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Gladstone OKs street project bond

GLADSTONE — The city of Gladstone will move forward with a plan to bond for a major street reconstruction project, following motions by both the Gladstone City Commission and the Gladstone Downtown Development Authority (DDA)Monday.

The project encompasses the majority of 9th Street, as well as portions of 7th Street, 11th Street, and Superior Avenue, and would include some water, sewer, stormwater, and electric work as well as a total reconstruction of the roadway. The project is anticipated to cost between $3.6 million and $4 million.

“I think it’s more than an improvement, it’s an investment. It’s an investment in the future,” said Commissioner Brad Mantela.

While the DDA saw a need for the project, the authority does not have the money to fund the project alone. However, with the help of the city it is possible to bond for the project. At a special work session on Oct. 4, the DDA and city commission discussed the project at length with financial advisors experienced in municipal bonding. Based on current information, those advisors believed the city and DDA would pay between 2.79 percent and 3.13 percent over the course of a 10 to 15 year bond.

The DDA decided Monday morning to move forward and approve a resolution in support of the project — which despite including multiple streets, has come to be known as the “9th Street Bonding Project” — and to appoint three DDA members to a joint subcommittee. However, it was at the city commission meeting Monday night the project really got off the ground when the commission approved appointing two of its own to the committee.

The decision to continue pursuing the street project was not unanimous, however. Commissioner Steve Viau, who did not attend the work session held Oct. 4, voted against the project.

While Viau expressed reservations about the necessity and citizen’s desire for the project, one of his greatest concerns was the ongoing litigation against the city and the DDA. Multiple lawsuits have been filed against the city, the DDA, and against City Clerk Kim Berry by former city commissioner and current commission candidate Mike O’Connor.

The root of O’Connor’s complaint is his allegation the city and the DDA have mishandled funds. Holding the DDA accountable for these alleged abuses was a pivotal part of his campaign for commissioner, and as a commissioner he repeatedly attempted to have the authority disbanded.

As legal fees mount, Viau raised concerns over the ability of the city to meet its bonding obligations and questioned what would happen if the DDA were to be shut down as a result of the lawsuits.

“If something happens to the DDA, who pays for this?” he asked during the meeting.

Others on the commission felt it would be premature to limit the DDA’s role in this or other projects simply because of what might happen with the lawsuits.

“You can’t put everything on hold speculating on the future,” said Commissioner Joe Thompson.

Viau was also concerned the city has other major projects looming on the horizon, such as major improvements at the city’s water plant expected to cost millions of dollars. However, City Manager Darcy Long noted because the DDA is involved in this bond, he does not believe bonding for this project would affect any future ability of the city to bond.

When it came to a vote, only Viau opposed continuing with the project by appointing two commissioners to serve on the joint sub-committee. Commissioners Mantela and Dave Phalen will join the DDA members appointed to continue researching the project.

“Just because there’s a sub-committee doesn’t mean we aren’t going to do it a different way,” said Long, noting at this point the city is not obligated to expend any funds or bond for the project.

In other business, the city commission heard plans to upgrade six existing primitive campsites at the Gladstone Campground to electric sites. While it is anticipated that renovating the sites will increase revenues at the campground, commissioners balked at investing capital in the sites without hard numbers on the sites’ impact in light of O’Connor’s suits against the city. A special meeting has been set for Thursday at 4 p.m. at city hall for the commission to review estimates on the project and determine whether to proceed this fall or reexamine the project in the spring.

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