6. H (1) Douglas Road Staff Report

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6.1. 0. ( f ) , ( Z) Staff Report Douglas Road Widening Project 1/13/09 When the Douglas Road Economic Development Area was established in 2006 it was for the purpose of stimulating development along Douglas Road and eventually improving Douglas Road to 5 lanes to match the 5 lanes coming out of Mishawaka. Develop has and continues to occur, and is in need of the new 5 lane Douglas Road. The area to be widened is from SR23 east to the 5 lanes coming out of Mishawaka. Financing has been arranged through an Inter -Local Agreement approved by the Common Council on 1/12/09. This Agreement provides for a loan of $1,150,000 from Mishawaka to be repaid from TIF over 20 years at 5% interest. Mishawaka will also provide a cash contribution of $250,000 for the portion of the project which is within Mishawaka's City limits. South Bend is providing $1,000,000 of Major Moves funds to be reimbursed from TIF over 20 years at 5 %. South Bend will also be providing $700,000 from sewer capital. Total Funding is $3,100,000. TIF revenues from Douglas Road are being pledged for the repayment of the $1,150,000 Mishawaka loan and the reimbursement of the $1,000,000 of South Bend Major Moves funding. An Agency Agreement between Redevelopment and the City of South Bend's Board of Public Works is also needed due to TIF being used to repay Mishawaka and reimburse South Bend. The Board of Public Works will handle all bidding, contracting and oversight of construction. The Controller has said the Mishawaka funds should be deposited into the Douglas Road TIF account, then used to make payments for the Project. This means we will need to do an additional appropriation of the $1,400,000 coming from Mishawaka. Accordingly, we are presenting an Appropriation Resolution and setting a public hearing for 2/6/09. Staff recommends favorable consideration by the Redevelopment Commission.