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Tempe officials downplay the obstacles. "People shouldn't be surprised about delays," Councilman Joseph Lewis said.
Mayor Neil Giuliano said the city anticipated a slow start, one reason why it stockpiled about $10 10 million in contingency funds for the project.
"We always knew there will be obstacles to overcome," said Giuliano, who has made the lake and its business attractions a cornerstone of his administration.
"I'm confident development on the, lake will happen," said the mayor, who is seeking a third term. 'It's just a matter of time."
Critics contend the city is kneedeep in an investment that threatens to become a boondoggle.
The project has already cost more than $150 million, of which Tempe has footed about $88 million. The rest comes from Maricopa County, state and funds.
In addition, Tempe has to shoulder costs. that top $3 million this year. Once the retail shops, restaurants and other developments are in place,, city revenues generated by Town Lake would cover those 'costs.
Critics such as Art Jacobs say the project shortchanges the public: Tax dollars get pumped into Town Lake at the expense of other city services; and any tax revenues Town Lake produces go no further than the upkeep of Town Lake itself
"It's one. of the city's biggest deceptions," said Jacobs, a longtime City Hall observer. "We won't see that money going to road improvements, water or anything else not related to the lake."
The future of the lake and surrounding development has sparked such heated dissension in some quarters that Tempe resident Charles Goodson said it's compelled him to run for mayor.
"The lake is an eyesore. There is nothing beautiful about it," said Goodson, who is collecting the 'required 771 signatures to put his name on the March 2000 ballot.
Goodson says part of his campaign would be to allow voters a say in how Town Lake is run.
issuance of $40 million in bonds to build the lake, thus -avoiding a public vote and the raising of taxes.
Tempe's substantial investment, so far makes it critical to secure private development, but Goodson isn't that hopeful.
"Guess who is, going to get stuck with the bill (if development fails)?" he said. "We are.,,
Giuliano dismisses the suggestion that private construction projects will never come. But the mayor admits that it hasn't been easy with any of the four major components of Town Lake:
Tempe's Peabody Hotel Developer Marty Betz has tried to secure financing to build Arizona's largest hotel, without success.
Betz's chances of financing the hotel evaporated last year when the primary lender, Nomura, closed its real estate loan division.
Tempe revised its contract with Betz, requiring him to pay the city $300,000 if hotel construction doesn't start by January, a scenario that many say is all but a foregone conclusion.
This week, Betz avoided being slapped with a notice of default by Tempe a breach. of contract would