Harrison Square Hotel Tax Abatement Gets Green Light

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Harrison Square Hotel Tax Abatement Gets Green Light

By Nicole Pence

The final, big vote from Fort Wayne City Council Tuesday night on the Harrison Square Project. City Council Reporter Nicole Pence joins us with the details.

Tuesday’s vote focused on the tax abatement for the 24-million dollar hotel, set to be built by 2010. With eight council members casting a "yea" vote and, only one voting "no"... Hotel developers will save money on their property taxes. The vote gives the hotel's developer, White Lodging, about three-million dollars over 10-years in property tax savings.

Last year Council approved an agreement that included the understanding of granting the hotel's tax abatement. The developer did say tonight, "it was crucial if not a must" to get those savings from the city. Councilman Tom Smith, argued, the hotel is already receiving too much public money. Construction is set for later this year.

Greg Leatherman/Redevelopment Commission: “We have to have the hotel. It is a very important part, but there are no benefits that are transferred until it is finished and in that case we are protected. Many council members said it was honoring our commitments, not a fear factor, I agree, it was honoring our commitments we made a year ago to the developer."

Also, at Tuesday’s Council meeting, Citilink leaders begged council members to approve a request for tax revenue. The public transportation group faces a one-million dollar budget shortfall.

Council voted "yes", unanimously to sign off on the 500-thousand dollar tax request. Citilink has to present the paperwork to the department of local government finance, tomorrow, to "officially" get the money. But, the green light, didn't come without harsh criticism from some council members about Citilink’s management skills.

Councilwoman Liz Brown: “They have to have some tighter control. To have missed one levy, that's not the state's responsibility. Next year their employee contracts are up for review, hopefully make some economic savings there."

Betsy Kachmar/Citilink: "I’ll take some of the blame. We could have read through the entire Indiana Code. We had not had to go in front of City Council before for our budget so that didn't occur to us that was a step we needed to take.”

Citilink officials should know Wednesday if they get the 500-thousand dollars from the state. That's money they had already thought they would have for this year's budget... Not "new" money. They're still about half-a-million dollars in the hole. On their June 19th board meeting, Citilink officials will vote on route cuts and fare hikes to make up for that.

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