NEW ALBANY — The city of New Albany and Floyd County government have reached an agreement for the $15 million jail renovation project to move forward.

There had been some disagreement as to which entity had control over permitting for the work. However, city attorney Shane Gibson said Friday the city had issued work permits for the contractor. The city will also inspect the work once it is completed.

Floyd County attorney Rick Fox said both sides got together with "all the players" and went through the process. Now the project can move forward. 

"That is the way it should work," Fox said of the cooperation between the city and county. "All I want is to get the jail completed in a timely manner."

Sheriff Frank Loop said last week an exact date for work to begin has not yet been set, and there may be a delay in getting steel for the project.

The plan is to turn an outside recreation area into a new pod and add 110 beds to the jail which is consistently dealing with overcrowding issue. The kitchen is also expected to be remodeled as are other areas of the jail.

To help fund jail operations, the Floyd County Council passed a new Correctional Rehabilitation Facilities ordinance that calls for a .002 percent payroll tax on Floyd County residents. The new tax will generate around $4.5 million a year to be used on jail expenses including staffing and construction costs.

For residents making $50,000 a year, the new jail payroll tax will amount to around $100 a year, according to Auditor Scott Clark. The tax will kick in Oct. 1, 2018, and is set to expire in 20 years.

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