Bond Issue Receives Favorable Recommendation

(posted June 29)

The Speedway Redevelopment Authority is one step closer to issuing bonds to start the redevelopment project for 16th Street and Main Street. The department of local finance tax board forwarded a favorable recommendation to the DLGF commissioner after listening to about 90 minutes of testimony and public comment on June 26. The meeting pivoted around the Speedway Redevelopment Commission's fiscal analysis to prove to the DLGF that tax increment revenues were sufficient to pay for bonds.

Although the 51 signature petition failed to meet the DLGF's criteria to stop the bond issue, six residents and taxpayers did attend the hearing to voice concerns about the SRC's ability to pay.

Attorney Jim Gutting explained things were on the cusp with commitments for development. He told the board that if the land was available the Central Utilities Complex would begin construction the next day. Speedway Utilities Management LLC, a wholly owned subsidiary of Citizen Gas, will construct and operate a steam and wastewater pretreatment plant to serve Allison Transmission and future customers.

Mel Harder, IMS Sr Vice President, voiced support for the bond and discussed the IMS' commitment to the centennial plans.

DLGF member John Stafford was repetitious in his questioning that TIF funds would be there. Stafford placed a condition for the redevelopment commission to return the DLGF if any changes would occur in the funding.

Gutting expected four different bond phases would be needed to redevelopment the Speed Zone.

Tom Guevara of Crow Chizek explained that "40 percent plus is in hand", coming from Allison and Praxair to cover the debt coverage. Guevara also said that different options exist rather than using the special benefits tax that would be levied against the property owners if shortfalls occur. He said the base assessed valuation could be lowered if the TIF funds were insufficient. This action would increase the assessed valuation for the redevelopment commission, but would lower the amount for the school, library and town. This action could force those taxing authorities to raise rates to cover the drop.

Stafford asked if "the Speedway" is a property tax payer and if it is in the redevelopment area property.

Guevara said "the Speedway itself is not included in the redevelopment area." His answer contradicts the recent 41 acres of IMS property that was added into the TIF with the town council's vote on Monday prior to the hearing.

Gutting said the reason the track was not included was to protect the town's base and tax rate, and that the Coca Cola lot was also left out for the same reason.

Speedway Jack Norris said he has "enthusiasm" for the project but he is concerned about the ability to pay. He asked for the project to be delayed so the sewers could be addressed in the EPA required long term control plan. Norris said he had sewage back up in his basement.

"My gut feeling right now is this has got to be delayed. $61 million is nothing for Indianapolis. It is nothing for Chicago or any other big city. But Speedway, it is a big number. It is about about $5,000 per person."

Deb Wilcox expressed that commitments do not exist and for her, it was a sign that the plan has not been well thought out to execute a lease rental agreement. Her concern is that existing businesses will be pushed out to be replaced by mostly parking lots. She discussed the vacation of Georgetown Road as nothing more than confusion for her as a taxpayer to close an adequate road and then expect Indianapolis to build Holt Road to 30th Street.

SRC Commissioner Bill Jones said the road ways need to be changed to move the pedestrians and traffic away from the track. He said the town is land locked and that redevelopment is the only way to increase the town's tax base.

Susan Luebbert, owner of Speedway Monogramming, said she did not oppose redevelopment, but asked to slow the project down until signed contracts are in hand. She requested better communication from the SRC. She said she was never approached by the SRC until she received a phone call in April telling her that her building has been placed on the acquisition list.

Guevara responded that bonds would not be issued unless the development is there to increase the assessed valuation. He said it was "an implicit contract" not "an explicit contract."

The DLGF did not address Erin Dotlich's questions as to how they would evaluate the lease rental agreement when town councilor Jeff Hartman, who is one of the principal owners of 1346 Main Street, voted for the lease rental agreement. She also stated that tax cards for 1201 and 1255 Main Street are directed to 8500 Georgetown Road, where Commissioner Ron Fisher's brother Don Fisher is the President of American Environmental.

Jo Ellen Dotlich requested the moving of 16th Street go north to avoid taking in the Speedway Industrial Park. She said it would be cheaper to relocate the existing pipelines than to use eminent domain to go through SIP.

Dotlich opposed the lease rental agreement stating it was unfair.