Stately Delay

Harrison Square bond in bind
State backlog could drive up costs, Richard says
Link

"Fort Wayne Mayor Graham Richard said the city might choose to pay higher interest costs for Harrison Square to keep the development from being delayed and facing higher costs for building materials.

Richard said a logjam of requests with the state has put the city in jeopardy of not getting its $45.9 million bond approved in a timely manner. If the city waits for the state, he said it faces delays to an already tight construction schedule, as well as the likelihood that costs rise for materials like steel."

"Last month the Indiana Local Government Tax Control Board voted 4-2 in support of the financing package behind the Harrison Square project. The city has proposed using multiple revenues to pay off its debt, including economic development income taxes, property taxes from the project and property taxes from the Jefferson Pointe area taxing district."

"Musgrave had 90 days to approve the action, but city officials said the state sent a letter saying it was extending that deadline by another 90 days, which pushes the decision into next year."

"Richard said he was frustrated the state could take so long to approve a vital economic development project that would normally have received routine approval. He said he has no concerns about the merit of the city’s request, only that turnover at the state is causing the project approval to be delayed."

"Paying for the project without a property tax backup would increase interest costs, Richard said, but delaying the project has other costs. He said the entire project, which includes a Courtyard by Marriott with parking garage, a retail and condominium building and a ballpark, is a complex project that doesn’t have a lot of time to be completed. Jason Freier, Hardball CEO, said he has no doubts the stadium will be ready for opening day 2009."