Council questions costs of new THPD Headquarters

By Lucy Perry

The downtown structure at 1211 Wabash Avenue in Terre Haute is considered by many to be a typical blighted property, with the roof said be in disrepair.  Maintenance costs are escalating, as issue after issue springs up.

In fact, the building is slated for demolition, once plans for the new Terre Haute Police Station construction move along again. The progress has hit another bump along the road to groundbreaking, as was confirmed when several resolutions at Thursday night's City Council Sunshine Meeting sparked a  discussion on the budget.

Although most agree that the police have served their due time in the present station, the city’s financial situation has some questioning the ability to pay for the estimated  $10.7 million headquarters and its related plans.

“I 100 percent believe we need a new police station, no doubt,” Councilman George Azar said during the meeting. “The question I want to ask is, how do we address this when our constituents come up to us and say,’Well, we read the other day that at the end of the year you’re going to be $7 million negative, and some of the vendors haven’t been paid?’”

Mayor Duke Bennett replied that explaining the financial breakdown involved to residents can get complicated. He assures the council that the station plans will further the community without impacting salaries.

“This isn’t going to be a big burden on the EDIT fund,” Bennett said.

Reportedly, when the city Redevelopment Commission met in special session one day before the council meeting, the redevelopment members opted to table a resolution for the sale of bonds for the new headquarters. The plans that had finally seemed to be moving forward, were thwarted heading into its second phase.

Gary Malone, an accountant from Umbaugh & Associates, explained during the city council meeting that an interest rate for a 25-year plan for the bonds is six percent -- more than anticipated. He also detailed the various phases of the project, noting that construction bids came in below estimates.

financing for the station includes a combination of Tax Increment Financing (TIF)  and Economic Development Income Tax (EDIT) funds. He suggested the deed of the station would go to a holding authority because of a constitutional debt limit, which he noted is “very, very common.”

“I’d wager to say that almost all school corporations in the state of Indiana have some type of leasing corporation in place,” he said, adding that is how they do financing for building schools to put the concept into perspective.

In order for construction to begin in a timely manner, Malone said a bond anticipation note needs approval. The two parties, city council and city redevelopment, need to agree to move forward.

“Structurally -- there is no way we can rehabilitate that structure,” THPD Assistant Chief Shawn Keen said, pointing out that the $240,000 construction bids are good until mid-October. Meanwhile, he added that possible building design alternates for value engineering considerations are under discussion with the project manager.

In other business:

Further dialogue about the city’s finances took place with many of the councilmen noting unpaid bills. Council President John Mullican asked if the bills are caught up. Leslie Ellis, city controller, stated there is a backlog and is trying to get caught up. Ellis added that the vendor issue has to do with time rather than money.

Appropriations and resolutions for the council to consider in regular session next Thursday at 6 p.m. at City Hall:

• Rezoning of property located at 601 South Fruitridge Avenue
  
  
• Amending City Code, Article 24, Section 4-361, Drug and Tobacco,Paraphernalia/Accessories
  
  
• Amending City Code, Section 2-136, Rainy Day Fund A
  
  

• $37,917.48 from EMS N/R #0270 to Training Academy
  
  
• $2,000,000.00 from Rainy Day Fund to General Fund
  
  
• An appropriation of an amount not to exceed $2,200,000 from the proceeds of Bond Anticipation Notes for the construction of a police station
  
  
• Vacating a portion of a North-South Public Alley located between Margaret Avenue to the North, Pugh Street to the South, 11 ½ Street to the East, and 11th Street to the West
  
  
• Rezoning of property located at 3007-3013 S 11 ½ Street and 3006-3020 South 11th Street Rezoning of property located at 1000 South 6th Street
  
  
• Authorizing the issuance and sale of bonds and bond anticipation notes, payable from City EDIT proceeds, to pay a portion of the cost of construction of a police station
  
  
• Authorizing the transfer of Rainy Day Funds
  See also: Letter from THPD regarding the new police station

(Aug. 7)