The Daily Inter Lake

Developers of 212 acres of land at U.S. 2 and Montana 40 won an important vote Tuesday night from the Columbia Falls City Council.

Despite concerns about what it could cost the city up-front, the council agreed unanimously to allow water and sewer connections to the property southwest of the Blue Moon Nite Club.

It means Columbia Falls Land Associates will pay to extend water and sewer lines about a mile west of South Hilltop and 13th Street West.

The approval requires developers to put forth an approved subdivision plan, pay sewer- and water-plant investment fees effective at build-out, and build the water capacity - probably through a new well - needed to serve the area.

Developers could recapture their costs through latecomer fees that landowners will pay to connect to the lines.

The ability to connect to city utilities is a prerequisite to gain preliminary plat approval for subdivisions on the outskirts of Columbia Falls.

The San Francisco-based firm proposed a mixed-use commercial and residential development at that intersection last fall, but the Planning Board recommended denying the zone change because the plan lacked detail. The preliminary plat, on which no action has been taken, included a 21-acre commercial site plus another 20 commercial lots that could accommodate a major retail center.

The City Council granted similar utility-connection approval Tuesday night to a request from Jon and Angela Lemburg on 29 acres they want to develop between North Hilltop Road and Meadow Lake Boulevard.

Their Hilltop Meadows proposal won a zone change after they submitted a survey laying out specific lot boundaries late last fall.

Plant-investment fees - fees charged to property owners when they connect to utilities so that the city has money to expand capacity - were a pivot point in the discussion.

Currently, City Manager Bill Shaw said, plant investment fees are about $4,700 a home, with about $2,300 of that for water and about $2,400 for sewer.

A sewer-plant upgrade is planned for next year, funded by plant-investment fees and other city money. That work will increase the plant's efficiency. But to increase volume capacity as the city continues to grow, fees will have to increase.

HDR Engineering studied the city's wastewater system about three years ago, projecting that planned upgrades should last through about 2015. But the pace of growth could push that date forward by as much as five years, Shaw cautioned.

With every plant-improvement, each plant-investment fee becomes more valuable. Shaw cannot predict a firm number for the latter, but virtually guarantees fees will rise noticeably.

He expects volume-capacity upgrades to cost about $2 million for the water system and between $2.5 million and $3 million for the wastewater system.

Council member Julie Plevel voiced her worry that - because plant-investment fees are not collected until actual connection, but the city must be able to guarantee the capacity when granting those connections - the city would have to wait 10 or more years to recoup its money put into increasing plant capacity.

She also was concerned that Columbia Falls fees might outpace those in neighboring communities, driving new-home development out of the city.

Shaw assured her that only a small margin of excess capacity is needed at any given time, limiting the city's liability.

Plevel again wondered what exactly Columbia Falls Land Associates plans - and what infrastructure it will take to meet that demand.

City Attorney Eric Kaplan said that the connections must be approved before developers can proceed.

Council member Harvey Reikofski asked whether development details could be provided before the council's approval for sewer and water connections, triggering Plevel's question.

Shaw said the developer must replace the city's cost of adding water and sewer capacity before adding it. He added that water-system production should not be a problem, but the 212-acre development probably will require a new well and more storage.

Sewer treatment regulations likely will change with pending law, he said.

He recommended new studies of both systems to assess capacity in light of the increased pace of development.

With 60 new homes built in 2005 and 100 built in 2006, Shaw said, the pace of growth is manageable.

Council member Mike Shepard cautioned that, with potentially 977 homes added with these two zone changes alone, "this could be the biggest addition to the city ever."

No housing numbers have been presented or approved, Shaw said.

Reporter Nancy Kimball can be reached at 758-4483 or by e-mail at nkimball@dailyinterlake.com