Relief aid spending plan draws criticism
Residents raise concerns as Valparaiso City Council approves resolution using $5 million in ARPA funding to pay for new indoor sports complex
A Valparaiso City Council-approved resolution for spending $7.6 million in funds allotted to the city from the American Rescue Plan Act (ARPA), has residents and one council member requesting reassessment of how the money should be used.
The $7.6 million provided to Valparaiso by Congress is part of a $19.53 billion assistance package from the Coronavirus Local Fiscal Recovery Fund. Earlier this year, the federal government provided the final guidance and clarification for eligible expenses, with an emphasis that funding should be used to compensate essential workers performing necessary work during the pandemic and to “build a strong, resilient, and equitable recovery by making investments that support long-term growth and opportunity.”
During a three-hour city council meeting March 28, including more than two hours a heated public comment from residents, among concerns expressed was that $5 million of the funds appropriated will be used to pay the price tag for previously purchased property to build a new indoor sports complex.
Following the public comment portion of the meeting about the proposed resolution, the council approved the designated spending, as outlined at the start of the meeting and as presented by Valparaiso City Administrator Mike Jessen. The resolution and spending plan passed by a vote of 5-1, with only Councilman Robert Cotton, D-2nd, voting in opposition. Council member Evan Costas was absent from the meeting.
“In creating this road map for how city government will utilize ARPA funding, we’ve considered more than 2,000 responses from residents over the past two years, expressing their thoughts about needs and wants for the community,” Valparaiso Mayor Matt Murphy explained in a statement.
“These responses include an online portal created specifically for thoughts on ARPA funding. This plan reflects expressed community priorities and complies with the guidelines we have been provided for use of these dollars. And while we’ve all been deeply
affected by the pandemic, it’s undeniable that our youth and seniors have been impacted most significantly. This plan also addresses their challenges, supporting projects and organizations that support long-term growth and opportunity.”
The Valparaiso City Council proposed plan for ARPA funding allocates $600,000 in funds for premium pay for eligible city workers who performed essential work during COVID-19 and $575,000 for a select small number of nonprofit organizations dedicated to serving Valparaiso residents. Organizations include Respite House, Boys and Girls Club of Greater Northwest Indiana, Hilltop Neighborhood House, Caring Place, Opportunity Enterprises, Dressed for School and MAAC Emergency Services Training.
The majority of the ARPA funds, roughly $6.5 million is allocated to projects that are part of the City’s Valpo for All Generations initiative, which will include a 248-acre park and community sports complex on the east side of Indiana 49, as well as a new Adult Center for Enrichment constructed on North Calumet Avenue, near the current Pines Village Retirement Community and Valparaiso Family YMCA.
“We’ve worked to balance needs and support organizations that serve Valparaiso,” Murphy said.
“We found Valparaiso has many good and worthy organizations. Many creative ideas. After compensating our essential workers, we’ve chosen projects and organizations that will have the greatest positive impact. Projects and organizations that will greatly serve current and future generations.”
Deb McLeod was one of more than two dozen residents voicing concern about how the funds were divided.
“We’re the taxpayers and we should be able to ask these questions,” said McLeod said, addressing the council and referencing amounts, such as the $50,000 provided to The Caring Place and other nonprofits, as “embarrassingly low.”
“I know people who work at the U.S. Department of Treasury, and after talking to them, your new (planned) park is not part of what ARPA funds are for. It doesn’t qualify for any these funds,” she said. “You’re giving a pittance to these charities and nonprofits that support everything and everyone in this town that isn’t rich. And then you’re going to spend more than $5 million, which I understand your Redevelopment Commission has already spent that money purchasing the land before these funds were available and the portal process had opened for comments, and all this for a new park?”
Jessen said the city has already received half of the ARPA funds and the second half is expected to be available in May. He said the city has not spent any ARPA funds to date, nor were consultants hired to create the spending plan presented. He said the plan was reviewed by City Attorney Patrick Lyp, who sought legal input from ARPA experts. Lyp reported to the council and those gathered at Monday’s meeting that the plan complies with all ARPA regulations.
The full proposed plan is available on the City of Valparaiso’s website, Valpo.us on the City Council page.
On Wednesday, March 30, Michael Mirochna and the Valparaiso Democratic Committee challenged the resolution and spending plan approved by the Valparaiso City Council, through a news release and statement posted on social media.
“This Administration prioritizes parks over the poor,” Mirochna said.
“The Valparaiso Democratic Committee has reviewed this ARPA plan and we have many questions, as do Valparaiso residents,” the Democratic committee wrote. “The Parks department land has already been purchased by the City of Valparaiso Redevelopment Commission. The City of Valparaiso does not need to use almost $5 million of COVID relief funds to buy the Park Property Parcels, as the RDC has already purchased them. They agreed to purchase the land per Jan. 20 meeting minutes and then actually closed on the land on Feb. 16, 2022.
“For those who do not know, the RDC is the Redevelopment Commission and they receive their money from tax revenue from properties that reside in a TIF (tax increment financing) District. The City of Valparaiso should employ further public discussion of this hastily shared plan that has in fact, been ‘in the works’ for many months.
“We need to use COVID relief funds for the suffering that was caused by COVID in this community. The Mayor, City Manager and each Council Member should be hosting town halls and workshops, like Councilman Cotton, to improve the outreach and brainstorming of ARPA fund delivery.”