The Porter Redevelopment Commission indicated its willingness Tuesday to fund up to $2.6 million of the $4.1 million in planned sanitary-sewer improvements there.

That leaves $1.5 million yet to be funded by the Town Council, which last night asked town financial consultant Karl Cender to determine how much of a sewer rate hike residents would pay to raise that amount.

It would have taken a 59% jump in rates to finance the entire $4.1 million. “We’d be run out on a rail if we did a 60% increase,” said council president Michele Bollinger, who called the Redevelopment Commission’s decision “awesome news.”

The commission’s help on the sewer project went even further, subject to adoption of required resolutions.

Redevelopment members voted 5-0 Tuesday to provide up-front cash, to be reimbursed by its future $2.6 million bond issue, so design and permitting can begin on an upgrade of the key Porter Avenue lift station and related force main.

Town director of engineering Matt Keiser said design/permitting could take six months. According to Public Works superintendent Brenda Brueckheimer, “We want to be starting one day after we get the permit to do that lift station.”

Porter is under an agreed order with the Indiana Department of Environmental Management to bring its sewer system into compliance or face fines and sanctions.

The Redevelopment Commission also authorized Keiser to investigate the $197,400 purchase of additional sewage capacity at Chesterton’s treatment plant, where Porter’s sewage is processed.

Keiser said Porter needs more capacity to develop the 31-acre former Brickyard parcel on Beam Street the commission bought last year for $350,000. Up to 193 housing units and neighborhood commercial uses are planned, likely in cooperation with a development partner.

The Redevelopment Commission authorized Cender and consultant SEH Inc. to begin preliminary work necessary for issuance of up to $2.6 million in bonds, which tentatively could cost about $495,000 a year in debt service.

The commission raises about $850,000 in dedicated property taxes earmarked for its use annually and anticipates similar amounts in subsequent years.

Over the seven-year life of the bonds about $700,000 in interest would be paid at 6.5% but Cender said that rate likely would be much lower. The commission currently has no outstanding bonds, and he said the 2010 series could be paid off sooner if desired.

Matt Reardon of SEH said a bond issue is attractive because the commission doesn’t want to drain down its cash on hand; it has two hike/bike trails nearing construction, a downtown parking lot to build, an ongoing partnership with the Northwest Indiana Regional Development Authority for a U.S. 20/Indiana 49 gateway initiative, and possibly additional incentives to kick-start the Brickyard project.

Town attorney Patrick Lyp said without functioning sanitary sewers, it’s limited how much redevelopment the commission can do above ground.

Although the vote was 5-0 to contribute $2.6 million for the sewer upgrades, member Al Raffin said he’d still like to see more numbers crunched. Lyp said the action taken Tuesday isn’t final and will require additional steps and votes.

Commission president Bruce Snyder said the ultimate goal is to get the sewer project done yet cushion the property-tax impact on Porter residents.

In other business, the commission approved paying contractor R.V. Sutton an additional $22,653 above its nearly $200,000 contract for upsizing the sanitary-sewer line serving 25 homes on West Oak Hill Road. Keiser said Sutton’s crew had to work almost one week longer because two NIPSCO gas mains unexpectedly were discovered during construction despite a utility pre-locate.

Also OK’d was paying $3,000 more, in addition to the $7,000 already budgeted to restore the disturbed lawns, for a landscaper to select and apply custom seed so the grass won’t look different.

Keiser said the disturbed street will be repaved using town Major Moves road funding, and that after this past weekend’s over 2-inch rainfall no sewage backed up into basements in the West Oak Hill area as previously would occur.

The commission also unanimously agreed to contribute a combined maximum pay-out of $16,000 to match any facade grants from the Chesterton/Duneland Chamber of Commerce awarded Porter businesses on Lincoln Street, which is in the commission’s jurisdiction.

Later in the evening the Town Council voted 5-0 to contribute up to $16,000 for any facade grants awarded Porter businesses on Waverly and Wagner roads. The council will tap CEDIT funds for the project.

Reardon said Friday is an internal kick-off meeting with the Redevelopment Commission’s partners to flush out the scope of Porter’s proposed $30 million U.S. 20/Indiana 49 project to create an iconic gateway to the Indiana dunes.

The RDA has provided an initial $1.9 million and Porter is seeking $17 million more from the RDA. Snyder asked when Porter should formally request another draw in light of a recent court ruling that Porter County can’t pull out of the RDA. Reardon said he’d talk to RDA officials.

Posted 4/28/2010