A Columbus resident is questioning whether the city has legal authority to use tax increment financing dollars to support the renovation of a former newspaper office as part of a project by Indiana University.
Ken Fudge, who appeared last week before the Columbus Redevelopment Commission, contends that it is illegal under state statutes for the city to allocate $1 million in TIF dollars since the project involves IU, not the city.
A city official disputes that notion, however.
The decision by the city to spend TIF dollars on the project had already been reviewed by attorneys, said Heather Pope, city redevelopment director.
“What we’re doing is within the realm of our spending authority,” Pope said.
The city has committed to providing $1 million, half the amount that is expected to be needed toward the renovations, which are expected to take place in mid-June. Indiana University announced plans in April that it would house its master of architecture program in the former Republic building this fall.
Columbus Regional Health purchased the former Republic building two years ago from the Rayanna Corp., a local company established by the Brown-Marshall family, which previously owned the newspaper.
Fudge said he thinks bids for the project should have been opened by the city rather than the university since TIF funds are being used. The redevelopment commission approved providing $1 million for the improvements.
An additional $1 million is coming through a public-private investment from the Community Education Coalition, which has already come up with its share as a match to the city funding.
Fudge said he considers the funding from the city to be a grant.
“You have to apply the law, and the law says they have to be the contractor,” Fudge said of city government. “I just want it done the legal way. There’s no room there to do what they’re doing.”
Fudge said he decided to approach the redevelopment commission to get clarification on a state statute from Stan Gamso, attorney for the redevelopment commission.
Messages left with Gamso last week by The Republic were not returned.
Specifically, Fudge said he was seeking specific language contained within the statute that gives the city the legal authority to provide funding, adding that he did not receive that from Gamso during the meeting.
The commission has the authority under state statute to contract for the construction of local public improvements necessary for redevelopment or economic development within the city’s boundary, according to the resolution. That provision also includes any structure that will enhance development or economic development, the resolution says.
The city previously used $500,000 in TIF funds to support the Indiana University Center for Art + Design located on Jackson Street, Pope said. The money was specifically used for the buildout of the building, she said.
Fudge said he wasn’t aware of the city allocating that money, but said he would have to research that further. However, if the city wasn’t the project manager, “as far as I’m concerned, it was illegal,” Fudge said.
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Any expenditure of more than $500,000 by the commission requires subsequent approval by Columbus City Council, which will consider the request to allocate $1 million in TIF funds during its 6 p.m. Tuesday meeting in the Cal Brand Meeting Room at City Hall.
IU plans to begin renovations of the building in mid-June if the funding is approved.
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