The old Tokheim plant will stay up, for now.

Planners with the city's neighborhood stabilization project told the

Washington City Council on Monday there was not enough time to buy the

building and tear it down.

Developer Andy Myszak said that the city was awarded a $4 million grant

almost a year after it should have been, and the federal government would

not allow the city to extend its deadline.

Thus, there was not enough time to complete an environmental study and

finish negotiations to buy the building.

"We have to have all these funds allocated by September," Myszak said. "So

we are under a very tight, tight timeline."

In its place, Myszak said, will be a nine-acre tract of land at 1205 Maxwell

Ave., northwest of the Tokheim plant, that could house 10 multifamily

homes.

Mayor Larry Haag said the change allows Tokheim to still be used as a

business.

"At the same time, we will be reapplying for additional monies to do this

project," Haag said. "The problem is the timelines in a year and we don¹t

have the time to accomplish the environmental study.

"When we applied for this, we felt very comfortable that we could get this

done in two years. But when (the state) came back and we lost all those

months, we could not do it."

But no homes will be built on Maxwell Avenue yet. Myszak said the original

$4 million grant is to build 10 new homes and renovate 10 other homes around

the Tokheim neighborhood.

"It's been very exciting," Myszak said. "We are starting to move forward on

this."

Bids being sought for contractors are due June 11. Four plans have been

drawn up for the type of mixed-income homes to be built.

The proposed Maxwell Avenue project, dubbed the Westwood Crossing

Development, is to be funded using tax credits. The process for the credits

will be started in November.

Myszak said an added phase of the project could be to purchase the building

and put more homes on the site.

Haag said the Tokheim property is not a bad property, but there was not

enough time.

In other business

BUDGET STUDY

The council voted 7-0 to allow Haag and Clerk-Treasurer Elaine Wellman to

study proposals from two firms wanting to present budget cutting

suggestions.

Two firms, H.J. Umbaugh and London Witte group, had submitted proposals to

study city finances and help with the city's $1 million budget shortfall.

Umbaugh's price was not to exceed $15,000 while London Witte said it would

do the study for less than $9,500.

Haag said London Witte submitted its proposal Monday morning and there was

not sufficient time to review its objectives. Council members gave Haag and

Wellman the authority to choose between the two but gave suggestions.

"Fifteen thousand is a lot when you are trying to save money," Council

member Tom Baumert said.

DOWNTOWN PROJECTS

The Board of Public Works and Safety awarded the construction of new

sidewalks downtown to Huntingburg-based Craftsman Construction after it

turned town the lowest bidder.

The board turned down the bid of Quality Craft construction after the

engineer on the project said the company has had problems with other cities.

Matt Wallace with Bernardin, Lochmueller and Associates, the engineer on the

project, said Quality Craft was released as a contractor during a project in

Newburgh.

"They don't meet the definition of a responsible bidder," Wallace said.

Alan Reedy with Quality Craft defended his company, explaining what happened

at Newburgh was not the fault of his company but the city.

"Some of these accusations I'm learning (Monday) are the first time I¹ve

ever heard of them," Reedy said.

Reedy said the company is already in projects with Princeton and Loogootee

and could do the job.

"We do not feel it's fair for the taxpayers of Washington to pay 10 percent

more because of what one person says," Reedy said.

The Quality Craft bid was $327,400 while Craftsman's bid was $363,150. The

sidewalk project is being paid for with a state grant.

Main Street recognition

Before the board met, the Daviess County Economic Development Foundation

presented a plaque to the city employees who put in the new streetlights on

Main Street and at Washington High School. The plaque was in appreciation of

their efforts.

"(This project) was a real good cooperation between the Economic Development

Foundation, the Chamber of Commerce and the city," DCEDF Executive Director

Ron Arnold said.

WATER LEAKS

Discussed during both the council and board meetings was the city's one-time

water leak adjustment policy.

City Attorney Jeff Norris said after reviewing state law, a leak has to be

underground and evidence has to be shown for a utility to give a resident a

break on a high water bill. An in-house problem, say a leaky water heater,

is not eligible.

The review was asked for after a resident came to the council after she

received a high water bill and no leak was found.