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
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.
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.
John Schnadenberg was hopeful that the bulk of the bond projects could be
completed this season.
* 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.
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
* 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
* West Porter Ave.
from 15th Street to 23rd Street.
* The municipal
parking lot at Broadway and Eighth Street.