CEDAR LAKE | The Town Council has moved a step closer to the second phase of the West 133rd Avenue project while consolidating its financial position.

The council agreed Tuesday to issue bonds not to exceed $2.8 million. The money will pay for $1.3 million borrowed in 2007 for the first phase of West 133rd Avenue, as well as $510,000 for the Wicker Avenue project.

"This is somewhat time sensitive," Town Attorney David Austgen said, pointing to the Dec. 1 due date for the $1.3 million loan. "You couldn't pay it without additional capital financing."

The Cedar Lake Redevelopment Commission approved the bond issue Monday.

The $2.8 million will also fund design engineering for the second phase, as well as related costs.

Town Administrator Ian Nicolini said the next step will be selecting an engineering firm.

The second phase of the project on West 133rd will run from U.S. 41 to the point where the first phase ended, near Industrial Drive.

Austgen said the decision to move on a $2.8 million bond issue came after a meeting two weeks ago between the council, the Redevelopment Commission, the town Plan Commission and representatives from London-Witte, a financial consulting firm.

The unified redevelopment district encompasses U.S. 41, around Lake Shore Drive and south on Morse Street, Nicolini said.

"The economic development district is that entire stretch," he added.