When the Mayor's Away...

It didn't compare to the days of yesteryear, but the City Council put on one of its better shows to date on Thursday night.

In one instance, a divided council failed to settle a zoning matter of some importance, with the excuse given that the deadline for action remains more than 30 days off.

In another, the council declined to take up a $5,000 tax abatement for a regional company that is currently paying more than $10,000 in income taxes to Jeffersontown, Ky. and far more than $10,000 to Metro Louisville. This from a company with 100 employees (at least a fifth of whom are Floyd County residents) that promises to increase its payroll by another 20. Good jobs? It's reasonable to assume that these new employees alone would make at least $50,000 a year. Oh, and all they want is a $5,000 first-year abatement of taxes on an industrial park building that has been vacant for at least five years.

The most intriguing legislative action of the evening was the unanimous rubber-stamping of a Floyd County ordinance raising the annual restaurant permit fee. Even the smallest food service establishment (something like the breakfast bar at the Hampton Inn) would now be required to pay $125 each year to remain in business. Inspections that result in violations and that require repeat visits could cause those small establishments to be "fined" half of that again.

Consulting the 2002 economic census data, New Albany has about 140 establishments that you would ordinarily consider to be subject to health department food regulation. Restaurants, bars, convenience stores, groceries, bars, bakeries, confectionaries and ice cream shops that you and I would all want to be inspected. Then, of course, the Health Department has to guard us against food poisoning at fall's Harvest Homecoming! and similar temporary vending opportunities.

Like you, I suspect, I wondered why in the world the city council would even be addressing an ordinance regulating food services when it is a Floyd County Health Department function. A cursory investigation indicates that within the incorporated limits of New Albany, the city has exclusive and dominant jurisdiction unless it explicitly delegates it to the county. I can't verify that, but I have no reason to doubt that.

The city council rapidly ratified the county's new ordinance - unanimously and without debate. The Pride of the 3rd District indicated his wish that restaurant inspection fees be used to fund city mosquito abatement efforts. The health department majordomo replied that he wanted the city to pay for same. D4 added his two cents, making it clear that he wasn't going to be happy if the county health department didn't do something in his home district, and soon.

Shadow5's question is this: What in tarnation do restaurant permit fees have to do with skeeter abatement?

But more seriously, how does the health department justify imposing a minimum $125 annual fee for restaurant inspections. Fees should have a rational basis to the cost of the service rendered, a service rendered primarily to the public, but also to the dining establishments.

What I can't figure out is the rationality of this fee increase. Combined with a recent sales tax increase that is decimating our local economy, not to mention a property tax "relief" program that dumps the cost of government onto businesses at a ratio of three to one, it seems clear that Indiana, Floyd County, and New Albany are bound and determined to drive business away, making New Albany nothing more than a bedroom for a vital and growing Louisville.

If you guys want that, keep supporting current policies. Then see how easy it is to fight crime, pave the streets, and pick up the garbage on residential taxes alone. Spend your consumer taxes across the river, 'cuz the Mitch Daniels program is explicitly one that says to businesses, "Go away!"

Mr. Robert Caesar, tyro council member representing the 2nd District, had his finest moment in espousing his reasons for opposing the wrecking of the existing zoning along the light-industrial zone north of Mt. Tabor Road. His logical stance for maintaining the integrity of that zone, supported by the negative recommendation of the Plan Commission, carried the day, although a third reading on approval/denial of a PUD district remains on the docket.

THIS is what's so great about watching the sausage-making that is city government. Jack Messer (CM At-Large), a man for whom we have the greatest respect, has judged the current zoning to be unreasonable. Mr. Caesar, for whom we have held great hopes, believes otherwise. Dan Coffey, with whom we can reliably be counted on to disagree, actually deferred to the strong recommendation of city staff in voting to deny the rezoning. And D5, Diane McCartin-Benedetti, citing no rationale, said throw the zoning to the wind and let a struggling pawn shop set up on a backwater road a few hundred feet from appropriate commercially zoned land.

Mr. Price, the suspect D3, chairs the council committee on tax abatements (quelle surprise) and is blocking the tax abatement for "vacant" building purchases recently authorized by Indiana statute. Having learned that givebacks were legal, he instructed Deputy Mayor Carl Malysz to develop a full-blown program for "voluntary" contributions in exchange for abatements before the next council meeting (May 8? May 12?).

Mr. Malysz, as diplomatically as he could, said it was his greatest hope that such a feat were possible, and, dejectedly, sat down.

Will greed derail the recruitment of the employer of 100+ tradespeople?

Building Community With Available Tools

Among the strongest tools for targeted reinvestment in the community are those wielded by the Urban Enterprise Association. The UEA administers the incentives attached to businesses within the Urban Enterprise Zone. All downtown businesses and many commercial properties along Spring, Market, and Vincennes streets are within the Zone.

It's important for you to know if you are in the Zone. Check out the Zone boundaries at http://nauea.blogspot.com to see if your business can directly benefit from its tax deductions and incentives.

If you have, within the past year (2007) purchased a building, land, or machinery, or had any renovation work at a property within the zone, you should apply for 2007 Zone Investment Deductions and Incentives.

The investment must be a "qualified investment," according to UEA Executive Director Mike Ladd. There is a specific list of qualifying expenditures related to an enterprise zone location where a taxpayer's business is located.

A “qualified investment” includes:
(1) The purchase of a building.
(2) The purchase of new manufacturing or production equipment.
(3) Costs associated with the repair, rehabilitation, or modernization of an existing building and
related improvements.
(4) Onsite infrastructure improvements.
(5) The construction of a new building.
(6) Costs associated with retooling existing machinery.

When filing Indiana Schedule EZ
Parts 1A through 3 are due at the time the Indian State Tax Return is filed.

If, for some reason, the April 15 deadline is missed, file the EZB-E form, requesting a 30-day filing extension. That must be filed by May 15, 2008.

“The Investment Deduction really is the crown jewel the Zone has among the several economic development incentives available to Zone businesses and residents,” says Ladd.

According to Ladd, “The Enterprise Zone Investment Deduction Application (Form EZ-2) must be filed with the County Auditor between March 1st and May 10th of each year.” Once the form is filed, the County Auditor must notify the applicant of their determination by August 15th of the assessment year. Ladd tells us that “if the applicant is in disagreement of the Auditor’s determination, a complaint must be filed within forty-five (45 days) of the notification in the office of the clerk of the circuit or superior court.”

Ladd also notes that “If the form includes a deduction claim for personal property, a copy of the current assessment year Business Tangible Personal Property Assessment return (Form 102 or 103) must be attached.” This form and a personal property tax return are confidential pursuant to IC 6-1.1-35-9.

“This form is required to be filed each year a deduction is claimed even if no new equipment is acquired in that assessment year,” Mike reports.

Questions can be addressed to the Department of Local Government Finance at (317) 232-3777 or www.in.gov/dlgf/.

To find out if you are in the Enterprise Zone, go to www.nauea.blogspot.org and view the map, or call 812.944.3454.

The Enterprise Association board of directors is made up of Daniel Meyer, Brenda Scharlow, Ron McKulick, Larry Brumley, Robert Norwood, Roger Baylor, Carl Malysz, Steve Price, Al Goodman and Robert Norrington. The Executive Director is Michael C. Ladd.

Important filing deadlines follow:

IMPORTANT FILING DATES FOR
NEW ALBANY URBAN ENTERPRISE ZONE BUSINESSES

April 15 - Indiana Schedule EZ Parts 1A through 3 for Year 2007 are due with your State return. The Indiana Department of Revenue in cooperation with the IRS approves extensions.

May 9 - Deadline for filing Form EZ-2, accompanied by a copy of the current year Business Tangible Personal Property Assessment Return (Form 102 or 103). File in duplicate with the Floyd County Auditor for new personal and real property investments taxable as of March 1, 2008.

May 15 - Deadline to request an extension of up to 30 days to file Year 2008 Business Tangible Personal Property Assessment Return (Form 102 or 103) from the Township Assessor.

June 1 - Latest postmark date for the mailing of the completed calendar year 2007 EZB-R to the Indiana Economic Development Corporation.

June 1 - Latest postmark date to file the up to 45-day registration extension form, EZB-E, with the Indiana Economic Development Corporation.

June 13 - With a copy of the approved extension from the Township Assessor, Form 102 or 103 due to the Floyd County Auditor.

July 15 - With a copy of the approved extension letter, Form EZB-R is due to the Indiana Economic Development Corporation.