By Arthur Foulkes
TERRE HAUTE — The Terre Haute City Council on Thursday night discussed the issuing of federal tax free bonds to help Clabber Girl build a new distribution center in Terre Haute.
Tyler Kalachnik, an attorney with Ice Miller, an Indianapolis law firm, told the council at its monthly “sunshine” meeting that the Terre Haute Economic Development Commission approved allowing the bonds to be used for the new Clabber Girl facility at a public meeting earlier in the day.
Taxpayers will not be responsible if the bonds are not repaid, Kalachnik said in response to a question from Councilman Norm Loudermilk, D-3rd.
The bonds, which were made available to local governments through the Obama administration’s 2009 federal stimulus package, provide federal tax free bonds that can be used in economically distressed areas. In October, the Vigo County Commissioners designated the whole county as an economic “recovery zone” due to higher unemployment rates than the state and national averages and lower-than-average wage rates.
For the bond issue to move forward, the City Council must vote in favor of a special ordinance at next Thursday evening’s regular meeting. That ordinance would provide the Clabber Girl project with half of the approximately $7 million in federal tax free stimulus bonds given to Vigo County. If approved, the bonds could save the company, which makes baking products, between 1 and 2 percent in borrowing costs for the proposed $4.5 million distribution center slated for East Margaret Avenue near Interstate 70.
Old National Bank is the designated purchaser of the bonds, according to the ordinance. Interest on the bonds cannot exceed 12 percent annually, the ordinance states.
• In unrelated business, the council once again debated the merits of a proposed change to a city traffic intersection. Residents living near 27th and McKeen streets are requesting a multi-way stop at what is presently a two-way stop intersection. According to a study by the city’s engineering department, the intersection falls well short of the volume of traffic necessary under state guidelines to warrant a multi-way stop. The problem is not traffic volume, it is the speed of traffic on McKeen Street, said Robert Shouse, a resident of the neighborhood who spoke on behalf of the request. Cars travel for several blocks down McKeen at high speeds while avoiding the stoplight at 25th and Hulman streets, he said.
The council also heard a request for the rezoning of property at 2343 Maple Ave. from “residential” to “commercial” to allow for the construction of a parking lot.
The Terre Haute City Council could vote on these and other matters at next Thursday night’s regular meeting.
Arthur Foulkes can be reached at (812) 231-4232 or arthur.foulkes@tribstar.com.
