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n <br /> <br />The Port Authority will continue to work to address all public <br />concerns and issues regarding the proposed facility, setting a new <br />standazd in the maritime industry for environmental stewazdship <br />and community friendliness. The Port Authority wants to be a <br />good neighbor and will work as hazd as we can to meet that goal. <br />Alternate Sites ~ The Corps' DEIS presented resoundingly clear and supportive <br />evidence that the Bayport site is the best site for a container and <br />cruise terminal. The Corps considered 78 preliminary sites in the <br />Galveston Bay area for study in its DEIS, eventually cutting the <br />number to eight for study in the DEIS. <br />The Spilmans Island site is an active, 50-yeaz dredge disposal site. <br />If this site was filled and used as a container and cruise facility, a <br />• new site would have to be found that would accommodate over 48 <br />million cubic yards of current and future dredge material. An <br />upland disposal site would require 964 acres of land for the <br />material to be stacked 45 feet high, including 234 acres for 6.5 <br />miles of levees. After the mitigation for the site, the additional <br />costs for pumping the material the extra distance, purchasing land, <br />creating a new master plan for dredge material management, and <br />conducting an environmental impact statement would be <br />conservatively estimated at $157 million more than Bayport. <br />If the material were used for marsh creation neaz Spihnans Island, <br />the 48 million cubic yards would create 4,300 acres of mazshland <br />in an undesirable location in Galveston Bay at a cost estimated to <br />be well in excess of $230 million. In 1999, the voters approved <br />$387 million for port bonds to construct Phase lA of the project. <br />The Spilmans Island alternative would not be monetarily feasible, <br />economically sensible, or efficiently timely in completion as it <br />would cause at least asix-year delay in the construction of the <br />project. <br />Design Phase Contracts The PHA Commission has approved a recommendation to allow <br />the PHA to accept proposals for container yazd cranes for Bayport. <br />Additionally, under terms of a contract awarded by the Port <br />Commission in 2001, the services of Lockwood, Andrews & <br />Newnam, Inc. (LAN) are to be provided over approximately a <br />seven-yeaz period with funding authorized on an annual basis. <br />LAN has provided a new scope of services for the second year of <br />the seven-yeaz period that began November 1, 2002. The new <br />scope of work will include continued project management, <br />completion of the roadway transportation study, design work for <br />repair and maintenance buildings, and an information management <br />system. <br />Bayport Cwrtainc & Cruise Tomtinal <br />page 5 of 9 <br />May 2003 <br />