Commissioners authorize Kenwood Hills sewer project after Ohio EPA loan with $4 million principal forgiveness

Hamilton County Commissioners voted to authorize construction of a local sewer for the Kenwood Hills neighborhood and to accept related low‑cost financing from state programs.

Lauren DiGrizio, representing MSD, told the commission the project will serve about 60 properties in Madeira now relying on household sewage treatment systems that “are not sufficiently treating the wastewater” and in some cases discharging into storm sewers and nearby streams. DiGrizio said the board previously authorized design work and that the project returned to MSD after residents petitioned for construction.

The county will appropriate $12,370,146 for the project. MSD reported it secured a no‑interest loan from the Ohio Environmental Protection Agency’s Water Pollution Control Loan Fund (WPCLF) that includes $4,000,000 in principal forgiveness. DiGrizio said the principal forgiveness will be used to offset amounts that otherwise would have been assessed to homeowners (roughly $12,000 per household under the prior assessment plan) and to reduce the MSD‑funded share for the public improvement. She said MSD increased its construction estimate by $976,000 to cover higher jack‑and‑bore costs, conduit and railroad flagging fees and to reduce the risk of unawardable bids given grant deadlines.

Commissioners pressed MSD staff on the firmness of the state funding and how the WPCLF forgiveness is distributed. DiGrizio said the county must proceed to construction in 2025 to receive the WPCLF forgiveness and described how the principal forgiveness functions: once the construction contract is awarded the loan will be issued, and the forgiven principal simply will not have to be repaid. She said OWDA and OEPA officials had indicated the program appears funded for the current year but acknowledged schedule risk and said MSD would return to the board if funding or timing changed. “We would certainly regroup with the administration and the board if something does go awry,” she said.

Commissioner Alicia Reese said she appreciated the creative financing but raised ongoing concern about residents on fixed incomes who testified the private share could range “anywhere between 20 to $60,000” (in 2025 dollars) without relief. Commissioner Stephanie Summerall Dumas thanked MSD for pursuing the grant and noted the county legal office had provided residents “a timeline, maybe a couple years, to try to pay” assessments.

The commission voted to approve items 1 and 2 — authorizing Kenwood Hills construction and approving annual applications and agreements with OEPA and the Ohio Water Development Authority for WPCLF financial assistance — by a 3‑0 vote.

The board and MSD staff said they will proceed quickly to advertise the construction contract so the loan and principal forgiveness can be awarded and implemented in 2025. If the state’s funding posture changes, MSD said it will return to the commission for further direction or action.

The vote advances the project to construction; homeowners will receive follow‑up information on timelines, financing and any assessment details as bids and final loan documents are completed.