Public Hearing Scheduled on New TIF District for Cook Redevelopment of GE Plant

IMG_1864Note: This version of the posting has been revised to address some questions from an early reader.

The last stage of the process of splitting off two parcels from an existing Tax Increment Finance (TIF) district and creating a new TIF district to support the planned Cook Group redevelopment of the shuttered General Electric property in the County’s Westside Economic Development Area has been scheduled for Wednesday, March 21, 2018 at 4:30PM in the Nat U. Hill Meeting Room at the Monroe County Courthouse. This meeting of the Monroe County Redevelopment Commission (RDC) will include a public hearing, followed by an anticipated vote on resolutions creating the new TIF district and pledging any TIF revenues from the new area towards paying the bonds for the redevelopment.

Old GE Plant Before Cook Renovation
Loading Docks at the GE Factory

This public hearing culminates a series of actions that began with the RDC passing an initial resolution on January 17, 2018 that stated its intention to pull the two parcels of the GE plant purchased by Cook Group out of the County’s Westside Economic Development Area (WEDA), sometimes referred to as the Richland TIF, and create a new TIF district (referred to as an allocation area in the documents) consisting solely of these two properties. Since then, the Monroe County Plan Commission and the County Commissioners have both approved this action. On February 13, 2018, the Monroe County Council approved the issuance of $6.2M in economic development bonds to support the redevelopment project.

The following map shows the proposed new TIF allocation area. The purple shaded area illustrates the City of Bloomington’s incorporated area. On October 18, 2017, Cook Group and the City of Bloomington signed an agreement for Cook to pay the City of Bloomington $100K per year for 15 years in order to avoid annexation by the City. The new TIF district would last for 25 years. Note that this proposal does not actually increase the number of parcels in Monroe County in a TIF district — it simply splits off two parcels from the Westside Economic Development Area and creates an independent allocation area out of the two.

Screenshot 2018-03-11 07.44.01

The RDC’s stated purpose for the creation of the new TIF allocation area, from Exhibit B in the resolution is:

Site clean-up and preparation; paving of parking lots; hardscape and soft-scape landscaping including streetscape improvements, curbs and sidewalks; site access improvements; and exterior building improvements. The estimated cost of the entire redevelopment project is $125 million, and the Commission’s contribution to these costs will be based on what may be financed from the new tax increment revenues derived from the project.

Based on representations of the Companies, the Commission has determined that the development will not proceed as planned without the contribution of tax increment revenues to be derived from the Cook Allocation Area to the projects described above.

Essentially, Cook is estimating the cost of the redevelopment of the sprawling factory at around $125M. The County is providing $6.2M in bond funds towards this effort to support streetscape, access, sidewalk and walking trail, and exterior building improvements to what has become a blighted area of the County’s westside — all improvements that will benefit the public as well as Cook.

The sole source of repayment of these bonds will be the additional property taxes generated from this new TIF district (the so-called “increment” in Tax Increment Finance) resulting from Cook’s redevelopment efforts. This includes both real property and personal property (equipment).  Further, the bonds have been structured so that Cook (or a related business entity) will purchase the bonds, meaning that the risk of any shortfall in revenue would be borne by Cook, not the County taxpayers. Once the bonds have been paid off, any additional revenues can be spent on improvements in this new district or in the larger Westside Economic Development Area.

Old GE Plant Before Cook Renovation
Inside the Shuttered Former GE Plant, Site of New Cook Group Project

If you really want to get into the weeds of the estimated revenues and payments from this proposed TIF district, you can see the analysis performed by the County’s financial analyst Financial Solutions Group, Inc.

One of the questions that has come up from a reader of a previous edition of this posting is why to create a separate TIF allocation area at all — why isn’t the existing Westside Economic Development Area adequate? The answer is that creating a separate single-taxpayer TIF district constrains the risk of the project. First of all, if by some chance the developer is unable to generate the required revenues to pay the bond (unlikely, but is within our due care duty to prevent against) it is only they who will suffer. The rest of the taxpayers of the westside TIF will not have to make up the difference (or have to shift resources out of other important westside projects). Secondly, if the project were funded out of the Westside, then the revenues (increment) from the rest of the Westside TIF would need to be pledged for repayment of these bonds as well. The need was to have the revenues from Cook’s investment and only those revenues pledged for repayment. The structure of an independent allocation area provides both of those protections.

Power substation at Curry Pike and Profile Parkway

In my view, this project represents a generational opportunity to redevelop a blighted and abandoned factory and allow it to return to providing jobs for Monroe County residents (Cook is pledging at least 500 new jobs from the project), and also represents an effective and responsible use of tax increment finance to improve the well-being of Monroe County residents.

This public hearing gives you an opportunity to make your thoughts known about this project to the Redevelopment Commission. Please come on Wednesday, March 21, 2018 at 4:30PM in the Nat U. Hill Meeting Room at the Monroe County Courthouse.


$3M Upgrade to Monroe County Youth Facilities Considered

Old YSB House Before Demolition
House in Front of the Youth Shelter That Would Be Demolished

This past Tuesday, the Monroe County Council discussed a request for major capital improvements to Monroe County’s facilities for youth services, including the Binkley House Youth Shelter (located at 615 S Adams St).


Back in February of 2017, the County Commissioners GSD Contract in partnership with the architecture and design firm RQAW to review existing facilities and recommend a plan for renovation and expansion based on the analysis of current and future needs.

The report from the consultants was received in July 2017, and provides an extensive review of the needs of the programs, condition of existing facilities, and proposed combination of renovation and new facilities. Major recommendations include:

  1. Demolition of an old house that is currently used for a few offices and storage, and whose maintenance costs have become unsustainable (I included a picture of the house above).
  2. Additional parking along South Adams St, including improvements to allow delivery truck access, and a nature path and pavilion outside.

  3. Upgrades to the Binkley House Shelter portion of the facility, including paint, carpet, restroom upgrades, better separation of recreational from study spaces, more storage for youth belongings, and a walk-in freezer to allow more bulk purchasing. The shelter currently serves up to 15 youth; there are no plans to increase this capacity.
  4. New large multi-purpose space that can be used as a gym, classroom, group meeting room, space to take youth out of stressful situations, etc.
  5. Upgrades to the Administrative wing of the facility, including creation of small conference/meeting rooms, better waiting areas, secure file storage, additional office space, and public restrooms.
  6. Furnishings, including office furniture and furniture for the shelter.
Screenshot 2018-03-03 08.51.11
Feasibility Study

The Feasibility Study (Exhibit A) includes a description and rationale for all of the recommended upgrades, demolition, and new construction.


Last week, the County Commissioners approved a follow-on contract with RQAW for approximately $190K to provide detailed architectural design documents for the project. These documents would then be used to solicit bids for the demolition and construction work. This contract is subject to appropriation of funds by the County Council; the Council will consider this request at our regular meeting on March 13th.

The total cost estimate for the recommended facilities range from $2.9M and $3.2M. As per our role in the process, the County Council spent most of our time discussing potential sources of funds for the project. Options include:

  • One-time funds (in the Juvenile Services Non-Revering Fund) of around $1.1M saved from excess property taxes collected for child welfare at the time the State took over child welfare funding. The County Council earmarked this money to be spent on juvenile-related services and initiatives.
  • $1.7M in the County Per Diems fund, which consists of money paid by the State to the County for court-ordered and Department of Child Services (DCS) placements.
  • One-time funds (in the Juvenile COIT Rainy Day fund) of $164K from past distributions of the juvenile county option income tax from the State.
  • Funds in the Location Income Tax Special Purpose (formerly known as the Juvenile COIT) could potentially be used for the furnishings (not bricks and mortar construction) component of the project.
  • Future general obligation bond (paid for by a property tax rate).

It appears that a large proportion of the project (if not all of it) could be paid for out of cash (in the above funds). However, there is also concern among some (including me, along with the director of Monroe County’s Youth Services department) that it would be prudent to hold back some cash reserves, particularly in light of the turmoil and chronic underfunding in the State Department of Child Services.  One option would be to pay for a majority of the $3M out of cash savings, and the rest from bond issue.

The County Council will continue this discussion at our regular meeting on March 13, 2018, at 5:30PM.


Update on County Trail Projects

Me Pointing at Potential New Multiuse Trail Connecting 2nd Street and Karst Farm Greenway

Last week I gave a presentation to the Bloomington Bicycle Club at their annual meeting, giving an update on a number of County (and one City thrown in there) infrastructure projects with a bike/pedestrian component. This is only a sample — there are more. Since several people asked for copies of that presentation I thought I’d make it available here: BBC Presentation 2018-02-10.

Please note that all of the maps are ones that I made for illustrative purposes. None are official, and project plans may change for any variety of reasons.

Among other projects, I talked about the the Limestone Greenway/Illinois Central corridor south of the Bloomington Rail Trail, the Monon Corridor connecting the Karst Farm Greenway with Ellettsville, and several westside road projects that will have multiuse paths and sidewalk facilities accompanying them. I also discussed a potential project that is still in the conceptual stages that would connect the multiuse path on the north side of Second Street/Bloomfield Road with the Karst Farm Greenway, via Liberty Drive. Here is the map I drew of that potential project:

Screenshot 2018-02-15 16.04.42

Also gave an update on the Vernal Pike Greenway project, that will connect Will Detmer Park (where the existing multiuse path along Vernal Pike ends) to the Karst Farm Greenway. This path will provide multiuse facilities along one of two remaining breaks between the City’s B-Line Trail and the County’s Karst Farm Greenway. This project, after long delays, will finally go into construction this year (2018), and will feature an historic truss bridge over the Indiana Railroad tracks just west of Curry Pike, very similar to this bridge (the actual bridge to be used is in pieces in a warehouse at the moment):

Screenshot 2018-02-16 08.39.10
Historic Truss Bridge to be Used on Vernal Pike Greenway

Finally talked about a City of Bloomington trail project that will run south of Winslow, parallel to and just to the east of the Bloomington Rail Trail.

Screenshot 2018-02-16 08.44.53
City of Bloomington’s Planned Southern B-Line Extension

The idea is to maintain the existing Bloomington Rail Trail’s soft surface, which is beloved by walkers and runners, and create a paved trail in the old CSX railroad corridor parallel to and just to the east of the Rail Trail. This corridor was given to the City by Monroe County in a land swap for the Illinois Central corridor south of Church Lane that the County is currently developing as a trail. The paved surface will be much more usable by cyclists, strollers, wheelchairs, etc. I’ve been told by City Parks and Recreation Officials that this project is slated for 2020, although the corridor has already been cleared by City of Bloomington Utilities for a sewer interceptor project.

Here is a link to a drone flight I took over the corridor.

It was a great opportunity to update the cycling community on many exciting Monroe County projects — and I was also accompanied in the presentation with the City of Bloomington Bicycle Coordinator Beth Rosenbarger, who gave us an update on numerous bike/ped developments and initiatives in the City of Bloomington.

2018 Monroe County Budget Order, Tax Rates Set

Monroe County Courthouse at Night
Monroe County Courthouse at Night

Last Friday, Monroe County received its 2018 Budget Order from the state, which includes:

  • The budgets for all taxing units (i.e., county, cities and towns, school districts, townships, public library, special units)
  • The property tax levies and tax rates for all taxing units
  • The property tax rates for each taxing district (i.e., the tax rates that actually affect each property owner)

The following table summarizes the total 2018 property tax rate (per $100 of net assessed value) for each taxing district in Monroe County, sorted from highest to lowest. I’ve also included the 2015-2017 tax rates for comparison.

Screenshot 2018-02-13 15.28.36

I highlighted the taxing districts that are within incorporated municipalities in aqua.

The rates for most taxing districts went up, at least partially because the maximum civil levy statewide increased by 4% (this is sort of like a cost-of-living increase for local government operating funds), and because the County established a new Major Bridge Fund for 2018 (with a tax rate of $0.0333).

The two exceptions, in which the rates went down for 2018, were Bloomington Township (unincorporated) and Washington Township. This is because of the Northern Monroe Fire Territory, which first began in 2017. The first year’s tax rates of a new fire territory are typically the highest, both because the territory needs to collect more than it needs for the year in order to create an operating reserve, and because the local income tax (LIT) associated with the new property taxes of the fire territory doesn’t come in until the next year. Bloomington and Washington Township residents thus saw a large increase in property taxes for 2017 over 2016.

Because during the second year of the fire territory (a) the territory doesn’t need to collect extra for reserves and (b) the township providing fire services (Bloomington Township) receives additional LIT, the property tax rates for the second year can be reduced, and thus both Washington Township and Bloomington Township saw overall reductions in their 2018 property tax rates over 2017.

Drone Use and Local Governments: Secretive Task Force Founders

Screenshot 2017-10-24 08.04.10I have become quite interested in the intersection between drones (“unmanned aerial vehicles”) and local government regulation lately, and will be using this blog to post news and developments that cut new ground in this area.

Yesterday’s Washington Post featured an article about a secretive subcommittee (so-called “Task Group 1 of the Drone Advisory Committee”) that has been tasked by the Federal Aviation Administration (FAA) with making recommendations about the manner in which state and local governments should be able to regulate drone use : A U.S. drone advisory group has been meeting in secret for months. It hasn’t gone well.

TL;DR version:

  • The Federal Government (through the FAA) has exclusive jurisdiction over US airspace, under the principle that you can’t have each and every local jurisdiction passing laws and regulations about the airspace above it.
  • Open question that the proliferation of drones pose is whether the Federal Government should allow local governments to control the airspace at ultra-low altitudes — usually under 400 feet above ground level — that is — should local governments be able to specify when, where, and under what conditions drones should be able to fly
  • FAA formed the Drone Advisory Committee to study and make recommendations on integrating drones into the US airspace.
  • The committee created a task force to study and come to consensus upon an approach to the balance of regulation between the FAA and state/local government with respect to ultra-low altitude airspace, in preparation for a pilot initiative to give local/state governments more control over drone regulation.
  • The task force composition and conduct have come under fire, even from within the task force. It appears to be heavily laden with industry lobbyists, and in fact is co-chaired by a lobbyist for DJI, a major Chinese drone manufacturer that makes pretty much every drone you can buy at your local big box store. Members have been asked to sign strict confidentiality agreements, which triggered something of a revolt by dissenters (which included the National Association of Counties).
  • It isn’t clear what the next step is — however, what is clear is that the debate between 100% federal regulation of ultra-low altitude airspace and some local government regulation will continue.


Monroe County 2018 Budget Adoption — This Week and

2016 County Council MembersThe Monroe County Council will be adopting the 2018 budget for Monroe County this week and next. First reading of the budget, along with property tax rates and levies, will be Tuesday, October 24th, 2017 at 5:30PM in the Nat U Hill Room of the Monroe County Courthouse. Second reading and final vote will be Monday, October 30th, 2017, also at 5:30PM in the Nat U Hill Room. Public comment will be taken at both readings!

The Council will be voting on a $70.5M budget, spread across 51 different funds. Each fund has its own set of revenue sources associated with it, including property tax, income tax, public safety income tax, gas tax, fees for service, stormwater fees, etc.

The following table summarizes the total proposed budget to be voted on by fund. Note that for property tax funds, because of a quirk in the way that the state systems report on the property tax circuit breakers (“tax caps”), the revenue loss from the circuit breaker is actually represented as a budgetary expense.

Fund Amount
0101 – GENERAL $33,337,946
0124 – 2015 REASSESSMENT $731,477
0182 – BOND #2 $2,057,150
0183 – BOND #3 $1,021,096
0254 – JUVENILE INCOME TAX $2,787,355
0702 – HIGHWAY $6,826,644
0706 – LOCAL ROAD & STREET $1,650,000
0790 – CUMULATIVE BRIDGE $560,860
0792 – COUNTY MAJOR BRIDGE $40,393
0801 – HEALTH $1,280,235
1001 – CIVIC CENTER $2,037,910
2002 – COUNTY FAIR $111,440
2102 – AVIATION/AIRPORT $988,214
9500 – Extradition and Sheriffs Assis $8,046
9501 – Surveyors Corner Perpetuation $62,921
9502 – County Per Diems-YSB $46,250
9503 – Monroe County 911 Fund $862,635
9504 – MC Convention Center Debt $636,000
9505 – Auditors Ineligible Deductions $24,500
9508 – User Fee – Jury Pay $14,500
9509 – User Fees – Juv. Probation $18,883
9510 – User Fees – Adult Probation $317,351
9511 – User Fees – Project Income/Job $687,781
9512 – Supplemental P. D. Services $895,680
9513 – Clerks Record Perpetuation $112,569
9514 – User Fees-Diversion/Pros. $317,080
9515 – User Fees-Court Alcohol/Drug $291,709
9516 – Local Health Maintenance $72,672
9517 – Emergency Planning/Right to Know $15,900
9519 – Misdemeanant/Co Corr $117,450
9520 – Home-Rule Fund #21 $10,000
9521 – Alternative Dispute Resolution $21,000
9522 – Sales Disclosure-County Share $35,765
9523 – Conv. Visitor Cap Imp/Maint $100,000
9524 – County Offender Transportation $3,000
9525 – Local Health Dept Trust Accoun $56,424
9526 – User Fees-Problem Solving Courts $35,124
9527 – Westside Econ Dev/Rich Twp TIF $1,554,278
9528 – 46 Corridor Econ Dev/Blgtn Twp TIF $343,649
9529 – Fullerton Pike Econ Dev / TIF $95,522
9530 – Plat Book $29,118
9531 – Convention Center Operating $554,688
9532 – User Fees-Cable Franchise $699,676
9533 – Showers Building Operating $214,503
9544 – Identification Security Protection $5,500
9547 – Park Nonreverting Capital $60,000
9552 – Storm Water Management $2,753,116
9559 – County Elected Officials Train $30,000
9571 – Public Safety Income Tax $1,980,616
UNIT TOTAL $70,531,322

The full proposed budget, line item by item, can be found in 2018 Monroe County Budget Estimate (Form 1 ). Look at the column labeled “Adopted”.

If you have any questions or concerns about this budget, please contact me or any other member of the Monroe County Council. And again you can make public comment on this budget Tuesday evening (10/24) and Monday evening (10/30).


Public-Private Partnership Set for Colorado Central 70 Project

Central70Narrow2This is just a quick update on a previous story. A few months ago I wrote about a major highway project in Colorado (between downtown Denver and Denver International Airport) that was planning on using a public-private partnership (P3) very similar in structure to that of the now-failed I-69 Development Partners selected to develop I-69 Section 5: Major Public-Private Partnership Highway Project Under Consideration in Colorado: Sounds Like Deja Vu All Over Again. The most interesting aspect of the $1.2B project is the lowering and covering of the interstate at one point, and the creation of a 4 acre park that connects two formerly disconnected neighborhoods on top of the cover.

Recently, Kiewit Meridiam Partners was selected to design, build, finance, operate, and maintain the Central 70 project. You can find the press release here.

It will be interesting to monitor the progress of this P3, and compare performance vs. the failed I-69 Development Partners. During the debate here in Indiana, while many blamed the selected contractor, others blame the very nature of a public-private partnership for road construction. The Central 70 project will serve as a useful comparison.