Valparaiso officials: City can keep ARPA funds used to buy land for now-defunct plans for sports complex
City officials say no, a point they emphasized during Monday's City Council meeting, which stretched almost five hours and drew hundreds of people to City Hall with concerns about the potential data center.
Council President Ellen Kapitan, D-At-large, called the issue a 'red flag' during the council meeting, adding it led to a lot of questions, including whether the city would be on the hook for repaying the funds.
'Is this legal?' she asked Patrick Lyp, the city attorney.
'The simple answer is yes,' he said, adding an outside law firm from Indianapolis helped the city work through the details.
If the Redevelopment Commission sells the property, he said, 'there would be no prohibition or covenant on the money.' The funds, he added, would return to the RDC.
The tenets of ARPA funding offer exemptions for paybacks of funds under $10 million, as long as they are used for public purposes, Lyp said. There also is no prohibition on the sale or use of the property.
'There's no obligation that would be tied to ARPA funds,' said Councilman Robert Cotton, D-2nd.
The city received $7,681,979.52, according to an amended resolution for ARPA spending passed by the City Council on July 25, 2022.
That included $4,717,278.92 for land acquisition 'for future Park related activities,' according to the resolution, and includes the parcels for the proposed sports complex.
The breakdown on the use of the rest of the funding, according to the resolution, included $1 million for the demolition of the former Whispering Pines facility and two adjacent residential structures on North Calumet Avenue, as well as site remediation, for a then-proposed adult enrichment center; $663,147.68 in premium pay for eligible city employees; $575,000 for several nonprofit agencies; $500,000 for the replacement of sidewalks, walking paths and other infrastructure; $40,000 for consultant fees and reserve funds for future audits, all related to disbursement of the ARPA funds; and $25,000 each to the police and fire departments, for various upgrades.
The brunt of the spending, including the parkland purchase, fell under ARPA's 'Provision of Governmental Services using Revenue Loss Funds,' per the council's resolution, which is the most flexible of categories for ARPA spending.
In emails to the Post-Tribune before the City Council meeting and Mayor Jon Costas' statement that the city would no longer pursue the data center proposal because of the public outcry, Lyp and George Douglas, the city's development director, offered further insight into the transfer of funds before the 248 acres, comprised of four parcels between County Roads 500 North and 400 North east of Indiana 49, was purchased for parkland.
According to the option agreement signed in January between the RDC and the data center developer, Agincourt Investments LLC, the RDC would have sold 180 acres of that property for just over $9 million, almost twice what the RDC paid for the land.
'The Valparaiso Redevelopment purchased the properties in 2022 with available cash funds. The City Council did approve the use of ARPA funds to reimburse the RDC for the full purchase price in August of 2022,' Douglas said in his email.
He added he didn't believe anything happens to the ARPA funds once they have been used to reimburse the RDC for the land purchase and if the RDC were to sell the property, the commission could use the proceeds for any of its permissible expenditures.
'The ARPA funds were used for an allowed purpose when the City reimbursed the RDC,' Lyp said in his email. 'If the land is sold, the proceeds would be paid to the RDC and used by the RDC consistent with Indiana law.'
Jennifer Hora, a political science professor at Valparaiso University who focuses on state and local government, agreed that the ARPA funds come with flexibility but said that flexibility is supposed to come with accountability and responsibility.
She summed up her concerns as 'the spirit of the law vs. the letter of the law.'
City officials dropped the plans for the park when, according to then-Mayor Matt Murphy, bids for the project, slated for $30 million, came in $7 million over budget. Costas said in an interview with the Post-Tribune last month that the city was going to invest more in its current parks instead and scuttle the plans for the sports complex.
City officials, Hora said, 'threw their hands up' and walked away from the sports complex proposal when it came in over budget and proposed using that land for the data center.
The future of the land purchased with those funds is unknown.
'This is not transparency,' she said. 'This is definitely not the spirit of ARPA law.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CBS News
8 hours ago
- CBS News
Mayor Eric Adams calls for changes to NYC sanctuary laws after federal lawsuit
Mayor Eric Adams is seeking changes to the city's sanctuary laws after the Justice Department filed a suit seeking to strike them down. Adams, however, is facing fierce resistance from the City Council as members seek to stop him from expanding the role of federal immigration agents in the city. The mayor told CBS News New York he thinks it's important to have sanctuary laws to protect undocumented individuals, but that modifications are necessary to go after people who commit crimes. He cited the shooting of an off-duty U.S. Customs and Border Patrol officer in Manhattan as one reason for needing change. The DOJ charged two suspects in that case and alleged both are Dominican Republic nationals in the U.S. illegally. "I think we need to tweak the current laws to allow us to coordinate with the federal government when it comes down to removing those dangerous people from our streets," Adams said. "It is mentioned in the lawsuit ... the individuals who shot him, the shooter and his co-conspirator, they had a number of violent arrests, and so there is a level of anger and frustration that New Yorkers have." Even before the DOJ sued New York City, the Adams administration had issued an executive order allowing immigration agents to work on Rikers Island. But the City Council sued and won a temporary restraining order preventing the order's implementation. "I said it to the City Council last year that we need to reexamine it, and they say we, they, refuse to do so. So they're protecting individuals like the shooter and that's wrong," the mayor said. "New York City's elected officials have a responsibility to protect our city and serve New Yorkers, not Trump's political agenda," a City Council spokesperson said. "We must be completely united in defending New York City against these frivolous legal attacks that seek to undermine our city and public safety." Adams said his ability to work with the Trump administration's border czar, Tom Homan, has reduced the amount of immigration arrests in the city. "ICE has not been in our schools, our houses of worships. ICE has not been at our shelters, in any other facilities. And so the goal is to work with a presidential administration," he said. Adams argued immigration enforcement in New York City since President Trump took office is far less than any other major U.S. city. He said there's been an 11% increase in enforcement in New York City, a 161% increase in Miami, a 69% increase in Los Angeles and a 57% increase in Chicago. "I can't speak for other cities. Mayors have their own policies and procedures, but here in New York City, where we can collaborate going after dangerous, violent people, we have shown a willingness to do so," he said. President Trump, meanwhile, stepped up pressure on other cities with sanctuary policies, making it clear New York is not the only place that will be hit with lawsuits if elected officials refuse to cooperate with the federal government. "That's DOJ going against New York. But we're going against a lot of other places too. We want to bring safety to our cities," Mr. Trump said. "We've started numerous lawsuits with other cities. We want to bring safety. We've got to get the criminals out and we're doing it in record numbers." New York City Public Advocate Jumaane Williams wants the mayor to fight the federal government's lawsuit, not call for tweaks so the city can cooperate in getting violent criminals off the street. "The mayor who opened the doors for ICE, and is only now beginning to notice their abuses, is now faced with another moment to step up, show he cares about the city, and clearly condemn this dangerous suit," Williams said. "He's advocating for the shooters," Adams said. "How about advocating for the good people in the city that should not be the victims of crimes, even if they're documented or undocumented. So I would like for him to go to the hospital and stand over the bed of that officer that was shot and tell him that he supports him. I think he should try doing that for once."
Yahoo
8 hours ago
- Yahoo
New Mayor Matthew Stroia ready for North Canton leadership role
NORTH CANTON ‒ Matthew Stroia is now the 25th person to lead the city as mayor. "I'm really excited to get started," he said after a swearing-in ceremony on July 25 at City Hall. "It's very emotional because I love this place. This is my hometown and when I gave my first stump speech six years ago, I said I bleed orange and black. And I do." Stroia, 49, who was council president since December 2021 and at large council member since December 2019, succeeds Stephan Wilder, who announced July 22 he was stepping down. Related: North Canton Mayor Stephan Wilder to retire after long career with the city Wilder attended the ceremony. The city charter says the council president becomes mayor if the mayor resigns. Stroia took the oath by a wall with the portraits of his 24 predecessors. Stroia's wife, Jessica Stroia who is the president of the North Canton City School Board, and their 14-year-old son, Aiden, sat in the front row. The room at the North Main Street entrance of City Hall was filled with city employees, nearly all of City Council and well-wishers. They applauded loudly and Wilder embraced Stroia. "Thank you Mayor Wilder," Stroia said. "Over 40 years of public service, and the best thing is you have a big heart and you're a great man." Talking about the city staff and community, Stroia said, "but we're a team. I mean we're all together. So let's always have each other's backs. Go forward and let's always try to improve for all the people. For our community. .... To be the 25th mayor, I wasn't expecting it on this timeline. But I'm very happy to serve." Stephan Wilder issues support Wilder addressed the crowd and thanked the community and city staff. "We have come across so many things in these last few years. We've made major decisions. We've had obstacles. We've had challenges. But we also with working with council, administration and our whole (city) staff all of our decisions are made (for) the welfare of our city," he said. Wilder said he is not moving out of the city. He plans to serve on local boards for nonprofits like North Canton Cares Pantry and the North Canton Heritage Society. Stroia said he will file by the Aug. 6 deadline petition signatures seeking to run for the two-year term starting Dec. 1. Wilder has endorsed Stroia's election. "I think he's going to give all his best. ... He's rounded. He's a hometown young man. He comes from a great family. I think he has good working knowledge of city government in his time on city council," Wilder said. The mayor is a part-time position, according to the city charter. The mayor hires with approval of council the director of administration who serves at the pleasure of the mayor. The mayor has the power to veto legislation approved by council. By state law, Stroia will earn $19,418 a year, a pay increase from $8,809 a year that he earned as council president. North Canton mayoral history Wilder was the eighth mayor of North Canton to resign before the end of his term. This last happened in 1998 when William Hines resigned to become the city's law director. Then-Council President Darryl Revoldt became the mayor. Council member Stephanie Werren, At Large, becomes the council president. Council will appoint a resident of the city to the vacant at-large council member position to serve the remainder of the two-year term until Nov. 30. Stroia owns and operates the tax filing firm Buckeye Tax, the investment advisory firm Investment Network and two businesses at Oakwood Square in Plain Township, the cigar bar OSI and the brewery Spider Monkey. Stroia has not announced any plans as mayor, other then talking with staff and learning more about city departments. Twenty-four others have served as mayor of North Canton. The first mayor was William H. "Boss" Hoover, from 1906 to 1909, when the community was a village known as New Berlin. Three of the 25 served as mayor in two non-consecutive periods. Reach Robert at This article originally appeared on The Repository: Matthew Stroia becomes 25th mayor of North Canton Solve the daily Crossword
Yahoo
9 hours ago
- Yahoo
Palm Coast council sends letter asking DeSantis to suspend or remove Mayor Norris
The Palm Coast City Council has officially sent Florida Gov. Ron DeSantis a letter asking him to suspend or remove Mayor Mike Norris from office. The City Council July 15 had already voted 4-1 to approve a motion to send the letter. During that meeting, the board also censured Norris for the second time in three months. The document, obtained by The News-Journal, points to what the four signing council members describe as the mayor's misconduct over recent months, including 'malfeasance, misfeasance, neglect of duty and incompetence.' Mayor Norris town hall: Palm Coast mayor to host his own town hall, separate from city. FlaglerLive questions access 'As elected representatives and custodians of taxpayer dollars, we are alarmed and concerned by several actions of Mayor Norris,' the letter reads. 'This conduct has forced the Council to take the unprecedented steps of requesting you to suspend him from office for a term you find appropriate under the circumstances.' The letter cites several episodes involving Norris over the past few months, including: An external investigation that found the mayor violated the city charter, interfered with city employees and behaved unprofessionally. The mayor stating from the dais during a public meeting that 'he would no longer be attending meetings for his committee assignments,' and failing 'to attend ceremonial occasions as required by the City Charter.' The mayor's recent lawsuit against the city to remove City Council member Charles Gambaro from his District 4 City Council seat. The four council members argue that Norris' actions have 'irreparably harmed — and continues to harm — the City of Palm Coast and Flagler County,' claiming they 'have cost our residents' tens of thousands of dollars since being elected in November of 2026.' 'We do not take lightly the sanctity of elections, and we hold dear the right of our citizens to elect their representatives,' the letter adds. 'However, Mayor Norris has shown a complete disregard for our City Charter, the importance of governing as one part of a five-member elected body, and the duty to protect and safeguard taxpayer dollars. 'For these reasons, we urge you to take action to immediately suspend Mr. Norris from office and to appoint a temporary replacement to fulfill the duties of Mayor,' the letter concludes. Norris did not immediately respond for comment. This is a breaking story. Check back for updates. This article originally appeared on The Daytona Beach News-Journal: Palm Coast City Council letter asks DeSantis to remove mayor Solve the daily Crossword
