Goshen project costs rise significantly due to inflation

GOSHEN — The city redevelopment board has approved an extra $3.3 million to begin a major road project on the southeast side. This money will help with the first phase of the College Avenue widening project. Initially, the total cost was estimated at $5.4 million, but this has risen significantly to $7.4 million due to higher construction costs. Local governments in Indiana are concerned this price hike may happen with other projects as well. Mayor Gina Leichty noted the city expects to lose about $5 million due to property tax cuts being considered by the state legislature. She called this a "triple threat" that could negatively impact residents while benefiting larger landholders and businesses. Leichty also highlighted rising costs for city services. For instance, the price of a police cruiser has jumped from $45,000 to $85,000. Similarly, a fire truck cost rose from around $1 million to $2.4 million. The projected cost for new water wells has surged from $43 million to $115 million. As borrowing costs rise, especially if tax exemptions on municipal bonds expire, Leichty warned that it may become harder for the city to finance needed projects. The College Avenue project aims to widen the road and include a multi-use trail. Bids are expected to go out in August, with construction starting in 2026. Redevelopment Director Becky Hutsell emphasized that the rising costs are mostly due to increasing material and labor prices. She also noted that federal funding could help ease the financial burden, although the city missed a previous opportunity to secure additional funds. The first phase of the widening covers College Avenue from U.S. 33 to Century Drive, while the second phase will extend to 9th Street. Hutsell warned that pulling out of funded projects could harm future funding opportunities. The city has also canceled another road project due to high costs.