Redevelopment Commission hears update on Regional Wellness Center funding

The City of Jasper is making adjustments to determine the future of the Regional Wellness Center after learning it was not selected to advance in a competitive grant program through the Department of Defense.

The Defense Community Infrastructure Program is a competitive grant program designed to address deficiencies in community infrastructure that support a military installation. The $13 million grant would have bridged a funding gap created by the new budget bill passed by the Indiana Legislature earlier this year.

As officials consider funding options for the city’s future needs, the Regional Wellness Center has been moved to a wishlist of projects as reported by Mayor Dean Vonderheide at the city’s annual budget meetings. However, the mayor reiterated his priorities for the rest of his current term in office continue to be focused on strengthening the city’s utilities and pursuing the creation of the Regional Wellness Center.

“We will be regrouping and resizing to do what we can, what we can afford to do, given the existing pledges,” Mayor Vonderheide told the council during the budget meeting held on August 22.

The city has approximately $25 million in hand, which includes $15 million from private donors, a $5 million READi 2.0 grant from the state, and $5.8 million appropriated from existing city funding by the council.

As it was initially designed, the overall project cost was approximately $45 million. Originally, the city was going to issue an $18 million bond to be used in conjunction with existing funding to construct the facility, but that bond was backed by EDIT, TIF, and the Food and Beverage Tax.

With recent legislation changes phasing out the current method income taxes are assessed by the end of 2027, except for existing projects — in Jasper, income tax funds are paying for the city’s portion of the Thyen Clark Cultural Center — and the transition to cities passing their own local option income taxes, officials aren’t willing to rely on those funds based on a few issues.

At Tuesday’s Jasper Redevelopment Commission Meeting, City Attorney Renee Kabrick informed the commission that the city was redesigning the project and now planned to pay for a bond with funds from the Food & Beverage Tax only. Previously, the city had said the Food & Beverage Tax would only support a $6 million bond.

“The TIF was intended to repay a portion of the project via annual payments on the bond issue,” Kabrick said.

However, with the uncertainty regarding future funding under recent legislation, she explained that the city was scaling back the project and would no longer rely on EDIT and TIF to secure bonds issued for the project.

At the meeting, the commission approved a partial payment of $64,559 for legal services related to the Regional Wellness Center, covering a portion of an $86,610 invoice from the Barnes & Thornberg law firm. The remaining balance will be paid by the Food & Beverage Tax funds.

The payment represents the remaining balance of a planned $200,000 contribution from the Central TIF fund toward the wellness center project, according to Clerk-Treasure Kiersten Knies. The commission has already spent $135,441 in approved claims on the facility.

The commission heard that the Central TIF currently has a balance of $1.6 million, with approximately $355,000 in outstanding obligations remaining this year. In 2026, the Central TIF is expected to capture about $1 million in incremental property tax and will fund a bond payment of $809,000.

“Again, that’s an estimate based off of the legislative changes that have been made. We’re not entirely sure if that will affect the TIF yet,” Knies told the commission.

The commission did not discuss how the Regional Wellness Center plans had changed.