Building Corporation OKs courthouse bonding plan

By BILL RICHMOND

City editor

The Randolph County Building Corporation Thursday approved a resolution to proceed with the proposed bonding setup to finance the courthouse renovation and annex construction.

The resolution authorizes the issuance of bonds not to exceed $8 million at an interest rate not to exceed 7 percent. The present members of the building corporation unanimously approved the resolution.

"We've had many hours of discussion on this project and it's time to move on," said building corporation member Jack Cox. "We will now pass our decision on to the county commissioners."

Local businessman Allan Heuss, a stalwart opponent of the project and the indebtedness it will bring, said he is prepared to file a procedural complaint regarding the financing process today in the local court system.

"This corporation is a puppet organization," Heuss said, "and state officials will be interested to know how you do business."

Building corporation member Betsy Jefferis said the county has been wasting taxpayers' money by continually looking at new options and changing the intent and scope of the project.

"You have to make progress," Jefferis said. "We have danced around this issue forever. I wish you could see the folly of all these delays.

"The people who work here in the courthouse deserve better working conditions right now."

Heuss said it is unconscionable that three people could indebt the people of the county for $16.8 million over a period of 26 years.

"Commissioner Cathy Beumer said she is confident the current plan to renovate and build an annex onto courthouse is the right decision.

"I feel you are just holding things up," Beumer told Heuss. "We need to get the courthouse done and get on with our business."

Tom Pitman, of Baker and Daniels, who serves as the county's bond council for this project said nobody's taxes will be affected by the bonding process. He said the current funding proposal would make bond payments from the county's special Economic Development Income Tax (EDIT) fund as approved by the state legislature for this particular use. A reserve fund from regular EDIT monies not otherwise earmarked for specific county economic development projects would serve as a backup.

"The EDIT money distribution to cities and towns will not be affected by this agreement," Pitman said. "The coverage is projected to be enough to cover the bond from the special EDIT alone."

Financial advisor Jason Semler for H.J. Umbaugh and Associates said if the special EDIT decreases, they would have to dip into the regular EDIT backup.

"To tap into even 10 percent of those original EDIT revenues would require a disaster scenario," Pitman said.

Semler said such a disaster scenario would involve a substantial decrease in the county's adjusted gross income. He said in the past 12 years, the county's adjusted gross income has decreased only once - and then it was by only a slight amount.

Union City, Ind., Mayor Bryan Conklin said he is concerned that the courthouse has fallen into such disrepair, he would like to see some assurance to taxpayers that the situation won't occur again with a new facility.

"That has been one of my great concerns since the beginning of this discussion several years ago," said county commissioner Kathy Beumer. "We've hired a building administrator for all facilities owned by the county with a detailed program of preventative maintenance."

Building corporation members present for Thursday's decision were: Betsy Jefferis, Jack Cox and Karen Glunt.