The City of Valparaiso has set up a financing mechanism for a proposed downtown parking garage, but not without some opposition. The 300-space Lincoln Highway Garage would be built at the northeast corner of Lincolnway and Morgan to coincide with the Linc development.
The city council Monday voted six-to-one to establish a redevelopment authority. City Attorney Patrick Lyp explains it would serve as a legally-separate holding entity that would actually own the structure and lease it to the redevelopment commission. The rent payments from the RDC's TIF money would then be used to pay off the debt.
"Practically speaking, it will all be handled by the clerk's office, and it will never actually be within a redevelopment authority, in terms of their independent use," Lyp told council members Monday.
But Council Member Robert Cotton felt that for such a limited purpose, Indiana Code gives redevelopment authorities a broad set of powers, including eminent domain.
Attorney Lyp, though, pointed out that the idea of a redevelopment authority going rogue is virtually unheard of in Indiana. Even if that were to happen, the council could simply not fund it or disband it outright.
"They don't have a dime to their name. They can't do anything. They can't hire a lawyer. They can't hire appraisers. They can't pay for property," Lyp added.
It'll now be up to Mayor Matt Murphy to appoint three members to the redevelopment authority. Lyp expects one of them to be a city council member.
