The city council voted 6-1 Tuesday to help the Knox County Development Corp. purchase an additional 50 acres in the U.S. 41 Industrial Park.
In what has been called a partnership between KCDC, the county council and the city council, each has now agreed to put up $250,000 toward the purchase of the Worland property.
Council member Shirley Rose voted against the measure two weeks ago and she did so again on Tuesday, arguing that she “believes in and supports” what the KCDC does, but the near $200,000 the city already gives to the organization each year is enough.
“It's just not a good time for the city to give additional money,” she said.
She pointed out that the city council, in cooperation with the Bicknell City Council, last year approved an increase to the county's Economic Development Income Tax, a move that now generates for Vincennes more than $440,000 per year.
The county council, even though it now sees $600,000 in additional money per year from the tax increase, voted down the measure, its members arguing that it simply wasn't needed, especially not at the expense of taxpayers just as the jail tax, also an EDIT tax, was expiring.
So, Rose argued, perhaps the county could pitch in a little more.
“Given that the county has indicated it doesn't need that money, it would be nice, considerate even if the county, not the city, would step up and consider paying the total amount,” she said. “I'm sure the taxpayers of Vincennes would appreciate the county's generosity and teamwork so the city can get its streets, sidewalks and curbs in better shape.”
Councilman Ryan Clark said he was in favor of giving the KCDC the $250,000, but he understood Rose's point. And, he argued, the “partnership” between the three entities isn't a true partnership at all.
Any new tax revenue generated by an expanded U.S. 41 Industrial Park, Clark pointed out, goes to the county, not to the city because it is outside the city limits.
“I'm in favor of it,” he said. “But I just wanted to note that. It's not 50-50.”
Council president Duane Chattin said the city, having just voted down its plan for annexation, needs the KCDC now more than ever.
“We have to rely on the KCDC, its board, to get more jobs, to increase wages,” he said. “And that will benefit all of us.”
Councilman Chuck Sebring, too, acknowledged the city's precarious financial situation and called any investment “a gamble.”
“But if I'm going to bet on something,” Sebring said, “it will be the KCDC.”
And city council vice-president Scott Brown argued that the city's move to increase the EDIT tax was “so we can do things just like this.”
“I agree with Shirley's comments very much, but if there are prospects out there right now looking for property, we have to be available,” Brown said. “Otherwise, we might as well shut the KCDC down right now.”
The additional land, KCDC president Kent Utt has said, will give to the organization about 100 acres that the organization will now begin to make "shovel-ready" and market to industrial prospects.