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Queenstown reviews $3.2 million USDA-funded water tower plan as landowners outline mixed‑use proposals

Queenstown Commissioners · July 1, 2026
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Summary

Queenstown officials discussed a proposed 250,000‑gallon water tower backed by roughly $3.2 million in USDA loans and grants and heard landowners describe a potential 200‑home mixed‑use concept for the Wheatland parcels; town staff said a rate study and possible developer agreements would determine costs for residents.

Queenstown officials on April 17 reviewed plans for a new 250,000‑gallon water tower designed to serve current town limits and future development and heard landowners outline potential mixed‑use projects for two large parcels.

Town Engineer Robert Rauch said the tower "was designed and located to serve the existing town limits and future development needs" and that the town has applied for and received both loan and grant funding from the U.S. Department of Agriculture totaling approximately $3.2 million. Rauch added that his study shows "the existing system is lacking sufficient fire suppression and capacity," so the town faces a baseline infrastructure need even if development does not proceed.

When resident Gerry Young asked whether the new tower would impose costs on residents, Town Attorney Brynja Booth said the town must follow state law to keep its general and enterprise (water/sewer) funds separate and that "the town will have to do a water study, and debt and consumption rates will need to be adjusted to cover the loan portion" if the project moves forward. Booth also noted the town can negotiate terms with developers through Public Works Agreements and Developers Rights and Responsibilities Agreements.

Landowner Barry Waterman told commissioners that previous plans for a large commercial "big box" project no longer fit market conditions. He said he and his family are now discussing a mixed‑use concept that could include roughly 200 homes along with commercial pads for fuel/food service stations (he cited Royal Farms and Wawa as examples), retail and sit‑down restaurants. "Now the market doesn't support that type of development and they are now looking at a mixed use of commercial and residential," Waterman said; he added that they have been working on a sketch plan with developers but have not finalized a proposal.

Peter Dudley, the owner of the adjacent parcel often discussed as an ideal tower site, told the commission his family has not yet developed a clear plan for their property. Local resident Matt Reno urged the town to "move forward" with development, saying the town should work with developers and be transparent with residents about the costs of proceeding or not. Mike Bowell emphasized timing, noting low interest rates and rising construction costs.

Commissioners also discussed sewer main repairs to alleviate infiltration and said the town will continue pursuing grant funding to reduce the burden on customers. Rauch outlined an interim financing approach whereby the town would secure design and construction financing first; a subsequent rate study would determine connection fees and rate changes, with customers not absorbing debt service until the project is complete.

Commissioner Lonnie Anthony voiced support for advancing the tower and related infrastructure, and Attorney Booth suggested a joint meeting with the Planning Commission to better coordinate on the Wheatland's planning. The board agreed to pursue that coordination.

President Thomas B. Willis, Jr. moved to adjourn the special meeting at 7:05 p.m.; Commissioner Alton Hardee seconded and the motion was carried unanimously. Town Manager/Clerk Amy W. Moore recorded the minutes.