County Council meeting working on tax abatements and I-67

The Dubois County Council and Commissioners met in a joint meeting on Monday to discuss the county-wide tax abatement. The council is considering adopting the same abatement schedule that the City of Jasper passed in October.

The county council was interested in the property tax abatement but due to the expressed concern of the County Auditor and Assistant Auditor in regards to the implementation, tracking, and payouts for the COIT (County Option Income Tax) and EDIT (Economic Development Income Tax) funds that was held for further review. DC Council attorney Art Nordhoff speculated the process involved in the income tax abatement would cost more than the amount it would save the new or existing business.

Jasper Mayor Bill Schmitt stated he expects the City of Jasper will be passing the COIT and EDIT tax abatement portion of the program in January.

Council President Greg Kendall said that they would table the discussion until members of the Jasper Action Team could come to the next meeting to help explain the tax incentives program.

If the county passes the tax abatement,towns like Ferdinand and Dubois will also be able to take advantage of a stronger abatement schedule than the states program.

The property tax abatement is supported by Councilman Greg Kendall along with the rest of the council, but Nordhoff will have to look over the ordinance before it can be incorporated.  [hr]

OFS Brands CEO Hank Menke addressed the County Council about the newly formed I-67 Coalition. This group was formed soon after the State dropped the planned expansion of Highway 231. This move by the state created what some are calling a road to nowhere as 231 ends at Interstate 64.

[quote]Menke stated that although tax abatements are great incentives for business, the greatest factor in growing industry and business in the area is a good transportation system.[/quote]

Menke discussed the increased traffic that has been created in Louisville due to the bridge closure on I-64 that now diverts all Louisville traffic to 265 and onto I-65. Menke states that all logistics companies and manufacturers in Dubois County send their trucks to I-65 to transport goods north due to the poor condition and danger of driving on Highway 231.

The I-67 Coalition Board is composed of many big industry names from Dubois County. These leaders are upset with the continued imbalance in what the region feeds the state in the way of taxes. According to Menke, Dubois County businesses have contributed over $250 million last year but that money has gone to support infrastructure in the north leaving Southern Indiana infrastructure in disrepair.

Fed up with this imbalance, the coalition is proposing the I-67 extension; a 38 mile section to be built from the existing new section of Highway 231 to connect to the I-69 Highway under construction now. I-67 would connect with I-69 in Washington, Indiana and then continue north on the new interstate.

Menke, speaking on behalf of the coalition, informed the County Council that environmental, traffic, and feasability studies have to be conducted before they can begin to plan the new extension. The extimated cost of the studies is $300,000; the Washington Economic Development Commission has provided $50,000 and Owensboro, Ky is expected to provide another $100,000. Menke would like the council to consider providing funding for the studies as well.

Councilman Mark Brescher was dead set against spending more money on a study when 231 had been slated to be completed though Dubois County and then dropped by INDOT due to a lack of funding.

Menke stated a P3 partnership between businesses, the County and State could be the way to get the 38 miles built. That could mean that the new interstate could be a toll road to help pay for the construction costs. Menke cited the fact that taking into consideration that a new terrain interstate system that would run through Kentucky all the way up through northern Indiana would take a significant amount of traffic pressure off of I-65 and give a more direct route north to Indianapolis which would help save his and other companies money on transportation costs.

Additionally the being an interstate would allow the state to apply for federal funding.

The council took no action on the request for funding, but instead is taking a wait and see attitude to see if other businesses in DC would step up and give money to help offset the costs of the study.