From the Elkhart Truth:
An Elkhart city councilman and other Republican colleagues are questioning plans by the city to fund a new position for Downtown Elkhart Inc. with money from tax increment finance revenues.
DEI, which has not had any paid staff for at least two years, tentatively plans to hire Dan Boecher as executive director.
DEI’s expansion coincides with the establishment of three new positions at Lerner Theatre that will be used to carry out initiatives outlined under the SoMa plan that aims to revitalize Elkhart’s downtown.
On Monday, Dec. 16, councilman Brian Dickerson questioned the city’s plan to use TIF dollars for the DEI position during a city council meeting.
The argument boils down to this:
City officials chose to forgo plans to fund the new Lerner positions with TIF revenues after criticisms from Republican council members and advice from the state board of accounts.
Republicans argue TIF money should be reserved for bricks-and-mortar type economic development, not for city staff salaries.
Dickerson said he believes the same outlook should apply to DEI, which is a quasi-government organization that focuses on improving downtown.
DEI’s role is changing under the emergence of SoMa and will focus more on downtown development and real estate issues, while oversight of the jazz festival and ArtWalk will shift to the new SoMa positions.
Last week, the redevelopment commission and Lerner governing board approved a contractual services agreement for DEI that provides $125,000 in TIF funds that will be used to cover the new position and other expenses for DEI.
DEI’s board of directors is expected to consider approving the contract Wednesday morning, Dec. 18.
Dickerson called the plan a “highly inappropriate use of TIF funds.”
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http://www.elkharttruth.com/article/20131217/NEWS01/712179946
