Greencastle City Council grants 5-year tax abatement for duplex project

The project calls for a four building, eight duplex site on Tennessee Street known as Willow Grove.

For the third time in a year, the city of Greencastle has granted a residential tax abatement. 

The latest concerns a proposed duplex project on Tennessee Street and came by way of a 6-1 decision Thursday night. The project calls for a four building, eight duplex site on Tennessee Street known as Willow Grove. The site is being developed by Chris Harcourt, of C&R Quality Rentals and each duplex will be just over 1,000 square feet with two bedrooms, two bathrooms and a garage. The property is located on the west side of Tennessee Street along State Road 240 and has been vacant for several years. The Greencastle Economic Development Commission recently voted 3-0 in favor of a positive recommendation to the city council to establish the economic development target area. 

Councilman David Masten, who represents the First Ward, voted against the measure after some discussion by council, Greencastle/Putnam County Economic Development Director Kristin Clary and the developer's attorney, Jeff Boggess. 

Harcourt had asked the city for a 10-year abatement, but the council voted in favor of a five year abatement. Under the abatement, there will be a deduction of assessed value for a five year period as a result of the real estate investment. The abatement will provide property tax deductions to Harcourt under the measure and applies to eligible real property that is part of the proposed project outlined in the resolution. In the first year of the abatement, Harcourt will see a 100 percent abatement. In year two, the total deduction drops to 80 percent, 60 percent in year three, 40 percent in year four and 20 percent in year five. There will be no abatement after that five year window under the current plan. 

Prior to the vote, Boggess, Clary and Masten went back and forth on the need for an abatement. 

"Residential tax abatement is somewhat new to the city of Greencastle. There was two last year. We are requesting a tax abatement for another project," Clary told the council. 

Masten quickly interjected that notion told him the developer was acting in their self motivation. He said the city has been built by entrepreneurs risking their capital for a reward 

"The idea that nobody does anything unless some form of government incentives them, I just find immoral from an economic standpoint," Masten said. 

That triggered another back and forth between Masten and Clary for the second month in a row, as Clary said it was "unfair" to categorize Harcourt as not doing anything unless they got a break.

"They have already built things without requesting anything," Clary said before Masten interrupted saying the developer was acting on his self interest. 

"I applaud him for it, but I can't understand why nothing is going to happen without some type of government incentive. I don't care who it is. It can be the Lord himself sitting there and I would feel the same exact way as a guy who has risked his capital," Masten said. 

Boggess said the abatements are "common" in other parts of the state, especially in Hendricks and Montgomery counties. 

"They are not asking for anything more than any other developer would," Boggess said. 

Clary said there is a local builder that is building in another city and the mayor keeps asking what they need. Mastin again asked why would the city give an incentive and Boggess said he had an answer. 

"When the Community Foundation did their Needs Assessment, in the top five needs identified in our community by your constituents, was housing. There is a need in our community. I understood from other reality folks here people are leaving for Hendricks County or Clay County or pick a county," Boggess said.  

Councilman Vincent Aguirre said affordable housing was something he wanted to see done.

Boggess said his clients had addressed those concerns. 
"They are going to offer a cap on a unit at $1,000 for rent. We know you review these on a year to year basis. If they do not keep their part, they are going to get some hard questions so we would honor that. Also, frankly, for those of you who do not know, the Harcourt's, they are deeply civic minded and involved. When I asked them to total up the amount of charitable contributions they've made in the last 11 years, it was a six figure number. In addition to capping the rent on a unit, they are willing to donate to purchase a named sponsorship at the YMCA of up to $5,000. They are giving back in more than one," Boggess said. 

Council president Stacie Langdon said she always hears from people the need for housing at all price points.

"For me, this is eight new families paying local income taxes. This is eight new families supporting our local schools. I just feel like if people want to live in Greencastle and they cannot find apartments or rental units, it is my responsibility as a council person, and this is my opinion, that I need to do everything I can to make that happen," Langdon said.

Langdon asked Boggess why the request for an abatement was coming after work had already been done on the property. 

"As I understand it, there was a significant delay in getting one of the committees together to make a decision. That was on the city's end and I think my clients had to make a business decision to go forward with part of their project due to costs and maybe gave away part of their leverage to do so. The project is only partially completed and only half done. Whether they go forward with the other half depends a lot on what happens tonight," Boggess said. 

Councilman Mark Hammer asked what the holdup was for two years with the project, and Clary said the developer could not commit to build until a rezone of the property took place. 

The vote followed the council voting 5-2 again as to whether or not an economic development target area should be considered. Masten and fellow councilman Vincent Aguirre voted against the measure for the second month in a row.