MadJax Loan Lawsuit To Be Decided In January

A lawsuit that challenges a multi-million dollar loan to a downtown Muncie makerspace project will be settled by a judge in January.

On Wednesday, both sides met for a hearing in the case, filed in September, by local non-profit executive and Ball State University trustee Thomas Bracken.  Bracken wants to stop the city from giving out an approved $4.5 million loan to the MadJax project.  He says the loan would harm taxpayers and the city.

By mutual agreement, both sides agreed that Wednesday’s preliminary hearing would actually be the case’s final hearing.

Bracken’s Case

Bracken’s lawyers said the loan did not go through the proper channels and was being given to a project that would not be self-sustaining.  They also said the project and its backers withheld accurate financial information from city officials before the city council voted to approve the loan.

Ball State University economist Michael Hicks was one of the witnesses called to talk about MadJax, which he says could be classified as a makerspace, a business incubator, or a co-working space.  Hicks says in his research, he could not find any significant impact programs like those have on the economies they are located in.

Also called to the witness stand was Muncie city councilman Dan Ridenour.  He testified that financial statements he was shown as evidence in the lawsuit were different than the ones he received through the city council to approve the MadJax loan.

Muncie’s Case

For Muncie, Mayor Dennis Tyler and Redevelopment Commission Director Todd Donati testified in defense of the funding.  They say MadJax is essential to economic development in the city and the loan was essential for MadJax to help with that development.

Tyler cited examples of people he had met who personally benefited from MadJax programs.  Donati stressed that MadJax is more than just a makerspace.  He says 35 tenants already in the building would suffer if the loan did not go through.

The presiding judge from Hamilton County Superior Court gave both sides until December 13 to submit closing arguments.  He said he would make his final ruling sometime in January.

Lawyers for both sides told reporters they advised their clients not to speak to the media.