Muncie News from Muncie Free Press

By Rick Yencer

 MUNCIE, IN - Downtown Muncie is back in business again as new development director Vicki Veach intends to jump start that great building facade program and also study what the central city needs with the help of the Muncie Redevelopment Commission.

 For about $45,000, downtown development will start efforts to bring people and business downtown after it was denied funding by the McShurley administration did little to fund downtown events and building work.

 Dan Allen, president of the Muncie Redevelopment Commission, called it "an exciting time" for downtown Muncie as the commissioner took several steps Thursday to reverse the perception that more buildings are being torn down and too many for sale and for lease signs exist.

 "We believe in doing this right," said Allen, who owns downtown buildings and is a former chamber of commerce chief.

 Veach, who formerly ran the Muncie Visitors Bureau, and Yorktown Chamber of Commerce, knows how to make things happen and asked the commission for funding to renew the facade program that conservatively brought $30 million in new investment downtown during the last decade. That money, coming from federal Community Development funds, could again be used to restore downtown buildings and even build new structures.

 Downtown Muncie definitely needs more property owners, more development and more attractions to make it viable to visitors and to promote more business and industry coming to the community.

 With the current facade loan almost paid off, Veach plans to get a second program started and hopefully bring more private investment to the central city.

 Businessman Bill Smith, also an MRC member, indicated that he would convert the old Sears Building that now houses the Delaware County Community Corrections office into apartments.  Smith owns several downtown properties and recently helped county government with more parking by selling a lot on East Washington Street for $30,000. Other examples have big apartment ventures include Kelso, Odd Fellows and Canopic.

 Veach explained the study and restart f the facade program were just the beginning of new developments with agreements between the city, downtown development and others to continue the work that began when Dan Canan was mayor, Downtown development also is looking at returning two-way traffic to Walnut Street and moving into nearby neighborhoods to restore homes and other structures.

"We are working together and moving forward to redevelop the downtown," she said.

 The MRC also has some business of its own, expanding the central city tax increment financing district to include Tuhey Pool and other residential areas to capture more money for infrastructure, utilities and to create jobs. MRC Director Bruce Baldwin acknowledged the last administration spent about $300,000 in TIF funds on Tuhey Pool that was outside the district. State law still allows areas adjacent to the TIF district to benefit from those monies.

 TIF captures revenue from new development that can be used to benefit the district when it comes to streets, sidewalks and sewers.

 The commission also signed off repairing downtown lights and making them uniform in look and illumination. Gina Williams, representing ESL Spectrum, Indianapolis, discussed how lights will include LED components besides older and broken lights with see new poles and globes. The cost does not exceed $75,000.

 Bringing another outside consulting firm in to study the downtown, another idea of the last administration and that Muncie Action Plan, also got signed by the commission. ACP Planning gets up to $77,000 to study the downtown like renowned architect David Lewis did 25 years ago and others did before retailers like Sears, Penneys and Ball Stores left.

By Rick Yencer

MUNCIE, IN - Scot Boyce showed off his latest work in downtown Muncie on Wednesday, spending about $500,000 to restore the 20th Century Flats that had been a victim of fire and neglect.

 Downtown folks, historic preservationists, friends, family and even Sharon McShurley came down for the open house that showed four new apartments in the building that had been abandoned and left for taxes just a year ago.

 Stacy Ball, who lives down Washington Street, said, "I knew it would be great but not this great." That was the comment by others who marveled at Boyce's restoration of the century-old building on Jefferson Street, behind Gordy's Art Studio. 

 The old woodwork trim, pastel colors and antique like fixtures blended into into a living space times four that will rented out for around $500 a month. 

 Boyce talked with friends and supporters  while his wife, Jo, and brother-in-law Bob Ratchford, talked about the work that went into the building that was scheduled for demolition before Boyce saved it.

 Bill Morgan, the city's historic preservation officer, explained the renovation cost around $500,000 and was part of ongoing efforts to save historic structures. You just have to look down the street and see where a downtown office building on Main Street was recently demolished while one of old Johnson homes on East Washington stand only one story tall after destroyed the second floor and roof.

 That money came in the form of a forgivable federal housing loan if Boyce leases the apartments to income-eligible residents for 15 years.

 McShurley promoted downtown development and saving inner city buildings, although the city embarked on a massive demolition program before she left office.

 Morgan said several downtown buildings like the Canopic and Graystone  apartments were restored with Boyce playing a role saving many more.

 Ball lives on East Washington Street and was glad the city saved the old apartment building. The old Emily Kimbrough Historic District is located just east of 20th Century Flats and millions of dollars have been spent to restore and maintain historic homes in that neighborhood.

 McShurley lauded Boyce for his work and new Community Development Director Terri Whitt Bailey also pledged to continue restoration efforts with millions in federal Community Development and HOME funds. 

 Look for another round of funding for restoring historic buildings and improving inner city neighborhoods to be available this summer. And Boyce has plans for more restorations in Muncie and elsewhere. His brother-in-law, has a maintenance and painting business and several rental properties.

By Rick Yencer

 MUNCIE, IN - The Muncie Sanitary District is proposing a huge increase in sewage utility and storm water fees to do millions of dollars of work required by federal clean water law and a local court order.

 This incredible $160 million price tag to separate combined storm and sanitary sewers has been looming for years, and now local sewage utility customers and district property owners will pay dearly for years of neglect and delay to finish keeping White River clean.

 The double whammy includes storm water fees going from 95-cents to $6 a month to raise as much as $4 million for storm water work. Sewage utility fees would raise 29 percent this year, from $32.94 a quarter to $42.48. That would raise $18 million yearly for separation work. Over the next five years, tack on another 30 percent hike making that rate $56.79 a quarter by 2016.

 Sanitary Board President Tom Bennington, a Republican holdover from the former McShurley administration, did not want to talk too much about the huge fee hikes until a March 6 public hearing. The sanitary board that also includes attorney Steve Murphy and bank executive Teresa Ford. At that time, look for the board, appointed by the mayor, to take quick to impose the fee hikes this year.

 The only people standing in the way of a quick introduction of the huge fee hikes on Tuesday were members of the old United Taxpayers Association once led by the late Richard Amburn, and Basil Davis Sr. There were none of those so called Good Government guys around Tuesday that blindly supported the McShurley administration that left millions of dollars of work undone by the sanitary district.

 Steve Fields, one of the remaining members of United Taxpayers, objected to the huge increases and offered several options to raising sewage and storm water fees. Why not use economic development income tax funds as seed money for grants or use a state revolving fund to borrow money against local tax or utility revenue, Fields asked. Fields, a member of the Yorktown Town Council, also raised concerns about costs passed on to the Yorktown sewage utility and other district customers living in Mount Pleasant Township.

 Others who heard about the huge fee increases also objected to the district's move like David Taylor, a realtor and former members of Muncie City Council. Taylor worried about the impact on homeowners besides how higher storm water and sewage utility fees would affect the housing market. And Mayor Dennis Tyler, who has authority to remove sanitary board members, also opposed the fee hikes, also saying the district should look at other alternatives.

  Again, Bennington said the district would not offer explanation until the public hearing, leaving Fields and others to wonder how government could impose fees or taxes with little notice and no public around. The agenda for Tuesday's meeting was only made public a couple hours before and not 48 hours in advance as required by state open meetings law.

 In recent years, there's been no public accountability of the sanitary district that apparently was sued by the Indiana Department of Environmental Management for delays in implementing a long range plan to separate storm and sanitary sewers according to federal clean water law. That suit was briefly mentioned by Bennington and Murphy who later indicated he did not want to raise fees if it was not necessary.

 Barbara Smith, sanitary district administrator, said the district could not do the work with the money it had now, even thought the district is funded by millions of dollars in property taxes and sewage utility fees. The last time sewage utility fees went up was in 2008 for a multi-million dollar renovation of Muncie's wastewater treatment plant that handles millions of gallons in sewage yearly.

 The federal Clean Water Act passed in 1972 and was lauded by environmental groups like the Sierra Club and others as requiring cities clean up rivers and lakes from industrial pollution and raw sewage. Forty years later, many communities still have not done a fraction of the work amid rules changes, lawsuits and state environmental reviews.

 The sanitary district embarked on a long term control plan to eliminate combined sewer overflows in the river and Buck Creek years ago and submitted a plan to IDEM in 2002. The final update came in last August with a a court order mandating its completion in the next 20 years. Muncie is not alone as more than 800 communities in the United States face similar costs. In Indiana, South Bend could spend up to $500 million to separate storm and sanitary sewers while the cost to Indianapolis is right at $1 billion.

 Smith said the district has been proactive in recent years repairing 10 flooding areas since 2007 at the cost of $5 million funded by a revenue bond. Some of the biggest projects in the $160 million plan include separation of combined sewers that flow into Buck Creek at Cowan Road along with an old primary outlet sewer that runs under Beech Grove Cemetery to White River.

 Utility customers and property owners can review the plan and its tremendous cost at www.munciesanitary.org.

By Rick Yencer

INDIANAPOLIS - Congressman Mike Pence had a big march on the Indiana Statehouse Monday with enough signatures to get on Indiana's ballot to become the next governor.

 "This is going to be a people centered campaign," said Pence to cheering supporters who walked with him to file his petitions.

 Pence, a Republican, gathered 13,000 signatures in all 92 counties to get on the May 8 Republican primary ballot. He faces Fishers business James Wallace who also wants the job. He and his supporters brought boxes from all 92 counties that were filled with petitions to file.

 Pence said he planned to build a strong grassroots campaign to build a better Indiana that has good jobs, great schools, safe streets and strong families. He also has $5 million in campaign money, more than any other candidate. Wallace has about $1 million.

 Democrat John Gregg, a former Indiana House speaker, also plans to seek his party's nomination to run for governor. In recent days, Gregg, was trying to explain his remarks about the Indiana Legislature's decision to impose a Right to Work law that was quickly signed by Gov. Mitch Daniels.Gregg plans to file his petitions on Thursday.

 Gregg said it was time to move beyond the divisive issue, explaining, "Indiana needs a governor and a legislature that show up for work every day and work together with one focus, creating jobs, whether it's for a union or nonunion workplace. Because in the end, it doesn't matter if you're in a union or not - if you get laid off, you're not bringing home a paycheck."

 Pence has been a strong proponent of RTW, saying it will bring more business to Indiana and more jobs.

 Some Democratic lawmakers took issue with Gregg's remarks since House Democrats boycotted over RTW and even left the state last year over the issue. Other labor leaders wondered whether Gregg had their best interests in mind, causing Gregg to offer some clarification to upset Democrats, some who are thinking about finding another gubernatorial candidate.

 Meanwhile, Libertarian candidate Rupert Boneham, that TV  "Survivor" guy, only needs his party's convention blessing to gain access to the November ballot. Boneham, a businessman and philanthropist  supports less government and less spending like most Libertarians.

MUNCIE, IN -  Methamphetamine continues to be a growing problem in Indiana  with more labs and more people arrested according to the Indiana State Police.

 In eastern Indiana alone, there were 101 meth labs found and destroyed last year, compared to only 26 in 2010. That was with extra counties added to the Pendleton ISP district after Redkey closed last year. Statewide, there were 1,437 meth labors found, compared to 1,395 the year before and 803 in 2006.

 Five years ago, the ISP created the meth suppression to crack down on the growing meth problem, given the drug is easy and quick to manufacture. The one pot method is a shortcut that uses all the ingredients in one glass bottle or vessel. That process can causes fires or explosions. The chemicals used like propane, pseudoephedrine, ammonia, chlorine, and lithium battery casings are highly explosive and fumes are toxic.

 ISP Sgt. John Bowling has countless reports of meth labs in houses, trailers, vehicles and in remote areas throughout eastern Indiana. Any information about meth labs or production can forwarded to the ISP at 1-800-527-4752.

By Rick Yencer

MUNCIE, IN - Building a new grandstand for the Delaware County Fairgrounds is right on schedule and be ready for the summer Band Day, rodeo and other events.

 Delaware County Commissioners signed a contract Monday with RK Sports, Columbus, to install a new 2,300 seat grandstand to replace an older structure recently found unsafe with rusted steel beams and broken bleachers. The cost is $498,078.

 Tony Evans, representing the county fair board, recommended commissioners hire the company to install a custom Clayton bleacher system used throughout Indiana, including Anderson Community Schools. What the new bleachers will look like can be found at the old Highland High School that is now used as a middle school.

 Completion of the new bleachers is scheduled around June 5 in plenty of time for the fair in July. The county still has to hire contractors to tear down the old bleachers, paint them and build other structures in the grandstand. 

 The total cost of the project is $900,000 and will be paid by a line of credit subordinated by the county's $2 million economic development income tax fund.

 Commissioners President Todd Donati revealed the finance plan for the grandstand Monday, that would include the fair board raising money through donations and grants to pay off the line of credit handled by Star Bank.

 EDIT funds are used to help create jobs, rebuild infrastructure and promote other development projects. One of those discussed Monday include another shell building in the southside Industria Centre near the Magna automotive plant or old Delco site to bring more jobs to the community.

Donati said the financing would encourage the fair board to find other revenue to improve the fairground on Wheeling Avenue. And there would be a two-year deadline to pay off the credit line. County officials said no tax increase  would be necessary to pay for the project.

 Evans said the fair board was looking at other improvements to the fairgrounds arena and was working on returning horse races to the facility. Other projects might be to improve stalls and other buildings after fair officials built a new meeting hall used by community groups, trade shows and other events.

By Rick Yencer

INDIANAPOLIS, IN  - A Yorktown native became interim Indiana Secretary of State after Charlie White was kicked out of office after a felony conviction for voter fraud.

 Gov. Mitch Daniels appointed Jerry Bonnet, currently deputy Secretary of State, to replace White, who was found guilty on six of seven felony counts of voter fraud by a Hamilton County jury. The appointment was not made permanent, given White still wants a judge to reduce his felony convictions to misdemeanors to make him eligible to serve out his term.

 White, a Republican, got caught lying about his residency to keep a job on the Fishers Town Council. For more than a year, White, the chief administrator for elections, faced felony voter fraud charges and chose to remain in office until trial.

 Daniels, also a Republican,  continued the appearance that White could remain in office after convicted of voter fraud, which was criticized by the Indiana Democratic Party.

 "The shame of the crime is that Hoosiers have had a public servant in office for more than a year whose recklessness and criminal behavior has tarnished our third highest office," said state Democratic Party chairman Dan Parker.

 State Democrats have a civil suit trying to appoint Democrat Vop Osili to be appointed Secretary of State.  The governor still has the authority to fill that vacancy. Osili ran and lost to White in 2010. But a Marion County judge ordered White improperly registered to vote and was ineligible to run for secretary of state. White has appealed, according to Democrats, who went back to court to get a judge to issue an order to put Osili in office. The Indiana Supreme Court has accepted the case and is expected to rule quickly on whether the governor or a court decide who the secretary of state will be.

 White said he was disappointed by the jury verdict and planned to get the judge to reduce the convictions. Parker said the matter should be expedited and the court should prohibit the governor from making that appointment.

 Bonnet graduated from Yorktown High School and his father, Don Bonnet, ran Bonnet Drugs for years and also was a Delaware County commissioner. He spent 18 years practicing law in Texas and Louisiana. When Hurricane Katrina hit, Bonnet and his family evacuated to Indianapolis and then stayed on when he got a job working for former Secretary of State Todd Rokita. Bonnet helped implement  the state's  voter photo ID law, and the federal Help America Vote Act.

 Last March, Bonnet was put second in command of the Secretary of State's office after being chief of staff. He is currently working on a doctorate degree in organizational leadership from Indiana Wesleyan University.

By Rick Yencer

MUNCIE, IN - Progress Rail Services that assembles locomotives locally could easily double or triple its workforce during the next couple of years, meaning millions of dollars more in the local economy.

 On Saturday, the subsidiary of Caterpillar was slammed with prospective applicants at a local job fair to the point that its human resource staff could not handle the flood of people. The job fair was shut down hours after it started, and people were directed to apply online or send resumes to Indiana Work One that handles screening of applicants.

 For Randy Neff and his friends, the trip to downtown Muncie was only to drop off a resume and get a promise that it would be considered by Progress Rail. The crowd of more than 3,000 people reassembled a Super Bowl Village turnout with some job seekers showing up at 4 a.m., nearly five hours before the 9 a.m. start.

 Mayor Dennis Tyler said the turnout  illustrated that literally thousands of people in Delaware County and eastern Indiana remained unemployed and underemployed.

"That's what I have been telling people,"  said the mayor, that unemployment is much worse locally than the numbers indicate.

 That statewide 8 percent or even 9 percent unemployment locally only represents people receiving benefits and not those who run out of benefits or quit looking for work..

 Pat Mastery, a Progress Rail human resources representative, continued to take resumes after the job fair closed around noon, three hours early. He declined to say when the next job would be held, but prospective applicants can always apply through Work One.

 Traci Lutton, a local economic development official, indicated the fair was a big success and another would be held soon.

 Progress Rail actually has been in a continual hiring mode, screening and interviewing literally thousands of workers with the help of Work One after the local automotive assembly plant began operations last year.

 The locomotive manufacturer opened its doors to community leaders last December and showed off two new locomotives made at the old Westinghouse power transformer plant on Cowan Road. The locomotives went to Gabon in Africa and Mexico.

 Caterpillar made more than a $50 million investment in the old plant that translated into more work for local suppliers like IMI that poured concrete and Lift-A-Loft that equipped the facility. It is the first locomotive assembly plant built in the United States in many years.

 The Muncie-Delaware County Economic Development Alliance expects big results from Progress Rail that initially proposed to hire as many as 650 people.

 And that projection is on track according to Progress Rail human resources recruiter Angie Orcutt, who works with Work One to screen and test thousands of workers to put together locomotives.

 The plant now employs 163 and Orcutt told a group of job seekers last week that those numbers would double or triple quickly as the production of a half a locomotive a day would grow to 1.5 locomotives.

 And the company will begin t manufacturer locomotive cabs at the plant soon, meaning even more workers.

 While the pay at Progress Rail is $12-$18.50 an hour, depending on whether workers are material handlers, assemblers or technicians, welders or painters, the benefits for health care are the bets among American manufacturers.

 Anthem Blue Cross Blue Shield coverage for an employee is only $8.08 a week and a zero deductible for that major medical health care. Dental is included and vision is $1.48 a week. And there is a lucrative 401K savings plan where the company contributes up to a 6 percent annual wage.

 Orcutt also made it clear those recent reports that a labor dispute and plant closing in London, Ontario Canada with a Progress Rail subsidiary would create jobs locally was untrue.

 That company Electro-Motive Diesel, locked out union workers after they refused to take a 50 percent wage cut and other benefit concessions. On Friday, the company closed that plant, putting 400 people out of work.

 Orcutt said only one Canadian worker was employed locally and none of that work was coming to Muncie. She later declined to discuss the plant closing.

 That's also been the consensus  of local economic development and city officials despite other media reports. Tyler met Friday with a group of reporters from the New York Times, Wall Street Journal and a Canadian newspaper and learned little more about where the Canadian work was going. The national media apparently did not even know about Friday's plant closing.

 Progress Rail has plants throughout the world and primarily builds locomotives for Third World countries.