GOSHEN — Elkhart County Council members were torn Thursday on if they should help fund the utility expansion project in Middlebury.
The minor annexation in Middlebury to expand its utilities is a requirement for approval by the Indiana Department of Environmental Management for an expansion project by Mid-States Specialty Eggs.
Elkhart County Planning Director Mae Kratzer said utility expansion would result in about $3 million in development improvement and allow the county to collect a minimum of $400,000 per year if the development is realized.
The business also cannot do the expansion without the utility connection. The town is requesting that the utility is paid for by the TIF.
“My struggle with this one is giving the funds for one business, and the picking of winners and losses and I know there’s businesses elsewhere that have had to do similar type things that have had to pay the cost themselves. And in this case, we’re telling this business ‘You’re more important than others,’” Councilman Adam Bujalski said.
The interlocal agreement with the Redevelopment Commission was tabled earlier this month by the Elkhart County Redevelopment Commission, citing concerns over how TIF dollars would be received after the annexation. On Thursday, Redevelopment Commissioner Rick Gentle told the council that they added a specific section to the interlocal agreement that would allow them to determine who receives the TIF funds even if it’s no longer within the true county TIF. Gentle spoke on behalf of the commission, stating that the Redevelopment Commission does favor the interlocal agreement and funds exchange now that the modifier is in the agreement.
“So often we share TIF funding with the Town of Middlebury and a large portion of that is we, as a county, and this community, between Elkhart County and Middlebury, we realize more from our TIFs at the county level than we would if they were going to annex them all into Middlebury because those TIFs started the development from a lower standpoint in the county than if they were to annex and get less increment,” Kratzer said. “It’s to everyone’s benefit to keep them in the county because there can be more TIF dollars realized.”
Elkhart County Councilman Steve Clark said in total in the coming months, the county will spend $2 million out of this TIF alone on Middlebury infrastructure, between the water tower, the business and wastewater treatment upgrades.
“We could be using it for roads,” he said. “I’m struggling with it because whether we have it or they have it, I’d rather they have it and just spend it on themselves instead of us have it and spend it on them anyway.”
If the interlocal isn’t approved, and the area is annexed, Middlebury can make a TIF of their own and claim the funds themselves over the county.
The council voted in favor of appropriating $400,000 from the Middlebury Southeast TIF for the utility project, passing 5:1 with Clark voting against it.
Another Middlebury utility project, $500,000 from the Middlebury East TIF, however, was stonewalled. The project would allow sewer to be brought to the area north of the Toll Road. Kratzer said every year for the next seven years, the town will be coming back for additional appropriations associated with the cost of the project, to the tune of $9 million between the Middlebury East TIF and the SR 13 Interchange TIF. The project total, however, is $22 million.
Councilman David Hess called it short sighted to not approve the request, and noted that there are many homes in that area that need support with failing septic systems.
“I’m not sure where this is coming from now,” said Elkhart County Commissioner Suzie Weirick. “TIF funds, in general, have historically been used and continue to be used for projects within the TIF districts. These projects have historically and continuously been used for infrastructure projects of all kinds whether its roads, sewer, water. These projects have been long in the planning process and are necessary to continue and work collaboratively with the entire plan for these TIF districts.”
Weirick said she wished, if there were objections, that they knew before time and money was spent by staff in Middlebury and the county on the projects.
A motion to deny the request was favored by Bujalski, Clark and Doug Graham. Hess, Darryl Riegsecker and Tom Stump voted against that motion. Councilman Randall Yohn was not in attendance, so the vote was split and the motion was tabled. It will be brought back in November.
From the SR 13 Interchange TIF for the project, $1 million was also tabled for the same reasons.
The interlocal agreement with Middlebury for the Middlebury South East TIF District, for funding the sewer and water main extension, however, was approved.
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