Auburn council authorizes creation of Community Development Corporation to assemble infill lots

The Auburn Common Council voted to approve Resolution 1-2026, authorizing the creation of the Auburn Community Development Corporation (CDC).

The resolution, passed on a single reading, directs staff to begin the process of establishing a nonprofit CDC that city officials said would allow the municipality to acquire infill lots that did not sell at tax sale, then sell those parcels to developers under strict conditions (for example, build windows of 90 to 120 days). Mayor said the CDC would also open grant opportunities and other incentives the city otherwise could not provide because the CDC would be a nonprofit.

Why it matters: supporters said a CDC can reduce red tape and avoid bonding costs that often accompany redevelopment projects, allowing smaller-scale housing and infill projects to move forward more quickly. City Attorney Whitener and staff explained the common practice is for a redevelopment commission to loan funds to a CDC rather than provide direct grants; donations and loan agreements are also used. Whitener said the structure can reduce the 100–$150,000 bonding costs associated with some redevelopment incentives.

Council deliberations focused on oversight, board composition and funding. Mayor noted that ‘‘there's over 440 CDCs in the state of Indiana’’ and described typical bylaws: a minimum three-member board (most commonly five to seven members), community and business leaders as directors, and term limits that are often capped at five years. A council member asked for examples from other communities and recommended tabling the resolution for one meeting to receive case studies and details about funding arrangements; another council member and staff said staff had reached out to other municipalities and that annual reporting and transparency would be part of the CDC’s practice.

A point of contention centered on whether taxpayer funds would be used to seed the CDC. One council member said, ‘‘if we're funding this with tax dollars...’’; Council President DeWitt responded, ‘‘I never said we were funding it with taxpayer dollars,’’ and staff clarified that TIF-based loans are typically repaid and that an early emphasis would be on properties already at tax sale. The mayor said the intention is for the CDC to be self-sustaining and to start with low-cost infill lots rather than large-scale projects immediately.

The council approved the resolution by voice vote. Next steps noted by council and staff: draft CDC bylaws, determine board composition, and return with more detail and examples from peer cities; staff and the attorney will draft proposed bylaws and reporting expectations for future council review.