Sewer plant up for redevelopment money
May 27, 2017
Douglas County commissioners on Thursday will consider providing additional Redevelopment Agency funding for the expansion of the North Valley Wastewater Treatment Plant.
The project is currently estimated to be $2 million to $2.7 million over budget. On Thursday, commissioners will consider appropriating an additional $2.7 million for the project, bringing the project's total RDA funding to $4.7 million.
"The additional RDA funding for the project will be of direct benefit to the RDA area and immediate neighborhoods in which the redevelopment area is located, and no other reasonable means of financing the additional $2.7 million in project costs is available from other Douglas County funds," according to a memo prepared by Public Works Director Carl Ruschmeyer.
The North Valley plant opened in 1988 to serve the industrial areas around the Minden-Tahoe Airport and was expected to treat about 125,000 gallons per day. The plant and sewer ponds were the subjects of $1 million in work in 2007.
The plant serves portions of Genoa and the Johnson Lane area and is at approximately 85-100 percent of its 300,000 gallon capacity.
In September 2015 commissioners approved the proposed $7.5 million expansion project.
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Thus far, $2 million in RDA funds and $5.5 million in state loans have been secured for the project.
However, as design work was completed the project came in over budget. At 60-percent design completion, the project was estimated at more than $2.75 million over cost, in part due to labor shortages and material costs, according to the county.
The project is now at 90 percent design completion and is estimated to be $2.74 million over budget.
"It is now necessary to secure additional redevelopment funding prior to the project going out to bid," according to Ruschmeyer.
According to a schedule provided by the county, the project is set to go out to bid in August, with construction beginning in November. Substantial completion of the project is set for November 2018, with final completion of the project set for May 2019.
The project is estimated to create 72 temporary jobs and generate $1.3 million in annual property tax revenue and one-time development fees such as water and sewer connection fees and building permit fees for properties within the RDA area.
A 2016 analysis completed by the Northern Nevada Development Authority found that expansion of the plant could support up to an additional 289 businesses in the area and that it could bring in an additional $49 million in state and local tax revenue.