Developer seeking abatement meets council roadblock

Lucy Perry Photos

Jason Semler,accountant with Umbaugh and Associates, painted a positive picture for the Terre Haute City Council of Terre Haute's four TIF districts and funding during a special meeting held yesterday regarding the annual report. 

Redevelopment Director Cliff Lambert says the financial review is good news for further development to take place, especially on the city's east side, in the next 18-month period. In fact,  he noted that area would need an additional fire station as population increases with residential and retail growth there.

Although the evening was off to an optimistic start for the  potential for the city's overall infrastructure and development, the regular City Council meeting ended with a roadblock for one potential developer who's showing interest in the property at 451 E. Margaret Drive.

The council members voted 5-4 against a request for a 10-year tax abatement by Shray, LLC to build a new hotel just behind the Cracker Barrel restaurant. The proposed hotel reportedly would be middle to upper scale and offer 70 guest rooms.

Attorney Heidi Slinkard assured the council that the developer would not build a hotel without the tax abatedment. While reminding the members of the land being unutilized for several decades and only generating a property tax of about $200 per year, she stressed the benefits of the project to the city and tourism.

Nonetheless -- with President Todd Nation, Vice President Karrum Nasser, Councilman George Azar,  Councilwoman Martha Crossen and Councilman Don Morris opposing --the resolution failed to pass. Voting in favor were: Councilwoman Amy Auler, Councilman Earl Elliot, Councilman Curtis DeBaun and Councilman Neil Garrison.

Crossen said she finds it "hard to believe" that the developer would forgo plans to build the hotel without the tax abatement "if it appears that it's going to be a money-maker."
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One local business has outgrown its current location at South 21st Street and Wabash Avenue and will soon relocate to North Fruitridge Avenue.

In other council business:

• The council approved a resolution for rezoning property at 1251 Fruitridge Ave. Owner of DIY Rentals, Eric Wuestefeld, informed the council that the business has outgrown the space at its present location at 21st Street and Wabash Avenue.
• The council approved a resolution for a 9-year tax abatement for Harrison Manufacturing, Inc, 
• The council approved a special ordinance to vacate a portion of Fourth Street, between Chestnut and Tippeconoe Streets.
• The council approved a resolution authorizing the submission of the 2016 Annual Consolidated Plan for grant application.
• The council agreed to table consideration of a resolution to rezone property at 2814 Hulman St.