The Michigan City Redevelopment Commission on Dec. 30 approved a resolution authorizing the use of interest earned on tax‑increment financing (TIF) collections to pay operational costs for the Department of Redevelopment and then adopted an amended salary order to fund two department positions.

Commission members voted 5‑0 to pass the resolution (discussed in the meeting as Resolution No. 5‑24), after city counsel told the commission that state law prevents use of TIF principal generated during a project for operations but does not treat interest earned on TIF funds as TIF principal. The commission then approved an amended salary order of $263,121.50 to cover salaries and related miscellaneous costs for the newly separated redevelopment function. Commissioners also unanimously approved new job descriptions for the reorganized department.

Mayor (name not specified in the record) explained the reorganization as a split of planning and redevelopment duties so the planning department can expand inspections and permit staffing. The mayor said roughly 75% of an existing staff member’s time was spent on redevelopment tasks, which prompted the request to allocate dedicated redevelopment positions and fund them from non‑TIF interest. City staff said the miscellaneous line items include board compensation and supplies (a $27,200 component was discussed).

Attorney Alan Cernick summarized the legal basis: TIF principal tied to a project cannot fund operations, but the interest generated by TIF collections is not classified as TIF principal and therefore can be appropriated for operational expenses. Commissioners posed no substantive objections to the legal rationale and cited the department split as timely during city growth.

The chair called for roll calls on each item. The resolution authorizing use of non‑TIF interest passed 5‑0. The amended salary order (corrected in public remarks to $263,121.50) passed 5‑0. The new job descriptions for the Department of Redevelopment were also approved by unanimous vote.

The commission noted that the salary order and job descriptions are an early step; the city will proceed with posting positions (planning director and permit specialist had been mentioned elsewhere in the meeting) as part of the larger reorganization.

The commission’s next scheduled meeting is Jan. 13.