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Merrillville approves interlocal with GPTC to fund Broadway Express through tax-increment allocation
Summary
The Town of Merrillville Redevelopment Commission on Oct. 28 approved an interlocal cooperation agreement with the Gary Public Transportation Corporation to use tax-increment allocation funds in support of Broadway Express transit service.
The Town of Merrillville Redevelopment Commission on Oct. 28 approved Resolution 25-18 authorizing an interlocal cooperation agreement with the Gary Public Transportation Corporation to apply tax-increment allocation toward continued Broadway Express service.
"This agreement has been reviewed by our town attorney and also our bond counsel," said Michael Griffin, a town staff member presenting the item. He said the agreement is needed to use allocation (tax-increment) funds to pay a portion of the Broadway corridor transit service. Griffin described an initial annual payment previously established by practice at $44,520 and outlined a four-year payment schedule to phase toward the town's share of costs.
Griffin said the town expects to double the annual payment in the near term to $89,040, with the following year set at $93,004.92 and a larger final-year payment discussed as part of the four-year term. He also said the town will make a one-time maintenance contribution for bus-stop repairs of $2,797.50 for the current year, with annual maintenance contributions rising to $5,095 in 2026, $6,098.55 in 2027 and $6,708.41 in the final year.
"We find that the government efficiency is we don't have to have our own bus system. We can use one existing and pay a portion of the costs," Griffin said. He said the town's share as discussed does not fully cover the total attributable cost (which staff estimated at $136,494) but that the arrangement is more favorable than previous practice.
Denise Dillard, a representative of GPTC, attended but did not expand on details during the meeting. Commissioners confirmed the funding will be taken from the Broadway allocation area where statutorily permissible; staff noted the need to meet statutory allocation-area requirements for use of increment funds.
Councilor Uzelak moved to approve Resolution 25-18; Councilor Xi seconded. The commission approved the resolution by voice vote. Staff said they would send the signed agreement to GPTC and await action by GPTC's board to finalize the interlocal.
