Galveston County will reimburse the Santa Fe Economic Development Corp. more than $1 million it borrowed years ago for a project extending FM 646.
The Galveston County Commissioners Court voted unanimously Monday to reimburse about $1.17 million to the city of Santa Fe, which will forward the money to the economic development corporation.
That amount is about 90 percent of what the corporation had advanced the county to acquire right of way in Santa Fe several years ago, officials said.
The city’s economic development corporation in 2011 agreed to advance the county $1.3 million to purchase right of way within the city for a FM 646 project between FM 1764 and state Highway 6, according to an Oct. 3 letter sent by the Santa Fe Economic Development Corp. to the county.
Between June 2011 and December 2012, the corporation made seven payments of $185,715 to the county, according to the corporation.
The plan was that the county would pay the money back if the state’s transportation department reimbursed the county, said Robert Cheek, president of the economic development corporation.
The Texas Department of Transportation reimbursed the county in September, Cheek said. In October, Cheek sent a letter requesting the balance of $1.17 million, which the county voted to reimburse Monday.
The state transportation agency began construction to widen FM 646 between FM 1764 and state Highway 3 in spring of 2016.