The Terre Haute Redevelopment Commission has approved a financing agreement for the new downtown convention center. The Tribune Star reports the agreement calls for the city to provide $3 million up front for the facility and $500,000 for 19 years in backup financing if it is unable to meet its obligations.
The project is now estimated to cost $32.5 million, up from the original $25 million estimate. Both the city and Vigo County had previously agreed to pay $10 million each for the project when it was at the previous cost estimate, according to the publication.
"At that time, there were some costs we just couldn’t estimate because we didn’t know where it was going to be located exactly," said Steve Witt, director of redevelopment for the city, and member of the Capital Improvement Board. "Secondly, the cost of construction has gone up over the last few years."
The interlocal agreement still requires approval from the Terre Haute City Council and Vigo County Council. The Tribune Star reports the financial agreement also calls for the commission to "use its best efforts" to issue $4.5 million in bonds for the construction of a parking garage that will serve two new hotels next to the convention center.
You can read more from the Tribune-Star by clicking here.