St. Joseph Co. Council overrides veto of tax abatement amendment
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Updated: 12:01 AM May 13, 2009
St. Joseph Co. Council overrides veto of tax abatement amendment
The vote was 6-3, in favor of the veto override. Supporters say this will hold businesses with tax abatements more accountable to the county. But opponents fear that this will deter new business from setting up shop in St. Joe County.
Posted: 11:12 PM May 12, 2009
Reporter: Sarah Platt
Email Address: sarah.platt@wndu.com
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On Tuesday night, the St. Joseph County Council voted to override a veto on the tax abatement amendment. So now, the amendment to the tax abatement ordinance is back in place. And that means more restrictions or guidelines on tax breaks for companies coming to the area.

The vote was 6-3, in favor of the veto override. The six who voted for it are democrats, the three opposed are republicans.

With the amendment to the tax abatement back in place, supporters say this will hold businesses with tax abatements more accountable to the county. But opponents fear that this will deter new business from setting up shop in St. Joseph County.

The tax abatement ordinance has been debated about for months. On March 17th, it passed. But then a week later on March 24th, the county commissioners vetoed the ordinance. But Tuesday night, the St. Joseph County Council voted to override that veto.

“I can say it's been a heck of a long process,” says Raphael Morton, St. Joseph County Council President.

Supporters say businesses that come to St. Joseph County and get tax breaks-- should be held more accountable in providing good wages and opportunities for workers.

“I'm happy that we got it passed- and we're going to see where this takes us and hopefully it's going to give us a mechanism to track and make sure business that promise X, Y, and Z-- that we'll be able to find out if they did X, Y, and Z,” says St. Joseph County Councilman Corey Noland. Noland replaced Councilman Kevin Kubsch earlier this month, after Kubsch resigned.

“In my opinion, it holds both sides accountable. And I really feel like the general public feels like that on a city and county level, that we need more accountability for those companies that are granted tax abatement or tax phase in,” says Morton.

But opponents fear more guidelines for new businesses will only hinder growth in the county-- which is already taking a hit from the downed economy.

“This bill is a barrier to growth in St. Joseph County-- to businesses, the site selectors, that look for communities to come to, to create growth. This just adds another barrier to site selectors for St. Joe County,” says Councilman Dale DeVon.

“I think it's going to hurt us,” adds Councilman Dennis Schafer. “I think this was written for South Bend and we were the ones that took it on, and as I've always said (not knocking on any councilman)-- but there are several on this council that have no people out in the county that they represent.”

In response to this vote, the St. Joseph County Republicans issued a statement Tuesday night. Chairman Chris Riley said, "When, as a result of tonight's vote, economic development withers away in this county, I hope voters remember that the Republican Party steadfastly opposed this ordinance."



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