Debt-free deal struck on town center project

CLEAR LAKE SHORES — The city’s town center project will move forward without borrowed money that initially was proposed to help fund the project.

Opponents of the city’s plan to take out a loan for the project went to court for a temporary restraining order against the city, preventing it from moving forward with the project.

The group behind a “no-loan” proposal reached an agreement last week with the city council and Economic Development Corp. when both entities voted not to take on debt for the project. The agreement gives city officials the option of putting the loan on May’s ballot, Ronnie Richards, director of the economic development corporation, said.

Mayor Vern Johnson, Economic Development Corp. President Susan Landwer, Secretary Mike Linbeck and plaintiffs in the lawsuit against the city will sign the agreement this week, Richards said.

Since the project will be handled on a pay-as-they-go basis, the corporation will focus first on improving the city’s entryway on Clear Lake Road, which can be done with the corporation’s current funds, Richards said.

Another key aspect of the project planned to coincide construction of median landscaping and streetlight installations with road, bridge and drainage repairs on Clear Lake Road that will be covered by community development block grant funds made available after Hurricane Ike.

Richards said the city’s engineers will determine if that is still a possibility, since the grant money must be used within two years.

Without a loan, it will take at least five to seven years to finish the town center improvements, Richards said.

“It was a long battle to get them to take us seriously and to realize that we really wanted to have legitimate input,” Bernie McIntyre, a loan opponent, said. “All of us felt very strongly that with the economy the way it is, it was a mistake to go forward with the loan.”