GREGORY TEJEDA, Times of Northwest Indiana Correspondent
MERRILLVILLE | The Northwest Indiana Regional Development Authority heard an analysis of its finances Tuesday that puts the organization either with a nearly $33.5 million surplus at the end of 2011 or with just more than $13 million in debt.
The figures differ because the authority is committed to providing money to pay for improvements to Lake Michigan's shoreline in Whiting, Burns Harbor and Porter to enhance future economic development.
But whether those projects are started by 2011 leaves the authority's finances uncertain.
Indianapolis-based Policy Analytics did a study of the authority's finances that projects the group will have a surplus of $33.5 million at the end of 2011 if none of those shoreline projects actually begins by that date.
The Porter project is expected to cost the authority about $20 million, and the other two projects could cost the authority a combined $26 million -- although Policy Analytics President William Sheldrake said the latter figure was an estimate.
If all three projects begin before 2011, the $33.5 million surplus will evaporate, and the authority would be about $13 million in the red. "This is not a forecast," Sheldrake said. "Projects do not always draw down dollars the way they are committed."
RDA board member Harley Snyder said the negative dollar figure should not be seen as a negative because the actual projects bring positives to Northwest Indiana and could encourage future economic development that would improve the region's quality of life.
"If we didn't (spend) this (money) today, we would get none of the benefits we are looking forward to receiving in future years," Snyder said.
Board member Bill Joiner agreed, saying, "If we don't make the investments today, we won't get any benefits 10 to 15 years going forward."