The planned extension of 129th Street from Cleveland Street to Ind. 55 in Crown Point is expected to be completed by fall 2014, a developer told Crown Point officials.
The street extension is part of plans to build out the Regency subdivision in Crown Point.
Storm sewers and water mains already are in place along the route, city officials said.
A $500,000 bond posted by the developer to cover the cost of the work was approved by the Board of Public Works and Safety.
The bond had been set at $1.8 million before the board approved reducing it to $500,000, which is adequate to cover the cost of the work, city officials said.
The bond also will cover the cost of constructing sidewalks along 129th Street and installing streetlights, said Pete Manhard, who represents the Regency subdivision.