Correction: This article was updated to provide the correct vote count on the economic incentive for Tannos Construction.
Under an agreement approved Monday, property owners will donate over 10 acres of land and contribute $600,000 to the city to allow the construction of Friendswood Lakes Boulevard, a project funded largely by the
2017 Galveston County bond.
Under the current estimate of $4.7 million, $3.57 million is covered by the bond, $600,000 would come from the property owners and $600,000 would be matched by Galveston County. If the project exceeds this amount, the city would be on the hook but can count on up to $400,000 more in matching funds, City Manager Morad Kabiri said.
The vote on the agreement stalled over concerns that the traffic impact was not thoroughly understood and that the city should consider using any available funds to assist with buyouts rather than new roads. Federal grant-funded buyouts and elevation require 25 percent of the cost to be paid out of local funds.
"I don't know how much we still have available to put toward this. I don't know if it would come at the cost of helping out our homeowners. ... I feel like our homeowners take priority here versus the road," Council Member Sally Branson said.
Council Member Carl Gustafson's request to put off the vote for a month to learn more from the developers and about the traffic impact of the project was unsuccessful.
"The citizens spoke and voted for this road. Now is the time to push it through," Council Member Steve Rockey said. He refused to withdraw his motion to approve the agreement.
Mayor-elect Mike Foreman also supported the agreement.
"We do have funding in our budget for road development ... and granted, if we get the buyout approved, and we need to help homeowners, we'll find the money for that," Foreman said. "I'm confident we'll find the funding to help the homeowners. But we can't just be short-sighted and not do road construction where we need it, when we need it."
In other council action on Monday:
- A citywide traffic study received the full endorsement of the council, an initiative pushed by Gustafson to inform future decisions about roadway needs and improvements. The study would add on to the recently completed pavement condition study. According to documents presented by city staff, a study could cost between $100,000 to $375,000. More details will be presented for final approval at a future meeting.
- A $100,000 economic incentive grant to Tannos Construction for the four-story office and retail building on South Friendswood Drive was approved by a vote of 5-2. The tax revenue generated by the development will pay back the grant within two years. Council Member John Scott voted against it because he is opposed to the design and impact of the building. Council Member Steve Rockey also voted against it.
