ANGOLA — Steuben County Commissioners rejected a proposed economic development partnership with Trine University by a 3-0 vote Monday morning.
Trine had asked local government agencies to commit $6.9 million to a project that would have created centers for entrepreneurship, biomedical engineering and technology commercialization lab on Trine’s campus. Trine officials said the university also would spend $6.9 million on the project, much of it for operating costs.
The Angola Common Council voted last week to pledge $1 million toward the project, and smaller Steuben County towns offered lesser contributions.
County Commissioners were left with a potential contribution of nearly $5.9 million from the county’s Major Moves fund, using money from the 2006 lease of the Indiana Toll Road.
Monday morning, Commissioners Ron Smith, Loretta Smart and James Crowl all said spending Major Moves money on the Trine project was not acceptable.
Instead, Commissioners President Ron Smith proposed loaning Trine $5.8 million to $6.9 million with no interest, and no repayment required until after four years. The commissioners did not vote on that idea. That proposal also would have to be approved by the Steuben County Council, Smith noted.
Crowl said a loan would be a possibility, and during the meeting, Smart said she was undecided about a loan. Afterward, she said she would consider a loan if Trine shows interest.
The commissioners talked about their options for nearly 30 minutes, with Smith dominating the discussion.
“Steuben County does not see that their role is to give money to private business,” Smith said. “Capital for private enterprise should not arise from the public coffers.”
Smith described several elements of the agreement proposed by Trine as “problematic.”
“There is no statement as to who would deposit what, in equal amounts or what,” Smith said. “From what I have read in there, we are assuming that there would be equal participation on the part of both parties. That has not been established in this document, but nonetheless, that is problematic.”
Smith said the proposed agreement indicates Trine would hold the funds in an escrow account managed by Trine.
“There again for the county to … give up full control of it, as some of you may know, in county government, that is a little difficult for us to accept,” Smith said.
Smith said disbursement of funds would be at Trine’s discretion, with no further authorization required to spend the money.
“In other words, the county is disparaged from any further control,” Smith said.
Smith said Trine also would control the contracts of companies hired to construct the buildings that would be part of the project.
Smith said the proposed agreement does not specify how any royalties would be divided.
“Royalties would be divided on a basis to be determined. When? Certainly before signing,” Smith said. “But again, royalties on what? What kinds of royalties? Do we even have a promise of royalties?”
Smith also criticized the proposed method of financing the project.
“According to the interpretation that we had from the outset, the county and Trine would be putting in equal amounts of cash. In my speaking with Trine, I have ascertained that they are indeed counting on making in-kind payment as a part of their contribution … I have a problem with the fact that we are not allowed to make in-kind, but they are given that privilege,” Smith said.
Smith said the proposed agreement shows Steuben County would own the project’s buildings, but that Trine would have control over them.
“We are referred to as the landlords, and yet the tenant makes full determination as to the nature of the buildings, et cetera. We would be relinquishing everything in relation to that,” Smith said.
The building also could become a huge liability and/or an asset, Smith added.
Smith said the proposal lacks feasibility and no feasibility study has taken place.
Smith responded to critics who have said Steuben County has no plan for its Major Moves money.
“We have been generous. We have been frugal. We’ve been evaluative, and we have projected needs,” Smith said.
Smith praised Trine as a “gem” and a “stellar” part of the community.
“Your economic impact is huge, and it is vital to both Angola and Steuben County. We would like to see you keep your projects here,” Smith said, referring to Trine. “There have been some innuendos that if we do not fully fund this project, the projects will be taken to another area. We would love to have you keep those projects here. … If it works best for you because of logistics and you need to take them to another county, you have our blessing, because that’s the way you see fit to make it work.”
Commissioners did not open the floor to comments from an audience that filled their meeting room in the Steuben County Community Center.
No one representing Trine attended Monday’s meeting.
Trine executives said March 11 that they would end discussions about the project with Steuben County and look elsewhere if their proposal was not approved Monday. They said they were in “very serious dialogue” with LaGrange County and the city of Sturgis, Mich., and St. Joseph County, Mich.
Monday, Smith said he has spoken with commissioners from other counties across the length of the toll road, who also received Major Moves money.
“At this point, not one single county commissioner has said that they have been contacted in any way, shape or form for solicitation of funds to move forward in what is known as the Trine project. Not one commissioner has been approached,” Smith said.
Smith said road repairs and improvements are major issues facing the Steuben commissioners.
“For us to forfeit the money that would enable us to repair some of those and then turn around and put a wheel tax on our citizens to furnish the needs of all citizens would be most inappropriate,” Smith added.
In his proposal to loan Trine the money, Smith suggested that the university could pay back the loan at $1 million for six years or $500,000 over 12 years. Smith noted that the county would be forfeiting any interest it might receive from the money by loaning it to Trine.
“You (Trine) control the destiny of the program, and you may initiate dynamic changes. Any royalties would be yours,” Smith said.
“In this case we are still taking a risk a risk, folks, we are making a sacrifice, folks, and yet we will become the enabler.”
University officials said they have received several letters of intent from companies that would locate in Steuben County as a result of the project,
Earlier this year, Trine withdrew one element of the proposed project after Steuben County officials hesitated at approving it. Reports say a $7.5 million biomechanical center, originally proposed for Steuben County, now is likely to locate in Fort Wayne in a partnership between the university and Parkview Health.