Up to $1.5 million was approved by the Lebanon Redevelopment Commission Monday for final construction costs and the purchase of equipment for the Gene Haas Training Center, a partnership with Vincennes University.
City Attorney Bob Clutter said it looks like construction costs are on budget, but the city wants to make sure there are enough funds available just in case the cost goes over budget. The equipment is also expected to cost $1 million.
“If there are other start-up costs we run into, we just want to be safe and make sure we set aside that $1.5 million,” Clutter said. “If we don’t use all of it, it will just be available for whatever other projects there are.”
The original budget for the 20,000-square-foot building was $5 million, which was funded through bonds last year. Financing is similar to how the city financed the newest Lebanon Fire Department station on Lasley Drive. The city’s redevelopment authority will own the property and issue bonds for the project with the approval of the city council. The RDA will lease the building to the RDC, and the RDC will enter into lease agreements with Vincennes and potential other tenants. Lease payments will then go back to cover the city’s bond payments.
The lease payments will cover the bond payments, Clutter said. But in case of a shortfall, especially in the first year or two, the Lebanon Business Park’s excess TIF funds can be used to make up the difference.