Jasper moving forward with plan to donate majority of property purchase price

Jasper — The Jasper Common Council approved the appropriation of $200,000 to be given to the Rejuvenate Old Jasper Action Coalition (ROJAC) to assist in the purchase of the former-Autoplex property.

In May, ROJAC entered into a sales agreement with Chris Peters of Coastline Properties LLC for the property located at 123 Third Avenue with the caveat that the City of Jasper would assist in the purchase to the tune of $100,000 of the $250,000 asking price.

The council met  in a special meeting on June 4 to discuss the request from ROJAC. During the meeting, Councilman Kevin Manley, who sits on the ROJAC board, recommended the city increase the amount ROJAC was asking from $100,000 to $200,000.

The council approved the $200,000 from the Riverboat Fund — an account funded through casino revenue taxes — pending City Attorney Renee Kabrick verifying the city’s donation wouldn’t be considered a circumvention of state law in regards to property purchases by governmental entities.

At the meeting, Kabrick and City Clerk/Treasurer Juanita Boehm both told the council they were concerned if the city gave ROJAC the majority of the cost of the property, the Indiana State Board of Accounts may take issue with the appropriation.

At the council meeting on Wednesday, Kabrick stated she had spoken with counsel regarding the appropriation and donation to ROJAC towards the purchase and felt the city was acting appropriately. According to Kabrick, the city and ROJAC will enter into an agreement in regards to the disposition of the property prior to the purchase.

That agreement will come before the council for approval before any money exchanges hands.

ROJAC is currently constructing the German American Boulevard which will provide a connection between the Riverwalk, the Jasper City Mill and the Jasper Train Depot. The Autoplex property is adjacent to the boulevard and according to Manley, an important part of what many consider the southeastern gateway to the city.

In the past, ROJAC, a volunteer group responsible for the Riverwalk, the City Mill and the Train Depot, has purchased properties and then donated them to the city after completing improvements on them. Kabrick stated she expects this to be the case for this property as well.

According to county records, the property is a little over a third of an acre (0.35 acres) and has a total tax assessed value of $136,400. The inflated purchase price of $250,000 has adjacent property owners concerned about the artificial inflation of the values of their own properties and increased property taxes that will follow.[hr]

Original story from June 4 — The Rejuvenate Old Jasper Action Coalition (ROJAC) entered into a sales agreement with Chris Peters of  Coastline Properties LLC for the former-Autoplex property at 123 Third Avenue in Jasper last week.

The single caveat of the deal is that ROJAC only agreed to purchase the property if the City of Jasper agreed to provide $100,000 towards the $250,000 purchase price Peters is asking.

The property sits at what the city considers is its southeast gateway to the city. It is adjacent to the German American Boulevard project currently under construction. The boulevard, a major project by ROJAC with a major contribution from German American Bank, will connect the Jasper Train Depot to the Riverwalk and the Jasper City Mill.

The common council feels the autoplex property is important for the continued development of the area. So much so that Councilman Kevin Manley, who also serves on the ROJAC board, recommended the city contribute $200,000 to the purchase of the property at a special council meeting on Tuesday.

“I came up with the $200,000 figure because it is my feelings that the area is a gateway to the city,” Manley said. “If we don’t buy it now and we end up with a tattoo parlor there, we will get a lot of flack from that as well. I personally don’t feel ROJAC should be buying land if they are going to purchase the property, improve it and turn it over to the city anyways. And I just feel it will help ROJAC get more things done on the surface rather than taking three or four years paying the land down.”

The council agreed with Manley’s proposition, but City Attorney Renee Kabrick and Clerk/Treasurer Juanita Boehm both warned the council they would not be able to just write a check to ROJAC since the amount they were deciding on constituted the majority of the purchase price of the property.

Kabrick and Boehm informed the council the city will probably have to go through the procedures of having the land appraised by two appraisers. The average of the two appraisals would be the amount the city could legally pay for the property. The state board of accounts had indicated the proposed $100,000 would probably not be a concern with regards to ROJAC purchasing the property, but Kabrick felt she should investigate how to complete the purchase if the city provided the $200,000.

Boehm stated the city could use $200,000 from the Riverboat Fund —a fund set up by the state for all counties that do not have a casino in their boundaries. The fund currently has about $800,000 available.

Nancy Eckerle attended the special meeting on Tuesday as well. She was concerned about the city making such large property purchases without having a plan in place to develop them. “We have $800,000 sitting in a Riverboat Fund with no plan on how to spend that and then a project like this comes up,” Eckerle stated. “To appropriate $200,000 of that with basically no plan in place, that basically really concerns me. As a council you should be planning a little better on how to use that money.”

Eckerle also asked why the money wasn’t used on the purchase of the country club property.

“I am also concerned with replacing so many properties from the property tax rolls,” she continued. “I am on the ROJAC board and it is great we are developing that, but we are continually removing properties from the property tax rolls. The country club, Central Green, the whole of the ROJAC areas, I just don’t see that money being recouped back in the property tax rolls.”

Eckerle also pointed out the Jasper Cabinet Building and the Jasper Wood Products property are not being cleaned up and asked the council what they were doing on those issues.

Kabrick stated a meeting with Jerry Fuhs about plans for the Jasper Cabinet building was scheduled in the near future, but she had nothing to add regarding the process.

Councilman Earl Schmitt stated he walks past the Jasper Wood Products building daily and he didn’t feel anything was being done to the building by the owner Paul Voegerl. Voegerl purchased the property from the county last September and had stated he was developing it as a small business incubator.

Voegerl stated today he has been working on the Jasper Wood Products building and steps are being taken to have electricity restored to the building. “You will be able to see more activity on the exterior of the building in the coming months,” he explained.

Former mayor Bill Schmitt addressed the council as well. He stated the council and city should be commended for having the $800,000 available to use for improvements like the Autoplex purchase. “Planning is having a good solid bank account where you can do things,” he said, “having the $800,000 to make improvements in the city as they come. I think this council and administration has done good planning by having money set aside for projects like what ROJAC is trying to do for the community. If you buy the property it will be a big improvement.”

The council unanimously approved appropriating $200,000 towards the purchase of the property contingent upon what Kabrick learns in regards to the proper procedure for the purchase. Councilman Ray Howard was absent. Mayor Terry Seitz is out of town and Councilman Tom Schmidt served as council president pro tem in his absence during Tuesday’s meeting.

If the city has to purchase the property outright, the two appraisal process will apply. Peters is asking $250,000 for the property and if the appraisals come up short of that amount, ROJAC can pay the remaining balance.

Under the current agreement with the city, ROJAC is responsible for the improvements of the property. Including the removal of the existing structures and parking lot.

Kabrick is researching how the city can proceed and will provide that information to the council members to discuss at the next council meeting scheduled for June 19 at 7 p.m. in the council chambers or at a special meeting following proper public notice.

Under the purchase agreement with Chris Peters, he will be responsible for a current legal description being completed on the property and an environmental study being completed. There is some confusion over the exact legal boundaries of the property.