Portland City Council Monday unanimously approved two tax abatements for Pennville Custom Cabinetry and Carrera Manufacturing.

Council also got an update on blight elimination and reset the tax rate on the Cumulative Capital Development Fund.

Pennville Custom Cabinetry’s abatement is for $325,000 in real property over 10 years. The company will add 7,000 square feet to its facility, as well as three new positions.

Carrera’s abatement was originally presented to council in October. It is now investing twice as much, but creating fewer jobs.

“We’re making another investment of about another $1.2, $1.3 million to buy some additional presses, improve some automation, and with that came some lower projections on the new employees,” company president Jim Hiester said.

Now the company expects to add 60 new jobs instead of the previously projected 102, said Bill Bradley, executive director of Jay County Development Corp.

The amended abatement for $100,000 in real property and $2.4 million in personal property was approved without being returned to the tax abatement advisory committee. Council member Judy Aker, who is also a member of that committee, motioned to approve the abatement.

Council members Bill Gibson, Mark Hedges, Mike Brewster, Don Gillespie, Kent McClung, Kip Robinette and Aker also unanimously approved a $75,000 loan to Carrera. The loan is the city’s required matching funding for a grant Carrera is applying for.

The loan will essentially be a grant that will not need repaid if Carrera invests and creates jobs according to the development agreement, Mayor Randy Geesaman said.

Carrera has a “proven track record in Portland,” something council member Kent McClung said he took into account in voting.

Rayanna A. Binder, director of Indiana Housing and Community Development Authority’s Blight Elimination Program, spoke about Portland’s progress in the program. Seven properties are included, with $15,000 per property for acquisition and demolition covered.

The city is still working on acquiring two of the seven properties, Geesaman said. Binder said the city could substitute another qualifying property if necessary.

Properties first go through Indiana Landmarks to make sure none are historically important, and then pre-demolition inspections are done. Binder estimated Portland might finish acquiring properties in late summer and see them demolished during the fall.

“So we’re looking at all summer with properties that won’t be maintained,” council member Mark Hedges said.

Council member Mike Brewster expressed concerns about the properties, saying some of them are overgrown.

Binder said the city could be reimbursed for mowing expenses out of the property maintenance money that becomes available after demolition. A total of $1,000 per property per year is available for three years.

Gary and Judy Smith live next to 1007 W. Main, one of the properties with maintenance problems.

“Not only is it an eyesore, it is unsafe. It stands full of water in the basement,” Judy Smith said. “They attached a plastic tarp to the top of it two years ago, which is now in shreds. Every time we go out into our yard we have to pick up debris from that house.”

That property is also one of the two the city is still trying to acquire. Geesaman said getting the property condemned may pressure the bank to cooperate.

Council voted to increase the Cumulative Capital Development Fund rate from 0.037 percent to its original rate of 0.05 percent, which should increase revenue from $79,876 to $107,941.
-30-