By KEVIN NEVERS

When, in April, the Chesterton Town Council annexed the first phase of the property formerly known as the Olson Farm–located at the terminus of East Porter Road immediately east of C.R. 250E (Friday Road)–a fiscal plan prepared at the expense of the petitioner, Olson Farms LLC, by H.J. Umbaugh & Associates, signaled the Town Council’s intention to file an excess levy appeal of $264,651 to defray a portion of the estimated $602,758 it will cost annually to provide municipal services to the annexation area.

An excess levy appeal is a request to collect more property taxes than the annual increase allowed by law.

Now, it turns out, the Town Council actually intends to file an excess levy appeal of exactly twice as much, $529,302.

That, according to an “executive summary” of the fiscal impact of both phases of the Olson Farm annexation, apparently provided to the Town Council by Umbaugh.

That executive summary does not indicate why Umbaugh feels a doubling of the contemplated excess levy appeal is necessary, particularly since the cost of serving the second phase of the annexation area, the easternmost 65 acres, would appear to be subsumed by the cost of serving the first phase, the westernmost 67 acres.

The Town Council did not address the executive summary at its meeting Monday night. It did vote 5-0 to adopt a fiscal plan for the second phase of the annexation. It then voted 5-0 to approve an annexation agreement with Olson Farms LLC for the second phase. That agreement, Town Attorney Chuck Lukmann said, mirrors the annexation agreement for the first phase:

•Olson Farms LLC, whose principals are Vlad and Eric Gastevich, will donate 20 acres of land, located in the area of C.R. 1050N and C.R. 250E, to the Parks and Recreation Department as a “catalyst” for a park east of Ind. 49, exceeding the minimum donation required under Town Code by 13 acres.

•The Gasteviches will pay any parks and recreation impact fee which may be enacted, in addition to the donation of the land.

•The Gasteviches will make a $200 per unit payment to the town–totaling $68,400–to defray the cost of acquiring new equipment to serve the subdivision.

Members then voted 5-0 to approve on its first reading the ordinance annexing the second phase, then 5-0 to approve it on its second reading.

Finally, members voted 5-0 to approve an amendment to the ordinance annexing the first phase, 5-0 to suspend the rules, then 5-0 to approve that amendment on final reading. Lukmann said that the amendment was necessary to correct a number of minor so-called “scrivener’s errors.”

The Gasteviches have proposed the construction of a 360-unit single family subdivision, of varying house styles and lot sizes, in four “blocks.” It would be permitted as a planned unit development, which gives the Advisory Plan Commission the maximum degree of control over its design.

Posted 7/10/2007