Board directs staff to pursue TID-backed funding and easement moves for sewer, water and stormwater upgrades in southern planning area

After an extended staff presentation, the Village Board voted to direct staff to continue drafting documents that would use Tax Increment District funding and other sources to pay for a planned farm interceptor sewer, water main upsizing and regional stormwater improvements tied to the Coil South and adjacent farm properties.

Staff described the utility need: sewer flows from several sewer sheds converge on a south Grange sewer and a nearby lift station by Bakken Park; long-range planning and a 2022 utility assessment identified the system’s limiting capacity and the need for a new farm interceptor to relieve the constrained segment. Utility staff explained that an 18-inch interceptor (the “farm interceptor”) would reroute flow and extend the life of the constrained line, and that water main upsizing and stormwater facilities were also part of the coordinated work.

Financing approach and developer participation: Staff said the project cost for the interceptor is about $1.9 million. The memo and presentation estimated that TID 8 could cover roughly $475,000 of the north portion, Hamburg (Coil South developer) would contribute a portion (preliminary ~ $226,000 identified in staff materials), and Tierney-owned farm property work would involve roughly $600,000 of costs attributed to that portion. The village would use available water and sewer impact fees (staff said roughly $500,000 on hand for upsizing) and a guaranteed TID revenue stream to support debt service for the village’s share; staff said developers had discussed shortfall guarantees if value creation was delayed and that municipal revenue obligations (MROs) could be used to record and later reimburse developer shortfall payments.

Board direction and motions: Trustees moved, seconded and approved a motion to allow staff to pursue the use of TID funds for the northern portion of the farm interceptor and for Coil South stormwater improvements, with the understanding that detailed agreements would return to the board for final approval. The board also approved a separate motion directing staff to pursue relocation of an existing easement to accommodate the interceptor alignment; that motion was made by Trustee Murphy and seconded by Trustee Buenzo and carried.

Why it matters: Utilities staff stressed the project responds to an identified capacity constraint that could limit future development and risk service problems if not relieved. Board members emphasized timing advantages (installing infrastructure now with developer coordination) and staff said one goal was to get the interceptor in the ground this year to avoid higher costs later.

Next steps: Staff will finalize geotechnical and design details, negotiate formal agreements with developers (including potential developer shortfall guarantees and MROs), prepare a formal TID amendment or reimbursement agreement, and return final documents to the board and, where appropriate, the Utility Commission for approval. Staff noted final cost shares and exact dollar amounts will be refined as design and negotiations proceed.