Some downtown streets are set to be repaved next spring, and both the Village of Lake Orion and the Downtown Development Authority have started to make progress on the project.
Broadway and Flint, two streets recently associated with the village’s water main project will likely be paved, along with some storm sewer improvements, in about nine months.
Costs for the project are expected to come from the DDA, which is set to bond for the project. This would force an amendment to their current Tax Increment Finance (TIF)/Development Plan.
The DDA Board approved going forward with a modification to the TIF Plan and the village council agreed at their meeting last week.
‘I agree that you do need to do an amendment to the DDA plan if you are going to do the issuance of bonds,? Village and DDA Attorney Gary Dovre said prior to council taking action.
DDA Director Lois Golden said they have been budgeting some funds in anticipation of the project.
‘The DDA just doesn’t spend money arbitrarily,? she said. ‘We’re charged with the task of doing some specific improvements in the downtown.?
Golden added that bonding the project in this fashion would be a much better bet than asking voters to finance a project of this magnitude in a tough economic climate.
‘It’s a pretty safe investment, a municipal bond,? she said. ‘Simply put, we’re just looking for people to invest in us and collect on an interest rate.?
One company has already offered their assistance to the village free of charge, for the time being, as Village Manager Paul Zelenak said Miller Canfield offered to assist in the bonding process.
Miller Canfield has been used by the village in the past, but not exclusively on bond issues, so Zelenak said they would not be guaranteed a contract in the end.
Miller Canfield’s letter to the village noted a bond issue of approximately $500,000 would result in a fee of around $15,000, including expenses.
No bond amount has yet been identified, and, in the very preliminary stages, the village is considering a five-year payback option.
In accordance with the DDA TIF Plan amendment, a public hearing must first be held during a council meeting. Golden said this hearing is more of a ‘formality? than anything else.
According to Golden, the DDA is in a much better position to pay back a bond, as their projected revenue is greater than the village’s.
Lake Orion does get money for roads and transportation through State Act 51, but Golden said these funds are being used elsewhere by the village.
In addition, Golden promised that restoration and clean-up provisions would be included in any deal, expressing her dismay in the aftermath of the recent water main project.
‘Business owners should not have to be hosing off the facades of their buildings,? she said.