9801-07 Appropriation from Motor Vehicle Highway #202 $1,000,000 for Douglas Road Expansion

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1316 COUNTY-CITY BUILDING 227 W. JEFFERSON BOULEVARD SOUTH BEND, INDIANA 46601-1830 CITY OF SOUTH BEND STEPHEN J. LUECKE, MAYOR DEPARTMENT OF PUBLIC WORKS October 2, 2007 Mr. Timothy Rouse President, Common Council Of the City of South Bend 400 County City Building South Bend, Indiana 46601 GARY A. GILOT, P.E. DIRECTOR OF PUBLIC WORKS PHONE 574/235-9251 FAx 574/235-9171 TDD 574/ 235-5567 Subject: Proposed Appropriation of $ 1 million Major Moves funds from Fund 202 for Douglas Road Improvements Dear Council President Rouse: This is in follow-up to the presentation I made at your last Council meeting committee session on this topic (copy attached). We are ready to appropriate funds to move this economic development project to fruition. The City of South Bend is excited to be partnering with Douglas Road Retail Partners, L.P. (Holladay Properties), hereinafter "Holladay" on improvements along the Douglas Road gateway to South Bend. The City, in partnership with Holladay, has designed (through Abonmarche Consultants) and bid plans for improvements to Douglas Road from SR 23 to the Mishawaka City limits (lowest responsible responsive bidder is Brooks Construction). Holladay has worked with us to expedite design and right of way acquisition and provisions for stormwater so that this two lane road can be transformed to two travel lanes in each direction plus center turn lane as needed and two dedicated left turn lanes at SR23 and Douglas. The overall project is $ 2 million with a plan to repay infrastructure loans from the Douglas TIF economic development area taxes. The TIF is anchored by the existing Memorial Home Care building. Holladay is the owner of that $ 4.75 million development with Memorial as the long term tenant of the building and the taxpayer. Holladay has further agreed to construct additional projects in the TIF valued at $ 3.3 million. The taxes will be sufficient to repay the $ 1 million Major Moves loan at 5 % and the $ 1.1 million ($ 100,000 as contingency for transaction expenses if needed) private loan at 5 % through Wells Fargo guaranteed by Holladay. The taxes on the economic development projects in this TIF will repay the loan sources plus interest to enable the infrastructure to be built sooner rather than later. The early action is important to public safety and as a catalyst for this area to develop the way we would all like to see it. The two lane road is in bad shape and has a lack of proper drainage. In this state the road is an impediment to seeing full ENGINEERING ENVIRONMENTAL SERVICES CENTRAL SERVICES STREETS WATER WORKS CARL LITTRELL, P.E. JOHN J. DILLON, PH.D. MATT CHLEBOWSKI SAM HENSLEY JOHN F. STANCATI 574/235-9251 574/277-8515 574/235-9316 574/235-9244 574/235-9322 FAx 574/235-9.171 FAx 574/277-8980 FAx 574/235-9007 FAx 574/235-9272 FAx 574/235-9728 ~~~~