Gary may OK abatements on 4 business properties - Gary Post Tribune

GARY -- The City Council appears likely to approve soon its first set of commercial tax abatements in more than two years.

Munster-based developer Allan Fefferman is asking for abatements on four properties in Gary where he's planning new businesses. He said he has the written endorsement of council members who represent the political districts where the properties are found.

"They all are in favor of it," Fefferman said.

No council member voiced strong opposition when the matter came up at a Finance Committee hearing this week, either.

"I am very excited," Shirley Stanford, who represents the 2nd District on the council, said.

If the abatements are granted, full taxes will be paid on the current value of the properties. The discount will be applied to any improvements on those properties, and it will be phased out over 10 years.

Fefferman proposed the following:

* A day care center at 634 E. 21st Ave.

* A storage facility and window assembly company at 4120 W. 5th Ave.

* A fast-food restaurant at 3910 W. 5th Ave.

* A convenience store at 1715 E. Dunes Highway.

In all, Fefferman said, the projects will create more than 20 permanent jobs and several construction jobs. Broken-down, vacant buildings and empty lots are found on the properties today.

Fefferman told the City Council's finance committee Tuesday the properties' tenants will benefit from the abatement, which gives them an incentive to rent.

"I have to get these tenants and sort of sell them on moving in," Fefferman said. "No one is really interested in moving in without that type of deal."

Two of the properties are in the 2nd District, represented by Stanford, one is in the 1st, represented by Marilyn Krusas, and one is in the 4th, represented by Carolyn Rogers.

"You're taking abandoned structures, you're renovating them and you're providing jobs and you are paying some taxes," Rogers said. "He would not be free from paying taxes. It would be increments. I think that that's one way to start building up the city."

Though Fefferman has benefited from tax abatements in the past, Rogers said Fefferman has developed other properties without asking for that discount.

"I think it'll be an important development, and it'll clean up one of the most garish corners as you go headed toward I-65," Krusas said. "I'm looking forward to it, in fact."

The council isn't unanimous in its support, though. Ragen Hatcher, D-at large, said she will likely oppose Fefferman's request.

"I'm glad that business owners want to invest in the city of Gary," Hatcher said. "However, the city is in a position right now where we can't afford to lose one dollar in property tax revenue."

The council could take a final vote on Fefferman's request during its meeting at 6 p.m. Tuesday at City Hall.

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Emergency manager would run bankrupt municipalities - Gary Post Tribune

Republican state Sen. Ed Charbonneau said he filed a bill this week to reinvent the state board Gary City Hall has relied on for years of budget relief.

His proposal would give the Indiana Distressed Unit Appeals Board power to appoint an "emergency manager" to help distressed Hoosier taxing units. It would also offer local governments a path to bankruptcy not available now.

"Hopefully it will never be needed," Charbonneau, of Valparaiso, said.
Though Charbonneau said his Senate Bill 105 is not aimed at Gary, no other city has sought help from that board. Budget relief offered for two years by the DUAB to Gary has come in the form of higher tax caps for property owners.

Because Hoosiers passed a referendum to write those caps into the state's constitution, though, the DUAB will become powerless to raise caps in 2012.

When that time comes, Charbonneau suggests the DUAB should be reduced to a three-member board made up of the director of the state's Office of Management and Budget, the commissioner of the Department of Local Government Finance and the examiner for the State Board of Accounts.

The new DUAB could only declare a government unit distressed if that unit or a qualifying creditor files a petition.

As proposed, the emergency manager would be able to "exercise the authority and responsibilities of the executive and fiscal body of the distressed unit." That includes reviewing budgets and salaries, developing a written financial plan and renegotiating labor contracts. It could also recommend a bankruptcy filing.
Municipal bankruptcy is governed by federal law, but that law requires states to pass an authorizing statute. It's been seen as a possible path for Gary after 2011.

Rep. Vernon Smith, D-Gary, said he supports the bankruptcy provision of Charbonneau's bill and he said previously he might file bankruptcy legislation himself. He said he'd need to review the other details before commenting.

Both lawmakers said Hoosier governments other than Gary might one day need to file for bankruptcy.
"Yes, it's Gary now," Smith said. "But there's going to be a whole lot of people in trouble before it's over with."

Republican Gov. Mitch Daniels has said he'd entertain the idea of a municipal bankruptcy bill and Charbonneau's bill will be considered first in a Senate where his party holds a supermajority.
Gary Mayor Rudy Clay said his city's trips to the DUAB mean it won't need to take advantage of the bankruptcy option.

"We're better prepared as it relates to administrating the government under these tax caps," Clay said.
Indiana's property tax caps were lifted by the DUAB for Gary in 2009 and 2010, and the city filed a petition for similar relief in 2011. Those caps limit tax bills to 1 percent of a property's assessed value for homeowners, 2 percent for landlords and farmers and 3 percent for commercial properties.

A fiscal monitor said last year that, if Gary were forced to operate under the caps, it would only have enough money to pay the salaries of its police, firefighters and EMS workers.

Gary Controller Celita Green said last week the city would be forced to operate with a levy of $30 million if it didn't seek DUAB help. It's seeking approval for a levy of $41.1 million.

The combined 2011 budget for Gary's police, fire and EMS departments is about $25.6 million.
Clay's administration has balked for years at the idea of filing for bankruptcy, but it's not clear who will be mayor when the caps go into effect. Several people are already vying to take over Clay's job that year.
Among them is attorney Karen Freeman-Wilson, who said she will attend hearings where Charbonneau's bill is considered. She questioned whether an emergency manager should take over the duties of the city's elected officials.

"You just become a ceremonial mayor," Freeman-Wilson said. "Who wants to do that?"

Another is City Council member Ragen Hatcher, D-at large, said she has a proposed budget of about $40 million she said can be implemented in January 2012 with the tax caps in effect that will satisfy Gary's creditors.

"We won't be going back down to the DUAB," Hatcher said.
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Toy giveaway brings smiles to youngsters 'Santa forgot' - Gary Post Tribune

BY LISA DENEAL, POST-TRIBUNE CORRESPONDENT

GARY -- Devyn Dotson, 6, of Gary, sat on her brand new bicycle Saturday during the annual "Toys for Children Santa Forgot, but God Remembered" at the Genesis Convention Center.

Devyn and her big sister, Lexus Dotson, 15, were also surrounded by other free toys they were given.

"Our grandmother told our mom about the giveaway and mom woke up this morning asking if we wanted to go," Lexus said.

The two-hour giveaway included more than 100 bicycles and tables stacked with toys, board games and dolls that filled the Indiana Hall.

Volunteers had tables lined assembly-style to make it easier for families to choose their gifts.

Even the adults got an opportunity to get some free clothing, boots and shoes.

Gary Mayor Rudy Clay said this is the 11th year for the giveaway, which always takes place in January after the Christmas hoopla.

"We have a nice, big crowd here. Families were standing outside two hours before the doors opened," Clay said. "Each family gets one bicycle and to carry out of here all of the toys and clothes they can handle. It is really about giving to the community, to the people of this great city."

Families were entertained by a DJ and a visit from Gary SouthShore RailCats mascot Rusty the RailCat.

Michelle White of Gary came to the giveaway with her daughters, Carah Lockwood, 9, and Chairel Lockwood, 11. All three loaded up with toys and games.

Carah said she was also getting some toys for cousins who could not make the event.

"I got some things for me too," she said.

White said she was happy to come to the event.

"We are getting as much stuff as we can carry," she said.

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Longtime Gary school advocate dead at 53 - Gary Post Tribune

Longtime Gary Community School Corp. board member Michael Scott died early Tuesday in his sleep from a heart attack, according to family members. He was 53.

Scott served as a member of the Gary Community School Corp. Board of School Trustees for 16 years and also served time as president of the board. He lost a bid for re-election and left the board in June of last year.

"He loved being a board member," said Scott's wife, Sharon Scott. "His whole thing was fighting for children. He always said it wasn't about the board. It was always about the children."

Friends and family members remembered Scott on Tuesday as a man who cared deeply about Gary schools and seeing children succeed. As a board member, Scott helped oversee the construction of three new schools, including Glen Park Academy for Excellence in Learning.

"He had a commitment for children that was unswaying," said Jesse Morris, who served on the board with Scott. "He had a deep commitment to children and a very, very deep commitment to education."

Morris called the new schools part of Scott's legacy.

"That was a very large project and the last time schools have been built in the city," Morris said. "That's a legacy many people have forgotten about. It was very good for our district to put children in schools that are modern. Their ISTEP scores and the rest are showing results for us."

Scott's nephew and Gary City Council President Ronier Scott will remember his uncle for his great, big smile.

"He spoke with a loud voice and the children all remembered him because he was a former PTA president," Ronier Scott said. "He was very instrumental in school improvements and not just the district but the entire community as a whole."

Gary Mayor Rudy Clay said he thinks it was God's will for Scott be a community servant in Gary. He offered condolences to Scott's family not just from himself but from the people of Gary.

"His love for Gary is, should I say, unapproachable," Clay said.

A visitation for Scott will be held from noon to 8 p.m. Friday, with family hour from 6 to 8 p.m., at Bethel Temple Church of God in Christ, 110 W. 43rd Ave., Gary. A celebration of his life will be held Saturday at Bethel Temple at 11 a.m. He is survived by his wife Sharon Scott and children Sharonne, Michel and Michael Jr.

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Verdict out on Gary mayor's first-term accomplishments - Gary Post Tribune

GARY -- When the mayor of Gary abruptly resigned in 2006, Rudy Clay had the chance to fulfill a lifelong dream. He campaigned and won the right to succeed Scott King.
His prize was stewardship of a city starved for economic development, derided for decades as the country's "murder capital." Northwest Indiana's largest city was also spiraling into a deep financial crisis.
His administration's cost-cutting measures earn little praise from constituents, who more often accuse it of corruption and ineffectiveness.
Clay wants four more years of this.
He confirmed Thursday he'll run for a second full term. He has never hinted he'd do otherwise, despite recent rumors. But at least five competitors are lined up against him, including attorney Karen Freeman-Wilson and
City Council member Ragen Hatcher.Candidates have until Feb. 18 to file with the county. For now, here's a look at the Clay administration so far.
When Clay announced his bid for re-election Thursday, he boasted of more than four years of experience as the city's chief executive. One of his team's biggest selling points is the way it managed this unprecedented budget crisis, and it's the most familiar with Gary's fragile finances.
But in the eyes of some voters, the way the crisis has been handled could be his biggest fault.
Gary had money trouble when Clay became mayor. The property tax caps passed by the Indiana General Assembly, and written into the state constitution by Hoosiers statewide, exacerbated the problem. City Hall officials also complain that tax breaks for major industry mean U.S. Steel isn't paying its fair share into Gary's tax base. And Clay pointed a finger Thursday at spending by former Mayor King.
The General Assembly created the Indiana Distressed Unit Appeals Board to help cities such as Gary, which are severely hindered by the tax caps. So far, Gary is the only city that petitioned the board, which creates budget relief by raising tax caps for local property owners. Clay and his staff will be before the DUAB again today, and the mayor says his city is better off for it.
While attempting to reduce costs, Clay's administration cut utility and phone bills, shut down credit cards, put restrictions on city-owned gas pumps, laid off staff, consolidated departments and enforced furlough days and pay cuts for higher-level employees.
It also outsourced trash collection to Allied Waste in one of the most controversial moves of Clay's term so far. More than 50 garbage collectors lost their jobs in the deal. The Miller Citizens Corp. sued because Allied's contract wasn't subjected to public bidding. A judge agreed with that and other motions by the MCC. Trash collection stopped for 10 days in 2009 while the legal battle dragged on.
Clay has refused to cave on concessions residents commonly complain about. He continues to accept $54,075 as special administrator of the Gary Sanitary District in addition to the $81,175 he makes as mayor. Once, when asked at a town hall meeting about his GSD salary, he simply said, "God is good."
He takes heat for riding in a city-owned Hummer H3, which he calls economical when compared to his predecessor's Ford Expedition. He also gave city and GSD contracts to his son for videography. The latter earned a rebuke from Gov. Mitch Daniels, and they were eventually terminated.
None of those, as a concession, would fix Gary's budget problem, which continues to be dire. This is the last year the DUAB can raise local tax caps, as it did in 2009 and 2010. If the caps are fully implemented in 2012, studies have shown, Gary will only have enough cash to pay the salaries of its police and firefighters. The winner of this mayoral campaign could take Gary to bankruptcy court.
The best way for Gary to survive the tax caps is to expand its tax base. For years, Clay has proudly sought a grand-slam economic development project that could save his city. So far, he has struck out.
Clay campaigned in 2007 on a promise to rehabilitate the former Sheraton Hotel into a senior-citizen high rise powered by corn and heated with geothermal heat. He introduced the New Gary Development Group, led by Chicago architect Phil Kupritz, which promised it would do the job. Clay even called it a "done deal."
New Gary managed to clean 98 percent of the asbestos out of the building using a federal brownfield loan, but today the Sheraton remains empty and crumbling. It's back in the possession of the city, which could be on the hook for $728,000 of the loan used by New Gary to clean it out.
Gary's redevelopment commission also offered several acres of property south of Interstate 80/94 to a development group that promised to build a new teaching hospital by Indiana University Northwest in 2007. The developers were exposed as lobbyists for the Miami Indian Tribe of Oklahoma, who wanted to build a tribal casino on the site. Clay never signed the paperwork for the land transfer.
Today that same area has been promised to the Jackson Family Foundation, which says it will build a $300 million center honoring the family of late pop star Michael Jackson, a Gary native. The singer's estate is not endorsing the idea.
Some promises have been broken, and the verdict is out on others, but quiet progress has been made on some fronts. Most notable is the ongoing renovation of the Dalton Arms building in the 100 block of East 5th Avenue. The state recruited a Mishawaka-based developer last summer to finish work on the building. Lance Swank of The Sterling Group said units should be ready there this spring.
The City Council also offered a personal property tax exemption last year to a Chicago-based investor who promises to build a data center at 13th Avenue and Broadway.
Joined last month by then-U.S. Sen. Evan Bayh, Clay said his city is using millions of dollars from the U.S. Department of Housing and Urban Development to tear down more than 100 abandoned homes around the city, creating new opportunities for investment.
That appearance with Bayh, though covered by Chicago media, didn't get nearly the same attention as Gary's layoff last week of more than 30 firefighters. The decision to do so was announced months ago. Clay defended it at the time by pointing to a suggestion by a state-imposed fiscal monitor to lay off 57 firefighters instead.
Still, it underscored a perception that Clay isn't concerned with public safety. He has tried in the past to counter that image by riding along with police officers and rallying them at roll calls. The city sought a grant last year to build a new fire station, but it never came through. Many of Gary's current fire stations have been crumbling since before Clay became mayor.
His staff did, however, secure a grant to purchase nearly 100 new energy efficient squad cars for the police department.
But that department has also been overseen by nine police chiefs in less than five years, including interims. They continue to be confounded by Gary's homicide rate, which hovers around one a week.
Residents called for former Chief Thomas Houston's resignation in 2007 after officers left the bodies of two teens behind at the scene of a fatal accident on Chase Street. Clay stood by his chief at the time.
What ended Houston's tenure as chief was his indictment, along with two other officers, of violating the civil rights of suspects. Houston was convicted in 2008 after he admitted kicking a suspect. The other defendants were acquitted. Houston died late last year.
His was the first federal indictment to touch Clay's City Hall, but it wasn't the last. Community Development Director Jacquelyn Drago-Hunter is charged with fraud in an indictment unsealed in October. Drago-Hunter is responsible for handling millions of dollars in federal stimulus dollars, and Clay refuses to suspend her. Her indictment doesn't involve her duties as community development director, though.
It's not clear if the investigation that snagged Drago-Hunter is over, though. And there are others. Federal agents have delivered subpoenas to Gary City Hall seeking information about former attempts to renovate the Dalton Arms apartment building. The records they're seeking predate the current effort to fix the building.
The feds have also taken a long, close look at the Gary Sanitary District, recently indicting former operator United Water and two of its employees. GSD officials say they weren't targeted in the probe.
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Mayor asks fire chief to step down Friday - Gary Post Tribune

Gary Mayor Rudy Clay will start searching for a new fire chief this week after asking Chief Jeff Ward to step down, Clay said Friday.
Clay did not give details about the move but said that Ward was amicable when told about the decision. "I just thought it was time to pass the baton to another firefighter," Clay said. "Otherwise we'll keep it in the personnel files."
The move came on the last day for 30 Gary firefighters, who had been scheduled to be laid off because of budget problems. Four other firefighters had already been laid off on Dec. 18. Clay said the timing had nothing to do with his decision to replace Ward.
"There really is no good time to say to department heads to pass the baton; it's not a good feeling," Clay said.
The search will start immediately this week and Clay said he plans on hiring a new fire chief from within the ranks soon. Until then, Deputy Chief Bonearl Black will serve as chief. Clay said that Black has already told him that he does not want to remain chief.
Ward served as chief since October 2006, shortly after Clay took over as mayor of Gary. The 41-year veteran will return to serving as division chief, the rank he held before being named chief.
Clay said that he is still looking at several options to try and bring back the laid-off firefighters, including a federal grant, and assured citizens that firefighters will still come when needed.
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Gary murder defendant skips court appearance - Gary Post Tribune

A Gary man wanted for murder in a Dec. 12 shooting has missed some court dates stemming from his probation revocation for a burglary in Missouri.

William Bradford Key III, 20, who was charged in Lake Superior Court on Monday with murder in the shooting death of Vincent Wren, failed to appear in court Tuesday on a petition to revoke his probation in a case transferred from Missouri in which he was placed on probation for five years.

Probation officer Kimberly Collins had filed for a probable cause hearing, which was set for Tuesday before Magistrate Natalie Bokota. Tuesday's warrant is one of two issued in the probation revocation proceeding in the last two months. The last warrant was recalled Nov. 23 after Key appeared in court with defense attorney Karen Freeman-Wilson.

Wren, 20, of Gary, was found at about 9:25 a.m. in the 4800 block of Maryland Place in Gary by a resident. Key also was charged with criminal recklessness and two counts of pointing a firearm in the wounding of a 17-year-old in the hand prior to Wren's homicide. Witnesses told police Key had been showing off a .22- or .25-caliber semi-automatic pistol and had fired it inside a friend's mother's home.

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Clay to announce bid for 2nd term as mayor - Gary Post Tribune

GARY -- Mayor Rudy Clay's office says he will announce plans for re-election at a news conference Thursday.

Clay has long said he wants another term in City Hall's executive suite, where he has presided over one of the most financially tumultuous periods in Gary's history.

To keep his job, Clay likely will need to best several challengers in this year's campaign. Local lawyer Karen Freeman-Wilson, City Council member Ragen Hatcher and businessman Jack Lieske are just a few of the people expected to run against him. The deadline to sign up is noon Feb. 18.

Clay has already served more than four years in the mayor's office. He was selected in a precinct caucus to finish the term of Mayor Scott King, who resigned in 2006. Clay won his first popular vote in 2007, besting Freeman-Wilson and a handful of others.

The next year, the Indiana General Assembly passed new property tax caps that severely limited Gary's revenue. The Clay administration has been steering the city through a financial crisis ever since by eliminating jobs, consolidating departments and forcing high-level staffers to take pay cuts.

But it isn't clear how many cost-cutting measures would have taken place without the tax-cap crisis. And Clay also takes heat for where he has decided to cut.

For example, the city laid off more than 30 firefighters last week. Meanwhile, Clay continues to accept an annual compensation totaling $135,250. That includes $81,175 he receives as mayor and another $54,075 he receives as special administrator of the Gary Sanitary District.

Clay is expected to announce his plans for re-election at 10:30 a.m. Thursday in City Hall's Gary Room.
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