Ridenour reports lighter city debt to Muncie Redevelopment Commission; projects push ahead

MUNCIE, Ind. — Mayor Dan Ridenour told the Muncie Redevelopment Commission that his efforts to pay for projects as they come along without making new bond issues is lowering city debt.

In the commission's first meeting of 2020, Ridenour delivered an annual report that highlighted efforts to avoid more bond debt and forgo tax increment financing when possible.

"The results over the last two years using this approach has resulted in a substantial reduction of long-term debt," the mayor reported.

MRC debt has dropped by about $6.7 million since Dec. 31, 2019 to $51.7 million, Ridenour said. That debt includes $20 million in debt for the development of the Marriott Hotel downtown. The city does not make payments on that debt but does stand behind it as a co-signer for a loan would.

"There are those who want us to do more TIFs," Ridenour said, "But many of those get fees when we do."

His said the city is continuing to make payments on the debt already incurred and there will likely be the need to borrow through bond issues in the future. But he said he is continuing pay with cash for as much as he can.

Ridenour's approach represents a shift in past practice. Former mayor Dennis Tyler's administration borrowed by TIF on at least eight different city projects.

"They averaged one a year," Ridenour said. "A new debt every year."

Tax increment financing returns rising tax receipts from new development to pay for the project's debt. As a result, schools, and city government itself, often fail to receive the initial tax benefit of new development.

Ridenour told the commission that he was deliberately avoiding TIF as a way of supporting Muncie Community Schools and and the city police and fire departments.

Michael Hicks, director of the Ball State University Center for Business and Economic Research, said a change in the methods of economic development was needed for the city.

"The economic development policies Muncie has pursued for a half-century have proven to be an abject failure," he said. "No Midwestern metropolitan area has performed as badly as Muncie in the past 40 years. So Mayor Ridenour must continue to pursue different policies."

He said the city's support of Muncie Community Schools was important to the city, including the pledge of $425,000 in Economic Development Income Tax funds for a student-support program called City Connects.

Related: Muncie Schools adopt City Connects to fight learning loss

The administration reports that the amount of TIF cash available has increased by $1.75 million to more than $2.8 million in the past two years of not embarking on new TIF projects.

Commission member Brandon Murphy told the mayor he supported the effort to pay down debt.

"That is what we should be doing," Murphy said.

The mayor also provided updates to ongoing city projects:

White River Lofts: The market-rate apartment building along White River near downtown is continuing fill up, Ridenour said.

"As of two weeks ago 29 of the 55 units were occupied," Ridenour said.

The renters are of the demographic developers were seeking for the downtown development, he said, and include university staff, IU Health personnel and local attorneys.

White River Lofts Phase 2: A five-story sister apartment building to the current White River Lofts is under final engineering development, Ridenour reported. The planned apartments will be on the block next to the river between High and Franklin streets, along Wysor Street. Plans call for this building to have 10,000 square feet of retail space on its first floor with 61 apartments on the upper floors.

Canal District Parking Lot: Most of the block cornered by Washington, Liberty, Franklin and Gilbert streets has been cleared through demolition to become a parking lot to serve the retail space and apartments under development. One house on the block will remain. It belongs to an 87-year-old woman who has chosen to remain in her home, the mayor said. Ridenour said the city will not disturb the resident or seek possession of her property by eminent domain.

Riverbend Flats: The 60-unit affordable housing apartment complex is on track to begin construction in the spring, the mayor said. The former Marsh supermarket at the site, at Burlington and Memorial, is being torn down now.

Ridenour said the apartments are considered "workforce housing" because the rentals are designed for working people. Rents will vary based on the income of the tenants. The city is planning to provide access to the apartments from White River just to the east.

He also said that a building across the street from the apartments has been purchased for use as a restaurant.

Justice Parking and Condos: The former Delaware County Justice Center situated between City Hall and the Delaware County Building is being renovated to provide15 luxury condominiums and more than 150 parking spaces downtown. The MRC transferred possession of the building to the developer late last year and it is now on the tax rolls, Completion is expected by the end of January next year, according to Ridenour.

Storer Estates: The former Storer Elementary School was demolished in 2020 and is being turned into a new housing subdivision with 34 lots for single-family homes. Infrastructure work has been bid out. Earth work on the lots is expected to begin in March with new home construction starting the fall.

Storer Woods Park: The MRC has agreed to fund a large portion of a new park in conjunction with the development of the subdivision. The mayor said funds for the park will come from the sale of home lots.

More: Storer Estates to include city's next park with pavilion, playground and more

DD Dannar Headquarters: The city tax base stands to benefit from the completion of the DD Dannar Headquarters in the Kittselman Pure Energy Park on the city's eastside. DD Dannar manufactures electric work vehicles. Ridenour said the exterior of the 80,000-square-foot building is near completion.

City View Homes: Ridenour reported the MRC has sold 25 vacant lots across the southside of Muncie to developer Miller Valentine to build 45 housing properties to be called City View Homes. The properties are considered workforce housing. According to presentations at the Muncie City Council, residents will be given the ability to lease to own the homes. The homes will be located in five southside neighborhoods.

Finally, the mayor noted Buyer's Market, which opened in June 2021 in the Muncie Mall space that was once occupied by Macy's. The store is part of a retail chain for an owner based in Toronto. The Muncie Mall is the MRC's largest single taxpayer, the mayor said.

In addition to the project report, Ridenour told the commission that the city is planning to spend $3.2 million to upgrade city parks this year and the city is continuing to develop plans to expand parking in the downtown area.

More in food news: New restaurants, bars and entertainment spots planned for downtown Muncie

Four new restaurants are coming to the downtown, he said, and employers such as Accutech are expecting to expand and will need more parking for staff.

In other business, the commission reorganized itself during the meeting. The new president is Jeff Howe, Isaac Miller is vice president and Lorraine Tomlin is secretary.

David Penticuff is the local government reporter at the Star Press. Contact him at dpenticuff@gannett.com.

This article originally appeared on Muncie Star Press: Mayor Dan Ridenour updates list of development projects in Muncie