TERRE HAUTE — Some union representatives Tuesday encouraged the Vigo County Board of Commissioners to consider allocating federal stimulus bonds for projects that use county construction workers and that create higher paying jobs.
At issue is the possible allocation of federal stimulus bonding capacity to build a new Holiday Inn Express & Suites hotel on Terre Haute’s east side.
“My concern is when they come in and build something like this, what will the community get out of it? Will we use local contractors to build this structure and will we have employees making house-cleaning minimum wage or would it be better to utilize this [bonding capacity] for better-paying jobs?” said R. Todd Thacker, business manager and financial secretary for the International Brotherhood of Electrical Workers Local 725.
“We would like to see the community get something back for it,” Thacker said.
Commissioner Judith Anderson said a construction project has to be ready to go to receive the bond allocation.
“We always ask to use local contractors as much as possible. We know that type of project does hire a certain type of people, but we also know there are lot of people out there in that range that need jobs,” Anderson said.
Commissioner Paul Mason said a new hotel would “have people stopping in Vigo County and spending money and that is a plus.”
Commissioners this month awarded $3.54 million in Recovery Zone Economic Development Bonds, part of a program under the federal Stimulus Act passed in February, to help finance and construct a 153,600-square-foot warehouse/distribution center at 4780 E. Margaret Ave. for Clabber Girl, a producer of baking powder and other food goods.
That allocation was half of the amount the county can issue to private businesses under the federal Recovery Zone Economic Development Bonds program. The bonds are issued to private businesses and do not affect the bonding capacity of the county. A private business that receives the bonds must pay them off.
Thacker said the bond allocation to Clabber Girl Inc. would generate jobs at a higher pay scale than a new hotel.
Timothy J. Dora, co-owner of Dora Brothers Hospitality Corp., told commissioners last week he planned to request a bond allocation to build the hotel. Dora said the bond would reduce costs, enabling the project to move forward.
The hotel would be owned by Sycamore Hotel Partners LLC, of which Dora is a member. Plans are to construct a four-story, 83-room Holiday Inn Express & Suites near the junction of Interstate 70 and Indiana 46 in the Sycamore Terrace Shopping Center, near the new Terre Haute Convention and Visitors Bureau. The project would cost at least $10 million, Dora said last week.
Dora could not be reached for comment Tuesday.
County Attorney Michael Wright said commissioners expect there to be a request for a bond allocation for the hotel, but are not yet sure of an amount. “We have no documentation ready to support that allocation at this point, but it is in the process of being put together and will be presented at a later date,” Wright said.
County Auditor Tim Seprodi told commissioners all bond allocations must be made by the end of this year, with bonds issued by the end of 2010, before Jan. 1, 2011.
“This will not bring one job for us,” said Mike Jones, business representative for the Sheet Metal Workers Local 20 in Terre Haute, told commissioners.
Jones said the project had 26 bid packages, based on information from FW Dodge/McGraw Hill Construction, a provider of project news, plans, specifications and analysis services for construction professionals.
Jones said mechanical and plumbing work has been awarded to BRS Mechanical of Tipton; electrical work to PW Gollmer Electric Co. of Fishers; while brick work will be done by Biancofiori Masonry of Lafayette and tile work by McCammack Title of Indianapolis.
After the meeting, Jones said the only Terre Haute contract is for site work and concrete work by Dennis Trucking Co. of Terre Haute. The general contractor is Vision Building Co. LLC of Fishers. Dora is a principal owner in that company.
“It makes no sense to me. Give the [bond allocation] to someone else. I don’t see where this will help us one little bit, except bring some maid jobs, some $7 an hour jobs to clean rooms,” Jones said after the meeting.
Howard Greninger can be reached at (812) 231-4204 or howard.greninger@tribstar.com
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Unions, Vigo Board meet about stimulus funds
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