JEFFERSONVILLE — When Gov. Mike Pence first took office in 2013, he posed one question to the Indiana Economic Development Corp.:
“‘What things are in front of Indiana that are impeding economic growth?’” Indiana Secretary of Commerce Victor Smith said Monday.
The IEDC concluded that the answer was the state’s population stagnation, largely attributed to its shortfall in retaining and attracting talent.
“And that’s where the Regional Cities came in,” Smith said.
Smith joined IEDC officials, a handful of local state representatives and One Southern Indiana representatives for an informational workshop on the Regional Cities Initiative on Monday at the Greater Clark County Schools administration building.
But despite its positive legislative intent, IEDC officials fielded questions of skepticism and concern from local elected officials on the details of the plan and its possible unintended consequences.
THE INITIATIVE
The Regional Cities Initiative, or RCI, is a state program intended to support “quality of place” projects through regional collaboration.
The state has allocated $84 million to be split among two regions and used for redevelopment projects that would transform those regions into more desirable places to live.
“The idea is fairly simple,” Smith said.
The General Assembly passed RCI legislation in May, establishing the funds and outlining the criteria for the IEDC to consider when choosing which regions to award funds to.
State Rep. Ed Clere, R-New Albany, who was House co-sponsor of the legislation, said the RCI was a “no brainer.”
“I think what it boils down to is this has the potential to be a transformative opportunity for Southern Indiana ...” Clere said.
Multiple regions across the state are in the process of submitting their comprehensive project plans, due Aug. 31.
One Southern Indiana has taken the lead in producing this plan through a new initiative called “Our Southern Indiana.” The plan includes developments across Clark, Floyd, Washington, Scott and Harrison counties as the Southern Indiana region.
Wendy Dant Chesser, 1si president and CEO, presented the five key areas that the projects cover — waterfront development, regional greenway system, workforce development, River Ridge Commerce Center economic engine and regional water resources.
Though this region has known its own potential for some time, Dant Chesser said it’s time to prove that potential to the rest of the state.
“We have the opportunity, because people are starting to notice Southern Indiana,” she said.
In order to be chosen by the IEDC for RCI funds, the five counties’ fiscal bodies that form the region here must approve the formation of a Regional Development Authority, or RDA. Five non-elected or nongovernmental representatives will be chosen and approved by the each county commission.
If chosen, the Southern Indiana RDA would execute the plan that Our Southern Indiana has devised with the input of local officials and residents through various public forums.
A local ordinance and by-laws — which Our Southern Indiana has preliminarily drafted — would outline specific restrictions or obligations tailored to this region’s needs.
The IEDC guidelines suggest the projects are funded through 20 percent RCI funds, 20 percent local public funds and 60 percent private funds.
Competition across the state is mounting. IEDC Policy Director Eric Shields said northeastern Indiana formed an 11-county RDA in just three weeks.
“So we’re seeing tremendous energy across the state,” Shields said.
Clere said the cost of not pursuing RCI funds would be greater than the cost of pursuing them. State Sen. Ron Grooms, R-Jeffersonville, said the initiative gives Southern Indiana the opportunity to work regionally as many other areas of the state have already been doing.
“Let’s make sure the train does not leave without us,” Grooms said.
THE QUESTIONS
The last hour of the workshop was spent fielding questions from elected officials in various counties.
Clarksville Town Councilman John Gilkey asked about the lack of administrative control over the RDA and any financial obligations.
Shields said county commissioners will help decide the RDA’s responsibilities through “creative thinking” in drafting the ordinance and by-laws.
“The RDA is essentially a tool of its [county] members,” he said.
Shields also said that fiscal bodies that represent the political subdivision in which each individual project will be located will go through the same process in approving their share of public funds.
“The financial obligation to join an RDA is zero,” Shields said.
Harrison County Councilman Phil Smith asked whether the local RDA ordinance and by-laws or state law would take precedent in court.
IEDC General Counsel Chris Cotterill responded that state law would be upheld, adding that local regions will be tasked with creating an ordinance and by-laws that are consistent with, but more specific than, state law.
Charlestown Mayor Bob Hall asked whether the RDA has the ability to tax and to exercise eminent domain.
Cotterill said the RDA cannot tax or exercise eminent domain on its own without local approval. Dant Chesser said in an earlier interview that Southern Indiana’s plan likely won’t require eminent domain for any projects.
Floyd County Councilman Matt Oakley asked whether counties can join the RDA at a later date.
Cotterill said that they could after a certain amount of time has passed, but that county would have no representative on the RDA.
Oakley said after the meeting that he thought the workshop helped clear up some misinformation or concerns — specifically to him that Floyd County could join in later if it chooses.
“That was welcome news,” he said.
His biggest concern, though, was the short amount of time local county bodies have in understanding the long and complex legislation.
“I think it’s a lot of information to digest in a very short period of time, so right now I’m still in a state of exploring all of the unintended consequences of a decision we’re going to have to make,” he said.
“...My concerns really have to do with understanding the funding mechanisms and making sure the county council [members] don’t abdicate their responsibility for spending public money to someone.”
He said he does believe most local officials involved want to achieve what the legislation sets out to do.
“I think all of the counties want to cooperate, all of the counties want to work together to provide a better place to live for all of our constituents,” Oakley said.