County council ponders EDIT plans in light of funding requests
Several groups are approaching the county seeking funds to aid in their programs and construction projects.
Notably Monday night, Dubois Strong and the Huntingburg Airport propositioned the county for further funding.
The attraction for these groups is the estimated $10.6 million in savings the county has built up from local economic income taxes collected from each individual’s paycheck in the county. Although fund from EDIT can be used for anything the county deems necessary, the two organizations approaching the county for money seem to be aligned with the true intent of those funds.
Besides the county, those funds are also disseminated to all the incorporated towns and cities in the county. The county receives the largest single amount of the EDIT funds collected — 49 percent. Jasper receives 38 percent and Huntingburg receives 9 percent, while Ferdinand, Holland and Birdseye each receive about 4 percent collected.
Dubois Strong recruitment efforts put on hold
Currently Dubois Strong, the local economic development organization (LEDO), is asking the county to invest an additional $180,000 in the corporation charged with economic development in the county. They are also asking the county to commit to increasing their investment of $320,000 for 2015 and 2016.
When Dubois Strong, then known as the Dubois County Area Development Corporation, was originally founded in 2005, it was intended to be funded through a 50/50 public private partnership with an annual goal of raising $250,000 for operating costs — $125,000 from government units and $125,000 from the private sector.
Since its inception, the contributions from the public sector have remained stable. The private sector, although never reaching the intended goal of $125,000 yearly contributions, was strong until 2008 when contributions fell from over $100,000 to $81,151. Support fell dramatically in 2009 when contributions from the private sector were only $48,450.
Under the Mike Cummings’ leadership, the organization has increased private investment 20 percent over since last year.
Dr. Alan Johnson, dean of Vincennes University Jasper, now heads the organization’s executive board. He has explained the new focus for the LEDO is to find new workers to fill the prospective 800 jobs that will be created over the next three years by area companies.
To do so, the organization plans on concentrating their efforts on increasing the entry-level homes available in the area; supporting entrepreneurial activities in the county; and assist in the continued growth of established industry.
To accomplish those goals, the organization plans on hiring a new executive director to fill the position currently held by Mike Cummings. He has been the interim director since Jim Dinkle resigned in 2012.
Councilman Mark Brescher stated he would not support the full amount being requested by the organization. He explained he would double the amount for a single year and would like the rest of the cities and towns that receive EDIT funds to also double the amount they contribute to the organization. He also wants to see the private industry increasing its investment.
Councilwoman Martha Wehr agreed stating the county shouldn’t have to increase its investment by up to five times the agreed amount if the cities and towns aren’t being asked to do the same.
Barbara Matheis stated that although she supports the group’s efforts, with the information she currently has about the organization’s goals and the lack of further clarification on how the money will be used, she couldn’t vote for the increased funding.
Councilman Greg Kendall stated the salary for the new president is double the amount the highest paid person employed by the county receives. Kendall pointed out that the organization is currently paying Cummings $42,500 and he is doing a “fine” job. “To me that is kind of a slap in his face saying that he is doing the job at $42,000 and now we want someone who is a big gun to come in here and we are gonna give him $100,000 to $120,000 a year.” Kendall said. “That’s a hard pill for me to swallow.”
Councilman Shane Lindauer stated he was also concerned with the plan for the new funding. “I have people asking me and I would like to be able to inform them,” he said. “People want to know where the money is going to go.”
Councilman Jerry Hunefeld stated he thought with council needed to table the request another 30 days to look at a plan for their EDIT spending. “I think we table it at least for this meeting, discuss it more, and prioritize where it should go,” Hunefeld said. “We want you to be accountable for where it goes. We have to be accountable too.”
Airport seeking money to create hangar space
Next up, Dubois County Airport Authority Manager Travis McQueen made a presentation to the council for funding to build a new t-hangar at the airport to house more airplanes due to high demand for the space.
The 10 aircraft t-hangar will cost about $540,000.00 to build — $270,000 in site preparation and $270,000 for the structure — and will provide relief for the crowded existing hangars. Currently, planes are placed in such tight configuration that airport officials and plane owners worry about damage as they are moved around to get them in and out of the buildings.
McQueen stated the airport has to be accountable. “We are audited by the state board of accounts,” he said.
The funds won’t be used for any salaries, he pointed out.
McQueen told the council that the Airport Authority Board has $150,000.00 of their own money to put towards the project and that the new t-hangars are the most economically feasible type to build.
The airport board has been struggling to find a way to meet the demands for more space as they continue to get requests from aircraft owners to house their planes.
One owner in the area has two different planes, one stored at the French Lick airport and another at the Daviess County airport that he would like to lease space for in Dubois County.
That is just one of several similar stories McQueen related to the council to help them understand the problem they are facing.
Since the airport authority board took over the fixed base operator duties last year, the popularity of the airport has increased due to aggressive fuel pricing structure that has pilots flying in from area airports just to fill up their planes.
McQueen said that the lease revenue from the t-hangars wouldn’t be a huge amount of money, but would create income for the airport and potentially lessen the tax burden on the county.
Councilman Mark Brescher stated he remembered when the council loaned the airport $360,000 for infrastructure improvements that was paid back over time. However, the council seemed more willing to make the one-time payment to the airport authority board to help pay for the t-hangars without a requirement to repay the loan.
The council acknowledged that they would like to avoid paying any bonding fees and the interest rate paid out for a loan exceeded the amount the funds being held in the county account was likely earning. In the end they agreed to include the airport’s request in a review of the use for the EDIT funds.
The council members scheduled a planning session for those funds for Wednesday, May 7 at 6 p.m.
Maby the council should ponder their chances of re election if they continue to give away taxpayer money to Questionable endeavors. Property taxes continue to rise, and taxpayers are being pinched at every corner and the county cant think of any better use of 10.6 million dollars than this.
If Dubois Strong is such a valuable asset then why are the corporations not giving more, can they show where they are worth the investment? Why would the current director making $42000 a year look to pay his replacement twice the amount?(could it be a back door payoff) They need to show what return the county has gotten from there investment in $$$$ not just talk.
As far as the airport goes I dont know the cost of the planes in the picture but I would say it is far more than the average worker in Dubois County can afford for there every day driver and this is for there hobby.
Maby they should pool there money and invest in Hangers for themselves, Did the county build the corporate hangers or did the corporations put up the money.
Why should $1 of my taxpayer money go for someones hobby, is the county going to build me a garage to work on cars, thats my hobby.
Alot of unanswered questions on these issues.
What ever happened to the airplane the county bought, Maby the council members are taking it on taxpayer paid vacations???
Something smells here and no one is asking Questions.
Jeff S
A few things about the airport that may answer some of your questions.
In May of 2012, the FAA categorized the Huntingburg airport into the “Regional” category due to the five corporate jets based there. Corporate jets fly in and out of the airport regularly bringing customers to Dubois County to support local industry sales.
Since last march, the airport has taken on responsibilities as the fixed-based operator of the airport. Those duties include providing fuel services for planes passing through the area and due to an aggressive pricing structure this has attracted individuals to the area to use the airport and stay overnight.
INDOT/Conexus|Indiana/AAI released 2012 Economic Impact Study that contributed Huntingburg had one of the top five General Aviation impacts or uses in the State of Indiana. https://duboiscountyfreepresscom.wpcomstaging.com/huntingburg-airport-economic-impact-over-522-million/
The corporate hangars were built with private money. A $2 million corporate hangar was constructed by MasterBrand and a $500,000 private hangar constructed by HNB Hangar, LLC.
In 2005, the airport collectively built taxiway infrastructure for not just MBCI, but for additional large hangar infrastructure. A $180,000.00 grant from EDIT funds was used to build the taxiway infrastructure.
By no information on Dubois Strong I assume you dont know what good they do either, which leads me to believe they are one of many phony organizations that came about the same time as the Great Bail Out in order to siphon Stimulus Dollars.
The link you attached seems to paint a very rosy picture. The new methodology used to build the report is suspect at best.
Also the study is based off of corporate side of general aviation that pays its own way not the hobby side.
I am glad to hear the corporations pay their own way with investments that will at some point become be turned over to the airport authority I assume and become as asset.
But again why cant these people do as other private individuals did and create an LLC?
So I still have no idea why the county council would be Pondering the idea of spending $540,000.00 TAX DOLLARS on a ten hangers that is only going to benefit .00023% of the county’s population.
What economic impact will those 10 individuals have considering they will be buying aggressively priced fuel? (Im assuming aggressively priced means cheap. Again at taxpayer expense)
Everybody pays taxes and only a select few reap the benefits.
I would like to reiterate that the County Council has not decided if they will fund either request.
Currently, in regards to the hangars that have been built privately, the airport is receiving lease payments.
The airport is also teamed up with VUJC for an upcoming ground school program. Also, a new experimental aircraft construction class will be offered to students in the area in the near future. The thinking on the airport board is that these schools will create homegrown pilots and attract aviation industry to the area if the county is actively supporting those things in the county. Pilots need places to park planes and the airport currently has a demand for more spaces.
Additionally, thinking ahead, the airport manager and Dubois Strong worked together to create the first shovel ready site in the county, one of the 11 first approved by the state. This means that an aviation company could see that this regional airport is actively increasing aviation activity in the county, see the new pilots and mechanics being produced through the two new schools, and then be enticed by the shovel ready site to relocate to the area. (A shovel ready site is a designation that basically means a company with a plan can immediately begin construction without going through the expensive permitting and paperwork procedures typically required.)
In regards to Dubois Strong, they have been in existence for over ten years and were originally funded through a 50/50 split of private and public funds.
As the local economic development organization, they represent Dubois County and allow us to receive certain benefits through the state in regards to assisting new and existing businesses in the area.
Nearly every county in the state has a LEDO. Here is a list. http://iedc.in.gov/Assets/files/Docs/REDO-LEDO/2014%20REDO%20and%20LEDO/LEDO_List3-14.pdf
They assist new and established businesses through a loan program called the Enterprise Loan Fund and recently, were given access to funds through the USDA to provide low interest loans to qualified businesses.
They are typically the first point of contact for a business or factory seeking to locate in a given area because of the amount of data for the region they maintain.
Recently, Dubois Strong was integral in assisting the recent decision by Masterbrand to create nearly 400 jobs in this county rather than in another area.
Some LEDOs in the state are totally funded by EDIT funds and others are created through partnerships such as Dubois Strong. Those who receive more than $200,000 in public money become classified as public agencies and will have to open their meetings and records up to the local media and be subject to the State Board of Accounts for audits.
These pieces of information are being provided simply because of your questions and are not to be construed as my support for either organization.
I realize the council hasn’t made a decision, Im trying to educate myself as well as any other reader’s that may take interest
As far as .shovel ready do you happen to know the cost of survey work done for this project and if it has brought any companies in or just more spend it and they will come. (Stimulus Money)
The shovel ready site cost about $12,000 to complete. Half of that was paid for by the Indiana Municipal Power Agency (IMPA is a wholesale electrical provider), about a quarter was paid by Dubois Strong, and the rest from the airport. This was spent to complete the environmental surveys and initial engineering studies of the ground. It has not landed a company yet but has attracted potential companies. The shovel ready site was completed in November of 2011. https://duboiscountyfreepresscom.wpcomstaging.com/thirteen-indiana-sites-score-state-designation-for-speedier-development/
Obviously $12000 was not the total cost including environmental studies marketing ect. and obviously you are not an investigative journalist but merely someone that passes along rhetoric supplied by the parties in Question.
The costs associated with this in regards to the amount paid from the airport budget can be traced through their meetings and the approved appropriations. They are also audited by the state board of accounts.
More spewing of useless info while not answering or asking any real Questions.
Here are the requirement to be a shovel ready site. The base level defines boundaries with a clear title, establishes a price, demonstrates executive level local government support, defines utility capacity, and provides documentation such as Phase I environmental assessment, ALTA (American Land Title Association), topographical, property layout, and plat maps.
Dubois Strong voted under their old name to vouch for the economic viability of the biomass proposal 3 years ago. So much for foresight.. Excellent questions pressuring open LOCAL government!!! Does Dubois Strong support Jasper government’s continued insistence on revisiting an idea even Jay Catasein thinks won’t work? Not that elected Jasper officials with supposed financial savvy saw any writing on the wall.
I will weigh in on the Airport discussion. All of the planes that are at the airport are not owned by hobbyist. Some are owned by businesses that use them to create more business and employment in the local area. As far as spending the tax payer dollar, a quick audit will probably show that if the plane is just used for sport, the guy that flies it is probably a pretty good tax payer himself and his taxes go for all other public benefits such a parks and other recreational areas, and he probably does not use them. I doubt that he has ever complained that the money was spent for that purpose. He also pays taxes for fuel, use taxes etc.
The hangers that are being asked for are legitimate requests and they will not be gratis. The guy that rents the hanger will be paying hard earned, already taxed, dollars to shelter his plane. With the exception of the corporate hangers on the field, there has been no new construction on the Huntingburg Airport in 35 years. In my business, i visit a lot of county airports because they are more convenient than the airports in the larger cities. In today’s world industry has gone rural. I can get in and out in one day, instead of spending 2 to 3 days of my time on a commercial airplane just to do 45 minutes business. Those county airport’s are all being upgraded and putting on a new face for the corporate businessmen as well as private companies that arrive to conduct business. The first impression you get of an area is what you see when you land.
Before Mr Smith says to much more, I personally invite him to visit HNB, set on a bench and listen to the radio traffic arriving and departing the county airports within a 75 mile radius of Huntingurg and he will find that the traffic is pretty heavy and I can assure him it ain’t hobbyist flying those planes. I would even encourage him to take of survey of the planes landing and departing HNB and discovery the purpose of the flight.
Maybe the Airport authority should do a better job explaining to the public just how important a local airport is. Yes, we use it to to shelter and fly sport airplanes, but we also use it for business, industry and job creation, far more than the general public may understand. So my suggestion to Mr. Smith or anyone interested in learning about the importance of a good local airport, get more informed on the subject before making undue remarks. I invite Mr. Smith to come out to HNB. I will probably be there fooling with my motor glider. Maybe I will give him a ride.
Were to begin Mr. Kulbeth,
First off if you read my comments you will see I applaud the businesses that have invested THEIR OWN MONEY to build hangers, I have taken time to drive by, and they all seem very nice and well kept.
Secondly As to no New construction in 35 Years -According to DC Free Press ( A $2 million corporate hangar was constructed by MasterBrand and a $500,000 private hangar constructed by HNB Hangar, LLC) I believe this was within the last 10 Years.
Third The artical never mentioned any businesses wanting Hangers just individuals.
I understand the convenience of local airports for businesses and think they are a great thing.
As for Tax dollars going to fund parks Im sure the percentage of Taxpayers that use them is far greater than the .00023% that will gain from hangers.
Question: How much gas does a Motor Glider Use I would think not much?
I appreciate your offer to sit and listen to radio traffic, It will have to be on a Sunday afternoon and I will bring my own refreshments as I dont wish to drink the Kool Aid they are serving at the airport.
I will weigh in on the discussion about the hangar situation at the airport as well. I am a Dubois County resident and a licensed aircraft mechanic. The growth of Huntingburg Airport and other surrounding airports has a direct impact on the business I work for and the viability of doing this line of work locally.
If lack of hangar space continues to be an issue here, then potential businesses, individuals, and yes, hobbyist, will locate aircraft elsewhere or decide to not purchase or keep aircraft at all. Simply put, the more aircraft that are located here, the more job security I have.
In response to the statement that no new hangar facilities have been built on the airport premises in 35 years, Mr. Kulbeth did point out that the corporate developments did not fall into that category. The HNB Hangar,LLC and MasterBrand properties all fall under corporate development and these facilities are not open to the public for use.
In my opinion, the EDIT funds are the perfect asset to help make the project happen.