February 25, 2009
By Robin Kaminski/The Daily Item

The City Council unanimously approved a $4 million bond Tuesday for the purpose of relocating poorly placed power lines on the Lynnway and to pave the way for an economically sound future.

Broken down over a 20-year-period, the average annual debt service is $360,000 per year based on a $4 million debt, equating to an average annual cost of $13.50 per single family home per year.

On top of the bond money, city officials said $3 million would be allocated to the plan as part of President Barack Obama's economic stimulus package after being identified as a "shovel ready" project.

"It's not official, but by all accounts it is a done deal," City Council president Timothy Phelan said. "Hundreds of projects were denied, but it has been approved as one of 26 shovel ready projects in Massachusetts."

Mayor Edward J. Clancy Jr. stressed the urgency for the City Council to approve the bond request to create an economic engine that would fuel the city's finances for years to come.

Currently, the city has an inside debt of $31 million, which Clancy said is significantly lower than the limit of roughly $381 million. Because of that, Clancy said the bond would have a limited impact on taxpayers and the promise of a maximum return.

ITEM PHOTO/Reba M. Saldanha
Mayor Edward Clancy Jr. addresses the Lynn City Council during Tuesday night's Lynnway bond issue debate.

"This couldn't happen at a more difficult (financial) time," Clancy said. "But the time to act is now. National Grid is required to upgrade the power lines by next year, so moving them now makes sense both for the company and the city of Lynn. Otherwise, the opportunity could be missed

Once the South Harbor power lines are relocated and before any construction takes place, Phelan said the value of two parcels of land will reportedly skyrocket from roughly $800,000 to $3.3 million and $600,000 to $2 million, not even taking into consideration a number of other parcels as well.

However, despite that prediction, several people voiced opposition to the bond, including local attorney Carl Goodman on behalf of his client Ken Carpi who owns the land Wal-Mart occupies on the Lynnway.

To prevent the issuing permits for the process, Goodman said, a petition has been filed with the Department of Public Utilities (DPU) by Carpi and business owners Margie Fazzio, Donald Algeni and Ronald Costa.

"They do not oppose the waterfront master plan, they oppose the bond," he said. "The overhead power lines will have a significant impact on their businesses and they intend to contest the taking (of aerial easements) if this goes forward."

Disagreeing with Goodman, several city officials, including state Senator Thomas McGee, state Rep. Robert Fennell and all of the councilors agreed the time has come to move the city forward.

"I don't care about the detriment to a few because the benefit will be to many," Councilor At-large Daniel Cahill said. "My goal to get elected was because of this project and I believe in it."

The city council assigned the bond to the Economic Development & Industrial Corporation (EDIC) so that the money would qualify for a non-exempt tax status.

The city also received $2.5 million in state funding for the project in December of last year.

In addition, Phelan said Pat McGrath, the owner of the land that Building 19 sits on, recently signed a legal document saying that when the power lines are moved, he will give the city $300,000. A commitment letter was also received from Joe O'Donnell who owns a large portion of land where the power lines sit to give $1 million to city.

An $800,000 credit from General Electric and $50,000 from a settlement with communications company NextG will be added to the amount of money available for the project.