Merrillville leaders outline $12 million paving plan, transfer of rights to redevelopment authority

MERRILLVILLE, Ind. — Town officials on Tuesday described plans to fund roughly $12 million in paving over the coming year and beyond by using a newly formed Redevelopment Authority (RDA) and related redevelopment commission (RDC) actions to issue bonds.

Councilman Sean Pettit, who is president of the redevelopment commission, told the Town Council the RDA will be used to lease and manage certain assets and that leaders plan to transfer town rights-of-way into the RDA’s control to support future paving projects. “We’re going to dedicate all of the town right of ways into the RDA’s control for future paving,” Pettit said.

Nut graf: The move is intended to create a predictable funding stream for an ongoing pavement maintenance program. Council members said they will prioritize streets using the PASER pavement rating system — a 1-to-10 scale where lower scores indicate worse condition — and use bond proceeds to address the worst-rated segments now while planning for recurring maintenance later.

Pettit told the council the town has already organized the RDA and elected officers at a required organizational meeting. He said the timeline calls for RDA, RDC and town council resolutions to enable bond sale, with the town hoping the bonds will close by late June or July. “There will need to be an RDA resolution and then a town council resolution and an RDC resolution, and then the bonds will be out for sale, hopefully closing by the end of, June, July,” Pettit said.

Officials gave specific program context: the $12 million figure covers paving carried over from last year and work planned this year. Pettit said crews are now addressing streets rated one and two on the PASER scale and that three- and four-rated streets will degrade if not maintained. Street Department staff member Steve (street director) said neighborhood paving — including work south of 30th Street and upcoming curb and asphalt operations on Harms Road and 101st Street — is nearly finished and contractors have reported few issues with residents moving cars for operations.

Town Manager Michael Griffin and others framed the RDA steps as administrative prerequisites to issuing debt and managing long-term maintenance. Pettit said the redevelopment authority also has leasing powers that could be useful for future projects in allocation areas such as Mississippi Street, Maryville Road, Broadway and Ameriplex. He noted that property tax increment captured in allocation areas will be used to retire debt tied to redevelopment projects.

Council members did not take a new vote Tuesday to authorize bond issuance; Pettit described the procedural steps and timelines that will return to the council and related boards for formal approval. Griffin and Pettit said additional resolutions will be presented to the council and the RDC before any bonds are sold.

Ending: Council scheduled follow-up meetings and workshop sessions where the council, the RDA and RDC will consider the resolution language and bond documents before any sale closes. Pettit said staff will provide timelines and supporting documents at upcoming committee meetings.