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Council Approves SRC Loan
(posted 6.12.09)
The Speedway Town Council voted on June 11 to reaffirm its $100,000 loan to the Speedway Redevelopment Commission towards a possible purchase of International Village. The SRC plans to buy the apartment complex while simultaneously seeking a developer to purchase and redevelop the site. The council voted to seek a legal opinion at their Monday meeting after Jo Ellen Dotlich questioned the legality of the loan based on a state statute and opinions she obtained from the State Board of Accounts.
Barnes and Thornburg Attorney Kim Blanchet said IC 36-7-14-24, which prevents loans to redevelopment commissions for property purchases,
was "not applicable" because the SRC is not dependent on tax
levies to pay expenses.
The SRC relies on tax increment revenues, with the next payment expected
in August. The SRC must repay the loan by December 31, 2009.
Blanchet cited IC 36-1-8-4, which grants local governments the ability to transfer money between
funds.
Town Councilors Gary Raikes and Bill Suffel discussed the problems of being
challenged by a taxpayer, especially when the facts were not accurate.
Suffel said the additional legal work cost the town about $1,000.
Resident Amy Carroll urged the council to make the loan. She described
International Village as an unhealthy and unsafe environment for the people
living there, and the town.
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