Remaining Stonegate Education Center Loan Balance Set At $4.5M

(BEDFORD) – The newest members of the Bedford Redevelopment Commission were updated on designated and future funds for projects that were voted on last year.

Bedford Clerk-Treasurer Marsha Pfeiffer informed members on the amount of money being paid towards loans in 2020.

The Stonegate Education Center building has a $4.5 Million USDA Loan with an interest rate of 3.25 percent. There can be early payoff of this loan with no penalties.
  • The total remaining on the loan for the Stonegate Education Center building is $4.5 million. The interest rate on the loan is 3.25 percent. The final payment is expected to be made in 2037. The total interest that will be paid on loan is $1,090,000.
  • The total amount left on the Redevelopment District Tax Incremental Refunding Bond for the Plaza Drive loan is $769,000. The final payment is expected to be paid on January 15, 2023. There is no early pay-off option. The interest rate on the loan is 1.90 percent.

In December, the Redevelopment Commission voted on committing funds prior to June of 2020 of this year to the following projects:

Bedford Redevelopment Commission has committed more than $150,000 towards a 63-mile trail from Bedford, Indiana to Louisville, Ky.
  • Facade project – Suggested target proposed 50/50 funds up to $15,000 for 10 businesses downtown. The total allocation is $15,000.
  • Indiana Department of Natural Resources Trails Grant – The grant is for a 63-mile trail from Bedford to New Albany. Local funds focused on Downtown Bedford to Yockey Road. The local match is $150,000. The total cost is $300,000 to help with the grant process. New Albany also committed $150,000.
  • Wastewater Treatment Facility – The project includes improvements for Hydraulically Induced Vortex-Grit King, which separates grit from water. There is no estimated cost on this project at this time. However, the Bedford Redevelopment Commission has committed $389,500 towards the project.
  • John Williams roundabout¬†project at Beech Street – The Bedford Redevelopment Commission has committed more than $210,000 towards the 80/20 Federal Grant that has been approved. Grant funds will not be available until 2024. The estimated cost of the project is $2.1 million.
Bedford Waste Water Treatment plant

The Bedford Redevelopment Fund is at $8,042,855 with a total of $6.1 million dollars committed to these six projects.

The estimated cost for the roundabout at Beech Street and John Williams Blvd. is $2.1 million with Bedford Redevelopment committing more than $210,000 to the project. Funds will not be available until 2024.

After reviewing the list the new commissioner asked if the votes on these projected by the former commission could be rescinded and re-committed to other projects. Mayor Sam Craig advised the members that he would seek legal advice on that question.

In a previous Bedford City Council meeting, Mayor Craig suggested city officials look at ways to pay off the Stonegate Education Building early due to the large interest rate on the loan.

The commission made no decisions on Monday and took all of these items under advisement.