Food & Beverage funds would pay for public infrastructure investments
The Henry County Council is giving public support for local projects going after Regional Economic Acceleration and Development Initiative (READI) funding.
Henry County is part of the eight-county East Central Indiana Regional Partnership (ECIRP), which was awarded $35 million as a region in the second round of READI funding. READI funds are distributed by the Indiana Economic Development Corporation (IEDC).
The ECIRP received 170 project applications in the fall of 2023. Sixteen Henry County projects have been identified and ranked, with the top five local projects sent to the region for further consideration.
During a special session Aug. 9, the Henry County Council approved $2 million in Food & Beverage Tax funds as match money for the top five local projects. The vote passed 6-0. Council member Betsy Mills was not at the meeting.
New Castle-Henry County EDC President Corey Murphy has emphasized to local elected officials that no county is guaranteed any funding from READI 2.0.
“But going into this with a set aside match is tremendously helpful,” Murphy told the county council during their Aug. 9 meeting.
Food & beverage fundsAfter the ECIRP learned it won $35 million, it hired HWC Engineering to put together a region-wide plan. This included a call for projects, resulting in 170 applications.
Murphy and Henry County Community Foundation President and Executive Director Jennifer Fox represent Henry County on the regional steering committee.
Murphy and Fox were joined by Henry County Council member Kenon Gray, Henry County Commissioner Bobbi Plummer and New Castle Mayor Greg York to rank the 16 Henry County projects.
The local group had until Aug. 16 to rank the local projects and submit them to the regional steering committee.
The Aug. 9 council meeting was not about financing any specific projects. Rather, it was an opportunity for the Henry County Council to pledge support to the top five local projects, regardless of how the rankings came out.
Murphy presented the local project list to the county council on Aug. 9 and asked for local support through the Food & Beverage Tax Fund.
The Food & Beverage Tax is a 1 percent tax on prepared food and drink items bought in Henry County. The money is collected to support local tourism and economic development projects.
“The Food & Beverage (tax) of Henry County has long been a strategic advantage to Henry County,” Murphy told the council. He said the tax has supported “tremendous work” in the county since it was created in the 1980s.
Gray was concerned about using Food & Beverage funds outside of tourism and economic development efforts.
Murphy believe each of the 16 local projects would meet those state requirements for Food & Beverage funds “as long as there is a public infrastructure aspect – water, sewer, roads, drainage.”
“Every one of these project qualifies under the ‘Tourism or Economic Development’ banner,” Murphy said.
He added that it would be more difficult to add the tax funding to a few of the projects than it would be for others on the list.
Traditionally, the Henry County Council has awarded Food & Beverage funds to local governments or non-profit organizations. Four of the proposed READI projects are from for-profit businesses.
“I don’t view that as a concern because there’s a public infrastructure aspect to those projects,” Murphy said, “That’s where the Food & Beverage funds would go, is to the public infrastructure serving that project.”
According to Murphy, any local tax dollars would be given to the local government body in charge of building the infrastructure, not to the organization in charge of the project, regardless of for or non-profit status.
Gray noted that the four projects from for-profit businesses are focused on housing, “which is a high priority for READI 2.0 and of our county.”
Gray also recalled that IEDC representatives “perked up” when they found out last winter that Henry and Delaware counties have Food & Beverage funds available as potential READI match funds.
Murphy also pointed out that Food & Beverage funding would not be the only local match.
The primary sourcing of local public match funds would be through tax increment financing (TIF). TIF areas capture future property tax dollars that result from improving the land and increasing its assessed value. Those future property tax dollars would repay the loans that will be used to develop the infrastructure in the first place.
Proposed READI projects
Murphy presented a list of 16 Henry County projects to the county council. Thirteen of the projects are seeking READI funds and three are seeking Lily Endowment Initiative (LEI) funds. The LEI is a separate funding award focused on blight elimination and arts & culture development.
The local projects that were submitted for READI funding had not been ranked as of the county council’s Aug. 9 meeting. The rankings were submitted to the ECIRP steering committee before Friday, Aug. 16, but had not been made publicly available as of the press time of this article.
The projects are listed in the order they were submitted, not in the order the have been ranked.
Blue River Park (Town of Knightstown) – Riverfront enhancements including a riverwalk trail, picnic areas and river access points. This is at 1200 SR 140. South of CR 1200 N and east of 140 near the Knightstown Public Access Site on the Big Blue River. Estimated Cost: $109,200. READI Request: $79,200.
Henry Community Health Commons (New Castle Main Street) – Proposed flexible use plaza / gateway in the center of Downtown New Castle, currently known as Citizens Corner. Estimated Cost: $550,000. LEI Request: $200,000
Henry County 4H Center (Henry County Expo Center, Inc.) – READI 1 funds would be used for the water/sewer infrastructure. Estimated Cost: $2,087,262. READI Request: $500,000.
Henry County Memorial Park Infrastructure Improvement Project (Henry County Memorial Park) – The feasibility and design layout of a new water main within Memorial Park based on the preliminary design report by FPBH dated April 2023. Estimated Cost: $2 million. READI Request: $400,000.
Henry County YMCA (Henry County YMCA) – Requesting funds to support the updating and expansion of current facility. Estimated Cost: $2.5 million. READI Request: $500,000.
Honey Creek Trail Expansion (Middletown/Fall Creek Township Park Department) – Requesting funding for engineering, design and plans that would add a 1.6 mile-extension to the existing trail connecting to Sulphur Springs. Estimated Cost: $650,000. READI Request $40,000.
Middletown Wastewater Treatment Plant (WWTP) Long Term Control Plan (LTCP) Collection System Improvements (Town of Middletown) – READI funding would be utilized to construct a new headworks building, to include new screening, grit removal, raw sewage pumping, and a non-potable water system. Project doubles the influent treatment capacity of the plant. Estimated Cost: $16,562,800. READI Request: $1.5 million.
Miracle League of Henry County Field of Dreams (Miracle League of Henry County) – READI funding will be directed toward the critical aspects of site preparation, accessibility features, infrastructure construction, landscaping and community engagement. The larger project is the construction of a new Miracle League field in New Castle that will provide a safe, accessible, and inclusive environment for individuals with disabilities to enjoy baseball. Estimated Cost: $2.4 million. READI Request: $1.2 million.
New Castle Courthouse Annex Rehabilitation (Iron Men Properties) – Interior and exterior rehabilitation into 12 luxury apartments. Estimated Cost: $2.4 million. READI Request: $480,000.
New Castle Residential Housing Development (DC Develop) – New residential development on two sites within the city of New Castle with the potential for a childcare home in partnership with the Henry County Community Foundation. Single-family housing, 113 homes. Estimated Cost: $42,312,326. READI Request: $4.5 million.
Sam Hall Estates (BCT Properties, LLC) – Residential development just north of New Castle (SE corner of 200 N and Road 3), 65 homes. Estimated Cost: $18,561,832. READI Request: $4 million.
Spiceland Hotel Project (Spiceland Venture) – The construction of a name brand hotel at Exit 123. Estimated Cost: $10 million. READI Request: $6 million.
Waste Water Improvements to Add Capacity at I-70 and State Road 3 (South Henry Regional Waste District) – Project would provide a direct pump force main from the interchange directly to Lewisville. This would increase capacity and the ability to serve the undeveloped land along the force main’s route. Estimated Cost: $5,080,000. READI Request: $1 million.
Water/Wastewater Expansion to I-70 Along State Road 109 (Town of Knightstown) – Project will extend water and sewer utilities from Knightstown to I-70. Estimated Cost: $23,849,391. READI Request: $2 million.
Washington Street Corridor Enhancements (Town of Knightstown) – Revitalization of Washington Street corridor between the Hoosier Gym and the downtown square. Estimated Cost: $2,527,995. LEI Request: $887,995.
Indiana Basketball Hall of Fame Expansion (Indiana Basketball Hall of Fame) – LEI funding will assist museum with the installation of cases, digital displays, interactives, and other aspects that will enhance the museum experience. Estimated Cost: $5 million. LEI Request: $500,000.
The total project costs are $136,590,806. The total READI requests are $22,199,200. The total LEI requests are $1,587,995.
– Story by Travis Weik (Editor@TheCourierTimes.com) of The Courier-Times. Read more local stories at TheCourierTimes.com.