With residents in Eastown getting restless to sell their properties and still no sewer system in the ground, the Bonney Lake City Council emerged from its annual retreat Saturday committed to going forward with a Utility Latecomers Agreement (ULA) to try and get pipes in the ground.
Nearly all councilmembers spoke of the importance of extending the city’s sewer lines into Eastown as a way to spur development in that section of the city.
“This is the start,” Councilmember Donn Lewis said of sewer lines. “This is an investment for the city.”
Lewis called sewer infrastructure the “lynchpin” for the area, something nearly all members of the council agreed with as they tried to move forward on ways to get pipes installed.
Officials estimated the total cost of implementing the planned sewer system at $3.5 million.
Councilmember Jim Rackley said he was “dead certain” the city needs to invest in the area even if it meant forming a Local Improvement District (LID) to tax the residents who would benefit the most from the improvements.
“This is out future,” he said.
City Administrator Don Morrison explained the three main funding options for installing the lines: a ULA, and LID or a city-wide bond.
Under a latecomers agreement, the city and a “substantial partner” would put up the money for the improvements by issuing 20-year bonds that would be paid back as users hooked into the system, paying for their share of the debt for the improvements.
An LID would create a taxing district out of just the parcels that benefit would be taxed based on the proportional benefit a property owner received from the new pipes. The LID process, however, could take up to two years to be approved because it would require a vote.
A ULA can be issued by the city council.
A city-wide bond would mean all residents pay back the loan through property taxes.
While all councilmembers agreed that something had to be done, several were unsure about investing city money for the area without firmer commitments from residents that businesses were likely to move in.
Several property owners have come before the council and talked about large businesses interested in their property, but concerned about the sewer lines.
However, the city has been burned in the past in Eastown by trying to rely on developers to install the sewer lines. Originally, the developers of the property known as Compass Pointe, the land parcel of land that currently houses equipment during for road construction, were to install the pipes, but the city has not heard from the property owners in some time.
Mayor Neil Johnson said that deal left a “bad taste” in the city’s mouth.
The city is presently collecting easements from property owners to be able to lay pipes through their land, but not all of the owners are on board and only about half have signed easements with the city so far, leaving some councilmembers to question their commitment to a project like this.
Councilmember Mark Hamilton said he had “great concerns” about the city getting a proper retuen on its investment in sewer lines.
“My businessman hat says we’re not totally there,” he said, adding that he did not believe the city had a “full fledged partner” with all of the property owners.
“If it was my own money to pony up, I wouldn’t touch this thing with a 50-foot pole,” he said.
“I don’t see anyone coming forward and saying ‘let’s build something,'” said Councilmember Dan Decker. “I hear a lot but I don’t see anything.”
Rackley countered that even during the downturn, Bonney Lake has seen growth and though that would counter worries about risk.
“We’ve got to bet on the future,” he said. “We grew last year when nobody was doing anything.”
Deputy Mayor Dan Swatman said he supports a ULA, though according to the law, the city needs a “substantial partner” in the area. There was question as to what exactly “substantial” means in terms of investment, however.
Councilmembers encouraged Eastown residents to band together and try to speak with a single voice to ensure the city has a partner in development of the land.
Following the discussion, Johnson said the administration heard “ULA with a partner” as the council’s preferred method and said they would work on that option.
During a break in the meeting, several Eastown property owners said they did not like the way the council characterized all property owners as dragging their feet when there are some actively working to get sewer lines installed, though all were optimistic about a latecomer’s agreement finally opening their land for development.
Several said they easements and land they have given for a road network through the area show their commitment to the project.
“You can’t even talk to a prospective buyer because you don’t know when or if we’ll have services,” said Roger Watt of Emerald Links, speaking for a group landowners in the area. “Now there’s going to be people knocking at the door.”