Developers looking to get incentives from Valparaiso could soon have to follow the same requirements for contractors that city projects do.
Union carpenters have alleged that contractors working on the downtown Linc development have been busing workers in from out-of-town at a lower cost. Residents have also complained about safety and traffic control issues at the construction site.
Currently, contractors involved in public works projects have to comply with a responsible bidder ordinance. But Council President Robert Cotton says he's been getting complaints for years about contractors working on private developments.
"The concern was that these projects, many of which benefited from significant taxpayer-funded incentives, lacked companies employing skilled workers at prevailing wages," Cotton said during Monday's council meeting.
Now, Cotton is reintroducing an ordinance from 2018 that would extend the same requirements to private developments that get a tax abatement, TIF funding, loans or other help from the city. Contractors would have to show proof of licensing, disclose any violations and take part in apprenticeship training programs, among other requirements. Similar ordinances are already in place in Hobart, Lowell and LaPorte County.
But the proposal drew several concerns from City Attorney Patrick Lyp. He noted that it's relatively easy for the city to analyze bids on its own projects. It becomes more complicated when it's someone else's — especially if developers request exceptions for what may or may not be specialized work. Lyp said it would ultimately create extra work for the city council, since it's in charge of overseeing tax abatements.
"Ultimately, this, as drafted or even tweaked slightly, will create more problems, and I don't think it will solve the issue," Lyp told council members.
Council member Peter Anderson preferred that the city add requirements on a case-by-case basis, by adding language into each individual tax abatement resolution. "I do believe, just by reading through this ordinance, that it was hastily put together," Anderson said. "It's a one-size-fits-all ordinance that is not going to fit every project that the city has."
Still, Cotton felt that adopting an ordinance would create a level playing field. "My end game is to simply keep it real, with respect to what's going on and not continue to do the same thing the same way," Cotton explained. "Let the market know that we are not for the cheating. We are for a fair playing field for everybody."
Council members passed the ordinance on first reading by a vote of six-to-one, but they noted that more changes need to be made before final approval.
