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Council approves $90,000 SITLA contribution for industrial park road and utilities
Summary
Gunnison City Council approved a cooperation agreement with the School and Institutional Trust Lands Administration (SITLA) to extend water, sewer and a traversable gravel road into the industrial park; the governor’s office provided ~ $400,000 of an estimated $600,000 project and SITLA will prepay $90,000 of future impact fees.
The Gunnison City Council voted to approve a funding cooperation agreement with the Utah School and Institutional Trust Lands Administration (SITLA) to extend utilities and a road into the city’s industrial park.
Dennis, a city staff member, told the council the project was estimated to cost more than $600,000 and that the Governor’s Office of Economic Development had already issued roughly three-quarters of the grant funding — "over $400,000" — toward the project. SITLA’s civil development arm offered $90,000 upfront, presented as a prepayment of impact fees the trust would otherwise owe when it develops the land.
"They want to give the city that money by the end of this fiscal year so they can say they've got the money to be able to do it," Dennis said, adding that the city’s financing package would need to supply about $110,000 (expected from water and sewer impact fees) to complete the financing plan.
Council received detail on the project's scope: grading, subgrade preparation and an initial gravel surface to allow the road to qualify for state B-and-C road funding and future maintenance dollars, and the extension of existing water and sewer lines through city-owned property to reach SITLA-owned ground in West Shore Park.
Councilman (functional label) moved to accept the agreement and the motion passed on a roll call: Nelson, Childs, Hill, Pickett and Peterson voted yes. Council directed staff to sign the road and utility expansion contribution agreement and accept the $90,000 contribution.
The agreement will allow the city to list the new route as a public road once improved to a traversable gravel condition and to access state maintenance funding. Staff said SITLA may provide the $90,000 before the end of the fiscal year and that those funds would be recorded as a credit against future impact fees rather than a separate donation.
