Phase I of the Brantwood subdivision project in Riverside won’t start until early 2013, but city and project officials remain confident that the housing development will be a success.

City council was expected to pass a resolution Thursday night to reject the bid submitted by Leo B. Schroeder, Inc., for the infrastructure construction project. The estimated cost increased approximately 10 percent of the original bid — a result of the project being delayed.

DDC, LLC, which owns the property, has requested that Phase I be delayed until January 2013.

“We’re excited to put a good game plan together,” Riverside City Manager Bryan Chodkowski said. “While unfortunately it didn’t quite take off as quickly as we would have liked this summer, the project still stands strong and these guys are willing to pull the trigger just after the first of the year.”

Lance Oakes, project manager for DDC, said that Ryan Homes will start building in June or July of next year. DDC owns 18.95 acres near the intersection of Brandt Pike and Haldeman Avenue, which consists of 53 lots for Phase I.

Last month, DDC purchased another 19 acres at 3810 Old Troy Pike, which will result in another 33 lots for Phase II. Oakes said Phase II is expected to be developed in 2014, but much of that depends on “how Phase I sells.”

“There’s not many other subdivisions for sale in the city of Riverside and Ryan has had good success up there,” Oakes said. “Obviously, we feel comfortable with the base being in Riverside’s backyard. We feel like this project will be a success.”

The $1.3 million contract to Leo B. Schroeder was awarded June 7 after the company won its bid protest.

Ken Schroeder, president of Leo B. Schroeder, said the cost increase was attributed to the infrastructure project being delayed. Cost of material has risen and production would have been slower in the winter.

“We’re disappointed it didn’t come through,” Schroeder said. “It looked like a nice project for everybody, but it didn’t work out.”

Originally, the infrastructure project was to start in early July. But delays from the county involving the sanitary sewer lift station and issues with DDC’s lender have pushed the project back until mid-January.

DDC has since raised the necessary funds from private investors, and plans to deposit the $1.35 million into an escrow account later this month, Oakes said.

The project will be rebid in November and a contract will be awarded in December. DDC will pay for the rebidding.

To date, DDC has paid the city about $12,000 during the Phase I process, Chodkowski said. It will cost about $3,000 to $3,500 to rebid it, he said.

Schroeder said his company most likely will bid for it again.

The road improvements originally were estimated to cost $1.7 million.

In April, city council approved the Brantwood Tax Increment Financing and infrastructure development agreement between the city and DDC. DDC will pay for the road improvements, and the TIF fund set up will be to pay off the city’s loan.

The average selling price of each home is expected to be $180,000, with the year-end tax revenues distributed to the Mad River Local School District, the Brandt Pike TIF District and the city of Riverside via income tax.