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Article published May 13, 2009
 St. Joseph County Council overrides tax abatement veto
Ordinance passes on party-line vote.
ED RONCO Tribune Staff Writer
SOUTH BEND -- If you want a tax break in St. Joseph County, you'll have to meet some new standards.

The St. Joseph County Council gave its final nod Tuesday to an ordinance that changes the county's tax abatement procedure, which is how new businesses ask for reduced taxes.

Requirements include companies seeking tax abatements lasting more than three years to pay a "common construction wage" to workers on projects worth more than $750,000.

It also requires them to pay wages of at least $8.80 per hour to employees.

The ordinance had moved through the council before, but was vetoed when it got to the county Board of Commissioners.So back to the council it went, where the veto was overridden Tuesday in a 6-to-3 party-line vote.

Commissioner Andy Kostielney, R-1st, watched from the audience as his veto was nixed. He said other counties are going the opposite way -- easing restrictions on abatements.

"Every county that surrounds us just breathed a sigh of relief because we're doing nothing but funneling business their way," Kostielney said.

But council President Rafael Morton, D-District D, said business attraction hinges on more factors than just tax abatements, and that St. Joseph County will be competitive.

He said the ordinance allows the council to make sure companies follow through on the promises they make when tax abatements are granted, and that neighboring counties have similar abatement guidelines."It's not like we're the lone ranger out here either," he said.

Tuesday night's meeting was the first for council member Corey Noland, D-District B. He replaced Kevin Kubsch, who resigned in April and was considered to be the deciding vote on the issue.

Noland said he attended meetings prior to being on the council to learn about the abatement ordinance, which he sees as a necessary step to spend tax dollars wisely.

"If I'm approving tax abatements for businesses that are not being responsible in their building practices, in their wages that they're paying their workers, in all these things, then am I being a responsible steward of their tax dollars?" he said. "I feel not."

The ordinance could come back up for consideration in six months, said council member Dale DeVon, R-District C."I long for the day that you guys can tell me, 'I told you so,' " DeVon said. "Regardless of what you say, this will hinder growth in St. Joe County."

Staff writer Ed Ronco:
eronco@sbtinfo.com
(574) 235-6353