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County faces legal battle over crucial sewer project funding

September 17, 2024 | Oconee County, South Carolina


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County faces legal battle over crucial sewer project funding
During a recent government meeting, discussions centered on the ongoing challenges and developments surrounding the Sewer South system and the associated county general obligation bond aimed at completing the network's build-out. The meeting highlighted the historical context of the Sewer South project, tracing its origins back to 2014 when Michelin Tire Company considered the Golden Conner Commerce Park for a new distribution center. At that time, the absence of sewer service prompted the county to initiate plans to extend sewer access from the Conner Off treatment plant.

Despite the completion of Sewer South Phase 1 in 2016, which connected to the commerce park, Michelin ultimately chose to establish its facility elsewhere, leading to stalled development plans for the area. The county had invested significant resources in preparing the site for a speculative building, which never materialized, raising questions about the effectiveness of the county's development strategies.

The meeting also addressed the financial implications of the Sewer South project, particularly the challenges faced by the sewer authority due to a stagnant customer base and rising operational costs. The authority's financial struggles have resulted in multiple rate increases for current customers, a situation that could have been mitigated had the county retained ownership of the project.

In 2018, a federal grant was identified to fund the majority of Sewer South Phase 2, but subsequent delays and ownership disputes have hindered progress. The cost of the project has escalated significantly, with recent bids coming in at $12 million, nearly $7 million over initial estimates.

In light of these challenges, a proposal was made to require plaintiffs in the ongoing lawsuit regarding the county bond to post a bond to protect the county from potential financial repercussions due to delays. This suggestion aims to ensure that the bond is utilized for its intended purpose and to expedite the completion of the sewer project.

Additionally, community support was voiced for funding engineering services to expand recreational facilities at Southco Park, including pickleball and tennis courts, highlighting the county's commitment to enhancing local amenities alongside infrastructure development.

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