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By LeAnn R. Ralph
COLFAX — To beat the February 22 deadline for expenditures in Tax Increment Finance District 4, the Colfax Village Board has approved borrowing money for the Dunn Street project.
The expenditure period for TID-4 ends February 22, and no new costs can be accrued to the district after that date, said Sean Lentz of Ehlers Inc., the village’s financial consultant, at the Colfax Village Board’s February 8 meeting.
The village has three options for the February 22 deadline: have a signed developer’s agreement for TID-4, have a signed construction contract for the Dunn Street project or borrow money for Dunn Street, he said.
According to information included in the village board packet from Ayres Associates, the Dunn Street project will cost an estimated $87,500 for engineering fees and construction.
The project will involve 215 feet of sanitary sewer extension and pavement reconstruction but does not include water main or storm sewer.
Colfax also plans to complete projects on Riverview Avenue and High Street this summer.
The Riverview Avenue project (from High Street to Viking Drive) includes 500 feet of street and curb and gutter, storm sewer reconstruction, water main reconstruction and sanitary sewer reconstruction for a total estimated construction cost of $240,300.
The High Street project (from Riverview Avenue to Oak Street) will include 100 feet of street and curb and gutter, storm sewer reconstruction, water main reconstruction and sanitary sewer reconstruction for a total construction cost of $96,100.
The Riverview Avenue storm sewer project will include restoring the Red Cedar River Bank, replacing the corrugated metal pipe outfall, a new dropped manhole and a concrete outfall pipe with rip-rap at an estimated construction cost of $30,000.
All together, with the engineering costs added in, the three street projects are estimated to cost $517,000.
TID-4 can absorb the cost of $87,500 for the Dunn Street project, Lentz told the village board.
The village’s property tax levy could pay for $274,000 of the cost for the street projects, while the water utility could pay $84,900 and the sewer utility could pay $70,500, he said.
TID-4 currently shares revenue with TID-3.
If the village board wants development to continue in the East View residential development, then Dunn Street needs infrastructure, said Lynn Niggemann, village administrator-clerk-treasurer.
Construction has already started on the first of five houses planned to be built by Homes by Croix Creek in the East View development along Dunn Street.
In a tax increment finance district, property taxes assessed on new construction in the district go into a special fund to help pay for infrastructure improvements instead of being paid to the village, the school district, the county, and Chippewa Valley Technical College.
When the tax increment district is closed out, the money that remains is paid to the individual taxing authorities.
To meet the February 22 deadline, Ehlers will seek competitive Requests for Proposals (RFP) from local banks for the Dunn Street money with a closing on the loan on Friday, February 19, Lentz said.
The village board will have to hold a special meeting on Monday, February 15, to approve borrowing the money, he said.
Ehlers is estimating the interest rate for the borrowed money at 3 percent.
Later on, the interim note for Dunn Street can be refinanced and permanent financing can be arranged for the other street projects with an estimated closing date in May, said Josh Low of Ehlers.
The borrowed money for the street projects can be set up on a 10-year repayment plan, he said.
According to information provided to the village board, money for Riverview, High and Dunn would be repaid with annual payments on the tax levy of approximately $32,500 from 2022 until 2029 with payments just short of $32,000 in 2030 and 2031.
The sewer and water utilities would each be making payments of approximately $8,000 to $10,000 per year until 2031.
The Colfax Village Board approved authorizing Ehlers to proceed with the interim note for Dunn Street in TID 4.
The Colfax Village Board also approved holding a special meeting on Monday, February 15, at 6 p.m. to approve the interim note for Dunn Street.
• Approved bartender operator’s licenses for Abby De Moe (Synergy Cooperative) and Drew Gibson (Synergy Cooperative) from February 8 until June 30, 2021.
• Approved paying approximately $300 for the Village of Colfax portion of new electronics for the recycling compactor at the Colfax Solid Waste and Recycling site. The total cost is $1,750, and the cost will be shared by the Village of Colfax and the Towns of Colfax, Grant, Otter Creek, Tainter and Wilson.