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The future of Clayhole Lake is as murky as its waters.

On one hand, it’s a potential recreational and wildlife habitat asset for Munster to develop as a public space. On the other, its natural, tree-lined shoreline is destined for a temporary rail line bypass, or “shoofly,” necessitating the rerouting of an above-ground NIPSCO utility line.

Clayhole Lake is the lesser-known, and visited, body of water — and former clay pit — northeast of Centennial Park in the area of Calumet Avenue and 45th Street. The lake is frequented by fishermen, hikers, bird watchers and the occasional boater as well as the residents who live near it.

Residents who attended the Munster Town Council work study session Thursday were particularly concerned about the impending loss of trees — up to 30 percent of those lining the north side of Clayhole Lake — due to the rail line and utility pole rerouting. Centennial Village, a commercial and residential development under construction to the north, will take another 25 percent of trees off the shoreline.

Munster is ramping up the first phase of its underpass/overpass project involving the Calumet and 45th intersection. The town sought a temporary 14-day closure of the Canadian National Railroad line running along 45th to enable the most efficient and cost-effective underpass construction. However, the railroad refused and would not entertain a compromise, town officials say.

Now, the town must pay $8 million for the shoofly, which will be in operation for about 18 months and then be dismantled. As a result, the tracks, accompanied by the rerouted electrical lines, must be moved closer to the lake and its trees.

Erik Andersen, who lives at the end of Thicket Lane, about 30 feet from the lakeshore in the Twin Creeks subdivision, described Clayhole Lake as the “hidden treasure of Munster.” He said he doesn’t want to see any trees go, noting many are 60 feet high, and was encouraged to hear town officials say they are working with a pair of arborists to selectively cut down trees and determine the best course of replanting them.

Andersen and others at the meeting agreed with Town Manager Dustin Anderson that it’s time to discuss the lake’s future and plan for its eventual development. Andersen cautioned that it took some 50 years for the lake and the land around it to transition into a natural state developable as a recreational site and that its plant and wildlife should be preserved.

Town Council President John Reed said the town must consider the financial and physical capabilities of its decision involving the lake and road project balanced against the impact to the regional, state and federal money it’s receiving to alleviate a highly congested traffic area. And time is short, as a July 31 deadline looms before NIPSCO must get started with the utility line relocation.

Anderson told residents there may be an option to lessen the impact to the trees and that the town is working with its partners, and them, on the best solution given the limited options.

“Everyone may be disappointed one way or the other,” Reed said.

Councilman David Nellans said he hoped Clayhole Lake can be developed one day and now is the time to work on that vision.

“There is a lot of beauty there, and I think we need to enhance it,” he said. “It needs to be open to the community but in a controlled manner.”

Jim Masters is a freelance reporter for the Post-Tribune.