Morgan County approves resolution to sell Waverly wastewater plant to Bargersville

Morgan County commissioners on Feb. 17 approved a resolution and authorized an acquisition agreement to transfer the county-owned Waverly regional wastewater utility to the town of Bargersville.

Chelsea Manns, representing the Morgan County Redevelopment Commission, told commissioners the county built the 60,000-gallon-per-day Waverly treatment plant to serve homes with failing septic systems and has operated it under redevelopment financing. "This is something that has been going on for a few years," Manns said, describing the project’s origins and the county’s intention to avoid condemning homes by extending sewer service.

Outside counsel Chris Bridal of Barnes & Thornburg summarized the transaction and the financial terms: "The town will pay approximately $5,720,250 to the redevelopment commission," he said, and the town will also purchase about 30 acres at roughly $36,000 per acre (approximately $1,108,440) to apply against outstanding SRF bond debt. Bridal said those proceeds are intended to eliminate the redevelopment commission's 2019 SRF bond obligation.

Bridal explained the schedule and approvals needed for closing. The town will have until May 1 to complete due diligence on the site; closing is expected in June or July but depends on the Indiana Finance Authority slotting the town’s debt and final sign-off from the Indiana Department of Environmental Management (IDEM). "IDEM really cares about is that we're not stranding customers," Bridal said, noting the town will assume the utility customers and charge the same rates the town currently uses.

Commissioners asked whether trails or park land would be preserved. Bridal confirmed the county will retain a portion of land for park purposes and said the town holds a right of first refusal on remaining parcels. After discussion, the commission voted 3-0 to approve Resolution 2-17 and, in a separate motion, to approve the acquisition agreement; both votes were recorded as unanimous.

Next steps include finalizing exhibits to the agreement (legal descriptions, asset lists), allowing the town’s due diligence period to conclude by May 1, coordinating IFA financing, and petitioning IDEM for transfer approval before closing. The county stressed that it will not create new material liabilities for the utility between execution and closing so the buyer can rely on the stated condition of the assets.

The commission did not schedule final signature events in the meeting; staff and counsel said they will return with final exhibits and keep the commission apprised of the IFA and IDEM processes.