When the economy rebounds, Allen County hopes to be ready for new businesses and tap some long-unused cash to make it happen.

The county’s little-used redevelopment commission has more than $300,000 sitting in its general fund. And county officials finally have a use for that cash – to acquire land for new commercial or industrial development or to improve land by building roads, extending sewer lines or constructing a building in an effort to lure business.

Over the years, the county’s redevelopment commission has paid for road, water and sewer improvements for what is now a General Mills plant in Pleasant Township and to serve General Motors in southwest Allen County.

But the commission hasn’t been as busy as the Fort Wayne Redevelopment Commission, which has overseen Harrison Square and many smaller projects in recent years.

Because of the Allen County Redevelopment Commission’s inactivity, the county hasn’t tapped that cash on hand – money left over from a construction project years ago near Fort Wayne International Airport, plus the remnants of a loan borrowed from the state in 1983 – except to pay for attorneys’ fees and some operating expenses.

And despite shrinking revenue, elected officials believe the redevelopment commission’s dollars should be used to grow the local tax base and provide residents with steady jobs.

Land banking

For several years, county officials have discussed whether they should get into the land-acquisition business. Beginning in 2008, the county commissioners and the County Council decided to set aside money each year from county economic development income tax revenue to pay for land or to prepare land for construction.

Early this year, the redevelopment commission is expected to move the unused $300,000 from its general fund to a capital fund so that the money will be used only to acquire land or for site preparation work, said County Councilwoman Paula Hughes, R-2nd, who also serves on the county redevelopment commission.

The county could also tap the money to pay for environmental studies, surveys or title work, said Scott Harrold, a senior planner with the county’s planning department.

If more money were eventually available, the county could buy land or spend less to secure the option to buy the property later. Having control over the ground helps to fix a price and makes it easier for businesses to make quick decisions when debating whether to move here, Harrold said.

Offering ground that is ready for construction, known as shovel ready, or buildings that are ready for occupation is key to drawing new businesses, County Commissioner Bill Brown said.

"We’re playing on the global stage," Brown said. "We need to have product that is appealing to the global marketplace."

Neither Allen County nor Fort Wayne has enough properties that would meet the needs of major corporations, said John Sampson, president and CEO of the Northeast Indiana Regional Partnership. The organization represents to companies the workforce, sites and buildings of a 10-county area.

An international site selector, who represents companies that might want to move here, visited the region in early 2009 and found only one property that might meet his clients’ needs. And various studies conducted since 1998 have found the area’s pickings woefully slim, Sampson said.

"We have very little to offer right now," Sampson said of the region. "We’re in competition for a project that is looking for 300 acres. We have very few properties of that size."

He said the county and city need to be more aggressive and make upfront investments so businesses can build or begin operating quickly.

Tough times

Both Hughes and Brown said the county needs to spend more on the effort and support setting aside $300,000 for buying land or preparing shovel-ready sites even as the county faces significant drops in revenue.

Property tax caps take full effect this year, reducing the county’s property tax revenue by $3.2 million. But income tax revenues will drop – possibly more than $1.7 million – in 2011 and in 2012, reflecting the recession.

"I think it’s the best possible use of the money," Hughes said. "It’s doing what we can to make Allen County proactive and ready for new business coming in."

When the economy fully recovers from today’s 9.5 percent unemployment, county officials plan to be ready by offering an array of locations ready for construction or occupation by new or expanding businesses, Brown said.

Brown believes buying land or preparing ground is worth the risk of the marketplace.

"That allows us to grow the tax base, grow the employment and ultimately bring in more revenue," Brown said. "Those are hard decisions when you’re in a downturn. Things will improve and we need to be ready."

But the cash the county has set aside for such work is not enough. Creating Silverado Park, an industrial area across the street from GM and home to Vera Bradley, cost more than $1 million in infrastructure improvements, Hughes said.

Because land for development is expensive, the county would need $500,000 to buy 40 acres in some areas, Harrold said.

Changing tradition

The county redevelopment commission has cash on hand because it doesn’t have much in the way of operating expenses except for legal fees. Staff salaries are paid for by the county’s CEDIT revenue.

The county redevelopment commission will have a $25,000 operating budget this year, compared with the Fort Wayne Redevelopment Commission’s $542,204 operating budget.

Property taxes coming from new or expanded industry in special taxing districts are paying for past projects, Harrold said.

Traditionally, the county’s redevelopment commission has been much more conservative in its efforts to attract and retain business, Hughes said. And she hopes the infusion of cash will change the role the commission plays.

"This fund would be the first project or the first incentive to be proactive in pursing economic development," Hughes said.

Unlike Fort Wayne, the unincorporated areas of the county don’t have industrial areas – known as brownfields – that need to be cleaned up and reused. Instead, the county has loads of open green spaces that lack access to roads, water, sewer and other public utilities, she said.

Those wide-open spaces provide ample room for new factories or plants that require hundreds of acres of land, said Greg Leatherman, Fort Wayne’s redevelopment director.

Fort Wayne doesn’t have enough room for such large projects and instead focuses on filling its industrial park off Ludwig Road or targeted projects like Harrison Square, Leatherman said.

The city also focuses on brownfields and offers grants to help spur the private sector to do the work.

Other work includes facade grants and improvements along business corridors like Broadway and Pontiac Street, he said.

The Fort Wayne Redevelopment Commission was also responsible for posting way-finder signs around downtown and at gateways to the city guiding drivers to popular sites like Grand Wayne Center, Leatherman said.

That’s work the county doesn’t do.

But tapping that excess cash is a step forward and will build upon the money already set aside from the county’s CEDIT revenue, Hughes said. And she hopes the commission will be busier in the years ahead.

"I think it’s a good step forward," she said.

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