Property tax cuts championed by the state are forcing Beech Grove councilors to make difficult decisions.
The issue has come up during the approval process for both a school and a church, which don’t pay taxes. In both cases, city councilors openly wondered whether they should approve land zoning changes to allow for the projects or instead wait for a tax-paying business or person to show interest in the property.
So far, a majority of councilors have been voting to move the projects, but it’s also clear such decisions are becoming increasingly difficult.
The trade school was OK’d for 1825 Albany St. by a 5-2 vote in February 2025 after councilors decided it was important to provide more educational opportunities for the community. The two no-votes, though, were worried about the strain on city services. Cities throughout Indiana, which use tax dollars to pay for things like policing and road and park improvements, have been straining under the 2025 statewide tax cuts.
The seven-member Beech Grove council has already given up raises and tightened the city’s budget last year as it prepares for a shortfall between $600,000 to $1.2 million due to the state-led property tax cuts. Councilors also increased residents’ sewer rate last year despite pleas from neighbors. They also will vote on a $25 wheel tax in August.
“I can’t see it in my mind anywhere why Beech Grove needs to give up valuable tax-assessed property for a trade school that really, there’s a dime a dozen around,” Councilor Michael Hemmelgarn, a Republican, said during the rezoning hearing last year.
And more recently, the council voted 4-1 after much debate earlier this month to approve a church on South 25th Avenue. Again, the concern was taxes.
A new southside church
The Rev. Brandon Sims, the pastor of The Apostolics of Beech Grove, wants to build a permanent church home in the southside city, providing family-centered ministries, community outreach and other worship services.
To do so, he and his wife, Daylin Sims, filed a rezoning petition to allow for religious use at a 5-acre area at 233 and 243 S. 25th Ave. The properties, owned by Robert Steven Dunlap and Cathy Sue Chappell, each have a home on the plots that are down the street from two other religious venues. But Brandon Sims, who wants to support “the upcoming generation that’s quickly fallen by the wayside,” said there can never be enough churches.
“We believe that people come from different aspects of life, and sometimes we can reach people in ways that maybe someone else can’t,” Sims said during a July council meeting. “We are all unique individuals and we have been called for such a time as this.”
Community members are also concerned about the city’s financial future. Daphne Bunch said she believes in God, but she doesn’t want the property’s classification to change for a group that won’t contribute financially to the city.
“If they’re tax exempt, where are we going to make up that money?” asked Bunch, who has lived a few doors down from the property for about 36 years. “Because we will have to make up that money somewhere, and that means the rest of the citizens in Beach Grove will have to make up that money.”
Taxes aren’t the only thing being questioned. Some Beech Grove residents are concerned a new development won’t be in the best interest of the neighborhood. Residents say they already deal with loud music from nearby churches and speeding drivers, and fear Sims’ sanctuary will add more noise and traffic.
“I understand what the remonstrators have come up and said: We keep bleeding money, we keep losing tax base, and it is hard,” said Councilor Ryan Matkins, a Republican, trying to appeal to both sides. “Like you had said yourself, we want to be here for future generations.”
Matkins and fellow Republican Councilor Chris Duffer recused themselves, saying they have personal and working relationships with one of the property owners. Councilor Mike Earnest said he voted against the project because he didn’t want to give up tax dollars or go against the wishes of longtime neighbors near the property.
“These houses are already here,” Earnest, a Republican, told Mirror Indy. “They’re already in place, they’re already producing revenue and now we’re going to lose it even more. So the fact that my fellow peers on the council voted so quickly in favor of the rezoning, and to lose the money, was very surprising.”
Over the past 10 years, Dunlap and Chappell’s combined 5 acres have accumulated $45,884 in property taxes, according to Clerk-Treasurer Samantha Stratton, with a projection to increase to about $64,000 over the next 10 years. That amount would be zero if the church is built.
Some say a new church is worth the loss. Sims said the ministry plans to support people who are struggling with substance abuse and create a website for seniors and home-bound residents so they can request different types of assistance, such as wheelchair ramps and lawn care. Altogether, Sims said the amount of time the church will give to the community will make up for the loss in property taxes.
“It kind of does balance out if you think about it because, as far as in property taxes, they’re very minimal to what we’re actually giving into the community,” Sims said. “I mean, 10 times that amount.”
Taxes are one of the reasons councilors were reluctant to rezone a 4-acre property last year for the nonprofit plumbing school, Mechanical Skills, Inc., because the land would have brought in about $10,000 a year in property taxes.
“I really had no one that was opposed to the school,” Republican Councilor Dan McMillan said before the vote on the trade school last year. “What I had was a lot of people opposed to the property tax, the loss of it.”
What’s next?
Brandon Sims still has a few more steps before he can begin building the church, including submitting a final site plan to Marion County and going through Beech Grove’s board of zoning appeals if the church requests more parking spaces than allowed.
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Mirror Indy reporter Elizabeth Gabriel covers the south side of Marion County. Contact her at elizabeth.gabriel@mirrorindy.org. Follow her on X at @_elizabethgabs.
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