Update on Madjax – City Council to vote Monday

Posted on Updated on

Muncie City Seal copy
City of Muncie Government Seal

Three quotes from the newspaper best explain the public’s complaint against the Muncie Redevelopment Commission and the City of Muncie’s request for $4.5 million dollars in financial support of Madjax.

“These much-needed revenues, which should be used for essential city services, will be diverted to subsidize this project that is not for the public utility and benefit.” Tom Bracken (remonstrance)

Gregory said this week that the project was “a non-profit that has too little history to make it viable for the 23 years of the bond’s life.”

Ridenour said that Tyler is “within his scope” to use EDIT funds for the building. “The project has some merit but I would prefer to see it occur over time so that it is self-supporting.” Remonstrance, question Muncie Star Press 9-8-17

Indeed, our tax dollars should go to provide essential city services.   The city is at the highest tax levy we have ever seen.  Mayor Tyler and Muncie City Council passed LOIT and increased EDIT tax in 2015 at the highest percentages.    Currently, the city is paying attorney fees and we have no idea of the financial cost.    Yet, according to a previous article, Madjax will use a portion of this bond to pay off their debt liabilities.

According to a previous article, Madjax will use a portion of the bond to pay off their debt liabilities.  Should Madjax fail to have enough revenue, then city tax dollars will pick up the shortage.  Certainly, this is not a financially sound move for the city tax payers.

Nora Powell resigned from the board because it is a conflict of interest.  Last we heard, Todd Donati sits on the board of Sustainable Muncie and is the Economic Development Director.  Would this not be a conflict of interest?

A remonstrance has been filed

Nora Powell Muncie City Council resigned from Madjax board citing conflict of interest

Linda Gregory Muncie City Council cited lack of requested information

Madjax assets $2.4 million (includes building at $2.4 million)

Madjax debt $1.7 million

Revenue for 2017 $168,817

In 2016 the City of Muncie earmarked a loan for $1 million for what then was known as Gearbox.   Tyler told The Star Press he wanted to loan $1 million in EDIT revenue to the group rather than just give it to Sustainable Muncie to create an obligation to be repaid. The loan is supposed to be repaid by the end of 2016. City council split on Gearbox loan

Interested in Muncie and MSD end of year debt? Got it!

When Madjax first came on the scene it sounded pretty cool.  This was before board members resigned, and the city offered to support with tax dollars.

Just a reminder, the City of Muncie passed an increase in taxes EDIT and LOIT in 2015, effective January 1, 2016.

.

Stop gambling with our money.

 

Muncie City Council Meeting

Muncie City Hall

Monday September 11th

7:30 PM

 

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