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GOVERNMENT : Policy is debated as a help to businesses that have to pay local property taxes

County could be home to 5 percent business bonus

County could be home to 5 percent business bonus
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CROWN POINT | Lake County officials want to encourage local businesses to go after government contracts -- even if it means the county has to pay more than the lowest bid.

But some region officials wonder if the plan promotes the wisest use of taxpayer money.

The Lake County Council gave tentative approval recently to an ordinance that would give preference to businesses headquartered in Lake County. It would give county officials the authority to buy supplies and services from county businesses even if their price is 5 percent more than the same product or service offered by a business outside the county.

The council has to pass the ordinance for a second and final time before it becomes operative.

County Councilman Thomas O'Donnell, D-Dyer, said Monday he expects to vote against the ordinance when it comes up for second and final reading next month.

"It has got the potential for abuse," he said.

O'Donnell said he had no advanced warning the ordinance would be publicly discussed last week. He said he expects County Attorney John Dull to investigate whether similar preference policies ended up steering government business to politically influential businesses.

Councilman Larry Blanchard, R-Crown Point, said he wants to meet with Dull and a committee of county councilmen before making up his mind.

"I'm 50/50 on this," Blanchard said. "Local businesses pay local taxes, so I'm not against the idea of giving them a break in theory. But I want to hear more details about it before I vote."

The proposed ordinance comes one year after a policy was adopted by the Lake County Board of Commissioners giving a 15-percent preference for small, local businesses doing business with that government board.

Commissioner Roosevelt Allen, D-Gary, said he is investigating whether any businesses took advantage of the preference policy this year. He said he supports local preference because region businessmen told him they shoulder the burden of local property taxes but are being pushed out by larger out-of-state industry.

Copyright 2012 nwitimes.com. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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