Redevelopment commission declares 2711 West 37th Ave blighted, advancing TIF acquisition pathway

The Hobart Redevelopment Commission voted March 16 to find that the property at 2711 West 37th Avenue, owned by Regional Data Management LLC, is blighted in an economic sense under the RDC statute, clearing a procedural hurdle to potential acquisition and redevelopment.

Staff described the parcel as a former car wash now used for commercial vehicle storage and said appraisals are pending. Legal counsel explained that the RDC statute (referenced in the meeting as section 19.5) does not itself define 'blighted' but that adjacent code language supports a finding when property has lost social or economic value to the community. Counsel proposed motion language to make that determination; the motion was moved, seconded and approved by voice vote.

Commissioners clarified authorities and limits: the RDC itself does not hold eminent domain power, the council does, and any use of eminent domain would require legislative approval. Staff and counsel discussed likely funding pathways, including using proceeds or borrowing within a planned TIF district. Counsel and staff said the TIF district under consideration would stretch along the Route 6 corridor and could be used to coordinate a set of acquisitions and improvements in the area.

The commission’s vote does not itself transfer title. Staff said the city is working on appraisals and that purchase would be a later step if the parties proceed. The commission also discussed related planning steps — including appraisal completion and coordination with the city council and TIF formation — before any purchase or disposition occurs.

Next steps identified at the meeting include obtaining appraisals, completing TIF planning and, if warranted, negotiating purchase terms with the willing seller. The commission emphasized the blight finding is an enabling action, not a final acquisition or a decision to use eminent domain.