid obligations prior to Dec. 31, 2024.

Examples included payroll or health insurance costs.

“Now that frees up $1.2 million of revenue or funds that we can use for any purpose,” he explained.

County officials have talked about using the money to pay a portion of the cost to outfit emergency responders with new radios, a nearly $7 million project.

Portland City Council agreed earlier this year to contribute $400,000 toward the project, contingent on receiving a match from redevelopment commission. Jay County Commissioners recently decided in a 2-1 vote not to request redevelopment commission to supply that match.

Jay County Redevelopment Commission, Jay County Council and Jay County Commissioners entered into an interlocal agreement in November 2024 obligating American Rescue Plan Act dollars toward the 68-acre project.

Walker asked his fellow redevelopment commission members for action, and they agreed to stop spending dollars on the project.

He also asked members if they’d like to inform county officials declaring their intent to rescind the interlocal agreement.

Redevelopment commission voted unanimously to send a letter to commissioners and council.

Also Thursday, the redevelopment commission approved a resolution to formally enact TIF districts encompassing four prospective solar farms in Jay County.

The redevelopment commission expects to capture anywhere from $630,000 to just over $3 million annually in TIF dollars with the new districts, which capture additional property tax revenue created by property improvements and set it aside to fund initiatives within TIF districts.

Solar farms on the horizon are Skycrest Solar Energy Center in northwest Jay County, Sun Chief Solar northeast of Redkey, Rose Gold Solar north of Dunkirk and New Jay Solar east of Dunkirk. (Rose Gold Solar and New Jay Solar are bundled into the same TIF district.)

A public hearing on the TIF districts during Thursday’s redevelopment commission meeting drew no comments.

Walker explained that with changes happening at the state level, the TIF district revenue could allow the commission to capture increases in property tax assessments.

“That’s kind of the intent of what we do here — goes in our pockets, and then hopefully the redevelopment commission then spends your money wisely,” he said.
-30-