Dr. Larry Allen signs the economic development agreement approved by the Syracuse Town Council during its regular meeting Tuesday night, Oct. 17. The economic development agreement will help fund a new senior housing agreement called Rabbit Ridge. Also shown is Virginia Cazier, clerk-treasurer. Photo by Lauren Zeuger.

By Lauren Zeugner
InkFreeNews

SYRACUSE  — An economic development plan for Rabbit Ridge, owned by Dr. Larry Allen, was approved by the Syracuse Town Council during its regular meeting Tuesday night, Oct. 17.

The 9.10 acre property, located in the area of the Goshen Physicians medical complex, 1033 N. Indiana Ave., will eventually house 22 duplexes or 44 units designed for senior housing with a community building, infrastructure and other amenities. The duplexes will be built in two phases.

Local attorney Steven Snyder, representing Allen, told the council the anticipated cost of the project is $12 million. To pay for the development, 80% of the funds from the tax increment finance district for the area will be made available to the developer as the project moves forward.

In order for Allen to fund the project, bonds or promissory notes would need to be obtained. These would be used as collateral to finance the project with TIF funds paying back the bonds or notes.

Council Member Larry Siegel raised concerns, stating he spoke to Dennis Otten at Bose, McKinney and Evans, an Indianapolis based law firm that has assisted the town in the past. According to Siegel, Otten stated only bonds are payable through any tax increment generated by projects when completed.
Snyder explained the town is not issuing general revenue bonds and would not be responsible for paying them back. The developer would be responsible for paying the bonds.

Snyder explained the bonds will generate income and ultimately will be no different than if a developer put in a subdivision. Siegel then asked since the units were rentals if a commercial TIF was needed. Snyder said no, the residential TIF covers rental property since it’s housing.

Siegel then questioned whether the town could maintain the infrastructure, water, sewer, road maintenance, on the remaining 20% of the TIF. Snyder said yes, since all of it would be brand new. He also pointed out the town will be taking in water and sewer revenue and won’t accept the streets into its maintenance program until after the first year and they’ve been inspected.

“This is a reasonable compromise because the tax entities will get something,’ Snyder said.
The council approved the economic development plan.

The council approved the 2024 budget. The adopted budget is $4,657,760 with an adopted tax levy of $2,644,149. The adopted tax rate is 0.8194.

The council also approved ordinances to increase both the water and sewer rates. The new rates will begin in January 2024 and show up on the February billing.

The council approved an appropriation ordinance to move $158,143.50 from local road and bridge to the matching grant fund.

The council approved allowing Indiana Telephone Network to rent space on the north water tower for equipment. The contract will be accepted after council edits and review by town attorney Jay Rigdon.
Eric Ivory, municipal account representative for Borden Waste Away came before the council to discuss fuel and compliance charges that are outside the town’s contract. The town has been paying these fees, which average about $4,500 a month, for several years.

Ivory explained Borden typically charges a 20-30% surcharge for Environmental Protection Agency compliance and fuel. However Ivory discovered this surcharge wasn’t charged to the town until 2019. He said he would have it removed starting in November until the contract is up in July.

Siegel asked if the town would receive a refund. Ivory said the matter would be negotiable during contract renewal discussions. Ivory also admitted Borden should have been more engaged with the council when the surcharge was turned on. Councilman Bill Musser noted the council should have caught the matter earlier as well.

In department reports Town Manager David Wilkinson reported he has been working with the new chamber director on new welcome signs to town. He asked for input from the council. They asked for something readable and suggested Wilkinson bring them some designs to consider.

Police Chief Jim Layne reported Trick or Treat hours will be 6-8 p.m. Tuesday, Oct. 31.

Mark Aurich, public works superintendent, reported he wanted to give his crew a big public pat on the back as they have all pitched in on three major construction projects around town. “They’ve been fantastic through all of this,” he told the council.

Siegel praised the public works staff on how they interact with the public.

Aurich told the council the Lakeside Water Main Loop project is almost finished. He hopes to complete the project by Monday. The sewer project is also well underway. And 13 oddly shaped manhole covers will be replaced with secure bases underneath. Aurich also thanked Layne and his officers for providing traffic control on Pickwick Drive.

Fire Chief Mickey Scott reported the SR 13 railroad crossing will be closed Sunday, Oct. 22, through Monday, Nov. 6. Dr. Kauffman’s office, located next door to Fire Station 1 will soon house the fire department’s administrative offices as well as the township trustee’s office.