Spring Hill backs letter of intent to acquire Bucyrus-area sewer infrastructure for about $600,000

The Spring Hill City Council voted unanimously to authorize the mayor to sign a letter of intent to pursue purchase of sewer infrastructure serving the Bucyrus corridor.

City attorney Spencer Lau presented the letter of intent, describing an arrangement in which Miami County would transfer infrastructure (including easements and a sewer line on 223rd Street and at least one pump station) to the city. Lau said the county’s construction costs were roughly $4,600,000 and that the county had obtained about $4,000,000 in grant funding; the county asked the city to pay approximately $600,000 to assume the assets.

Staff said the acquisition would add about 77 customers to the city’s wastewater system and estimated approximate annual revenue from those accounts at $46,000. "We'll pay cash, and I was looking at the cash balance on February 20, which was about $8,500,000 in the sewer fund," Rhonda Dunn said when council members asked how the city would fund the purchase.

Why it matters: staff said acquiring the line and associated easements positions the city to support future growth east along 223rd Street and that, while the immediate revenue is modest, the city would gain infrastructure and easements useful for long-term development. Staff also said the city would likely continue the county's existing pump-station maintenance contract rather than performing that work in-house.

Next steps: the letter of intent sets key terms to be negotiated; the council approved authorizing the mayor to sign the LOI and directed staff and legal counsel to return with a final purchase agreement for council consideration.