Paying with bonds is the way to go

March 01, 2008 10:50 pm

— Paying with bonds is the way to go

There’s a lot of development projects coming up in Goshen’s future and the city government has to find a way to pay for them. The Redevelopment Commission has proffered a good way to come up with the cash — bonding.
The Redevelopment Commission sees bonding as the way to pay for $6 million in road projects. Those projects include the extension of Eisenhower Drive in the industrial park, the reconstruction of C.R. 38 and part of Dierdorff Road and construction of the new “link road” that will connect the industrial parks area with Ind. 15.

Across town and along the millrace the Redevelopment Commission wants to remake the former industrial area along the millrace into a condominium development. That project needs $3.5 million.
We think all of these projects are the right kind to use bonding for. Bonding has historically been avoided by the City Council, which has liked the pay-as-you-go approach to governing. But these projects require a lot of cash up front and bonding is the only way to raise that cash.
Also, the bonding will be repaid with tax increment finance funds, thereby taxpayers won’t be stuck with the bill. Only as tax bases increase in the TIF districts will cash be raised and be used to repay the bonds. This is the way TIFs are supposed to help a community.

The Redevelopment Commission has been a great asset to our community. The commission has aided the redevelopment on Lincoln Avenue near the Elkhart River and helped LaCasa redevelop the Hattle Hotel and the Shoots Building. The commission also acquired, then leased, the former Goshen Auto Electric building, which now houses the city’s utility office.
And more good things are coming. The millrace redevelopment project will make the millrace neighborhood a better place to live and the road projects will help move traffic to and from the industrial parks. So, bonding for these projects should get the full support from the City Council.