City still considering business licenses

PORTAGE: No decision on cost or when new fees could be implemented

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PORTAGE | The city is still considering a requirement for all businesses to obtain a license to operate in the city, but are still studying how and when to implement the program and what to charge businesses.

Earlier this year, the City Council Ways and Means Committee passed on a recommendation that the city should require licenses of all businesses operating in the city. Members said a license would assist the city in gathering information about businesses, where they are, what they do and what materials they store. They suggested a flat fee of $50 per business.

At last week's City Council Ordinance Committee meeting Building Department Assistant Judy Alvey, who has been studying the issue, reported to the committee that some municipalities, such as Gary, charge a flat fee, while others charge a range of fees from $45 to $400 and still others, such as Valparaiso and Fort Wayne, have no licensing requirements.

Alvey said a preliminary count indicates that 1,100 businesses would have to get licenses. The new policy, if adopted, would only pertain to businesses which are not already licensed by the city. Contractors and taxi cab companies are already required to obtain annual licenses.

There was some concern about how much to charge businesses.

City Councilman Ted Uzelac questioned whether a fee would end up hurting the city by discouraging businesses to locate in the city.

Council member and Committee Chair Liz Modesto said she didn't believe the fee should be "exorbitant" but viewed the licensing as a method to keep track of businesses.

Members discussed either a flat fee or a sliding fee scale based on the type or size of business.

Members also said it could be next year before the licensing is implemented because the city must obtain computer software for the program.

Alvey said she'd like to see it implemented in June. She said they already license hundreds of contractors beginning in January and if businesses were required to have licenses at the same time of year, it could overwhelm the department's staff. Issuing licenses mid-year, she said, would allow them to do contractors first and then tackle businesses.

The committee asked Alvey to continue gathering information on the issue and report back at the next meeting.

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