Allegany County discusses water tower, water line and funding to spur Gateway hotel and restaurant

Allegany County officials heard an update on March 19 on water infrastructure planned for the County Route 51 Gateway, including an Appalachian Regional Commission (ARC) grant of $740,000 toward a water tank and 1,100 linear feet of water line that the county says would support a hotel and restaurant development.

The presentation outlined why the work matters: the proposed tank and line are intended to provide required fire flow and drinking-water redundancy for the Gateway area and would enable utility service connections needed by prospective developers. County engineers estimate the segment covered by the ARC grant would cost between $3 million and $3.5 million, and completing the full looped water system could raise the total to about $4.2 million.

Project details and funding options

Economic development staff and project consultant Tom Windes said plans and specifications have been submitted to the Department of Health for permitting. The ARC grant is structured to fund the tank and the 1,100-foot water main; the county would need additional funds to cover the rest of the water loop and any paving or later build-out. Windes described the tower as a lower-profile tank sized initially to provide fire flow for a four-story hotel and to supply neighboring areas in the event of main breaks.

Presenters said the county has funds set aside for development in this corridor and that recent inquiries to the treasurer indicated roughly $3.5 million to $4 million remained in a set-aside fund. Staff cautioned that ARC grants are reimbursement grants: contracts and procurement generally must be in place before costs can be reimbursed, which can require the county to pay upfront and seek reimbursement later. That can push the county to either use its fund balance to begin work or to secure additional grant awards.

Timing and next steps

Permitting with the Department of Health is underway; Windes estimated that, allowing for possible back-and-forth with DOH, a permit could be in hand by May. If the county decides to commit its own funds to cover any shortfall, staff said the county could advertise the work for bid promptly. The presenter noted additional grant applications are pending and that successful additional awards would reduce the county’s outlay.

Other infrastructure and development constraints

Speakers emphasized that sewer capacity remains a separate constraint and was not addressed in detail during this update. Committee members said the county’s formal commitment on water and wastewater infrastructure is a key signal developers want before investing in hotel or restaurant construction. Staff said the project team — including the Industrial Development Agency, engineering consultants and a county development partner — will return to the committee with updated timelines and a recommendation when permits and funding options are clearer.

Ending

County staff said they will return in approximately two months with a further update and that a formal decision on whether to use county set-aside funds or wait for additional grants could be required then.