Redevelopment commission declares 2711 West 37th Avenue blighted to enable TIF acquisition

The Hobart City Redevelopment Commission voted Monday to declare the property at 2711 West 37th Avenue, owned by Regional Data Management LLC, “blighted in an economic sense” under section 19.5 of the RDC statute, clearing a procedural step toward potential acquisition.

The motion, placed before the commission by an attorney-like presenter, drew on assessor values and on-site observations showing the former car wash is being used for commercial vehicle storage rather than its original use. The presenter said appraisals are pending and that the city is treating the declaration as an initial finding required by the RDC statute before pursuing a purchase from a willing seller.

The commission discussed statutory mechanics and the link to a planned tax-increment finance (TIF) district that staff are still drafting. The presenter told the board that the TIF would cover a wider corridor — including Route 6 and areas along 37th Avenue — and that TIF financing is a core component of the broader redevelopment strategy for the corridor. He said the city’s role could include providing funds or borrowing mechanisms once the TIF is established.

Commissioners asked procedural questions about eminent domain and the board’s authority; staff and counsel clarified the city council — not the RDC alone — holds eminent-domain authority and that the RDC can participate in TIF-funded acquisitions after necessary legislative approvals. The board approved the motion by voice vote to declare the parcel blighted, allowing staff to obtain appraisals and continue negotiating with the willing seller.

Next steps the commission identified included completing appraisals, confirming title work, and advancing the TIF formation through the plan commission and council as needed. Staff said that those steps will determine whether the RDC proceeds with acquisition and how any purchase would be funded.