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Costs of extending utilities along 210 north discussed
Staff Writer The potential for extending water and sewer north along Highway 210 could aid future growth in the city of Brainerd.
However, affected property owners and city officials are at an impasse over how to pay for such a project.
While Brainerd officials have for years discussed extending water and sewer to the Brainerd Lakes Regional Airport, the Brainerd Safety and Public Works Committee met in a special session Tuesday afternoon to discuss the costs of the first phase of the extension, from Lum Park to Wonderland Park Road.
City Engineer Jeff Hulsether said the estimated project cost for the first phase would be $1 million, with about $740,000 being picked up through property assessments. Individual assessments for residences could be as high as $30,000 on Laurian Lane, Ash Avenue and other areas.
Though there is the possibility of further development on the bigger parcels along Highway 210, Hulsether noted there were several properties along the project that are not in the city and could not be assessed for utilities.
The project was reviewed by the committee after a request for water and sewer by Anderson Brothers.
Terry Curtis, director of business development with Anderson Brothers, said his company has been exploring the need of water and sewer for at least seven years. It was for that reason, he said, that the company annexed its business into the city and rezoned its property.
"We'd like to continue to stay in Brainerd and grow in that site," Curtis said. "To do that utilities are kind of become an important part.
"We're asking for nothing more than we did seven years ago, and that's to have services like anyone else who annexes into the city."
Hulsether said if the city bonds for the project, 20 percent would have to be assessed to benefiting property owners. Committee member and alderman Bob Olson said with city taxpayers already paying a good share of the $17 million in current debt on bonds for other projects and $700,000 owed on the city's recent purchase of industrial park land, he couldn't support the project if it meant more tax dollars for residents.
"Right now, if there's a way of putting the project in without levying tax dollars on our citizens, that's the only way I could support it at this time," Olson said. "In order to make this viable, we have to look at other options."
City Administrator Dan Vogt agreed, saying the city is committed to paying bonds for Riverside Drive, the Industrial Park, Brainerd Oaks, Beaver Dam Road and has committed to paying for 70 percent of the downtown reconstruction project.
"There's not a lot there," Vogt said. "We're extended."
Committee Chairwoman and council member Lucy Nesheim countered money could be available from sewer and water accessibility funds to help out.
"I think it's very important for the future of the community to look at this," Nesheim said. "I believe in the long term it will pay for itself."
One idea floated at the meeting, which the committee directed staffers to pursue, was the idea of a recapture agreement in which Anderson Brothers or other large property owners paid for the project and as other property owners connected to the services their costs would be paid back to the company.
Another avenue the committee suggested was having the largest property owners meet to discuss details of the project.
Oak Lawn Township Supervisor Mark Haglin said instead of extending water and sewer to the airport the city should look at other options, such as on-site wells or creating a treatment facility at the airport.
Jim Anderson, owner of Anderson Brothers, said he has thought about building his own system but would only do so as a last resort.
"We'd sooner be on the municipal system," Anderson said.
The committee directed staffers to seek out alternatives through the League of Minnesota Cities, its bond counsel and from other cities. The committee also asked potential developers to meet and discuss the project and for staffers to determine possible project costs for individuals.
MATT ERICKSON may be reached at matt.erickson@brainerddispatch.com or 855-5857.
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