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Utility funding for business park questioned
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Friday, August 31, 2007 10:33 PM EDT
PERRY TWP. - Potential local funding to connect infrastructure to the Taylor Business Park will be discussed at the Township Board's meeting Wednesday.
Last month, Township Treasurer Troy Parmalee brought a resolution to the Board which would require developers to be solely responsible for providing infrastructure to the park - including wells and septic fields or private water and sewer systems.
The resolution was tabled for the Board to have more time to analyze it, said Township Supervisor Sid Grinnell.
The park is a nearly 500-acre piece of land on the northeast corner of the intersection of M-52 and I-69. Rezoning of the land from agriculture to light industrial was approved in May 2006, with no businesses yet attached to the site.
Parmalee said he brought the resolution forward to recognize the fact that previous boards had voted not to fund utilities, and to voice concerns raised by residents. He said rumors have been swirling the Township Board is going to “borrow millions” to fund the project.
“I want everyone to know what's going on basically...I want to make it clear that (borrowing money) hasn't been said and that's not what we're doing, at least in my opinion - we'll see what the Board says,” Parmalee said.
The resolution says the township has “no realistic alternatives” to provide infrastructure to the park due to the expense of the project and the city of Perry's “inability” to handle the water capacity needed.
If the resolution is approved, Grinnell said the Board's hands would be tied in assisting economic development projects.
He said approving the resolution would not allow for the township to apply for grants and help fund any other new developments in the area. He said it would also hinder bringing in new businesses since they may go to other municipalities that do provide assistance.
“I think the whole future of this area hinges on this meeting,” Grinnell said.
One potential funding opportunity currently for the township is to apply for Community Development Block Grants, which require a 10 percent local match.
In the resolution, Parmalee said matching 10 percent of a project just to extend water and sewer mains into the park would cost about $97,500 - more than the township receives in one year from property tax revenue.
The township's 2007-08 budget is about $471,000.
The estimated cost of improving the city's water system and expanding service area is about $5.5 million, he said in the resolution, with expansion of the sewer system about $3.34 million. A new wastewater treatment facility would cost between $5 million and $10 million.
In the resolution, Parmalee cites a utility feasibility study presented to the township and Perry City Council in June. The study, conducted by Lansing-based engineering firm c2ae, evaluated the capacity of Perry's existing water and wastewater systems with the potential requirements of connecting to the Taylor Business Park and surrounding areas within the township, city and village of Morrice.
The summary of the report reads that the city of Perry's water and wastewater systems would be at capacity before 2011 if its current excess capacity is allocated to the park.
A 2004 Planning Commission meeting, during which the Board voted unanimously for developers to be solely responsible for public water and sanitary sewer service to the area, is also a part of the resolution.
Minutes from a Jan. 5, 2005, meeting also show the Township Board voted unanimously to place the responsibility of putting in utilities at the park on buyers, Parmalee said.
Parmalee also points to zoning issues with connecting infrastructure to the surrounding areas.
In the resolution, he states the proposed additional service area, includes or borders more than half the sections of Perry Township that are not designed to be served by public water and sanitary sewer service.
