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Wednesday July 24, 2019

financing ok'd for mc courthouse

Friday, May 10, 2019 15:24 PM
Written by Stan Maddux
Category: Local News

The official go ahead has been given to a $22 million overhaul of the historic Michigan City courthouse.

The renovation and expansion of the 1909 courthouse along U.S 12 at Washington St. will be financed under a 15-year lease without an increase in property taxes, said La Porte County Council president Randy Novak.

Under the plan given final approval May 8 by the county council, eight million dollars will be paid up front out of the county's emergency fund supplied annually with County Adjusted Gross Income Tax dollars, he said.

CAGIT revenue will also be used for payments on the $14 million balance.

Novak said there will be enough CAGIT money left each year after the payments to start building the fund back up.

The fund could be replenished enough to retire what's left of the balance in eight-years

from a pay-back option contained in the financing package.

Novak said a lease was chosen because it allows an existing revenue stream to finance the project without a property tax increase required to pay down a bond issue.

''We're able to pay for it as we go,'' he said.

He also said the lease keeps the county free of any outstanding bond debt to maintain flexibility in financing other possible major projects like restoration of the courthouse in La Porte.

''In the next few years, we'll start turning our attention to the La Porte courthouse because that needs a lot of work,'' Novak said.

LaPorte County Auditor Joie Winski said about four million dollars in CAGIT money comes in annually.

Winski said CAGIT is used to supplement the county's general fund and other designated purposes.

About $1.3 million of those dollars will go toward payments on the lease to start at an interest rate of about two-percent, she said.

''It's an overall better way to finance projects,'' Winski said.

A major driver for the renovation is updating an old electrical system considered a serious fire hazard.

Easing cramped working conditions was cited as another factor.

The addition doubling the size of the courthouse will further ease the space restrictions and provide room for county offices now housed at a former strip mall a few blocks to the south at 302 W. 8th St.

County income tax dollars are also used for road paving but none of those revenues will be touched.

''We're not taking away from paving roads to do this,'' Novak said.

About two million dollars was trimmed off the project's cost by choosing a more basic design that offers less frills yet bares a closer resemblance to the brick exterior of the courthouse, officials said.




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