Town grants for water, sewer connections may be offered

For years, Town of Port Washington officials have looked for ways to get sewer and water services into the Knellsville area, and that day is almost here.

The Town Board on Monday reviewed a proposed amendment to the border agreement it has with the City of Port regarding the extension of sewer and water into Knellsville — something made possible by the construction of the Vantage Data Centers Lighthouse Campus.

It also heard a proposal from Town Chairman Mike Didier to create a grant program that will help offset the cost of connecting Knellsville properties to city water and sewer when the utilities are installed.

Didier suggested funding the grants with the $150,000 annual payments the town is receiving for the next five years from the city for allowing the annexation of the data center lands.

“I want to use this money for something that’s not ongoing,” Didier said. “I want to use this for some one-time expenses.

“It would not be financed with (town) taxpayer dollars.”

Town residents living along the sewer and water lines will have to connect to the city services, Didier said, noting it is required by Ozaukee County and city ordinances.

That can be a significant cost for property owners, he said, noting that a representative of Harbor City Plumbing told him the cost for water lines in a new subdivision in the City of Port is running between $5,000 and $6,000.

Didier said he envisions a program that would give $5,000 to property owners to help offset the costs associated with hooking up to city utilities.

The program would only be available to residential and commercial properties that are in Knellsville and that have buildings on them.

“New construction doesn’t count,” Didier said.

The cost, he said, would be less than the $150,000 annual payment the town receives from the city.

But a group of residents who live near the data center site questioned the grant program, saying the town shouldn’t spend  money on a program that will only help some property owners.

“How does the town justify helping Knellsville residents and not the rest of the town?” Kim Tydrick asked. “You’re supposed to represent the whole town, not just Knellsville and your families. Nobody’s helping me get my water.”

She asked a number of questions about the proposed grants, saying there is a need for transparency that has otherwise been lacking in regard to the data center project.

She also questioned how many of the owners of the 33 improved properties in Knellsville would use the grants, noting that when the town surveyed them several years ago few said they would connect.

Didier said he spoke to all the affected commercial property owners to gauge their interest in the program. Six are interested in hooking up to city utilities, he said, five said it will depend on the cost and one is not interested.

Details of the program haven’t been worked out, he added, noting that this is an idea for the board to consider.

“There is a financial burden,” Supr. Greg Welton said, especially for property owners with working septic systems who would have to abandon them.

Didier said that his goal is to spend the money not on recurring costs but on a one-time expense that will help the town, especially as it works to establish its industrial park.

He added that the remainder of the money the town receives from the city could be used for other things.

“That’s only one-fifth of the money. I’m open to ideas,” he said.

Portions of Knellsville are in line to get some city services as soon as next year.

The Common Council in October approved a $7.3 million bid from Dorner Inc. to install sewer and water services into parts of the Knellsville area.

The city received five bids, Aaron Groh of Kapur & Associates, told aldermen, adding that Dorner’s bid is 8% less than the engineer’s estimate.

Aldermen also approved a $4.5 million contract from Advance Construction Inc. to extend water services along Highway KW to Lake Drive, then along Lake Drive to the data center campus. Groh noted that this is the lowest of three bids and it came in almost 12% under estimated.

Work on the two projects can’t begin until the Public Service Commission of Wisconsin approves the work, Groh noted, something that’s expected in January.

The draft agreement reviewed by the Town Board calls for the city to extend gravity sewer lines and water mains to all areas of Knellsville west of I-43 by Dec. 31, 2027.

Recognizing that lift stations will be required to service potential development on the northern portion of Vantage’s land and need to be sized appropriately, the agreement states this work won’t need to be done until Jan. 1, 2041, when the city’s tax incremental district for the data center will end.

If the northern phase of the data center project is developed sooner, that deadline will be moved up, according to the document.

“That’s the meat and potatoes of it,” Didier said, noting the amendment still needs to be reviewed by the city.