Hobart to take second look at tax break for medical/office center

2013-07-17T21:30:00Z 2013-08-15T14:08:06Z Hobart to take second look at tax break for medical/office centerDeborah Laverty deborah.laverty@nwi.com, (219) 762-1397, ext. 2223 nwitimes.com

HOBART | The City Council agreed Wednesday to table and take a second look at a tax abatement request for a $3 million medical/office center.

The abatement request, which the City Council approved at its June 19 meeting, will be reconsidered at an Aug. 7 meeting.

The 10-year tax abatement request narrowly missed being tabled at the June 19 meeting after several council members said they wanted appropriate traffic requirements in place.

City Attorney Anthony DeBonis, who didn't attend the June 19 meeting, said Wednesday the conditional action taken by the council June 19 wouldn't hold up legally.

"Unfortunately, that resolution granted abatement on conditions yet to be negotiated and unfortunately that's not lawful," DeBonis said.

No representatives from the development attended the meeting Wednesday. Dr. Barry Ring, who represented the proposed medical center last month, couldn't be reached for comment.

DeBonis said he had communicated with those representing the medical/office center and they were aware of action being considered by the City Council.

Some of the proposed changes the council might add to the new tax abatement agreement include payment of a 15 percent abatement fee and the purchase by developers of adjacent land on 62nd Street within two years.

City Councilman P. Lino Maggio, D-3rd, said he favored tabling the tax abatement request versus just turning it down.

"This would give them (developers) more time to put their ducks in a row," Maggio said.

The City Council earlier this spring unanimously decided to designate property at 6188 Marcella Blvd. as an economic revitalization area.

The second step in the process, a public hearing, was held June 19 for the 28,000-square-foot building, which will be called Hobart Square.

Ring had told the council he will be moving his Hobart-based pain management clinic to Hobart Square and will rent out about 8,000 square feet.

The building will cost about $3 million, Ring said.

Ring said he's had a medical practice in Hobart for 10 years but needs to expand.

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