CDC Is Limited In Its Ability
To help Town

By Linda Karn

Speedway Community Development Corporation (CDC) does not have carte blanche powers to improve the Town of Speedway. The CDC must remain focused on charitable actions in order to comply with the IRS rules to achieve its non-profit status, according to Barnes & Thornburg Attorney Nandita “Toma” Shepherd.

The January 3 meeting involved establishing a mission statement to provide direction to this proposed non-profit entity. Shepherd recommended the Speedway Redevelopment Commission focus on the revitalization areas that involved working with for-profit businesses so the CDC could stay clear of any gray areas that could jeopardize its potential non-profit status. The CDC could not help with the efforts revitalize the shopping centers as CDC member Steve Bishop had planned.

The CDC needs to establish grant programs and determine eligibility criteria. These programs will accompany the application that is to be submitted to the IRS.

“The CDC’s powers come from the IRS,” Shepherd said.

It is more than likely that the CDC will create a facade program to help Main Street. This proposed program is at the desires of the Speedway Redevelopment Commission and Town Council. The SRC and council made appointments to the CDC.

Town Manager John McCurtain suggested the CDC hold off with the details of a facade program until March 1 when the SRC is scheduled to adopt the Main Street Master Plan. Currently there are three proposed plans that are available for the public to view.  The plans are available on the www. redevelopspeedway.com , the library, Dawson’s on Main Street and Charlie Brown’s Pancake and Steak House.

McCurtain offered another idea. He recommended that a domestic violence center be initiated to protect women and children from abuse. He said the police department receives a lot of domestic violence calls.

The CDC is also now at the point where it can start fundraising activities. The CDC can raise money from private donors, public donors and grant foundations. These funds will be distributed in the form of grants. The IRS could audit the CDC to make sure they comply with the three rules to disperse grants. The IRS will examine to see if the grant money given will alleviate poverty in town, provide community revitalization and reduce the burden of government. She noted that a sidewalk program would qualify because it would reduce the need for government funding of sidewalks.

Shepherd encouraged the group to start educational programs with the schools because they would comply with the criteria of benefiting the whole community.  For example, the CDC could provide grant funding for computers. However, she advised against a scholarship program. “Scholarships are a big issue,” she said.

Shepherd indicated the CDC would need to start a website to post its grant programs and to raise money.

Community Development Corporations were started in the 1980s to help urban renewal. Indianapolis has 12 CDCs listed on the web. In fact, the Westside Community Development Corporation’s boundaries extend into Speedway, thus giving the town two CDCs.

The Westside CDC boundaries are described as Lafayette Road serving as the east boundary and White River; the Conrail tracks south of Washington Street to Lynhurst Drive to 16th Street.  Lynhurst Drive is the western border. The boundary line then goes north on 16th east to the Conrail Tracks to 21st. Street The boundary line heads east to Tibbs Avenue at Lafayette Road.