HOBART — Hobart City has taken a significant step forward in resolving the tax assessment issue surrounding Southlake Mall, which threatened severe cuts in the city’s services. On Tuesday night, local and state elected officials gathered at Hobart City Hall to sign a bond that will help repay tax refunds resulting from property tax assessment disputes. The bond is a result of recent legislation that allows communities, including Hobart, to obtain long-term, low- or no-interest bonds for the purpose of repaying tax refunds.
The tax assessment issue dates back over a decade and has been a constant source of concern for Hobart officials. Dave Vinzant, Hobart City Councilman, referred to it as a dark cloud hanging over the city. In September 2021, the Indiana Supreme Court ruled in favor of Southlake Mall in a property tax dispute, ordering the mall’s valuation for tax purposes to be restored to the 2010 assessment. This decision left Hobart and other mall taxing districts responsible for substantial refunds.
To cover the tax refunds, Hobart initially planned to issue both a general obligation bond and a special taxing district bond. However, this approach would have resulted in high interest rates of up to 6%. With additional bond fees and attorney payments, the city anticipated paying back around $16 million over 10 years, putting a strain on essential services such as police, fire, and public works.
Fortunately, Indiana Treasurer of State Daniel Elliot became aware of the situation and worked with local officials and legislators to find a solution. During the 2023 session, House Bill 1454 was passed, extending the repayment period to 25 years. In addition, the Indiana Bond Bank issued a new 0% interest bond to Hobart, replacing the previous two bonds. This new repayment plan will alleviate the financial burden on the city and ensure that essential services are not affected.
Hobart Mayor Brian Snedecor expressed relief that the city will not have to make cuts to vital services. He acknowledged the support and collaboration of officials across party lines in finding a resolution. Mayor-elect Josh Huddlestun, who will assume office in January, viewed this as an example of government officials coming together to benefit the community.
The signing of the bond marks a turning point for Hobart, lifting the dark cloud that had loomed over the city for years. With the repayment plan now more manageable and sustainable, Hobart can look forward to a brighter future without the fear of service cuts or financial instability.
In addressing the tax refund issue, Hobart has shown resilience and determination, proving that working together can yield positive outcomes for the community. The bond signing ceremony serves as a symbol of hope and a testament to the power of collaboration in overcoming challenges.
