Delaware County will borrow no more than $43 million to complete the extension of Sawmill Parkway into the city of Delaware.
County commissioners voted 2-1 Monday in favor of a resolution that will allow the county to issue sales tax-backed bonds for up to $43 million for the long-awaited project. However, county officials have said they expect to borrow much less for the roadway extension.
Commissioner Ken O’Brien voted against the measure.
Construction on the project is expected to begin in the coming weeks. Delaware County Engineer Chris Bauserman said he hopes to award a contract to a construction company by July 8.
Construction, which is estimated to cost about $38 million, is expected to be completed by November 2016.
The project will extend the roadway from its current terminus at Hyatts Road to about 1,600 feet north of U.S. 42.
Through an agreement inked last year, the city of Delaware will pay for about $9 million worth of the project to cover the portion of the construction within its boundaries.
City officials have said that the road extension will open up about 1,600 acres for development at its expanded industrial park.
The city will use revenue generated from a Tax Increment Financing district at its expanded industrial park to pay for its portion of the project. A Tax Increment Financing district – or TIF district – is a public-financing mechanism that diverts property tax revenue from value added to developed land into a fund dedicated to infrastructure improvements in the designated area.
The project has been in the works for more than two decades. It was part of a Southern Delaware County Thoroughfare Plan in 1989 when Bauserman began working for the county.
County officials have said they expect to borrow about $18 million for the project.