Channel District improvements slated

City officials plan to ease flooding in the Channel District with an $8.7 million stormwater project that will build an underground vault for water storage beneath York Street. Pipes also will be installed under Washington Street, near a planned small park.

The streets will be resurfaced, and Washington will get a streetscape makeover.

And, in a down economy, financing will be done the old-fashioned way - with a fixed-rate bank loan.

City of Tampa Finance Director Bonnie Wise said banks have been asked to submit proposals for loans of three or five years that will be backed by future property tax revenue collected within the Channel District.

About $4 million will come from the district's tax revenue for 2009 and 2010. The remaining $4.7 million will be financed through the loan and tied to future revenue.

Such costly projects were stalled statewide in 2007 by the state Supreme Court's Strand decision, which said voters had to decide how to spend public money from special taxing districts. The court reversed itself in late 2008.

"We'll see if this is the first one to get done," Wise said.

The loan agreement is expected to be ready for council approval Jan. 14, with a closing the next day.

If a five-year loan at 6 percent interest is approved, the district's annual debt service would be about $1.2 million. Wise said that is based on projected revenue that would leave almost $2 million available for other projects.

"I think 6 percent is probably high," she said, and could mean annual debt service would be somewhat less. "We anticipate that we will get some good rates."

The vault will be under York Street, east of Channelside Drive, which primarily is used as a service entrance to the port and for access to the Florida Aquarium's parking lot. It will be resurfaced after construction.

The stormwater project will improve drainage across about 39 acres of public rights of way within Channel District, said Mark Huey, the city's economic and development administrator. Electrical distribution lines, though not transmission lines, will be buried.

"I am so excited to see underground electrical," said Councilwoman Linda Saul-Sena. "It is initially expensive. Long-term it is a great investment."

A small park is slated for Washington and 12th Street. Residents have met twice to discuss what they want at the park. A dog park, landscaping and public art have been suggested.