In MadJax Lawsuit, Muncie Councilman Also Questions Need For Loan
A Ball State University trustee and non-profit foundation president is suing the city of Muncie for approving a multi-million dollar loan for a makerspace project. As IPR’s Tony Sandleben reports, a city councilman is also questioning where the money for MadJax will actually go.
The MadJax maker’s and start-up space at the corner of Madison and Jackson streets in downtown Muncie was announced in 2015. The next year, it was approved by city officials as a $1 million project that would be self-sustaining. But earlier this month, the Muncie City Council voted in favor of granting the venture $4.5 million.
That’s why George and Francis Ball Foundation President Tom Bracken is suing the city. He’s called MadJax a money pit before. And he’s not alone in opposing the loan. City councilman Dan Ridenour voted against the additional funding for MadJax.
“My concern is even if it is 100% full, it’s still 200,000 short. That $200,000 could be put to much better use, and that’s not just $200,000 one time, it’s $200,000 every year until the loan is paid off”
Ridenour says in addition to the expensive cost, the numbers presented to the council earlier this month did not add up. MadJax’s presentation did not account for $1.7 million, meaning the council did not know what Madjax was going to use that money for when it voted.
Ball State Economist Michael Hicks says makerspace projects like these are becoming obsolete.
“I think it’s fair to say that makerspaces, half of which have closed over the last several years, co-working spaces and incubators are an experiment that the United States has participated in in 25 years. Most communities have had some of these, but they’re on the downswing. There are very few communities that are looking to these as important elements of what they do.”
Bracken is seeking an injunction to stop the additional funding from going through. In addition to running a family foundation, he’s also a Ball State trustee. Ball State is a partner in the MadJax venture and is currently hosting some class projects in the building.
We have reached out to MadJax officials for comment and will update this story.
