Portage Mayor Austin Bonta and members of the Porter County Council aren’t happy with Governor Eric Holcomb’s removal last week of the city’s pick to serve on the Regional Development Authority after just three weeks into what was expected to be a four-year term.
The RDA was formed in 2005 to make Northwest Indiana economically vibrant through a focus on rail and air transport, the Lake Michigan shoreline, and related economic development. Portage is home to one of about 10 transit development districts within the three counties the RDA serves: Lake, Porter and LaPorte. The Portage TDD is a prime spot on the north side of the city that overlaps with a tax increment financing district the city set up.
State officials cite a switch in the law dating back to 2021 changing the appointment from alternating between Valparaiso and Portage picks to one made by the governor. Bonta said he was informed by the office of State Sen. Rodney Pol Jr., a Democrat representing District 4, that there was no author associated with the change as it appears language was added when the budget bill went to conference.
“The fact that it’s not known who put the language in the law when it changed is very concerning to me,” said Bonta. “I would just really appreciate the opportunity to talk to them to understand why this law was changed.”
Bonta said he was notified in March that Valparaiso’s four-year term would soon be coming to an end and requesting his nomination of three individuals for the post by April 30. He reported to the council at the end of its Tuesday evening meeting that he was asked to nominate people with at least five years of experience in rail or air transportation, regional economic development, or business and finance.
He said he was even reminded on April 22 that his nominations were still outstanding. Bonta, who is in his first year as mayor, nominated real estate agent Brent Wright, Portage Redevelopment Commission member Greg Lach, and businessman Frank Farkas who has served on the Portage Board of Zoning Appeals and is a current member of the Portage Board of Works.
By mid to late August Bonta said he was the one making inquiries about whether any of his nominees had been selected. On August 23 Farkas was informed he was the governor’s pick.
However, on Monday he received a call that his appointment had been rescinded. Holcomb instead chose Chris Campbell, who most recently served on the RDA as the appointee of Porter County government but whose term was allowed to expire. Campbell was replaced in the Porter County appointment by Todd Elliott who was sworn in Thursday.
“We thought he had very good qualifications,” Cris Johnston, director of Indiana’s Office of Management and Budget, said about retaining Campbell. “We went with Mr. Campbell because of his tenure.” Campbell is president and CEO of the Centier Bank holding company and a member of the board of directors.
“We did talk to the RDA about it, about those potential names,” Johnston said of the Portage nominees. RDA President and CEO Sherri Ziller said her office learned of the replacement of Farkas late last week.
County Council Vice President Red Stone, R-1st, said the RDA should have used its influence with the state to push the Portage nominee.
“I think they could have fought for Austin’s pick. I wouldn’t sign an MOU (memorandum of understanding) with the RDA until I get representation. He (the governor) could have seated Austin’s pick which I think would have shown a great olive branch,” Stone said.
“We don’t select our board members,” Ziller said. “Our board members are at the pleasure of the appointing authority. Our practice has been not to try to influence the appointment of board members.”
Bonta said representation is imperative since money for the TDD doesn’t go directly to the city, but rather to the RDA. “How do we know that the money will be used in a way that matches our city’s vision and our goals?” he asked. “I feel like other cities of comparable size get more respect than this.”
For county officials, the irritation over Farkas’ removal comes after council members already have been discussing the need to hear more feedback from their RDA representative in the future. At recent meetings, the council has talked about requiring Elliott to give formal reports once or twice a year, along with a standing invitation for him to address the body on its interests at the RDA at any time.
“I guess the issue is that we pay $3.5 million off the top of our LIT (local income tax) that we collect,” pointed out Councilman Jeremy Rivas, D-2nd, on Tuesday. “Of that $3.5 million I don’t know how much comes from Portage Township,” he said of his district, “but to have this voice removed . . . If the law changed, why wasn’t their (Valparaiso’s) appointment removed when the law changed?”
He said the impact of the Portage TDD is massive. Councilman Andy Vasquez, R-4th, pointed out that Campbell was the former pick the county replaced. “Who does he know?” he asked. “Why is the voice of the people not being heard at the state level?”
Shelley Jones is a freelance reporter for the Post-Tribune.
