February 23, 2009
By Robin Kaminski/The Daily Item
City Councilors will vote on a proposed $4 million bond tonight to help pay for the relocation of the power lines on the Lynnway.
The purpose of the bond is to gain funds city officials desperately need to pave the way for a waterfront master plan that promises to revamp the hapless waterfront into a thriving location.
If approved, the bond would be repaid with taxpayer dollars, which may be a tough sell during tough fiscal times when most people are tightening their purse strings.
The public hearing will take place at 8 p.m., in the council chambers, and will offer an opportunity for all who support or oppose the massive relocation to have their voices heard.
Council President Timothy Phelan previously said the council could not appropriate the bond to the city since it involves private property. He also said the interest rate would have been too high because the project does not fall under a municipal purpose since the power lines fall on private property.
One way around that is to assign the bond to the Economic Development & Industrial Corporation (EDIC) so that the money would qualify for a non-exempt tax status.
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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.
The power lines are currently situated along the east side of the Lynnway along the harbor. The relocation will place them on the west side by General Electric, then crossing over the Lynnway up the road by Harding Street and then continuing near Commercial Street.
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