Ellsworth Council Awards $1.63M Merrill Lane Extension Contract

The Ellsworth City Council voted 4-1 on October 6 to award the Merrill Lane Extension construction contract to RF Jordan for a not-to-exceed amount of $1,633,545. The road will serve the new Hancock County Judicial Center and open land in the urban core to future housing and commercial development. Staff presented project costs to date, financing through a $1.75 million bond, and TIF and housing tools for the next phase.

Key points

• The council awarded the Merrill Lane Extension contract to RF Jordan for a not-to-exceed $1,633,545, with the city manager authorized to execute the contract and related documents; the vote was 4-1.
• Staff said total project charges to date are $606,462.20, including about $251,000 for land and easements and roughly $159,000 for original road design and engineering.
• City Manager Charlie summarized the project history, including the council's January 7 vote (6-1) to pursue a land exchange and build the road rather than let the courthouse go to the Surry Road site.
• Finance Director Chris outlined the $1.75 million, 20-year bond at 4.68 percent, with average annual debt service just over $113,000 and a projected break-even on a conservative 40-lot build-out by year three.
• Community Development Director Twyla Fisher described TIF credit enhancement agreements, a new TIF committee, and federal housing grant flexibility as tools to support housing near the new road.
• One resident spoke against the project during the public hearing, calling the city's involvement in real estate a sad day for Ellsworth; councilors responded that residents asked the city to act and that the investment will pay off.

Next steps

• Issue a notice to proceed to RF Jordan and develop a coordinated construction schedule with the judicial branch, Bowman contractors, and utilities.
• Bring a construction administration and inspection contract for Andrew McCullough to the October 19 regular council meeting.
• Continue design of the High Street intersection and traffic movement permit work, which is reimbursable by the judiciary up to $415,000 and will return to the council separately.
• Continue pursuing state reimbursement legislation, possible county cost sharing, and developer contributions or impact fees to reduce taxpayer exposure.
• Target road completion by October 1, 2027, with final paving possibly deferred until after winter.

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