Kosciusko Council OKs $250,000 TIF Contribution for Claypool Sewer Upgrade
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Summary
The council approved reallocating $250,000 from the Louis Dreyfus TIF district toward a $4.5 million Claypool wastewater upgrade that the town says is required by an IDEM agreed order and will expand plant capacity to serve future housing and businesses.
The Kosciusko County Council voted to allocate $250,000 from the Louis Dreyfus tax-increment financing (TIF) district to help fund a $4.5 million upgrade of Claypool’s wastewater system.
Redevelopment Commission president Doug Haines and Claypool representative Don Miller told the council the town’s sewer plant is operating near capacity and is subject to an IDEM agreed order. Chris Harrison of Commonwealth Engineers said the plant’s design flow is roughly 33,000 gallons per day and infiltration can push flows far above that, limiting housing and business growth. He summarized the plan’s three pillars: upgrade the treatment plant to meet effluent limits, improve the collection system and reduce infiltration.
Haines said Claypool has secured about $2.3 million in grants and state funding but still faces a local funding gap. The Redevelopment Commission proposed redirecting $176,000 previously earmarked for a ditch project and adding $74,000 more to reach a $250,000 contribution from the Lou Dreyfus TIF balance.
Council members discussed legal and accounting steps for transferring TIF funds. The county’s liaison said staff will coordinate with Baker Tilly and the State Board of Accounts to ensure any transfer is lawful; the chair emphasized that funds will only move if a legal path is confirmed. Kathy moved and Kim seconded the allocation motion; the council approved the $250,000 allocation.
The money is designated for major infrastructure improvements in the TIF area and is intended to lower long-term utility costs for Claypool residents and enable housing and business development. Council members and presenters said further permissions and typical project steps remain: engineering, bidding, and SRF or other loan/repayment arrangements. The council asked staff to continue working with state accountants to finalize a compliant transfer path.
The council’s approval provides initial county support but is contingent on final legal and accounting confirmation and subsequent project milestones.
