Concerns voiced at public hearing for Jasper Food & Beverage Tax

Two Jasper residents raised concerns during the public hearing about the potential Food & Beverage Tax being considered to help pay for the proposed Regional Wellness Center.

The Regional Wellness Center is an indoor recreation facility that would be created by adding a structure to the Indiana National Guard Armory building adjacent to Jaycee Park at the corner of Bartley and 15th Streets in Jasper.

The estimated $37 million project will create a 91,000 sq. ft. Regional Wellness Center with an 8,000 square foot fitness center, four full-court gymnasiums, 14,000 square foot indoor aquatic center, an indoor elevated walking track, four group exercise studios, and five community rooms including a community kitchen.

Resident Adrian Engelberth stated he was concerned with the focus on the wellness center and its potential impact on population and economic growth in Dubois County and the region. Citing census data, he explained that though the population in Dubois County has increased from 2010 to 2020, that population growth was weighted towards an older generation. “In 10 to 15 years, this county will see a workforce reduction,” he said.

He asked the council to consider other options to support population growth. “Studies show, in a generic sense, people will move to what they want, and they will move, definitely, to the best schools,” Engleberth pointed out.

After he was finished addressing the council, Mayor Dean Vonderheide explained that the planning group had sat down with each of the school corporations in Dubois County to determine what needs this facility could help them meet. “I agree with you. Education is the best place to place your money,” he said. “We support that with a facility like this because they are needing additional facilities.”

During Engelberth’s comments, he asked if passing the Food & Beverage Tax before the referendum was putting the cart before the horse. To this, Mayor Vonderheide stated that the tax could only be used to pay for the project. If the project’s proposed scope and size did not pass the referendum, the city would still pursue creating an Indoor Regional Wellness Center, but it would be at a smaller scale and cost.

Engelberth also stated that the YMCA should build its own facility in Jasper rather than have the city and taxpayers foot the bill. Mayor Vonderheide told Engelberth that the Tri-County YMCA had committed to raising $15 million for the project. “Their goal is to go beyond $15 million for this facility,” Vonderheide said. “It’s not a free building. It is definitely a partnership. They are part of the solution and financial stack.”

Englelberth also questioned whether the city should be considering the expenditure while sidewalks and streets were in need of repair. In addition to sidewalks that need to be repaired, he pointed to the intersection of Newton Street and Second Street. (Engelberth stated Second Street in his comments, but he confirmed after the meeting that he was actually referring to the West Third Street and Newton Street intersection.)

Councilman Paul Lorey said he had several conversations and questions about that intersection as well. “We don’t own that road,” he said. “That is part of the state highway. It is a month and a half from being resurfaced and paved.”

Resident Vince Granacher posed several questions to the council, but they mainly focused on the cost and how the city plans to pay the bond back.

Rather than list his questions, we are going to attempt to clarify the funding for the project.

With an estimated $37 million needed for the project, which has contingencies and other soft costs built into it, the city is attempting to reduce that price tag through donations ($15 million) and grants.

They are applying for an $8 million READi grant. The Regional Economic Acceleration and Development Initiative (READI) is a state initiative designed to assist partnering communities to create projects designed to help retain and attract talent and workforce in Indiana. The state will award matching grants to assist as a funding resource for these projects.

The city is also investigating potential grant opportunities through the Lilly Endowment. It is in the early stages of doing so and did not have a lot of information on the process.

The city also asked the Dubois County Council to consider a $1 million contribution to the project.

While the city is hopeful the grants will be approved, the asking amount and the actual awarded amounts could differ if they are awarded. With the grants being an unknown with an allowance for a $15 million fundraising effort, the city is creating cost projections around a $22 million bond. Annual payments on a $22 million bond will average about $2.14 million to pay off over 20 years with a 7 percent interest rate — these are early estimates by the bond counsel for the city.

If approved, the Food & Beverage Tax will create a one percent increase on sales from restaurants, deli counters (if served with utensils or made ready-to-eat), and catering. That tax is estimated to bring in about $495,000 annually. In allowing Jasper to create the tax, the state legislature limited the funding only to be used for the Regional Wellness Center, as was requested by the Jasper Common Council resolution passed in February.

(Point of clarity: Senate Bill 428 allows for the funds to be used for a capitol project or the Regional Wellness Center.)

The other parts of the funding stack, again outside of grants and donations, include the use of tax increment finance and economic development income tax funds and property taxes.

The city has stated its goal is to accomplish this center with as little impact on property taxes as possible. However, in attempting to plan for the repayment of the bond, the city has to take into account what funds it has on hand and since property taxes could potentially be used for any shortfall, the city will hold the referendum in the fall of 2024 during the Presidential Election.

According to City Attorney Renee Kabrick, they will apply for the READi grant this fall but won’t hear any news on whether or not the city is awarded anything until early next year.

They are currently meeting with potential donors on a regular basis, and according to Mayor Vonderheide, those meetings have been overwhelmingly supportive of the project.

Granacher did ask if the city had considered the inability of some of its citizens to use the facility because of cost constraints. While the council and mayor did not answer the question specifically, the YMCA does have assistance programs available for those who cannot pay membership dues.

Additionally, since the city is a partner in the project, the Mayor expects that some of the programming offered through the Park and Recreation Department will be offered for free at the Regional Wellness Center.

Similar to Engleberth, Granacher pointed to other expenses the city has on the horizon, including the need to purchase a new ladder truck for the fire department before stepping from the podium.

After Granacher finished speaking, the council closed the public hearing. The tax is up for approval at the upcoming regular meeting of the Jasper Common Council on August 23 at 5:30 p.m. in the council chambers at City Hall, 610 Main Street.