Chestnut Commons project prices rise $300K

The estimated total cost went up by $300,000 at a Chestnut Commons project in Elyria.

The project was estimated around $5.7 million and has since reached an estimate of about $6 million, according to City Engineer John Schneider.

The road extension will link East Broad Street and Ternes Lane to Chestnut Commons.

During an Elyria City Council Finance Committee meeting March 9, Finance Director Ted Pileski asked the committee to approve issue-bond notes on short-term debt to help pay for the project.

The original $5.7 million did not include construction management or the design, Pileski said.

The bond notes he asked approval for should not exceed $7 million.

“The next step is to give the authorization and issue a short term debt,” Pileski said. “What I’m going to do is have the legislation drawn up to issue notes at a max amount of $7 million because that $5.75 million did not include construction (management) or design.” It will take 30 days for the ordinance to go into effect, he said.

The notes will pay for the projects before tax increment financing, known as TIF, comes in which will help pay off the debt, Pileski said.

A TIF is a way of financing public infrastructure projects that uses future property tax increases to aid economic development.

The short term debt will be repaid with money collected from the increased assessed value of the properties being improved.

Work on the road is expected to begin in April and is estimated to be completed in October.

The project was estimated around $5.7 million and has since reached an estimate of about $6 million, according to City Engineer John Schneider.

LYRIC AQUINO — THE MORNING JOURNAL Elyria Law Director Amanda Deery, City Council President Victor Stewart, Colleen Rosado, Council Clerk Secretary,Assistant Finance Director John Farrell and City Engineer John Schneider are shown during a March 9 city council finance committee meeting.