The Edgerton City Council is expected to approve a wastewater treatment system to serve the intermodal logistics park on Nov. 10.
During an Oct. 27 work session, the council reviewed five options for extending sewer service to the development which is expected to open in late 2013.
The council in July approved a design/build contract with Burns and McDonnell and CAS Construction to provide sewer services to the intermodal logistics park.
Engineers from Burns and McDonnell and CAS Construction, Tom Kaleko from Springstead, City Administrator Beth Linn and City Superintendent Mike Mabrey and been reviewing wastewater treatment options ranging from a $5.5 million temporary pump station to a $15 million complete treatment plant.
Kaleko told the council that infrastructure for economic development projects carry more risk and unknowns than infrastructure for capital improvement projects.
So far, only one 40,000 square foot tenant has been named for the logistics park.
“Your challenge is that the council must find its comfort zone,” Kaleko said.
In addition to serving the intermodal logistics park, the city has pressing wastewater treatment needs of its own.
Mabre said the current treatment plant needs about $300,000 in concrete work.
The team, made up of Kaleko, the engineers, Linn and Mabrey, studied all five options and ranked them based on a point system.
The system ranked each project based on low intitial cost, long-term project cost, size for capacity and scalability, schedule for additional construction, and economic development.
Based on the rankings, the team recommended that the council consider a $10.7 million half-plant that could be expanded in the future as needed.
The half-plantwould be sized for a capacity of 250,000 gallons per day, expandable to 500,000 gallons per day.
The expansion would be needed in 2017 to meet the needs of the city, the intermodal logistics park and future delveopment.
The city would continue to be served by the existing treatment plant in the short term.
The city in 2009 approved a public infrastructure finance agreement with BNSF and the Allen Group that specifies fiancing for $46 million to $53 million in road and utility infrastructure to support the development.
“Under the financing plan, various revenue sources are to be deposited into the public infrastructure fund,” Kaleko wrote in a memo to the council. “These revenues aer then used to pay for the required infrastructure. The infrastructure projects are to be built in six stages triggered by attainment of specific development milestones.
“Given the cost of the improvements and the fact that the revenues will be received over time, it is anticipated that the infrastructure projects will be financed with debt obligatiosn — although the financing plan does not preclude financing infrastructure projects with cash, if possible.”
Those revenue sources include property, excise, utility francise and utility sales taxes and origination fees generated by the intermodal logistics park.