By Press Times Staff
LAWRENCE – The state Board of Commissioners of Public Lands has approved the Town of Lawrence’s application for a State Trust Fund loan for up to $3,875,000.
Town administrator Patrick Wetzel said the loan will fund the Hickory Road reconstruction project and the Carpenter Crossing South residential development and utility extensions.
“The loan itself is for a term of five years at an interest rate of 3.75 percent,” Wetzel said. “We anticipate annual payments on the loan until it is due in full at the end of the fifth year. However, there is not an early payoff penalty.”
Wetzel said the Hickory Road project has an estimated total cost just above $1.4 million, and is anticipated to be completed by November of this year.
“We’ve been awarded a (Wisconsin Department of Transportation Town Road Improvement Program) grant in the amount of $458,548 to assist in funding this project, which involves reconstructing and widening lanes/shoulders on Hickory Road between Lawrence Drive and the (Canadian National) railroad tracks,” he said.
Wetzel said the Carpenter Crossing South projects have an estimated total cost just above $2.4 million.
They involve the extension of town water and sanitary sewer as well as upgrades to utilities along Lawrence Drive to prepare for future development and sewer needs along French Road, which the town anticipates will be out for bid in the coming month.
“The Carpenter Crossing South development is being constructed for CCLW, LLC, and will offer single-family home lots, single condo units, duplex lots and 32 multi-family units,” he said. “The town is also constructing a regional storm water pond in this area as part of this project. Upon completion of construction, costs for improvements will be assessed against lots/units in the new development and would be payable back to the town upon sale of lots by CCLW.”
In addition, Wetzel said the upcoming French Road infrastructure projects, which have a working title of Lawrence Parkway with the main road having that name, will involve the completion of the town’s water main loop to connect the existing water supply with the existing homes along Lawrence Drive, which will include the Carpenter Crossing South area.
“We anticipate the water main loop will be completed this year,” he said.
Because of the amount of construction costs for both the Hickory Road and Carpenter Crossing South projects, Wetzel said the flexibility in payment terms with the state Trust Fund Loan, and the expected cash flow to the town resulting from the DOT TRIP grant funds and Carpenter Crossing South assessments due upon sale of lots, the town anticipates being able to pay down and/or refinance the State Trust Fund loan earlier than the five-year term.
Local units of government may apply for a State Trust Fund loan to finance projects that serve a public purpose.
Interest income generated from the State Trust Fund Loan Program is the primary source of funding for public school library aids in the state.