lines from Lily Street to Highway 59 to serve commercial properties with Hwy. 59 frontage,” City Manager Courtney Sladek said in her memo to Council. “Businesses benefiting will be El Campo Refrigeration (a new site under development), Schmidt Implements, a proposed 80-room hotel with retail, and the future home of Gene’s Wrecker Service.

“Additional properties could be serviced by this project as the area is further developed,” Sladek added.

A hotel chain is considering locating a four-story hotel on a 13.59-acre U.S. 59 site west of the Hwy. 71 intersection. 

The city Board of Adjustment approved the chain’s request to exceed the normal two-story limit in April.

The new utility lines will run east after connecting with U.S. 59 and will be funded via a 50/50 partnership between the city and the City Development Corporation of El Campo.

The council vote Monday approved the CDC’s expenditure of $278,615.50 in funds – its half of the utility line work cost.

“We feel this is an excellent investment of (CDC) funds, with an anticipated return on the investment in the form of new and improved city services for existing and new businesses fronting Highway 59, increasing utility services revenue and increasing sales tax revenue for the city and CDC,” CDC Executive Director Carolyn Gibson said in her Oct. 21 letter to council.

Created by the city to pursue economic development, CDC bylaws require council approval for expenditures of more than $25,000.

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