The City of West Lafayette and Purdue University Joint Board have recently reached financial close with Plenary Roads State Street (PRSS) for the State Street Redevelopment PPP project in Indiana, USA. Achieving the final step needed for official kickoff of the project.

The goal is to remake State Street, from the Levee, through downtown West Lafayette and Purdue University, out to the newly opened western gateway, into a more desirable destination for the local community and visitors.

Under the terms of the agreement, PRSS is responsible for financing, designing and constructing the project, and for maintaining the pavement for a 22-year period following project completion. PRSS will transfer responsibility for the project back to the city after the operations period.

The selected team that will carry out the project is composed of the following companies::

• Plenary Group USA Ltd. (Equity)
• Rieth-Riley Construction Co. Inc. (Lead contractor)
• Janssen & Spaans Engineering Inc. (Lead engineer)
• Shrewsberry & Associates LLC. (Landscape architect)

Negotiations with PRSS, as well as talks between the city and Purdue University Joint Board, resulted in an expanded project scope which will include completion of the entire Perimeter Parkway.

The project will see an approximately US$120 million total investment shared between the university and the city in a unique tax increment financing (TIF) structure whereby funding for the project comes from the enhanced value associated with the property within the district. 

US$60 million is sourced from a West Lafayette TIF district and another US$62.7 million is sourced from a Purdue TIF district. 

The financing for the project included a US$25 million Senior Credit Facility from Sumitomo Mitsui Banking Corporaion (SMBC) maturing in 2026, alongside US$40 million in Senior Notes purchased by Babson Capital which mature in 2040. 

Plenary provided US$5 million in equity. 

Project design finalizations are currently underway and construction will be complete by December 2018.

Ken Sandel, chairman of the Joint Board, said:

“The addition of these segments to the original scope gives us the complete package we were hoping for. The Perimeter Parkway will accommodate through traffic and allow us to deemphasize State Street as a thoroughfare which was one of our main goals.”

Mayor Dennis, Mayor of City of West Lafayette, added:

“This project is a living, breathing example of a remarkable partnership between the city and Purdue who are working together to make our community better. Our hope is that this partnership sets a blueprint for other communities and for future projects at this level.”