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Dalton sewer project under fire

Tom Hasslinger | Hagadone News Network | UPDATED 14 years, 2 months AGO
by Tom Hasslinger
| September 2, 2010 9:00 PM

DALTON GARDENS - The project is billed as a boost to business owners, but the actual bill some owners might be left with has them reconsidering the project's worth, regardless of improvements.

The proposal is to extend Coeur d'Alene's sewer lines to Dalton Garden's commercial district along Government Way, a benefit that would allow a more diverse cross of commercial enterprises to move into the area - not to mention a healthy relief to the area's aquifer and drinking water.

But the estimated $2.4 million cost to cover the project might be too much for some owners. They're being asked to foot the project through a local improvement district, or LID agreement that requires affected property owners to pay for the upgrades.

And that cost - with business and the economy down - might be too big a financial burden for some to bear.

"We don't really have an option," said Howard Hustoft, co-owner of Dalton Storage. "There's really no way we could afford to stay in business."

He and fellow owners Connie Chalich and Karen Gravelle estimate that with the proposed 5 percent interest, cap fees for tapping into the lines and other attached fees, the 15-year agreement could cost the business an extra $4,000 a month.

"We'd have to raise tenants' rents and they would probably move out and more or less make Dalton a ghost town," Hustoft said. "That's what they're doing."

But the city said the sewer lines are pivotal to keeping up with the city's long-term growth and planning, and the final numbers on the LID aren't set in stone.

The timing of the project is spurred by a federally funded reconstruction project on Government Way from Dalton to Prairie avenues, led by the city of Coeur d'Alene, and if the street is done without adding the lines, the commercial district might never get them.

That means businesses like hotels and restaurants could never move in.

"The vision for Dalton Gardens is to have a vibrant business district that has potential for property owners to use their properties for many different types of businesses," said Mayor Dan Franklin. "There's a point now where they just can't expand."

That's because the current septic system only allows businesses to generate 250 gallons of water per day, which restricts the number of customers and employees allowed. Under the change that limit would be erased. The lines wouldn't be expanded to residential neighborhoods, so the LID would only be split up for the roughly 80 owners of the 125 affected properties on the east side of the street.

The $2.4 million bill, plus hookup fees and interest fees with the LID and possible loans, is too big a bill for them to split, said Bill Radobenko, president of ACI Northwest Inc. on Government Way.

"The timing couldn't be worse," he said.

Forcing businesses to pay extra during a recession because of a federally funded street project is wrong, he said, especially for offices and storage units that don't need the extra capacity.

At an August public hearing, 50 owners signed a formal protest against the LID. Dozens spoke or signed up against it. Three people signed up in support of it, according to meeting minutes.

On the west side of Government Way is Coeur d'Alene, which is already hooked up to sewer lines and wouldn't have to buy in - although future developed parcels could.

"They have a lot to weigh," Franklin said about the City Council, which listened to four hours of testimony at the Aug. 5 public hearing and is expected to make its decision tonight. "There are some genuine concerns."

To get the project this far, Dalton Gardens entered into a Memo of Understanding with Coeur d'Alene last month for the commercial zone to be able to hook into Coeur d'Alene's sewer system. In exchange, Dalton Gardens will use its power of eminent domain to help acquire the needed right of way to widen Government Way from Dalton to Prairie avenues. That Coeur d'Alene project, done over two phases, is expected to begin next year.

None of the proposed terms to the LID are set in stone, Franklin said, and owners could pay less if their property's assessed value doesn't increase much after the work is completed. They also wouldn't have to buy in for five years.

But the timing of the one-time project is important for Dalton Gardens to consider. If sewer lines aren't put in as part of the street-widening project, they probably never would be.

"We wouldn't be back to do any work on that road again for 30 years, 35 years," said Troy Tymesen, Coeur d'Alene's finance director.

"They have two big issues in front of them," Franklin said of the city's decision. "One, they're trying to help the property owners, and two, they're taking into consideration the long-range vision of 50 years down the road."

The meeting is at 6 tonight at Dalton Gardens City Hall, 6360 N. Fourth Street.

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