By Kevin Boneske
Staff Writer
HOBART – A motion to proceed with bidding out an extension of Centerline Drive, Founders Terrace and Larsen Orchard Parkway, and authorize proceeding with the borrowing needed to fund that project, as well as the village’s 2022 payment toward the State Highway 29/County VV interchange, was approved Tuesday, Jan. 18, by the Hobart Village Board.
Village Administrator Aaron Kramer said the village’s plans initially called for the work on Centerline Drive to be done this year and Founders Terrace and Larson Orchard Parkway to take place next year, but because of the number of likely development projects to take place in the Highway 29 Business District, “it’s becoming very apparent that we need to accelerate (and) do them all at once.”
Kramer said the estimates he provided the board last year to extend the three roadways increased by around $850,000 because of inflation.
“These are estimates,” he said. “Again, we’re not sitting here tonight saying we must borrow exactly this amount. We’re asking you tonight to authorize going out to bid on an extension of Centerline Drive, Founders Terrace and Larsen Orchard Parkway, and then proceed with the borrowing at the same time, even though we do not know exactly the amount we’re going to borrow.”
Kramer said the village’s last payment of $1,458,782 for the Highway 29/County VV interchange, as part of the village’s agreement with Brown County, is due May 1.
“We’d like to get these (extension) projects kicked out in March,” he said. “(Financial advisor) Brian Della (of PMA) believes that we can have (the borrowing) all wrapped up by the last board meeting in April, so the proceeds are here (to make the interchange payment). In the meantime, he’s also looking at some of our existing debt to see if there’s anything able to be refinanced.”
Kramer said the village could borrow funds with a 20-year note having a call date of 2030 or 2031.
“So, if the TID (Tax Incremental District) has built up enough cash, we just pay off the whole thing at that point,” he said. “Or, you could flip over to the general fund, because, technically, one of these roads (Centerline) is not 100% in the TID. It’s going to be straddling the boundary.”
Kramer said Robert E. Lee & Associates, which provided Hobart with cost estimates for the extension work, included a 10% contingency totaling around $400,000.
“When we get to the final awarding of the bids, I want to have a discussion with the board, if we want to tighten that (contingency) up and pull it back,” he said. “As you can see, I’m not even proposing we borrow all of it. The storm water component, there’s plenty of cash in that reserve account that we can pay cash versus borrowing and putting more onto the village’s debt.”
Figures Kramer provided the board show the estimated $720,498 for the Founders Terrace extension could be funded with TID No. 1 bonding of $657,989 and $62,509 in the storm sewer reserve.
Those figures also show total estimated bonding needs of $5,858,737 for the Highway 29/County VV interchange ($1,458,782), Centerline Drive/Larsen Orchard Parkway extension ($3,741,966) and Founders Terrace extension ($657,989).