County gives preference to local bidders
Also, Howard County establishes redevelopment commission
This article is brought to you by Bob Stephenson for City Council District 2. Bob says, “My brother, Nels Stephenson, and I had a bookstore on the square about 30 years ago. Previous to that, I owned a jewelry store on South Main Street. I know about the importance of our small local businesses. Their profits stay in our community. They help give our city an identity. Small local businesses create destinations within our city for citizens and travelers. We need policies that strengthen them!
Help me ensure Kokomo’s small business community continues to thrive! Elect Bob Stephenson as your City Council District 2 representative on Nov. 7!
Buy local. The concept is encouraged by the business community all over Howard County. But until recently, county government couldn’t give preference to a local business. It was bound by law to select the lowest responsive and responsible bidder.
That changed on Sept. 18. The Howard County Board of Commissioners adopted a Local Preference Purchasing Policy. According to Howard County Attorney Alan Wilson, the policy allows the county to give preference to local businesses and contractors for purchases and public works projects.
The stipulations of the policy, which are supported by I.C. 5-22-5-20.9, allow the county to give a five-percent preference to local bidders on projects or purchases under $50,000. The edge reduces to three percent on projects or purchases between $50,000-$100,000, and it drops to just one percent for purchases and projects over $100,000.
In order to be eligible for local preference, the business must be headquartered in Howard County. The majority of the business’ payroll must be paid to county residents, and the majority of the business’ employees must live in Howard County.
“This is not something we've made up,” said Wilson. “This is something Indiana statute allows. We're just doing what the law allows us to do.”
“This an opportunity to give our local vendors a chance,” said Howard County Commissioner Jack Dodd. “Sometimes, they don't get a fair chance when they're bidding outside of our local community. This just gives them that opportunity to be fair here.”
The commissioners voted unanimously to adopt the policy, and then they made another significant change. The established a redevelopment commission. This gives Howard County a vehicle through which it can clear, re-plan, and redevelop property. It also gives the county the ability to establish a special, county-wide taxing district.
“All of the territory within the corporate boundaries of the County will be a taxing district for the purpose of levying and collecting special benefit taxes for redevelopment purposes,” the ordinance reads. “All of the taxable property within this special taxing district is considered to be benefitted by the redevelopment projects carried out.”
The new redevelopment commission will have five commissioners, three of whom will be appointed by the Howard County Board of Commissioners. The remaining two will be appointed by the Howard County Council. A non-voting advisor from a local school board also must be appointed. No redevelopment commissioner may have a pecuniary interest in the commission’s activities.
The initial redevelopment commissioners will serve two-year terms at the pleasure of their appointing body. Subsequent commissioners will serve one-year terms.
The City of Kokomo currently has its own redevelopment commission. In the past, that commission has established Tax Increment Financing (TIF) districts to help underwrite the development of properties, such as the StarPlus Energy electric vehicle battery plant. It also is used to issue bonds related to funding things like infrastructure surrounding a new development. It serves as a pass-through when government needs to transfer ownership of property to and from a private entity. It even established a riverfront alcohol beverage license.
How the city and county redevelopment commissions will interact and which will take precedence when a development takes place within both jurisdictions is yet to be seen.