Council adopts 'Community First' tax-abatement ordinance after close 5-4 vote; BLS wage metric added
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Summary
After weeks of drafting, the council passed Bill 60-25 (the "Community First Investment" ordinance) 5-4, adopting streamlined abatement rules that expand eligibility, set a 125% average-wage metric and include local-contractor preferences. Council unanimously amended the wage-source to the Bureau of Labor Statistics earlier in the hearing.
The Saint Joseph County Council on Nov. 12 approved a major rewrite of its tax-abatement rules, adopting the "Community First Investment" ordinance (Bill 60-25) in a 5-4 vote after public comment and a unanimous amendment to change the county's wage-data source to the Bureau of Labor Statistics (BLS).
The ordinance: Sponsored by multiple council members, the measure condenses the county's abatement ordinance from roughly 24 pages to 9 pages, expands who may apply (including new provision to consider housing development), sets a minimum average-wage requirement for abatement recipients at 125% of the county average wage, and includes language prioritizing use of local contractors and subcontractors where practicable. During debate the council adopted an amendment (9-0) to use the Bureau of Labor Statistics as the data source for county wages.
Supporters and intent: Petitioner Councilman Brian Tanner described the changes as "creating a more accessible, fair, and community-focused economic development process" and said the revision aims to help small businesses navigate abatements and encourage use of local firms and higher wages. Tanner told the council that a 125% county-average wage corresponds to a livable wage for many households.
Opposition and concerns: Opponents at the public hearing faulted the draft for removing prior affirmative-action and community-benefit scoring, questioned the lack of a minimum-salary floor and warned that a 20-year abatement window (allowed under state law) could be used without adequate safeguards. Steve Francis, who helped write the original 2009 ordinance, said the current bill "does not do anything for large businesses" and urged tighter requirements for community benefits. Chamber CEO Jeff Ray praised the outreach but asked for clearer contractor-selection rules so local firms would not be excluded by vague "practicable" language.
Technical briefing and fiscal points: County economic-development staff explained how abatements operate and gave a revenue example: Bill Shalio estimated that once fully assessed a data-center "shell" could generate an estimated $4 million to $5 million per year in tax value at full build-out, though he cautioned that assessments are phased and estimates are preliminary. Staff and members discussed TIF interactions and the potential for enterprise-technology abatements that state law permits for long periods.
Vote and next steps: After the BLS amendment and further floor discussion, the council voted to pass Bill 60-25 as amended by 5 votes to 4. The ordinance establishes the new standards and delegates administration to county economic-development staff; council members who opposed cited concerns about long abatement terms and community-benefit protections. Implementation will require staff to produce an application and administrative procedures aligned with the new code language.
Reported at the meeting: the amendment to substitute BLS wage data passed 9-0; final passage of the ordinance was recorded 5-4.