The final component of the city’s plans to extend Sawmill Parkway to South Section Line Road is now in place after the Delaware City Council approved an ordinance authorizing City Manager Tom Homan to enter into a grant agreement with the Ohio Department of Development during Monday’s meeting.

A $1.875 million Roadwork Development Grant has been awarded to the city to assist with the funding of Phase G2 of the project, which is estimated to cost a total of $7.72 million. The grant was awarded by the Ohio Department of Development.

According a city document, in addition to the $1.875 million grant from the state, the project will be funded by the following: State of Ohio Jobs & Commerce Grant ($250,000), City Water Capacity Fee Fund ($2.17 million), City Wastewater Capacity Fee Fund ($490,000) and the City General Fund ($2.935 million)

Under Phase G2, Sawmill Parkway will be extended 3,200 feet from its current terminus at Founders Court to a new roundabout at the intersection of South Section Line Road and will also include water and sanitary sewer extensions as well as a multi-use path along the length of the road. Phase G1, completed last year, consisted of extending the roadway 1,400 feet from Innovation Court to Founders Court as part of the Sawmill Pointe Business Park development.

The final Sawmill Parkway extension project is being done in conjunction with the expansion of InnoPak, which has constructed a new 200,000-square-foot building at Sawmill Pointe Business Park as a continuation of its production facility and relocation of all of its logistics from Rickenbacker in Columbus.

According to city documents for the project, “To allow InnoPak to expand in the city of Delaware, it requires us to extend Sawmill Parkway from its current terminus at Founders Court to Section Line Road so that InnoPak will be able to access their desired location at Sawmill Pointe Business Park.”

In partnership with the city, InnoPak has committed to creating the equivalent of 34 new full-time equivalent jobs and an additional $2 million in payroll. The job creation period begins on Jan. 1, 2024, and all jobs must be in place by Dec. 31, 2027. InnoPak has also committed to retaining the 95 full-time equivalent jobs already existing in Delaware at a minimum existing payroll of $5.404 million, bringing its expected payroll to $7.404 million.

“The extension of Sawmill to Section Line Road is a long-time component of the city and county’s thoroughfare plans that will grow the city’s economic and tax base,” city spokesman Lee Yoakum said of the project.

Work on the extension is expected to begin next month and finish by next July. During Monday’s meeting, City Engineer Bill Ferrigno said that because of the winter months looming, construction of the roundabout won’t begin until next spring.

Reach Dillon Davis at 740-413-0904. Follow him on Twitter @DillonDavis56.