A request by the city’s partner in redevelopment to apply for state tax credits for a future project in the Midtown area was rejected by a 4-2 vote Monday night by the Carmel City Council.
The tax credits would have allowed Pedcor Development to apply for millions in tax credits to develop a new project in an old industrial area north of The Palladium and south of Main Street.
Although supporters of the measure said the application
would be nothing more than letting a private developer take advantage of a state tax incentive program, others feared that by approving the measure, it was akin to endorsing an unknown project and committing the city to spend money it does not have.
would be nothing more than letting a private developer take advantage of a state tax incentive program, others feared that by approving the measure, it was akin to endorsing an unknown project and committing the city to spend money it does not have.
The tax incentive program is designed to encourage redevelopment of old industrial areas.
While critics of the mayor called Monday’s vote a political victory against him and Pedcor, others feared the vote would come across as anti-business in a city that has historically been open to such deals.
against him and Pedcor, others feared the vote would come across as anti-business in a city that has historically been open to such deals.
Councilwoman Sue Finkam, one of two to vote in favor of the tax credit application, said she was disappointed in the vote.
“This encourages private investment and bolsters this area,” she said. “And we are turning away a development worth $100 million. I am very disappointed.”
But councilwoman Luci Snyder, who was with the 4-member majority that denied support of the application, said the city has too many financial obligations as it stands and should not put itself in the position of financially supporting another.
obligations as it stands and should not put itself in the position of financially supporting another.
She noted that there was at least $19 to $20 million in work to be done at Midtown -- for future utility line removals, new road construction and possibly a new water tower -- and it is unclear how much of that will be financed by the city. Mayor Brainard said not all of that would need to be done now, and that the amounts she quoted were not accurate with so many factors up in the air.
and possibly a new water tower -- and it is unclear how much of that will be financed by the city. Mayor Brainard said not all of that would need to be done now, and that the amounts she quoted were not accurate with so many factors up in the air.
While she acknowledged that the tax credit application did not immediately lock the city into paying for anything, Snyder added: “But if tax credit is granted, and a building starts to grow, they will come back and ask for municipal infrastructure.”
Instead, she said, “We need to take a break and pay off our debt.”
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