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Perry City reviews developer-paid sewer upgrade in exchange for 300 reserve connections
Summary
City staff presented a proposed development agreement with Patriot Group Development Inc. under which the developer would pay to extend a 10-inch sewer to 12-inch pipe and receive 300 reserve sewer units for five years; council discussion clarified capacity, nonrefundable, and nonassignable terms.
Perry City staff presented a proposed development agreement on April 21 in which Patriot Group Development Inc. would fund and build an upgrade to a city sanitary sewer line in exchange for reserve capacity on that line.
Miss Newbie, who introduced the agreement, said the developer would extend and upgrade a 10-inch segment to a 12-inch line to improve access to existing treatment capacity. "What it does is it increases the availability or access to other geographic areas that are located along that 12 inch line to access the capacity that we have on the line," she said, describing the upgrade as an extension that opens up properties north of the current 12-inch terminus.
City staff explained the existing 12-inch pipeline equates to capacity for roughly 600 units and that Patriot Group is asking for 300 reserve units in exchange for the work. The draft agreement, as presented, would require the developer to pay all construction costs; it would not refund costs to the developer and the reserve capacity would revert to the city if unused after five years. Miss Newbie added the allocation would be "not assignable," limited to the developer or an entity wholly owned by it.
Mr. McMurray, present to answer technical questions, confirmed the proposal increases availability rather than increasing the total system capacity: the work removes a local bottleneck so nearby parcels can access existing capacity on the 12-inch line, staff said. Council members asked clarifying questions about the geographical extent of the extension and how the 12-inch segment interfaces with nearby roads; staff referenced maps and noted the 12-inch line approaches Airport Road Extension.
No formal vote on the development agreement was recorded during the pre-council discussion; staff said the item would appear on the council meeting agenda for consideration. The transcript shows council members were given time to ask questions and seek clarification on nonrefunding, time-limited allocation, and nonassignability before the regular meeting.
Next steps: staff will present the proposed development agreement for formal consideration during the council's evening agenda, including maps and the draft contractual language for the capacity grant and the five-year reversion clause.
