Published: November 13, 2009 12:12 am         

Council OKs bonds for Clabber Girl

TERRE HAUTE — It was a big night for Clabber Girl at the Terre Haute City Council meeting Thursday.

The Terre Haute-based baking products manufacturer asked for, and received, real and personal property tax abatements from the council. The council also voted to authorize the city to allot $3.5 million in special tax free bonds for use to construct a new distribution facility for Clabber Girl.

The 10-year abatements, which passed the council without opposition, are also for the new distribution facility, which will be located at 4780 E. Margaret Ave. on Terre Haute’s east side.

An attorney with the Terre Haute law firm of Wright, Shagley and Lowery sought the tax abatements for Clabber Girl. An attorney with Ice Miller, an Indianapolis law firm, represented the city in seeking the release of the tax free bonds.

The tax-free bonds were made available to Vigo County through the federal stimulus package. City taxpayers will not be responsible for covering the bonds in the event of a default. The bonds merely allow the private businesses to take advantage of tax-free bond issues similar to municipalities. The bonds will save Clabber Girl between 1 and 2 percent in borrowing costs for their planned $4.5 million distribution center.

Also at Thursday night’s regular council meeting, Councilman Norm Loudermilk, D-3rd, asked for an investigation into the issuing of city permits for the construction of two new “double-stacked” billboards on South Third Street.

“I think it was kind of done haphazardly,” Loudermilk said of the issuing of the permits.

Construction on the signs has not yet begun, Loudermilk said. Loudermilk also spoke in favor of tightening the city’s current sign ordinance.

“I think it’s going to be an eyesore,” Loudermilk said of the planned signs, which are planned for 1709 S. Third St. and 910 S. Third St. According to plans, two 101/2-foot-by-32-foot billboards would be placed on a single mount at both locations.

Council President Todd Nation established a “committee of the whole” to investigate the sign permits. The committee will be chaired by Councilman Rich Dunkin, D-1st.

The council is expected to take minor action on the city’s sign ordinance at next month’s meeting. The action would close a “loophole” in the current ordinance, Loudermilk said after the meeting.

Meanwhile, the council also voted 7-to-1 in favor of making the intersection of 27th and McKeen streets a multiway stop in an effort to slow traffic on McKeen.

The City Council will conduct its next “sunshine” meeting Thursday, Dec. 3 in City Hall. The next regular council meeting will be on Wednesday, Dec. 9.

Arthur Foulkes can be reached at (812) 231-4232 or arthur.foulkes@tribstar.com.