Four towns that agreed to cover the $20 million cost of building interchanges to the southern extension of I-355 are now negotiating with the Illinois State Toll Highway Authority to add a payment schedule to the agreement, the Chicago Tribune reported.
Homer Glen, Lemont, Lockport and New Lenox agreed to pay for interchanges to their municipalities in the bright economy of 2006. Since then, the economy has gone dark. The interchanges have not yet brought the level of economic increase town leaders were anticipating.
“This is an agreement we want to honor,” Homer Glen Village Manager Paul Wallrich told the Chicago Tribune.
The I-355 extension opened in 2007. So far, each of the four municipalities has paid only $100,000 to the tollway authority. Will County, which also signed an agreement with the tollway authority for an interchange to the interstate, has started making payments of $214,285 in 2008 and again in 2009.
The four towns could face a 4.8% interest rate on any cash debt not paid by 2014.
“Building permits have taken a vacation,” New Lenox Village Administrator Russ Loebe, told the Chicago Tribune. “Commercial development today is barely in the ‘idle’ mode. Revenue is tight for us.
“We believe, in our heart of hearts, this is a great destination,” Loebe added. “By the time the economy gets its legs back up, we will see development ramp up quickly.”
