JEFFERSONVILLE — The Jeffersonville City Council approved a bond ordinance that will allow for the construction of a new police station.
Up to $11 million will be sought to construct the new Jeffersonville Police Department Station along 10th Street, next to the Jeffersonville Fire Department Station.
City Attorney Les Merkley said the bond will be backed by tax-increment financing, or TIF, revenue. An annual bond payment will total about $800,000 per year and the actual cost of construction of the police station — depending upon which alternates are used — range from $5.5 million to $6.8 million.
The Jeffersonville Redevelopment Commission previously approved two resolutions that designate the city’s Inner City Road and Falls Landing TIF funds to back the bond being sought for the construction of the police station. The economic development plans for the Falls Landing TIF, to total $3.5 million, and for the Inner City Roads TIF, to total $9.5 million, that allowed for the changes were amended by the commission and also included the city’s stormwater conveyance system.
The city council also previously offered its approval of the economic development plan changes. With the city council approval Monday, the plan to build the new facility has taken another step forward.
“This timetable plan is to close April 25,” Merkley said. “I don’t expect us to hit that date.”
He explained the bond approval still has to go back to the redevelopment commission for a public hearing, as well as the sale of bonds before closing, and due to some changes in meeting dates the city will not meet the timeline unless the entities call for a special meeting.
City Councilman Ed Zastawny asked Merkley why was the bond being sought at an amount not to exceed $11 million, as the construction costs were estimated at $6.8 million,
Merkley explained in addition to the money that needs to be paid back to the city’s Local Option Income Tax fund for land acquisition and preliminary engineering at about $1 million, a debt reserve is required totaling one additional bond payment, as well as costs for bond counsel, legal fees and financial advisors for issuance costs and closing fees. The cost estimate also includes security systems for the police station, the furniture for the police station and money for renovations to be made to the current police headquarters in City Hall.