The Columbus Redevelopment Commission on Monday unanimously approved creating a new development corporation within the city to focus on smaller neighborhood development projects.
In her first executive order as mayor, Mayor Mary Ferdon created the Columbus Indiana Community Development Corporation, (CICDC) under the provisions of the Indiana Nonprofit Corporation Act of 1991.
Cities such as Greenwood, Zionsville, Carmel and Indianapolis have these entities which can be used for housing projects, job training, utility needs among other uses.
Ferdon said CICDC could be used in instances when small developers are working on economic development projects but do not qualify for the larger projects handled by the redevelopment commission. TIF funding could be used, channeled through the redevelopment commission to the CICDC, which would be overseen by a three-member board, appointed by Ferdon.
The three members of the inaugural board will be Al Roszczyk, a former redevelopment commission member, Josh Burnett, an at-large Columbus City Council member, and Dr. Mandy Wyant, a local chiropractor.
All projects must have an economic development focus, Ferdon said, adding that the three-member board is subject to Indiana Open Door meeting requirements and public notices of all its meetings, allowing the public and media to attend its meeting and view its decisions. The CICDC’s funding would be approved by the redevelopment commission and the CICDC would not be allowed to issue debt or bonds of any kind, the mayor said.
If at any time the CICDC is dissolved, all of its assets go back to the city, said Brad Bingham of Barnes and Thornburg, who assisted the city in preparing the resolution creating the CICDC.
Columbus City Councilman Frank Miller said he saw similarities with the CICDC and the city’s former Columbus Downtown Corp., which was criticized by then-Mayor Kristen Brown for the city having “created their own private corporation, CDI, and unlawfully funneled your money through it to spend your money in secrecy and unlawfully handed out lucrative contracts and leases in non-competitive processes.”
Miller noted that the CICDC is transparent in that it puts public oversight on to transactions below $500,000 (those over $500,000 must have city council approval) and also said it was good to have city council “eyes” on the board with the appointment of Burnett. Miller said he was “on board” with the creation of the CICDC and said he thought it would be a good thing for the city.
Columbus Downtown Inc. was created in 2008 during the administration of former Mayor Fred Armstrong as a way to smooth downtown development, according to previous Republic reporting. At that time, although the company’s board of directors were appointees of the mayor, city council and redevelopment commission, as an independent nonprofit company CDI was able to work outside the public view, negotiating leases and land deals without following public meeting laws and bidding requirements. In its heyday, CDI owned 10 acres of downtown property, managed restaurant leases at The Commons and the city-owned Fourth and Jackson streets parking garage, and handled parking-space contracts at both city garages.
Brown made it a priority of her administration in 2013 to unwind the company from the city’s development efforts. The city struggled with a lack of paperwork for CDI’s decision-making and accounting procedures, according to an audit finished in 2013 by Crowe Horwath LLP of Indianapolis, according to previous reporting. CDI was then dissolved in 2013 under Brown’s administration.
