City to borrow for upcoming utility undergrounding
The City Council on March 3 directed staff to pre-apply for a 10-year loan of up to $17 million to complete utility undergrounding near Crest Canyon and to move toward completing a second project on north Stratford Court.
Del Mar is exploring financing from the California Infrastructure and Economic Development Bank, or I-Bank, to continue undergrounding overhead electrical lines.
Next month, staff is expected to return to the council with a resolution to be included as part of the loan application.
Located in a high fire risk area, the Crest Canyon district is the next-in-line to be undergrounded based on the council-approved Project Delivery Plan.
Undergrounding would later begin on the Stratford Court North district west of Camino Del Mar between 11th and 15th streets.
Construction for Crest Canyon is expected to begin in the fall of 2025 and last for 18 months. The total project cost is estimated at $17.8 million.
Project costs for the Crest Canyon and Stratford Court North districts together are estimated to total $23.3 million.
Del Mar's Utility Undergrounding Program is funded primarily by Measure Q, a one-cent sales tax measure approved by City voters in 2016.
Escalating costs have prompted the council and its undergrounding program and finance advisory committees to explore financing options.
I-Bank is a state government lender that finances public and private projects to promote economic development in California. Previously, the City borrowed from I-Bank for construction of the Del Mar Civic Center.
The final loan amount for undergrounding will be set prior to awarding the Crest Canyon construction contract.
Open staff report
Watch meeting
Undergrounding Program webpage