IMS Property Added to Speed Zone

click on photos to expand

(top)
American Structure Point Chief Planner Shane Burkhardt presented two awards to President Vince Noblet, one from the American Planning Association's Indiana Chapter for an outstanding plan, and the American Council of Engineering Companies for outstanding research and planning study.

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Steve Bishop's chair remained empty after he walked out in apparent disgust during part of the public comment session.

Photos by Jay Thompson

(posted June 21)

Without public opposition, the Speedway Redevelopment Commission approved 5-0 to include 41 acres of the IMS property into The Speed Zone.

Tom Guevara of Crowe Chizek gave the SRC a presentation with funding projections that explained financing for the proposed $62,755,000 bond without using a special benefits tax. The SRC will have to make its case before the Department of Local Government Finance on June 26 that sufficient TIF revenue funding is available to cover the bond. The special benefits tax gives the SRC the power to levy taxes if the tax increment revenues fall short.

The SRC and Guevara both stated the special benefits tax is for marketing purposes only.

Guevara explained that $2 million is "already realized" from Allison Transmission and $500,000 from Praxair without making any improvements to the area. The Speedway's proposed projects will also help generate TIF revenues to fund the projects adjacent to the Speedway.

If all the project areas are realized, they will provide extra revenue over the amount of debt service to avoid a property tax levy. "This is an important point to make the state" Guevara emphasized.

Executive Director Scott Harris said SRC is working on other funding sources, like applying for grants and state funding to reduce the bond amount. President Vince Noblet said "this bond issue and lease are not going to effect any body's property taxes in Speedway with the projected revenue stream forecast at this point in time, which is conservative."

"That is correct," Guevara said.

Although no one protested during the public hearing portion, Jack Norris, Joyce Bishop, Erin Dotlich and Jo Ellen Dotlich voiced concerns about the town's ability to pay for the project.

Commissioner Steve Bishop stormed out of the meeting as Erin Dotlich requested the removal of the Special Benefits Tax from the lease rental agreement.

Gib Crabill supported the redevelopment, saying it was unfair for the IMS and Allison Transmission to "carry our load" and the Town of Speedway should "chip in a little" as the appropriate thing to do.

Norris said it was a step in the right direction, but he would like to know what the cost would be if the project blows up. "The sewer system is big item that is not going away," he said.

Noblet said the "coverage is over adequate" and on top of that there is "over a year's back up already in the bank" as a stop gap measure.

Noblet also said they would address the sewer in the Speed Zone area, but not at the plant. He said that the SRC has never really looked at placing the waste water treatment plant in the TIF. He explained the land is a former landfill that is probably not conducive for development.

Steve Bishop said the SRC appreciates constructive criticism. They do consider public opinion and appreciated Norris' comments. He said the SRC is not "winging it." Bishop explained that he is working with universities to locate in the Speed Zone.

Joyce Bishop, (not related) requested a moratorium on the TIF expansions until a macro look of how the loss of the tax increment would effect the other taxing units in both Speed Zone and Area Two. She also had concerns how the 2010 property tax caps would affect the other local tax units with the loss of the increment with growing assessed valuations. Bishop also made a comment about the police presence in the room. "And I'm to glad to see our police here guarding us."

Jerry Urick, who identified himself as a resident and not as a redevelopment authority member, encouraged the SRC to keep moving forward. The authority serves as the lessor in the lease rental agreement with the SRC. The SRC pays the lease rental payments to the SRA to retire the bonds. Urick said there are only a few people opposing the project out of a town of about 13,000.

Town Manager Barbara Lawrence said these are difficult times for local government. "Redevelopment is essential to every community that wants to better itself for the next generation." She noted the importance of greenways, parks and open space are for the good community, just as the ability to flush the toilets knowing it will treated in an environmental manner.

Engineering for the 16th Street project is 90 percent complete. American Structure Point Chief Planner Shane Burkhardt said the landscaping will include a sidewalk and shared path for bikes.

Attorney Jim Gutting said the Indiana Public Access Counselor found no standing for the complaint filed that the 48 hour notice rule was broken by the redevelopment authority for its May 19 meeting. Gutting advised the clerk treasurer's office has made some changes in procedures and will notify by fax so an audit trail exists.