Board approves Merchant Square BOT award to Avenue Roads Inc. after public hearing

The Carmel Board of Public Works voted June 3 to award a build-operate-transfer (BOT) public-private agreement to Avenue Roads Inc. for the Merchant Square Area road and utility improvements after a public hearing required by Indiana Code.

Engineering and utilities staff described the package as a set of coordinated transportation and utility upgrades, including multiple roundabouts on 116th/Carmel Drive and a sanitary project that will upsize a 12-inch sewer main to an 18-inch main in a deep, densely packed commercial area. Staff said the BOT approach was recommended because the project combines multiple disciplines and deep utilities in a confined area, and early contractor involvement can improve constructability, coordination and schedule. Brad Pease, director of engineering, and Lane Young, director of utilities, described anticipated staging, relocation of private utilities and the potential for 18 months of construction work for portions of the project.

Corporation counsel noted the city issued requests for proposals, received responses and that a public hearing is a statutory step under Indiana Code 5-23 for these agreements. Staff recommended Avenue Roads Inc.; no public speakers approached the podium during the hearing, and the board voted to approve the award. Counsel and staff said the board will see additional, phase-specific contracts and that the approved BOT agreement outlines scope, scheduling, duties and penalties for significant schedule breaches. The board later added the contract form to the agenda and approved the form so staff could continue negotiating phase contracts and limits, incentives and disincentives tied to schedule performance.