Developers want more $

CELINA - The developers of a proposed residential/entertainment district on West Bank Road want the city to pay for an additional $169,000 in water line work that was not negotiated when the project was first pitched as a condominium/hotel-style resort more than seven years ago.

Bruns Construction Enterprises also want the city to waive an estimated $100,000 in water and sewer tap-in fees and aim to apply for a tax abatement, according to city safety service director Tom Hitchcock.

Hitchcock relayed the developers' requests to city council members at Monday night's committee-of-a-whole meeting. Any major utility-related work undertaken by the city would be paid via the Grand Lake Tax Increment Financing District.

Councilors took no action, but some appeared to balk at the costly request.

When the project was first proposed as a condominium/hotel-style re-
sort years ago, city officials agreed to make certain improvements, including a storm sewer replacement, Hitchcock said.

Since then the plans have changed, and the development would encompass dwellings, an entertainment district and the Boardwalk Grill restaurant.

"When the first project came down here we kind of agreed … if we ever have to remove that storm sewer that runs through the center of their property, that was our cost because it's our storm sewer," Hitchcock said. "We have no easements across it. It was ours to move out."

The storm sewer line replacement would cost $92,934, he noted.

"That's just the main line. We are not doing anything for their lines going up into their development," he clarified.

City officials also initially agreed to tap into an existing 16-inch water main, Hitchcock said.

"We were going to tap that and bore underneath (U.S.) 127 to their property," Hitchcock said.

That work is pegged at $26,050.

"Since then they've now asked us if we would pay to run all the water line," Hitchcock said.

Hitchcock anticipates such an endeavor would cost about $169,000. It would involve running an 8-inch water line along South Main Street, estimated at $73,050; connecting it from West Bank Road to South Main Street, $44,644; and installing two laterals up into the development, $51,048.

"We're not recommending paying for anything except that original boring. We're just giving the information (about) what the developer is asking now," Hitchcock said. "What we agreed to originally was the tap across the road and replacing the storm, but they're asking for a lot more than what we originally agreed to, and we thought we needed to bring it back to council just to let you know what's going on."

Developers also want a tax abatement and for the city to pay for utility work with Grand Lake TIF funds, Hitchcock said. The account has an unencumbered balance of $321,000, city auditor Betty Strawn said.

TIF revenue comes from taxes on any increase in land or building values in a specific district. TIF districts allow for real estate taxes on new development to be diverted into separate accounts to be used for public infrastructure projects within the district.

"They've paid in $26,000 total since the TIFs were created," Hitchcock said of the developers.

The developers consider the proposal to be a commercial project, he continued.

The plan calls for "rental condos or rental apartments," mayor Jeff Hazel added.

"Residential can't get a tax abatement where commercial can get a tax abatement," Hitchcock explained. "If they come across as commercial, they're going to have to get state plans on everything."

Councilmen Mark Fleck, Eric Baltzell and Mike Sovinski all offered their thoughts on the request.

"How can we spend property tax monies for them to develop this and then not be able to collect that improvements tax on that?" Sovinski asked.

"If I was building it I'd ask for everything in the world, too," Fleck said.

Baltzell agreed with Fleck's assessment.

"I can understand they would ask for all this. I mean, you're not going to get it if you don't ask," he said. "I wouldn't be in favor of all the water lines being paid for by us. I think the crossing the street makes sense but all the laterals, that's typically a developer cost."

No action was taken.