(La Porte, IN) -  Another deadline has been set over what appears to be a contested plan to annex the 39 North Conservancy District outside La Porte.

 

La Porte Mayor Tom Dermody said he set a June 30th deadline for the district to sign a Memorandum of Understanding over the city’s intentions to annex over 900 acres of partially developed ground along Indiana 39 from Severs Road to the Indiana Toll Road.

 

Dermody said the next steps will be decided if the district board fails to meet the deadline, noting it was established recently after his repeated attempts failed to return conservancy district board members to the negotiating table. Also playing a role in his decision was a post on social media containing the names of every district property owner who signed a petition requesting annexation, allegedly made after the city, in response to a public information request from the district, turned over the names.

 

“It’s clear in my opinion that the only reason they wanted these names was to shame the individuals who signed,” he said.

 

The city started moving forward in the process after obtaining the signatures of 57-percent of property owners in the district wanting to be annexed. Although, Dermody vowed to back away from annexation and focus on other much needed projects if property owners did not sign the petition by May 31st. Under state law, the signatures from 51-percent of property owners wanting to be annexed is required to move forward.

 

In previous discussions, the city agreed to compensate the district $2 million for the water and sewer lines property owners in the conservancy had installed for about $4 million over 20 years ago.

 

The city is the provider of water and sewage treatment in the district, and as hoped, the infrastructure brought a considerable amount of new industry and higher end housing to the district. More growth cannot occur, though, unless larger in diameter lines and a water tower are installed to meet demand for water from new customers.

 

The district could finance the estimated $10 million in necessary improvements on the backs of property owners. If allowed to annex, the city has promised to pay all costs and compensate property owners for their investment in the infrastructure with credits on their water and sewer bills. Dermody noted in turn that homestead land owners would also see a reduction in their property taxes.

 

39 North Conservancy District Attorney Shaw Friedman said he doesn’t know why the deadline was set because the board decided a month ago not to resume talks unless given a copy of the city’s fiscal plan for servicing the district.

 

The board also wants to know in writing from the state whether it’s legal to compensate property owners with credits on their utility bills.

 

Friedman said the fiscal plan was recently handed over but remains under review by the district’s financial advisor.

 

“We’re also wondering how the city intends to pay for all of the promised improvements without raising taxes on city and districts residents,” he said.

 

In addition, he said no answer has been provided yet on the legality of the city’s proposed method of compensating property owners.        

 

“We still don’t have that,” he said.

 

Friedman said there is no way the deadline is going to be met because of the still resolved uncertainties.

 

“The city needs to stop imposing ultimatums and negotiate in good faith,” he said.

 

Friedman denied he or any board member posted the names of the property owners on the petition.

 

“It simply didn’t happen,” he said.  

 

He did say whoever did it, though, posted a public document.

 

Friedman said he warned the city not to pursue annexation because of the immense friction such an effort can generate. Instead, he urged the city to renegotiate a new water agreement with the district that addresses improvements to the infrastructure.

 

Per Friedman, “These tend to be divisive and polarizing. Why all of a sudden declare war? Why not give peace a chance?”