CROWN POINT — A developer will use his own money to extend Summit Street/105th Avenue east of Broadway in an effort to spur development there and will then be reimbursed from the taxes generated by the new businesses locating in that corridor.
The tax increment financing agreement was approved Wednesday by the Board of Works after the Redevelopment Commission earlier in the week approved the tax identification numbers from 11 parcels in the corridor. According to the contract, developer Beacon Hill Partners LLC will be reimbursed between $800,000 and $1 million.
Beacon Hill plans to extend Summit about 400 feet east of Broadway into a roundabout. Plans include curbs, sanitary sewers and stormwater management. The corridor is expected to attract light industrial, retail and commercial businesses.
"We're excited for this opportunity," Mayor David Uran said. "I look at this as a home run for the city of Crown Point. It's going to create and provide economic vitality."
The Summit Street expansion is just the first phase in what is a Delaware Parkway conceptual alignment plan. At least three more phases include extending Delaware Parkway north from 109th Avenue with legs to Summit and 107th Avenue. Eventually, the plan is for Delaware to reach 101st Avenue where it will also connect to a planned new hospital south of there.
Uran said phase one is the first step in allowing the private sector to build the roadways under Crown Point specifications. Once complete, the roads will be deeded back to the city.
"We believe this is truly a unique and new way to think outside the box on a public-private partnership," he said. "We don't have to go out there and take the risks and say we'll do these public roads ourselves and hope somebody builds there. And pay all the associated fees that go along with it."
Uran said the developer knows he's on the hook for the infrastructure and the costs that go along with it. The developer will also aggressively be out there attracting business to build on those parcels because that's the source of the payment.
"It's a win-win," Uran said.
City Attorney David Nicholls said all city codes and ordinances governing construction, and all the state codesl apply to this roadway and utilities development as they would to one where government money was being used.
We are not doing this on the cheap so to speak," he said. "This is up to standard and up to snuff."
Michael Conquest, Board of Public Works and Safety member, lauded the plan because a vacant TIF district doesn't do anyone good.
"This could be a really good thing," he said.
The developer plans to begin work on the road this summer.
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