Hardyville council gives policy support to continued Exit 3 funding talks, flags up to $8 million possible loan increase

Hardyville's city council voted on Jan. 22 to adopt a policy resolution that supports ongoing negotiations to fund the proposed I‑95 Exit 3 interchange, a transportation project staff said could require more borrowing than originally estimated.

City Manager Mr. Davis told the council the bids for the Exit 3 project came in well above the state's estimates and, to keep the project moving, the city may need to "extend the loan by up to but not to exceed another $8 million." He said the additional borrowing would be layered on top of roughly $28 million already committed and that the total project budget is about $130 million.

The resolution (2026‑01‑22B) approved by voice vote is a policy statement authorizing continued negotiations; it does not obligate the city to execute the loan. Mr. Davis described the repayment plan as a 30‑year tax‑increment financing (TIF) structure in which 35 cents of each new dollar of tax revenue generated in the TIF zone would be used to repay the loan, while the remaining 65 cents would flow to the city, county and school board.

Mr. Davis also said the bids must be awarded by next Wednesday, and project buildout is expected to take roughly 36 months to 48 months; he noted the loan likely would not be executed for a couple of years. The council's action gives staff and negotiators a clear policy direction to pursue financing options if they are required to bridge a funding gap.

A member of the public, Ralph Hamilton, came forward during public comment, provided his name and address and asked a procedural question; the chair confirmed the council had already acted on the related vote earlier in the meeting.

Next steps: staff will continue negotiations with funding partners, and any final loan or financing agreement would return to the council for formal approval before the city becomes legally bound.