The City of LaGrange has signed an intergovernmental agreement to fund the construction of a new industrial park road.

The city, county and Callaway Foundation agreed to share the cost of building a road for an industrial development currently known as Project Eagle off Pegasus Parkway. The city of LaGrange, Troup County and the Callaway Foundation will each contribute $1 million toward construction of the road, estimated to cost $3 million.

The road is planned next to Pegasus Parkway, opposite Sewon Boulevard.

About six months ago, the city signed a memorandum of understanding with the company to help build a road to the Callaway property, which would serve the new industry and open up additional properties on the site.

“We agreed that the Industrial Development Authority would fund the engineering of this road, and they are already in the process of spending that money,” City Manager Patrick Bowie said.

Bowie said the only problem comes with recent legislation regarding Chinese businesses located within a certain distance of military installations, which could pose a problem with the National Guard armory on Youngs Mill Road.

“They are working on that. We think we have a solution to this problem,” Bowie said. “The company has been working on this project for seven or eight years. This little setback is not going to make them disappear. »

The county and Callaway Foundation agreed to pay up to $1 million each, with the city responsible for any overage.

Bowie said there was a contingency reserve in the estimate of $3 million to cover an unexpected increase in costs.

The council unanimously approved the intergovernmental agreement.

“This opens the way for a lot more parcels to be developed,” Mayor Jim Arrington said.