Benjamin Lanka, writing for the Fort Wayne Journal Gazette, has an article entitled $40 million windfall looms in ’09. Apparently way back in 1974, Fort Wayne leased its electric utility to Indiana & Michigan Electric Company. The city set aside $270,000 per year from the lease revenue, and put it into a trust. In 2009, the trust matures and there will be about $40 million in unrestricted funds available to the city. Let the games begin.
Of course they could’ve borrowed against that money to fund the Harrison Square project. The only catch? They would’ve had to of guaranteed the loan with the “full faith and credit” of the city – i.e property taxes.
They obviously didn’t have enough confidence to do that. BUT, the did continuously claim that the revenues from the project will pay for itself (by expanding the TIF district) and that there will be no increase in property taxes.
Not to get into the details but it would’ve been TREMENDOUSLY beneficial for the city not to have to expand the TIF district to pay for Harrison Square. Unfortunately, despite public claims, they obviosly don’t have enough confidence in the project to borrow from the Light Fund…
It’s no wonder that the Allen County GOP machine was willing to spend hundreds of thousands in a failing bid to get their handpicked man the mayor’s race nomination.
GOP County Chair Steve Shine is going to be gone after this election if Henry wins. That will have meant that he’s lost 3 straight mayoral races not including his own primary race…