NORTH WEBSTER – The Lakeland Regional Sewer District board voted Thursday to authorize two members to sign its intent for a construction loan, but heard the loan process has changed. The board passed a resolution authorizing President Jim Haney and member Greg Mitchell to sign expressing the district’s intent to apply for the loan of up to $23.5 million from the U.S. Department of Agriculture, as well as a resolution authorizing them to request and receive construction bids once the district is cleared to begin the bidding process. They expect to begin advertising for bids within the next 90 days, members heard. The district will accept bids for four contracts that cover different phases of construction, each worth $3.5 to $6 million, said DLZ project manager Casey Irwin. But Haney noted that during a recent meeting with the USDA, they learned of a change in the loan process that will require the district to either wait on the Indiana Bond Bank or seek another bondholder. “There was not a lot of information, they only heard of the change recently,” he said. “The Indiana Bond Bank may not be set up to do anything until Jan. 15,” which will push up against the spring construction season. The board will have to wait to hear if the state bond bank will be ready in time, and to see how another bondholder’s interest rate would compare to the IBB’s 1 percent. “The USDA couldn’t even give us the name of anyone we could contact at the IBB. It’s a little scary,” Haney said. Also Thursday, the board voted to put in the district checking account a certificate of deposit set to mature Sept. 20, rather than renew it; and discussed following up a project timing letter sent to customers in spring with another update, which they may put on www.lakelandrsd.com instead of mailing.
