The Noblesville City Council approved an $18.6 million bond anticipation note Tuesday to set the stage for a future $56 million bond dedicated to the planned Pleasant Street expansion project.
Noblesville city attorney Michael Howard presented the funding mechanism Tuesday and said that it would pay the preliminary costs of Phase One of the extension project, which runs from 11th Street to River Road. Howard said the city will borrow up to $18,585,000 for no more than three years to get the estimated $113 million east-west corridor improvements underway before potentially issuing a roughly 20-year, $56 million lease-rental bond for the project.
“This bond anticipation note funds those things, such as additional design, land acquisition, part of the utility relocation,” Howard said. “When we get to the lease, the first funds from the permanent bonds will go to pay this bond anticipation note.”
The council unanimously approved the issuance of the note.
Howard said that more-permanent bond will be funded through property taxes, excise taxes and excess tax increment finance revenues, wherever the city can find them.
The council already approved a new $25 to $40 motor vehicle excise and wheel tax in May to generate an estimated $30 million over the road’s 20-year funding structure.
Bids for the project are expected to go out in September 2022 and construction is expected to start sometime in 2023.