Saturday, April 13, 2013

Chesterton Tribune Reports Westport Transfer to Burns Harbor Jeopardized by Big Tax Bill

From the Chesterton Tribune:

Westport Community Club members recently voted to turn over their building and adjoining acreage to the Town of Burns Harbor for park use, but there could be a catch.

“It could be a situation in which the property could not be given to the town free of any encumbrances,” said Town Council member Mike Perrine, who’s been active in the club.
 
Meeting Wednesday, the council set April 16 at 7:30 p.m. as a public meeting with Westport directors to discuss terms of the possible transfer. Town attorney Bob Welsh will research related issues in the interim.
 
Perrine explained the club is appealing the loss of its previous tax exemption from Porter County and is facing an estimated $20,000 tax bill this year. An appeal hearing is scheduled, but Westport can’t afford to reorganize from a non-profit 501(c)(4) social welfare civic league to a charitable organization to retain the exemption, according to Perrine.
 
He noted the club made only $3,600 in revenue from building rentals in 2012 and for the past few years has been relying on private donations to pay insurance, utilities and upkeep.
 
In addition, the building is outdated, not handicapped accessible and needs renovation, Perrine said prior to the meeting. The community club was incorporated as the hub of Burns Harbor civic activity in 1954 pre-dating the town’s 1967 incorporation.
 
Perrine said for the community club, the writing is on the wall: if the town doesn’t accept the building and grounds, it will sit there until it goes on the auction block.
 
Councilman Greg Miller expressed concern that if the town does assume ownership, could Porter County back-assess the property creating even more tax liability for Burns Harbor?
 
Welsh said he needs to talk to county officials to see if Westport’s current tax bill is accurate, and whether it could be eliminated or forgiven. Spring tax bills are due May 10. Titlework also would need to be researched prior to any transfer.

http://chestertontribune.com/Town%20of%20Burns%20Harbor/westport_transfer_to_burns_harbo.htm