Jacobs Group will pay one-third of the interchange construction costs as part of agreement with Avon

Avon

By Rebecca Turman

After years of planning to build an I-90 interchange at Nagel Road, Avon City Council members approved an ordinance during a Monday night special meeting to authorize a financing agreement with JG Avon LLC (Jacobs Group) for the construction of the interchange.

As part of the agreement, Jacobs Group will pay for one-third of the cost of the interchange.

While the agreement and several other ordinances left some residents with concerns over the past few weeks, none of the audience members commented on the agreement or the interchange financing during the special meeting or the work session that was held prior to the vote.

The agreement initially made references to special assessments, but Avon Law Director John Gasior said all of those references had been removed from the final agreement approved by council.

City Council also approved three ordinances to provide for notes to cover the cost of the interchange project.

Ordinance 55-11 provides “for notes not to exceed $3.125 million for the purpose of paying the property owner’s (Jacobs Group) portion in anticipation of the levy and collection of a voluntary special assessment, and the city’s portion for the installation and relocation of a sanitary sewer lift station.”

Ordinance 56-11 provides “for notes not to exceed $1.48 million for the purpose of paying the property owner’s (Jacobs Group) portion, in anticipation of the levy and collection of voluntary special assessments, and the city’s portion for the costs of the waterline relocation and installation and upsizing of waterlines along Nagel Road and Just Imagine Drive.”

Ordinance 57-11 provides “for notes not to exceed $18.5 million for the purpose of paying the property owner’s (Jacobs Group) portion in anticipation of the levy and collection of a voluntary special assessment, and the city’s portion for the costs of the construction of an I-90 interchange at Nagel Road.”

Gasior noted during the work session all three ordinances are part of the Jacobs Group agreement.

“All of these (ordinances) … were a bit controversial at the last meeting because of that word ‘assessment,’” Gasior said. “What was being referenced here was the ‘voluntary assessment.’ That assessment will be dedicated toward the payment of those notes at some point in the future.”

During the work session, Gasior said, “In order for Jacobs to be assessed, council needs to pass a resolution of necessity (to build the interchange).”

Ordinances to proceed with the construction of the interchange will then follow and will be filed with the county auditor, he said, adding it would serve as a “public notice to the world that this (Jacobs Group) property is going to be assessed.”

“This further solidifies that agreement (with Jacobs Group),” Gasior said.

During the special meeting, council postponed voting on the resolutions of necessity and ordinances to proceed until the regular City Council meeting on Monday.

The estimated cost figure in the petition tied into the ordinances/resolutions needs to be clarified with Jacobs Group before the city can move forward, Gasior said.

Contact Rebecca Turman at rturman@2presspapers.com

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