Redevelopment Commission Hears Legislative Update
Kosciusko County Redevelopment Commission heard a legislative update Jan. 9 from George Robertson, president of Kosciusko County Economic Development Corp. Robertson gave an update on economic issues impacting the state and counties, like Kosciusko. He discussed tax increment financing legislation and the restriction of TIFs.
“We don’t see a lot of changes to TIF laws,” Robertson said.
Gov. Mike Pence suggests eliminating the personal property tax, Robertson said. The state’s economic development association, however, opposes it, as does Robertson, because it will affect TIF districts and local government.
“Unless there’s another source of revenue to replace that reduction, we oppose it,” said Robertson. “It will be a major legislative issue.”
Many TIF have bonds. Robertson said when California let bonds default, it was a serious blow to the state’s economic development. Indiana has some of the lowest tax rates in the country, and removing the personal property tax would strain revenue for economic development, he said.
The other proposal is to allow counties to increase economic development income tax, shifting it from businesses to taxpayers. “It’s going to be major issue,” he stressed. “We don’t want to increase property taxes.”
Robertson said Indiana lost a major company that was thinking of moving to Indiana, but did not, because of a $3 million tax increase that was more than a competing state’s tax.
The board voted to oppose the legislation to eliminate person property tax. Robertson will draft a letter to the governor and state representatives noting it opposes Pence’s proposed bill.
Another issue is workforce programs. “That’s our number one priority,” said Robertson.
Robertson also gave the board an update on KEDCo. He said KEDCo’s No. 1 priority is making more shell buildings. “Workforce is our strength but buildings is our weakness,” Robertson noted. “We will have a very targeted marketing approach.” Robertson said automotive supply manufacturers and aerospace companies will be targeted, as well as companies that make medical devices.
The No. 1 marketing priority is working with Warsaw and several towns, targeting industries to move or start a business in the county. Robertson said he is working to attract college graduates with certain skill levels through internships in the county, especially a pipeline of graduates from area colleges within the county. A “boot camp” is scheduled for spring.
The board also said it supports a proposed high speed rail service through Warsaw, possibly with some funding for a study.
An economic development plan for Maple Leaf Farms, Milford, was handed out. The redevelopment commission is proposing to use TIF revenue to build infrastructure and acquisition of land, among other activities. The board did not, however, make any decisions yet on the fiscal plan. Board members will review the plan and discuss it at their next meeting Feb. 13.
The election of officers took place, as well as oath of office. Officers for 2014 will remain the same as in 2013 and are: Henry DeJulia, president; Max Courtney, vice president; Bruce Woodward, secretary; and Bill Warren, treasurer.
The next meeting is at 1 p.m. Feb. 13, at the county courthouse in Warsaw.