Preliminary plat for industrial park east of Nappanee approved

Heidi Amspaugh and Ross Hagen with Baker Tilly attended virtually to explain funding options for a parks project under the Build, Operate and Transfer process.

Mayor Phil Jenkins explained after the meeting this was an option available in the State of Indiana where instead of bidding a project and being required to accept the low, responsive bidder cities and towns can select a team of developers who build the project, operate it for 30 days and then transfer it to the city.

“It can help expedite a project — it’s all by state law just a different project delivery method that allows more flexibility to municipalities,” he said.

Jenkins said it was started in the mid 1980’s when Indianapolis built the RCIA Dome but has only recently begun being used by other municipalities.

The city wants to build restrooms, concession stand and lockers at Wellfield Park and new restroom facilities at South Park, Recovery Park and Little Paws Playground at Stauffer Park. Heidi shared five options of funding including cash on hand, Build, Operate & Transfer (BOT) bank loan (local bank), BOT lease through local bank, traditional financing lease/bond issue on market and straight up bond issue on market.

Council Member Amy Rosa asked for the total cost of the project and Jenkins said it was anticipated to be $3.398 million, with construction costs anticipated to be $3.154 of that cost, and that Wa-Nee Schools is paying half the cost of the construction for Wellfield Park because they use the soccer fields for the high school program.

Jenkins also said the school’s portion is expected to be $900,000, and the city anticipates receiving $1 million from the Tax Increment Financing District, leaving $1.4 million that the city needs to still come up with.

Amspaugh said a couple of main decisions the council needs to make are do they want to publicly bid and do they want to go through a local bank or bond market?

Rosa asked Clerk-Treasurer Jeff Knight if he would be comfortable if they decide to use all cash on hand and Knight said he was and explained why.

“We are cash rich in certain areas,” he said and added that they have more cash reserves than what Baker Tilly recommends.

Knight showed the council five investment funds they could take the $1.4 million from including CD’s, money market account, Riverboat funds and CEDIT (County Economic Development Income Tax). He said if they chose to go that route four of the five funds, with the exception of the Riverboat fund would still have over 70 percent left.

Knight said because of how far along they are with the developer — they’re currently getting quotes — they can move really quickly, “within the next 30 days”. He said if they choose to issue bonds it would take about three months, which would push the project’s completion to next spring.

One reason discussed for going the bond issue route would be to roll other upcoming projects into it.

“We’re fortunate we have options — most communities don’t,” Jenkins commented, although no decision was made. “The developer has contractors lined up, ready to go so construction could be completed by January.”

After the meeting Jenkins said they selected the team at a public hearing and have been working with GM Development as the developer and Meyer Najem as construction manager.

“This is a new process for us so we’re seeing how it works,” he said.