Attorney General: Redevelopment commissions can borrow on their own

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September 5, 2010

Jeffersonville, New Albany officials say ruling not surprising

By DANIEL SUDDEATH Daniel.Suddeath@newsandtribune.com The News and Tribune Sun Sep 05, 2010, 05:41 AM EDT

> SOUTHERN INDIANA — Municipal redevelopment commissions and authorities can borrow money or issue bonds without city council approval, Indiana Attorney General Greg Zoeller said in a legal advisory opinion released last week.

“As a general rule, redevelopment commissions and redevelopment authorities have statutory authority to incur financial obligations related to local redevelopment projects without the approval of the city common council,” Zoeller wrote in an opinion solicited by the State Board of Accounts.

“Approval of the common council is required only for those transactions enumerated in the statutes as requiring such approval.”

Locally, redevelopment boards manage and help finance numerous efforts including the Floyd County branch of the YMCA of Southern Indiana, Tax-Increment Financing (TIF) districts and the disbursement of federal Community Development Block Grant funds.

Zoeller’s opinion rose out of a debate concerning the funding of a performing arts center project in Carmel.

“When complex questions arise about the legal authority of various levels of government, it is the duty of the Attorney General’s Office to research those issues and provide objective answers,” Zoeller said.

The redevelopment commissions in Jeffersonville and New Albany have a city council representative on the boards.

The attorney general’s ruling doesn’t really apply to Jeffersonville because the city has an ordinance in place requiring the council sign-off on all bonding regardless of the amount, Jeffersonville Communications Director Larry Thomas said.

Jeffersonville Mayor Tom Galligan said the redevelopment commission has been an invaluable resource.

“We’ve never had a problem because we’ve tried to communicate between the two bodies,” Galligan said, referring to the council and commission.

“We’re very pleased with our whole [redevelopment and economic development] staff.”

Carl Malysz, deputy mayor and director of community development for New Albany, said he didn’t find anything unusual in Zoeller’s opinion.

“I feel that the city of New Albany and, specifically, the New Albany Redevelopment Commission and the New Albany Redevelopment Authority are compliant with the opinion of the Indiana Attorney General,” Malysz said in an e-mail.

Attorney General’s opinions are non-binding and come at the request of his clients as the lawyer for state government. Clients include state-level elected officials, state agencies and the 92 county prosecutors.

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Attorney General: Redevelopment commissions can borrow on their own

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