Chesterton Tribune

 

 

$1.5 million bond issue to fund paving projects in Chesterton

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By KEVIN NEVERS

A proposed $1.5 million general obligation bond to finance a re-paving package will add an estimated liability of $32.45 per year to a Town of Chesterton homestead.

That from Town Attorney Chuck Lukmann, who at the Town Council’s meeting Monday night announced that the bonds will in all likelihood be purchased by the Porter County Treasurer’s Office, in what will amount to a five-year loan with an interest rate of 2 percent.

Members voted 5-0 to approve on first reading an order which authorizes the issuance of up to $1.5 million in general obligation bonds for a roadwork package.

Members also voted 5-0 to retain Shanahan & Shanahan as bond counsel, at a cost of $7,500; and the London Witte Group as financial consultant, at a cost not to exceed $20,000.

Lukmann explained the terms of the bond sale in this way:

* The Porter County Treasurer’s Office, under Treasurer Mike Bucko, will lend the town $1.5 million, at an interest rate of 2 percent, over five years.

* Under Indiana Code, the town must nevertheless still hold a sale, at which it is only just barely conceivable that some other lender might offer a lower rate of interest than 2 percent.

* Of the $1.5 million, $500,000 or so will be used to re-pave roads actually in the tax increment financing district or otherwise connected to roads in the TIF district. Those jobs will accordingly qualify as TIF projects and the Redevelopment Commission will pay for that work with TIF moneys.

* Chesterton property taxpayers will be on the hook for the balance of $1 million. Lukmann estimated that the owner of a homestead valued at $200,000 will pay $32.45 more per year over the bonds’ five year lifetime. The owner of a commercial property valued at $100,000 will pay $32.20 more per year.

“In the long run we’ll be ahead of the game,” said Member Jeff Trout, R-2nd. “We’ll get the roads repaired now, rather than watch them crumble and fall apart.”

Trout added that the real problem was the severity of the past winter. “It’s not something we’ll be doing every five years,” he said.

“If we don’t do it now, it will only cost more later,” added Member Jim Ton, R-1st.

Street Commissioner John Schnadenberg was hopeful that the bulk of the bond projects could be completed this season.

The Projects:

* 23rd Street from Washington Ave. to 1100N.

* Municipal parking lot at the Park Department off 23rd Street.

* 1050N from 200W to Ind. 149.

* Crocker Street.

* 1050N from Fifth Street to 11th Street.

* West Morgan Ave. from 19th Street to 23rd Street.

* South 21st Street north of West Morgan Ave.

* Jefferson Ave. from Second Street to Fifth Street and from 10th Street to 15th Street.

* Pearson Road from just north of Niblick Ave. north to the town’s corporate boundary.

* 19th Street from West Porter Ave. to Washington Ave.

* Fifth Street from West Porter Ave. to 1100N.

* Jones Court.

* Wren Court.

* Read Drive from Water Tower Drive to Wren Court.

* 11th Street from 1100N to 1050N.

* Westchester South: Louisa Lane from Fifth Street to Primrose Circle, Grace Lane, Gladys Lane, and Olivia Court to the cul-de-sac.

* 18th Street north of West Porter Ave. to West Morgan Ave. and West Morgan Ave. from 18th Street to South Jackson Blvd.

* Windridge Drive.

* Fox Point Drive on the north side of Chestnut Blvd. from east to west.

* 18th Street from Wood Street south across Broadway to the dead-end and then around the apartments in the alley and back north to 18th Street.

* East Indiana Ave. off South Calumet Road, including Lois Lane and the parking lot behind the business block.

* East Morgan Ave. from South Calumet Road to Wilson Street.

* North Calumet Road form Woodlawn Ave. to Taylor Street.

* Grady Street east of North Calumet Road by St. Patrick Catholic Church.

* Brown Ave. from North Calumet Road to Third Street.

* Michael Drive from Roberts Road to Ironwood Court.

* Water Tower Drive.

* West Porter Ave. from 15th Street to 23rd Street.

* The municipal parking lot at Broadway and Eighth Street.

 

 

Posted 5/13/2014