Council OKs $4M bond for Lynnway

LYNN – The City Council voted unanimously Tuesday to ratify the mayor’s signature on a contract between National Grid and the Economic Development and Industrial Corp. (EDIC) that creates a path to developing the waterfront flanking the Lynnway.”This is an opportunity to change the face of Lynn,” said EDIC Executive James Cowdell.Mayor Edward Clancy Jr.’s signature last week was required to assure National Grid that the $4 million bond assumed by the city to help pay for the $6.7 million relocation of power lines on the development site would be used for that purpose.Cowdell explained that the contract is between EDIC and the utility, which limits the city’s financial liability to $4 million. Without the mayor’s signature, the city would have been more vulnerable should litigation arise from the project, he said.The power lines impede development of 100 acres of prime harborfront land. The plan calls for relocating the steel transmission towers to the opposite side of the Lynnway. Meanwhile, the city is moving forward with eminent domain proceedings in order to take control of privately-owned lands within the development perimeter.Construction of the new power lines and demolition of the existing towers could begin in January, said Cowdell, noting that the EDIC will attend a June 15 hearing before the state Department of Public Utilities (DPU) to apply for the necessary permits. He anticipated the permits will be obtained by mid-September or mid-October.The $4 million bond, or at least a portion of it, will be issued to the city on Aug. 3.Tuesday’s City Council vote also secured $2.5 million in state grants for the power line project, money which must be spent before June 30, marking the end of fiscal 2009.James Marsh, director of the city Office of Economic and Community Development, said National Grid has already provided legal and engineering services, and must quickly purchase steel for the new towers, transmission wire, and insurance. Other pressing expenses for the city include labor and securing access rights to an auxiliary road behind the buildings on the southbound side of the Lynnway that will provide a corridor for the power lines.Marsh said the city has applied for an America Recovery and Reinvestment Act (ARRA) grant to help offset the bonded indebtedness. If Lynn receives such a federal grant and surplus funds were left over from the entire project, those monies would be kept by the city rather than returned to the state, he said.According to Cowdell, the project started to take shape in 2006 when Clancy met with National Grid. Prior to that meeting, developing the waterfront by moving the power lines had been loosely discussed but no real headway was madeThe City Council has played a supportive role throughout, from adopting the first waterfront master plan and changing the neighborhood’s zoning classification to voting for the $4 million bond, Cowdell said.Marsh said only one property owner – Ken Carpi – has challenged the city by filing an “intervention”, which allows him to attend the DPU hearing later this month.City Council President Timothy Phelan said the special council meeting and unanimous vote for the bond shows that all city department and agency heads “are on the same page and moving in unison.”