Bringing up the house

After an hour of listening to residents’ concerns and discussion amongst themselves, the Slidell City Council Tuesday night unanimously voted to let Mayor Ben Morris proceed with the purchase of 6 acres of land at the Summit construction site to relocate the Lakewood ditch and improve drainage in the area.

The item had been tabled at the April 28 meeting and a special meeting was called Tuesday to answer questions and concerns of the contract between the city and Slidell Development Company LLC over the purchase of the land.

At issue is the northwest corner of the site owned by local businessman Robert Levis, the Slidell Development Company and Bayer Properties. The area, also known as the Lakewood Drainage Area contains the Lakewood Ditch that goes straight across the land where the Summit Fremaux retail center is to be built and empties into the W-14 Canal.

Bayer Properties, which is developing the $1 billion project that will contain a retail center, office buildings, hotels, housing and the UNO Tech Park wants the ditch to be rerouted east along the Interstate 10 Frontage Road, and then connect up with the W-14 Canal. Morris said the move will improve drainage in the area, and it will not cost the city any money. Along with rerouting, the ditch will be widened to 36 feet, and work is already in progress to widen the W-14 to 140 feet that will carry more water away to be drained off into Lake Pontchartrain.

What had some council members and residents upset was the $2 million price tag for the land.

“I don’t remember $2 million in the original contract,” said resident Michael McClellan.

Morris explained that the $2 million was coming from parish bond money. The parish and Slidell have agreed to build part of the main boulevard that will connect Fremaux Avenue and Old Spanish Trail. St. Tammany Parish raised $10 million in bonds to finance the road. However, the winning bid for the contract came in at $6.5 million, so the mayor will use $2 million of the remaining funds to buy the Lakewood ditch land. That $2 million will be put in an escrow account set up by Slidell Development Co., which is a cooperative partnership of the city, Levis and Bayer. Only Slidell can draw down on the account, and the money will be used only for lighting and landscaping of the boulevard once it is finished.

Council President Richard Hursey assured residents that only the city can touch the money, not Bayer nor Levis.

“City contracts do not require approval by Bayer, but Bayer contracts need the city’s approval,” Hursey said.

Some residents wanted to know why the $2 million could not be used to repair other streets in Slidell. Councilwoman at large Kim Harbison said the contract mandates the money can only be used for the development district and no other part of Slidell.

Still other residents were concerned about the purchase. Sean Burkes, whose office J.B. Burkes and Associates is right next to the property being purchased has about a 340-foot section of the ditch on his property. He wanted the city to help pay for the maintenance of the ditch, and would like to be compensated for a 15-foot servitude on each side of the ditch that is on his property.

“I know this project is important to the city, and I don’t want to slow its progress, but I would be happy with some sort of commitment from the city,” Burkes said.

Morris said he would be happy to sit down with Burkes to work something out. Councilman Ray Canada suggested that Burkes donate the land to the city. Councilman Joe Fraught said the city might use $35,000 from the escrow account to buy Burkes’ land, if there was money left after the road is finished.

Brugiere resident Buddy Lloyd wanted to know why the city and parish are only building part of the boulevard, on the north and south end of the site, and who would finish the middle of the road.

Bayer representative Jill Deer told the residents that due to the economy’s downturn, the retail portion of the project is in a “pause” mode. While Bayer waits for the credit market to ease up to get loans, the two sections of the road being built by the city and parish will open up the site to the UNO Tech Park on the north end and the development of housing on the south side.

“We want the community to know that there is nothing more important to us that finishing this project,” Deer said. She told the council that the anchor stores for the retail center are still on board, and Bayer is concentrating right now on medical office buildings and housing.

Once the retail market is back up, Bayer will build the center part of the road at their expense of $50 milllion that will include a bridge over the W-14 Canal.

“If the road and bridge is not finished, the retailers will scream, so it must be done,” Fraught said.

Councilman at large Landon Cusimano wanted to know who would finish the road if the project fails, or if Bayer doesn’t’ get the money. Morris said the contract stipulates that Bayer must finish the road.