Territorial Road/Rush Creek Road utility improvement public hearing set for June 11
Dayton City Council continues to consider various funding options for the utility improvement project on Territorial Road/Rush Creek Road. The project is associated with the proposed Sundance Woods development. Bruce Kimmel, from Ehlers and Associates, who serves as the city’s bonding consultant, presented three funding options to the council at their May 28 meeting.
The overall cost of the project is estimated at $2.32 million. With all three options the city portion of the project would remain at $300,000 but the bonding option would change depending upon the assessments for the properties. No action was taken but the following options were discussed:
SCENARIO 1: In this scenario, assessments on property owners would be set at $331,950 for the water, sewer and road improvements. This would cost each property owner approximately $23,000. Developer’s fees would be approximately $1.46 million and bonding would be set at $262,500.
SCENARIO 2: In this scenario, property owners would be assessed for $75,000 collectively. This breaks down to approximately $5,000 per property within the impacted area. Also within this scenario, the developer’s fees would be set at nearly $1.485 million and the city would bond for $460,950.
SCENARIO 3: In this case, the city would not implement assessments as part of the funding structure. Instead, the developer’s fees would increase to roughly $1.54 million and the city would bond for $477,446.
Any bonding would be repaid by the city through city property taxes levied on the entire city.
Kimmel said it will require about a two month process to issue the bonds. City Engineer Mark Hanson suggested not issuing the bonds until after the city takes bids and the developer’s agreement is executed. He said bids would most likely be received at the July 9 meeting. The city council must still hold a public hearing on whether or not to accept the project and move forward. The public hearing for the plans and specifications of the project is set for the Tuesday, June 11 council meeting.
If the council moves forward at the June 11 meeting, the contract could be awarded at the July 9 meeting as Hanson suggested. It would also be when the assessment hearing could be held.
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