Hobart boards discuss joining sewers to road work

2013-10-24T19:00:00Z 2013-12-11T21:05:13Z Hobart boards discuss joining sewers to road workDeborah Laverty deborah.laverty@nwi.com, (219) 762-1397, ext. 2223 nwitimes.com

HOBART | City officials have been asked to consider adding a $3 million sewer line and regional lift station to the final phase of the 61st Avenue road improvement project.

Mayor Brian Snedecor, who chaired Wednesday's joint meeting involving four boards, said the purpose wasn't to take a vote but to present information to everyone at the same time.

"Phase three of the 61st Avenue improvement project is one of the city's gateways. This is a very big step for the city," Snedecor said.

The city is on schedule to begin the third and final phase of improvements to 61st Avenue in spring 2015.

Those improvements would begin at Arizona and end at Ind. 51. Estimated cost of the third phase is $13.9 million.

City Engineer Phil Gralik and other officials said installing the sewer line along 61st Avenue during the road improvements would save the city money in the long run.

Gralik estimated the savings to the city of about $100,000 a year because the city could eliminate about 10 lift stations.

The savings would be realized because those 10 station wouldn't have to be maintained or replaced.

Gralik estimated the cost to build the sewer line and lift station would be significantly higher, around 50 percent, if installed after the 61st Avenue road improvements are completed.

Although no vote was taken at the joint meeting, several officials voiced approval.

Redevelopment Commission member Carla Houck, who lives on 61st Avenue in the phase three area, said she would favor all the work being done at the same time.

"If we're going to be impacted, I'd rather it be all at she same time," Houck said.

Matt Eckerle, a financial adviser with Umbaugh and Associates, said the cost of the sewer line and lift station could be paid through a lease rental revenue bond.

The city would need to create a three-person regional development authority to issue the lease rental bond, Randy Rompola said. He is a legal counsel with Faegre Baker Daniels.

Proceeds in the city's Tax Increment Finance District would be used to pay back the bond, officials said.

Director of Development Denarie Kane said several more steps need to be taken before the sewer line and lift station becomes part of the project.

Those steps include endorsement by the City Council and the Board of Public Works. 

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