Frequently Asked Questions
1. WHAT IS THE STATE STREET REDEVELOPMENT PROJECT?
The State Street Redevelopment Project is a collaborative effort between the City of West Lafayette and Purdue University, in cooperation with the West Lafayette Redevelopment Commission and Purdue Research Foundation, to improve quality of life by transforming State Street into a more desirable destination for the local community and visitors. The goal is to remake State Street – from the Wabash River, through downtown West Lafayette and Purdue University, out to the newly opened western gateway – into a place that reflects the vibrant spirit of the community and enhances the overall safety of the area.
2. WHY IS THE STATE STREET REDEVELOPMENT PROJECT BEING PURSUED?
State Street is the heart of the West Lafayette/Purdue community and has served for generations as a primary road leading to and through downtown West Lafayette and Purdue University. With the completion of U.S. 231, State Street is no longer a state highway, and therefore the local community has more control over how to manage the street in the best interests of residents, businesses and students.
3. WHAT BENEFITS CAN THE COMMUNITY EXPECT TO REALIZE FROM THE COMPLETED STATE STREET REDEVELOPMENT PROJECT?
First, this project will transform State Street into a pedestrian-friendly hub complete with plenty of extra-wide sidewalks, enhanced safety features, greenspaces and ample bike paths.
Second, consumer traffic is expected to increase as State Street becomes a much more vibrant and inviting area. This will help drive growth in the local economy, create jobs and contribute to regional prosperity.
Third, the community will likely receive regional and national attention as the historic partnership between West Lafayette and Purdue University not only provides a model for successful “town-gown” relations, but also demonstrates how an alternative project delivery method (i.e., a public-private partnership or “P3”) can be devised and implemented successfully at the local level for public roadway improvements.
For more information on how the community will benefit from the project, visit our Community Benefits page.
4. WHAT ROADS ARE CLOSED?
Throughout the project different portions of State Street and nearby roads will have restricted access or will be completely closed. Visit our Updates and Maps page for the latest on which roads are closed and for detours to get around construction as safely and as quickly as possible.
5. WHEN WILL CONSTRUCTION BEGIN AND END?
The construction schedule is subject to change due to a variety of external forces, the largest of which is weather. Construction will begin in 2016 and is expected to be completed by the end of 2018 in time for Purdue University’s 150-year anniversary. For up-to-date construction information, click here.
6. HOW DO I GET ALERTS ON CHANGING TRAFFIC CONDITIONS AND CONSTRUCTION?
Want to receive text notifications on the latest information regarding project construction and road closures? Sign up for Nixle alerts here.
7. WHY ARE THE CITY OF WEST LAFAYETTE AND PURDUE UNIVERSITY PURSUING THIS PROJECT COLLABORATIVELY?
A vibrant State Street is good for West Lafayette and Purdue University. For the City, the redevelopment will provide additional opportunities to attract new businesses and consumers to the area and bolster the local economy. Purdue University will enjoy the enhanced safety of pedestrian-friendly sidewalks and bike paths, and a renovated Western Gateway and Downtown & Village Gateway are sure to impress those visiting the campus. Additionally, a redeveloped State Street will improve the quality of life for residents, students and visitors – something both the City and University fully support.
8. HOW MUCH WILL THE PROJECT COST TO CONSTRUCT?
The City and the University are investing a total of $122.7 million to fund the project – these payments cover the costs to design, build, finance, operate and maintain the project over a 22-year operating term. The City’s commitment of $60 million, backed by TIF 1, leaves significant TIF resources available for other projects. The University's commitment of $62.7 million comes by way of a credit support facility (via the Purdue Research Foundation) backing TIF 2 revenues.
For more detailed information regarding the procurement of this project, please refer to the "ITO Exhibits" document, specifically “Exhibit G,” included in the final RFP documents downloadable at www. statestreetwl.com/documents.
9. WILL THE PROJECT HAVE OTHER COSTS?
Every public works project entails costs beyond those incurred during construction. For example, there are costs associated with repairing and maintaining the street over its useful life, as well as the cost of financing the project in the first place. While these components tend to be omitted from a discussion of costs under a traditional project delivery approach, they are nonetheless very real.
In the case of an alternative delivery model, such as a public-private partnership, these costs are all rolled in as part of a comprehensive service delivery package, with the developer/operator not only being called upon to design and construct the project, but also to finance it and to operate and maintain it for 20 or more years following its completion.
10. ARE BUSINESSES STILL OPEN IN AREAS OF HEAVY CONSTRUCTION?
Yes! Not only are your favorite restaurants and shops still open, but they’ll need your business during periods of construction more than ever. While it might add a few extra minutes to your journey, we’ll do our best to make sure there are detours available so you can visit your favorite businesses as you normally would.
11. WHAT METHOD WILL BE USED TO DELIVER THE STATE STREET PROJECT?
The project will be delivered using a type of public-private partnership commonly known as an “availability payment” structure. Under this method, a developer/operator will be selected to finance, design and construct the redevelopment of State Street, to operate/maintain it for a 22-year period following project completion, and ultimately to transfer responsibility for the street back to the City after this operations period.
In return, the Joint Board (representing the City and the University) will make payments to the developer/operator based on the facility’s being “available” throughout the operations period. As a result, these payments are known as “availability payments.” The Joint Board will procure the project under Indiana’s “Build-Operate-Transfer” statute, which supports this very type of approach.
12. WHY ARE THE CITY AND PURDUE USING A PUBLIC-PRIVATE PARTNERSHIP (P3) TO DELIVER THE PROJECT?
A P3 project delivery method of project delivery offers significant opportunities to save time and money that are not available using a more traditional approach. It does this in a number of ways:
- It results in faster project completion by giving the private sector opportunities to innovate and offer ideas for saving money both in terms of project design and project execution. The procurement process will be designed and managed to optimize the amount of private sector competition on this front, so that the best cost savings ideas will be brought forward.
Recent market experience suggests that the use of this type of contracting method allows a project owner to realize anywhere from 15 to 25% in cost savings, as compared to building a project in a traditional way.
- Compared to traditional project delivery methods, this method transfers more risks to the private sector partner, including financing risk. This means that, since construction is financed and funded by the private sector partner, a project that would otherwise have required phasing over a long period of time due to public finance constraints can be executed on an expedited timeline. The ability to complete the State Street project in less than four years will not only allow the City and Purdue to realize their shared vision of an enhanced, vibrant corridor in the near-term, but is also expected to result in the minimization of disruption to the community and avoidance of the escalation of costs that would occur over the course of a project spanning a longer period of time.
- A P3 also takes into account the full life cycle cost of a project, and it transfers responsibility to the private sector partner for maintaining the street at standards specified by the project owner over the entire period of the public-private agreement. As a result, at the end of the contract period, the City and the University will have a State Street corridor that has been well-maintained and is close to its original condition upon completion.
13. HOW WILL THE AVAILABILITY PAYMENTS FOR THE PROJECT BE FUNDED?
The availability payments will be made from revenues generated by two of West Lafayette’s five tax increment financing (TIF) districts that have already been established by the City. West Lafayette will make the revenues from the 231 Purdue and the Levee/Village TIF districts available to the Joint Board which, in turn, will use them to make the required availability payments to the developer/operator.
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14. WHAT IS THE CURRENT STATUS OF THE PROJECT?
Visit our Latest News and Updates page for the latest information on project’s progress, where it is currently, what has already been accomplished and what is to come.
15. WHERE CAN I FIND MORE INFORMATION ABOUT THE STATE STREET REDEVELOPMENT PROJECT?
Information will be continually added to this website throughout the entirety of the project, so check back regularly for updates. You are also encouraged to visit and “like” our Facebook page: www.facebook.com/statestreetwl.
16. WHERE CAN I GET ANSWERS TO FURTHER QUESTIONS?
Don’t see the answer to your unique question here? Contact us today and someone will review your question or comment as soon as possible.