Novi Pushes Pause on Ring Road Project

Funding for the long-planned , a three-phased plan designed to revamp traffic flow around Grand River Avenue and Novi Road, was removed from the 2012-13 city budget by Novi City Council at the Council's special budget meeting Saturday.

The Council did agree to bring the matter back up for discussion in January, at which time a possible amendment could be made to the budget to include the project again.

The project would extend Crescent Boulevard from Novi Road past to Grand River Avenue, and it was originally included in the budget with a $3,297,000 price tag.

Several city council members said their main concern was that the city should not be paying all of the cost on such a big expense and that additional funding sources should be found first.

"Everything I've researched and read about this proposal, it always showed a matching fund. It always showed the city was going to pay 20 percent, and  somebody else was going to pay 80 percent. That's a big difference," said Novi Mayor Bob Gatt.

The project was removed from the budget with a 4-3 vote, with members Terry Margolis, Laura Casey and Justin Fischer voting against.

Footing the cost

Mayor Pro-tem Dave Staudt said the city is not in the position to spend $3 million on a single road right now.

He said that he thinks the project is needed eventually, but council should take more time to discuss the funding before approving such a big expense. Council had about a week and a half to review the budget before discussing it at its Saturday meeting.

"I don't believe we're in as great a fiscal shape as I've heard at times. We are still fighting through a difficult period…to me to be fiscally prudent and a little bit more conservative right now is much safer than spending this money," Staudt said.

The money planned for the project will not be used for anything else, but will go into the city's fund balance for the next fiscal year.

Member Wayne Wrobel said funding might become available if a development is planned in the area, which is the location of the former Novi Expo Center. Gatt said there might be movement on that property soon. 

Staudt agreed, saying potential developments could help the council and city staff make decisions about the Ring Road project in the future.

"To blindly spend $3.2 million not knowing what the impact is going to be on that potential property before we know the use is just not good business sense at this point," Staudt said.

City Manager Clay Pearson said that the city has looked into some help to fund the project, but added that the state and county are not giving a lot of funding right now.

Margolis opposes no progression on the project

Margolis said that she was very opposed to the removal of the project because the city has already completed the first phase and has invested a lot of time and money already.

She said she is also concerned about the implications of not doing any work on the project this fiscal year.

"I am very concerned about eliminating this, even if it comes back for consideration because in terms of our public record, we will be putting no money into this project that we have committed to through a variety of legal actions for several years," she said. "I am concerned about going back and getting an extension on temporary easements. I think this is a decision that could end up costing us a lot more than we could imagine."

A temporary easement is a right provided to the city to use the owner's property for a period of time — in this case, for the construction of the road.

She said she will not support passing a budget that does not include at least some money being spent toward the project.

"We have a commitment and have for multiple years to continue to move forward with this after the progress we've made," she said.

Debating the need for traffic relief

Council members also discussed whether the road is needed now. Member Andrew Mutch pointed out that the expansion of Novi Road to five lanes has helped alleviate traffic in the intersection.

"In my mind I don't feel like this is as pressing of a project," Mutch said.

Yet, Pearson said the project would help not only improve safety and traffic flow in the intersection, but in the Main Street area, and for businesses along Grand River Avenue, as well.

"I think it is for the entire city center. It's not just for one development," Pearson said.

Margolis also stated that the road will be needed to help with traffic flow when the new .

Yet, the majority of council members decided that the road could be put on hold for a while.

"I think we all agree that eventually this road will be needed, but it is not needed now," Wrobel said.

The council will hold a public hearing to discuss the budget on May 2 and will meet again on May 7 to vote on it.