NEW ALBANY —
The biggest question for the New Albany Urban Enterprise Zone Association this year is will it be in existence in another 12 months?
State legislation that would have drastically curbed incentives offered by zone associations stalled in the House last year after passing in the Senate, but New Albany UEZ Executive Director Michael Ladd warned Thursday a similar measure could be revived this session.
“The rumor is, the bill from last year is going to be back in some form,” Ladd said. “Maybe it’s a little bit of paranoia, but they’re targeting the zones for sure.”
Sen. Brandt Hershman, R-Lafayette, authored last year’s bill that called for the elimination of enterprise zone loan interest and investment cost credits.
Ladd said the end of such incentives would severely hamper the zone’s usefulness. In 2008, the New Albany UEZ dolled out 57 loan interest credit loans equating to about $2.5 million in interest income.
With the General Assembly back in session this week, Ladd said he’s closely eyeing legislative activity along with other UEZ directors across the state to see if a new bill will be introduced.
As a result, Ladd said the local organization is pretty much in a holding pattern and expects to be so for the next four months. The UEZ’s funding — which is typically between $125,000 and $145,000 annually — could be sliced if its programs are reduced, meaning the zone board has to be even more stringent on its financial choices, Ladd said.
If a bill were to pass this session, Ladd said it would likely be retroactive to the first of the year meaning the funding received by the UEZ in 2011 would be cut.
The New Albany Bicentennial Public Art Project — a joint effort between the UEZ and The Carnegie Center for Art and History — will still be funded, Ladd said.
While waiting on word of a new bill from Indianapolis, Ladd has planned another proposal that could generate capital for business expansions and renovations within the UEZ boundary.
He said he will present the idea of forming an Economic Improvement District to the UEZ board at its Jan. 19 meeting.
In order for an EID district to be formed, 51 percent of property owners within the designated area must approve its establishment. A landowner would receive one vote for each parcel they own in the district.
If approved, a property tax increase would be placed on their bills — Ladd said in New Albany’s case it would likely be less than $500 a year — with the increment going to fund projects such as landscaping, street lighting and sales promotion.
The idea behind the EID’s is that they allow businesses to act independently of local governments when it comes to certain types of infrastructure and aesthetic improvements, Ladd said.
“That way if [the state eliminates or scales back enterprise zones], the city at least has a viable nonprofit that’s funded,” he said.
Ladd didn’t divulge where, but said he’s researched a possible district location that encompasses about 6,000 parcels. If the district were formed, residential properties would be excluded from the levy increase.
Before a vote could be held on forming an EID in New Albany, all impacted property owners would have to be notified by mail. Ladd said he’s supportive of establishing an EID whether or not the state cuts UEZ incentives.
Mayor Doug England said the EID idea needs to be further researched, but said in general the state would be doing a disservice by ending enterprise zones.
“The UEZ has been very, very important to downtown,” England said. “We’ve been able to get some things done because of the UEZ.”
But he said he’s not fully supportive of cutting out all incentives offered locally until the state makes a decision.
Recent Local News
New Albany UEZ ponders new business district
Money captured through property taxes would foot capital improvements
- Recent Local News
-
-
SWEET TREAT: Volunteers see the attraction of annual Starlight Strawberry Festival
-
Board chair: Parks district best solution for New Albany and Floyd County
Mayor Jeff Gahan’s veto of a new parks deal between the city and county was upheld earlier this month by the New Albany City Council. While the Floyd County Council agreed to still pay an additional $100,000 toward the parks department for the remainder of the year, the city and county remain under a prior agreement that led to funding discrepancies in the past.
-
THE 'V' WORD: SUB: Prosser Career Education Center moves away from stigma of ‘vocational’ school
- TARC sets Memorial Day and Kennedy Bridge route changes
- Indiana man releases hostages, fatally shoots self
-
Vietnam veteran receives medals 46 years after active duty ends
- More travelers to hit the road this Memorial Day weekend
-
Pence talks bridges, jobs during Southern Indiana swing
“I think everyone senses with the recent bridges agreement, the potential for extraordinary growth,” said Mike Pence, a U.S. House member who is seeking to replace Gov. Mitch Daniels and retain the gubernatorial seat for the Republican Party.
- Police: Gunman has hostages in Indiana realty office
-
Delaware woman dies in I-65 crash
-
Collingsworth Family to perform at Silver Heights Retreat Center in New Albany
The Collingsworth Family will be making a return trip to the Silver Heights Retreat and Camp Center in New Albany on Thursday, June 7.
-
Clark County approves self-insurance plan
Clark County Insurance Agent-of-Record Diane Swank presented health insurance renewal options at the council meeting Monday, but the county’s fiscal body decided to recess its meeting in order to review a proposal to move the county to a self-insured plan.
-
New theater directors at NAHS and FCHS ready for their programs
As the curtain falls on the careers of the teachers who put the theater programs of Floyd Central and New Albany high schools on the map, the new blood coming in have big hopes for the programs they’re taking over.
-
Jeff to start enforcing insurance ordinances
A 2004 ordinance that dictates how much city retirees pay for health insurance – ignored for years by Jeffersonville officials – looks like it will now be enforced.
-
Top Gun showing Saturday at the New Albany riverfront
In honor of Memorial Day, the city of New Albany will show the movie “Top Gun” on its new 40-foot screen at the Riverfront Amphitheater Saturday.
- More Recent Local News Headlines
-
