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East Troy approves School Street lift station design and development agreement tied to TID financing
Summary
The Village of East Troy approved a $168,000 design-and-bid contract for a replacement School Street lift station and separately approved a development agreement with Overlook Ridge LLC that commits tax-increment support the village says is necessary to make the project financeable.
The Village of East Troy on March 11 approved design and bidding services for a replacement of the School Street sewage lift station and separately approved a development agreement for the Overlook Ridge project whose tax-increment credits the village will use as part of funding calculations.
Applied Technologies will provide design and bidding services for $168,000, paid from Tax Incremental District (TID) 5 funds, the board voted. Katie Hassing, who said she will serve as project manager for Applied Technologies, told the board the village is moving to “what’s called the submersible station,” meaning pumps will operate submerged in the liquid being pumped. Hassing said the design work includes a 20-year flow evaluation to size the station for expected future development and plans to limit construction disruption at the confined School Street site.
The village cited a roughly $2,000,000 construction estimate from its facility plan; Hassing said that estimate includes replacement or rehabilitation of the force main. Hassing also warned of supply-chain delays for major electrical equipment, saying generators and electrical panels are the most affected items and that a generator can take about a year from shop-drawing approval to delivery. The board authorized owner-side procurement options and instructed design staff to consider timing, prefabricated vs. site-built building options, and bypass pumping needs to keep the current station operational during construction.
Separately the board approved a development agreement with Overlook Ridge LLC that the village says is necessary to support debt payments tied to the lift-station project. Village Administrator Eileen summarized the agreement and the pro forma produced by Ehlers, saying, “The developer in exchange is guaranteeing an equalized value of $21,025,000.” The village estimates annual tax increment on that equalized value at about $303,000. The development incentive in the agreement is described as $4,800,000 and is structured as a PAYGO: the incentive will be paid from increment generated by the development, at 90% of available increment for the first five years and 60% for the following 20 years.
Under the agreement the developer provides shortfall payments if assessed values or increments fall below projected levels; Administrator Eileen explained the shortfall provision is intended to ensure the village can make debt payments if increment receipts are lower than projected. The agreement also requires a trail easement and gives the village the ability to specially assess the property if the developer fails to meet certain plans and payments.
Both items carried by voice vote. Board members discussed chronology and timing: Applied Technologies estimated completing design by late 2025 with construction in 2026, and construction duration estimates ranged from one construction season up to about a year. Developer Kevin told the board his team hopes to begin site work immediately and projected building inspections in mid-2026.
The board asked staff to return with plans for public review of building aesthetics and siting; Hassing and board members suggested a committee or joint meeting with the planning commission when conceptual building designs are available because the School Street site is in a visible village location.
