(Michigan City, IN) - Building an estimated 200 or more homes near Michigan City’s lakefront is now possible following a decision to increase waste water flow capacity in the area targeted for new development.
On Tuesday night, the Michigan City Common Council voted unanimously to take out an up to $4.8 million bond issue to finance the sewer upgrades along a stretch of U.S. 12 to the municipal waste water treatment plant.
Council President Don Przybylinski called new housing a top priority in a community looking to modernize an aging housing stock and attract new residents.
“What this is called is infrastructure for the future of Michigan City and for future development of Michigan City. In my mind, it has to be done,” Przybylinski said.
Skyler York, the city’s Director of Planning and Redevelopment, said sewage overflows into Trail Creek happen occasionally because of underground lines north of U.S. 12 too narrow from development in recent years to adequately take in higher volumes of storm water.
“It’s been happening for a while,” he said.
He said the improvements will eliminate the risk of having to impose a ban on new development where enough vacant land exists between the four lane highway and lakefront to construct at least 200 new homes.
“That couldn’t be developed right now on the sanitation that exists right now, because there’s no capacity,” he said.
The project involves building a new lift station on the north side of U.S. 12 across from Burn ‘Em Brewing and running larger sewer lines below the adjacent railroad tracks. York said the new lines extending slightly north and west to about Center Street will connect to a larger sewer to carry the flows south for several blocks to the treatment plant at 1100 E. 8th Street.
The bond issue is made possible by the Indiana Finance Authority, offering low interest loans to communities statewide on infrastructure related projects that promote new housing construction.
Randy Rompola, bond counsel for the Indianapolis based law firm Barnes & Thornburg, said the 2.43% interest rate funds must be paid back within 20 years. He said the interest rate would likely be anywhere from 4.5 to 6 percent if the loan was obtained in the private sector.
Rompola said tax revenue generated by increases in property values from the area targeted for new housing will be used to retire the debt.
