Shenandoah city officials are urging Conroe to “realize their commitment” for funding the $10 million David Memorial Drive extension to Texas 242 after Conroe council decided to withhold its almost $2 million for the project after questioning the design of the road.

Shenandoah City Council took no action June 8 after construction bids were opened due to the pending funding. John Bleyl with Bleyl Engineering said the low bid on the project was from Brice Civil Construction for more than $7 million.

Shenandoah has until Sept. 6 to award the bid to Brice Civil Construction, Bleyl said. 

“We have time and everyone is aware of that,” Bleyl said. “There has been a lot of conversation.”

During a June 28 joint meeting between the Shenandoah City Council and Shenandoah’s Municipal Development District Board of Directors, several council members voiced frustration over the funding issue.

Shenandoah Councilman Ron Raymaker pointed to Conroe’s recent financial struggles with its newly opened $107 million Hyatt Regency hotel and convention center as the reason for withholding the funds.

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“The city of Conroe got themselves into a financial pickle not noticing they needed to fund $5.1 million of operating and maintenance for their new convention center so they are trying to renege on the $2.1 million they committed to the David Memorial project,” Raymaker said.

In May, just days before the grand opening of the hotel, the Conroe Council agreed to fund $5 million in operating costs.

Last month as Conroe began budget discussions for 2024, council members questioned the road project’s design that takes the extension through the parking lot of the Houston Methodist The Woodlands Hospital.

Conroe Councilman Harry Hardman said the road through the hospital parking lot “negates” being a thoroughfare to move traffic more efficiently to Texas 242.

“It is an important project and we want to be good partners with the community,” Hardman said. “We need to be sensitive to our constituent and that is the hospital. We are trying to represent their wishes as part of this deal.”

The project has been a verbal agreement among Shenandoah, Conroe, Montgomery County and the hospital for years.

Under the most recent financial breakdown, the county would allocate $5 million from its road and bridge fund which includes $2 million previously set for the design and specifications, while Conroe would provide $2 million and Shenandoah also would fund $2 million.

“We intend to donate the property once there is an agreed to plan for the road and city funding,” said Stefanie Asin, director of communication, public relations and creative services for Houston Methodist.

Montgomery County commissioners are expected to discuss the county’s potential funding at its July 11 regular meeting.