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June 18, 2008

Presenter’s tone raises hackles

By Deb Peterson

Correspondent

SYRACUSE, Ind. — After considerable discussion and raised hackles, the Syracuse Town Council voted to allow public input on granting a tax abatement to a local business at its next meeting July 15.

Attorney Steve Snyder asked for a declaratory resolution designating an economic revitalization area for Technical Services, also known as Precision Automotive.

Snyder explained that Precision Automotive, which has been doing business in town for 35 years, has expanded into other ventures. “Technical Services does some of the most sophisticated engineering services in the state,” he said. Owner Alan Tehan purchased the 10 acres just north of Calvary United Methodist Church on Ind. 13, formerly known as the “Liberty Lot.”

Snyder said the new development would be completed within four years at a cost of $5.2 million. Twelve engineers would be added plus additional support staff by the time of completion.

“It will be a first-class development,” Snyder said, “a very attractive addition to the community.” The company is asking for a 10-year tax abatement.

Snyder’s presentation followed on the heels of Town Manager Henry DeJulia’s pitch for the council to add a new Tax Increment Finance district to use as incentives for companies to build in Syracuse. The council added TIFs to the town’s comprehensive plan.

Sparks flew when Snyder said, “Creating a TIF district does very little to bring new industry into town. You’re not going to accomplish a thing with TIF.”

He went on to explain that having a TIF tells potential developers that the town wants to use the developers’ money to put in roads, water and sewer.

“They can just go to other towns where the infrastructures are already in place,” Snyder said. “They won’t come unless there’s an unbelievable financial incentive” such as a tax abatement. Abatements reduce the amount of taxes paid for a set period of time.

Council member Bill Musser said, “I think I’ve just been lectured to.” He said he just found out about the tax abatement proposal “a few days ago.”

He said to Snyder, “Rather than you coming in here and forcing us to make a decision tonight, a couple of us should have a meeting with you and Henry (DeJulia).”

Council member Brian Woody agreed. “I am miffed at your threatening manner, presentation and tone,” he said to Snyder.

Woody also said he was “concerned because the numbers keep changing.”

Tehan said those dollar amounts will keep fluctuating. Woody replied, “More than anything, there’s not been anything these last few weeks but more confusion.”

Council president Larry Siegel also wanted a meeting, which Snyder was reluctant to agree to. Siegel made a motion to continue the discussion for another month but the council had a tie vote with two for and two against a continuance.

After the town attorney explained that agreeing to a public meeting for input from the town’s residents would not “tie your hands in any way,” the council voted to accept the resolution to designate an economic revitalization area and hold the public meeting along with its regular monthly meeting in July.

The council also insisted on a meeting with two council members, the town manager and Snyder between now and then.

Siegel and Woody will represent the council at that meeting.

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