Sellersburg council approves interlocal agreement for County Road 311 amid TIF funding questions

The Town of Sellersburg voted Feb. 23 to approve Ordinance 2026‑OR‑003, authorizing an interlocal agreement with the Clark County commissioners to fund and rebuild County Road 311 and eventually transfer the roadway into town ownership.

During the second reading, town engineers and the town attorney said the agreement covers early engineering work and positions Sellersburg to receive grant funding for construction. Mike Harrison of JTL Prime told council the project is expected to seek an 80/20 grant through INDOT, meaning INDOT would pay roughly 80% of eligible costs and the town (or county) the remaining 20%. Harrison recommended approving the agreement to meet grant deadlines and engineering milestones.

Several residents raised funding concerns before the vote. A resident who identified herself as Von asked whether the project would rely on TIF (tax increment financing) dollars and warned that state legislation—referenced in the meeting as House Bill 1288—could change or eliminate TIF financing. Resident Charlie Pierce asked how much the town might be obligated to pay and when construction would start. Council and staff repeatedly told the public that the agreement at this stage covers engineering and that the town would not obligate itself to construction if funding is unavailable: “If money’s not there in TIF and at the end of the day the town doesn’t have the money, then you all would not put it out for bid,” the town attorney said.

Council members emphasized the long timeline: staff estimated major construction would likely not occur until approximately 2030–2032, and that project cost estimates being discussed during the meeting were preliminary. Town leaders said current TIF revenues and other funding sources are being considered; council president noted the TIF district remains authorized through 2038.

The ordinance passed by voice vote. Town Attorney Jake said the ordinance (as adopted) authorizes either the town council president or the town manager to execute the interlocal agreement after adoption; several residents said they preferred seeing council signatures on major contracts. Council said execution by the town manager is standard practice when the ordinance grants that authority.

Next steps: staff and the town attorney will coordinate with Clark County on final engineering and grant submittals. Any formal construction contract would be subject to future council action once funding and final design are in hand.