Warsaw OKs Funding For New City Hall Amid Opposition
July 28, 2016 at 4:25 p.m.
By Jennifer [email protected]
The appropriation was approved on second reading during Monday night's meeting. The council previously approved the appropriation on first reading at its Nov. 15 meeting.
The appropriation will allow Warsaw Redevelopment Commission to purchase the former National City Bank building, 117 W. Center St., and 102 S. Buffalo St., and renovate the property for use as a city hall. The price also includes the former National City Bank parking lot.
The vote during the public hearing Monday night was 4-1 with councilmen Joe Thallemer, Charlie Smith, Dan Hampton and George Clemens voting in favor of the appropriation.
Councilmen Jerry Patterson and Jeff Grose were absent during Monday's meeting.
Councilman Kyle Babcock voted against the city appropriating funds for the building, and was concerned with the estimated $2 million renovation costs. He felt the money could be better spent on road projects.
The city was asked why it would pay over the appraised value for the former bank building.
Warsaw Mayor Ernie Wiggins said part of the fact that the appraisal is low is due to the state of the economy.
Wiggins said the former bank building was appraised at $1 million, and the county's assessed value of the property is $2 million.
He said the Warsaw Redevelopment Commission has the authority to negotiate a price, but the city cannot negotiate the price.
An increment from the northern tax increment finance district that is currently available from tax revenues, according to Umbaugh and Associates, would support up to $2.5 million for renovations that would not impact the tax rate, Wiggins said.
He said renovations costs are approximately $2 million.
The council was asked why there is a need for a new city hall.
Wiggins said a study was conducted in 2002 that assessed the city's needs, and it was recommended a new city hall was necessary.
The existing city hall is at 302 E. Market St., and Wiggins said the current city hall is dated and not functional.
Wiggins said the idea is to consolidate services, and house the mayor's offices as well as clerk treasurer, building and planning, human resources and wastewater collection offices in the new city hall.
Local residents spoke in opposition to the city appropriating funds for the building purchase. Approximately 13 residents attended the meeting to show their opposition for the city appropriating funds for a new city hall.
Dewey Lawshe, a former city councilman and Warsaw resident, said he was concerned with the appropriation.
"I am reluctant to see a building of that size and an investment of this magnitude at this time with the economy the way it is and I think it is hasty," Lawshe said.
Lawshe said he was concerned that the taxpayers would be required to pay for maintenance of the building.
"It's not generating revenue, it's pulling revenue from the taxpayer to maintain the building," Lawshe said.
Vere Shenefield, Warsaw, also had concerns with the appropriation.
"There are two things I see that can't handle money, churches and government. It burns a hole in their pocket," Shenefield said. "To rob the taxpayers of funds for something that is possibly overpriced and overvalued in my estimation is not the thing to do."
Elaine Call, former Warsaw clerk-treasurer and Warsaw resident, said she did not support the appropriation because it is using taxpayer dollars.
Thallemer, Hampton, Clemens and Smith spoke in support of the appropriation.
"I believe this building will allow us to put our best foot forward, and the whole idea is to bolster the downtown, and if the city makes a commitment to stay downtown I think it will have a positive impact on the values of the buildings downtown," Thallemer said.
Hampton said he sees the appropriation as a win-win situation.
"When visitors come to town they want to come to the downtown and that building is a prime location, and if the former National City Bank stays how it is now it won't do well for now and the future," Hampton said.
Hampton suggested local workers could be hired to make renovations to the building that would put money back into the local economy.
Clemens said he supported the appropriation, and wants to work to get those who would renovate the building to be local workers.
Smith said he had concerns of the former National City Bank building continuing to be vacant, and said a vibrant city hall and nice-looking downtown is needed to attract people and business to the downtown.
Babcock spoke in opposition to the appropriation.
"I haven't had anyone call me who said they wanted this. I had people call me and say they don't want this," Babcock said.
He said he is concerned with the $2 million renovation cost, and said that would be $3.4 million when the estimated renovation cost and appropriation for the former bank are added together.
The council reviewed a letter signed by Cindy Dobbins, Warsaw Community Development Corp. director, that expressed support for the purchase and restoration of the building. The council also received a letter form OrthoWorx in support of the former National City Bank location.
In other business, the council has planned to meet Thursday night at 6 p.m. at city hall for a city budget meeting.[[In-content Ad]]
The appropriation was approved on second reading during Monday night's meeting. The council previously approved the appropriation on first reading at its Nov. 15 meeting.
The appropriation will allow Warsaw Redevelopment Commission to purchase the former National City Bank building, 117 W. Center St., and 102 S. Buffalo St., and renovate the property for use as a city hall. The price also includes the former National City Bank parking lot.
The vote during the public hearing Monday night was 4-1 with councilmen Joe Thallemer, Charlie Smith, Dan Hampton and George Clemens voting in favor of the appropriation.
Councilmen Jerry Patterson and Jeff Grose were absent during Monday's meeting.
Councilman Kyle Babcock voted against the city appropriating funds for the building, and was concerned with the estimated $2 million renovation costs. He felt the money could be better spent on road projects.
The city was asked why it would pay over the appraised value for the former bank building.
Warsaw Mayor Ernie Wiggins said part of the fact that the appraisal is low is due to the state of the economy.
Wiggins said the former bank building was appraised at $1 million, and the county's assessed value of the property is $2 million.
He said the Warsaw Redevelopment Commission has the authority to negotiate a price, but the city cannot negotiate the price.
An increment from the northern tax increment finance district that is currently available from tax revenues, according to Umbaugh and Associates, would support up to $2.5 million for renovations that would not impact the tax rate, Wiggins said.
He said renovations costs are approximately $2 million.
The council was asked why there is a need for a new city hall.
Wiggins said a study was conducted in 2002 that assessed the city's needs, and it was recommended a new city hall was necessary.
The existing city hall is at 302 E. Market St., and Wiggins said the current city hall is dated and not functional.
Wiggins said the idea is to consolidate services, and house the mayor's offices as well as clerk treasurer, building and planning, human resources and wastewater collection offices in the new city hall.
Local residents spoke in opposition to the city appropriating funds for the building purchase. Approximately 13 residents attended the meeting to show their opposition for the city appropriating funds for a new city hall.
Dewey Lawshe, a former city councilman and Warsaw resident, said he was concerned with the appropriation.
"I am reluctant to see a building of that size and an investment of this magnitude at this time with the economy the way it is and I think it is hasty," Lawshe said.
Lawshe said he was concerned that the taxpayers would be required to pay for maintenance of the building.
"It's not generating revenue, it's pulling revenue from the taxpayer to maintain the building," Lawshe said.
Vere Shenefield, Warsaw, also had concerns with the appropriation.
"There are two things I see that can't handle money, churches and government. It burns a hole in their pocket," Shenefield said. "To rob the taxpayers of funds for something that is possibly overpriced and overvalued in my estimation is not the thing to do."
Elaine Call, former Warsaw clerk-treasurer and Warsaw resident, said she did not support the appropriation because it is using taxpayer dollars.
Thallemer, Hampton, Clemens and Smith spoke in support of the appropriation.
"I believe this building will allow us to put our best foot forward, and the whole idea is to bolster the downtown, and if the city makes a commitment to stay downtown I think it will have a positive impact on the values of the buildings downtown," Thallemer said.
Hampton said he sees the appropriation as a win-win situation.
"When visitors come to town they want to come to the downtown and that building is a prime location, and if the former National City Bank stays how it is now it won't do well for now and the future," Hampton said.
Hampton suggested local workers could be hired to make renovations to the building that would put money back into the local economy.
Clemens said he supported the appropriation, and wants to work to get those who would renovate the building to be local workers.
Smith said he had concerns of the former National City Bank building continuing to be vacant, and said a vibrant city hall and nice-looking downtown is needed to attract people and business to the downtown.
Babcock spoke in opposition to the appropriation.
"I haven't had anyone call me who said they wanted this. I had people call me and say they don't want this," Babcock said.
He said he is concerned with the $2 million renovation cost, and said that would be $3.4 million when the estimated renovation cost and appropriation for the former bank are added together.
The council reviewed a letter signed by Cindy Dobbins, Warsaw Community Development Corp. director, that expressed support for the purchase and restoration of the building. The council also received a letter form OrthoWorx in support of the former National City Bank location.
In other business, the council has planned to meet Thursday night at 6 p.m. at city hall for a city budget meeting.[[In-content Ad]]
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