Continuously serving Kosciusko County since 1854
Brian Szalai could have thrown in the towel. He could have left downtown Warsaw for another locale - even another city.
But he hasn't.
And for his determination to maintain his business in Warsaw, the city council Monday unanimously approved a 10-year abatement for Szalai to rebuild Warsaw Tool Supply, 113 W. Market St., which was destroyed by fire last September.
"I've come to ask the city council to help me rebuild my business that was destroyed through no fault of my own," Szalai said. "The new building would be bigger and bring in more tax revenue than the old building. I'm looking to double with the width, if I can work a deal with the Butterfly."
After the 5-0 vote, Mayor Ernest Wiggins praised Szalai for his determination in remaining downtown.
"On behalf of the city, Brian, I want to thank you for choosing to remain downtown," he said.
In other business, the council formally cast its 17 votes on the Kosciusko County Income Tax Council for the proposed Economic Development Income Tax.
The vote was 4-1, with councilman Tammy Rockey voting no.
Warsaw initiated the current consideration of EDIT by passing a resolution Jan. 25. Each town council and the county council have tax council votes, assigned on the basis of population.
To date, Warsaw and Winona Lake are the only taxing units to approve the resolution establishing EDIT.
The council also approved the declaratory resolution, establishing a Tax Increment Financed District in the vicinity of U.S. 30 and Ind. 15. The measure, initiated by the redevelopment commission and approved by the plan commission, will now be subject to a public hearing at noon, Feb. 25 at the Planning and Building Department, 794-A West Center Street.
Tax increment financing is an instrument local governments use to encourage commercial and industrial development. The concept behind the process is to have new business development pay for the streets, sewer and water service improvements that are required for having it locate in a particular area.
In establishing a TIF district, the local taxing body freezes property values within the district. Bonds can then be issued to make the necessary infrastructure improvements needed to encourage and promote the development, which in turn leads to higher property tax revenues. The increase in revenue is captured and used to repay the bonds and the interest on them, or to simply pay for the improvements if bonds aren't issued.
"I hope everyone understands the other taxing units (schools, library, etc.) will receive the same tax revenues they always have," Wiggins said.
Wiggins also announced Warsaw has been awarded $54,859 from the Federal Emergency Management Agency to reimburse the city for the cost of the Jan 2-4 winter storm. The funds are to reimburse the city for overtime, equipment and salt for the first 48 hours of the storm.
