DALTON GARDENS - The Dalton Gardens City Council is willing to compromise.

In response to suggestions from affected property owners, the council voted unanimously on Saturday to revise a proposed local improvement district to fund only the first phase of a costly sewer extension.

Originally calling for a $2.4 million LID to cover a sewer extension from Dalton to Prairie avenues on Government Way, the council's amended version will only finance upgrades from Dalton to Hanley avenues.

The smaller LID will still bring in sewer improvements that allow for more diverse commercial enterprises, said council member Steve Roberge. It will also bear less cost to property owners on Government Way who have to foot the bill.

"All the citizens in protest, they said the same thing decided today," Roberge said of the 51 protest letters received. "I think it's the best decision for businesses and the city of Dalton."

The four-member council will take action on the revised LID at a meeting at Dalton Gardens City Hall at 5 p.m. on Sept. 16.

The proposed LID would be timed so the extension occurred during a street widening project next year, conducted by the city of Coeur d'Alene of that part of the street.

"If we don't put the sewer in now, we wouldn't go back in (to open up the street) for a minimum of five years. Maybe as much as 10, 15 or 20 years," Roberge said.

The city's next phase of street widening from Hanley to Prairie won't likely begin until around 2015, Roberge added, which gives Dalton Gardens more time to consider how to finance a second phase of sewer extension in that area.

"Might we'll find grants for both the phases," he said.

A handful of picketers stood outside Dalton Gardens City Hall before the hearing, continued from Sept. 2.

Many property owners on Government Way had protested the originally proposed LID, as some would have had to pay tens of thousands of dollars over 15 years to cover the cost, plus interest and hookup and other fees.

Some businesses also weren't interested in expanding from septic systems, because they couldn't develop in ways that take advantage of the sewer system.

Roughly 80 property owners would have been affected. That number will be less for the smaller LID, as only approximately 35 parcels will be affected, according to city staff.

The staff didn't know on Saturday how much the smaller phase will cost, or how much property owners will have to pay.

The council also directed city staff on Saturday to continue working with the city of Coeur d'Alene on a memorandum of understanding, allowing property owners up to 15 years to decide to hook up.

"One thing I've heard from businesses is no one knows how the economy is going to go," Roberge said. "If you have that opening, it takes off the pressure."

He hopes businesses do hook up, he added, and improve drinking water by taking their septic systems off the Rathdrum Prairie aquifer.

The council also asked the staff to look into trying to reduce cap fees.

"That's not a given," said council member Dick Epstein.

Bob Covington, whose mini storage business would be included in the smaller LID, said he was pleased with the council's decision.

"It's the most economical way to build this section of the sewer, it puts the availability there and it addresses the interest of Coeur d'Alene and the Panhandle Health District," he said.

Although Covington doesn't expect to hook up to the sewer line, he said he wouldn't mind paying for it if the cost is reasonable.

"We'll do all we can to make it as efficient as possible," he said.

Kelly Nelson, who owns Northwest Fence Co. on Government Way, wasn't as optimistic.

With his property sitting in the second phase of the proposed extension, he predicted another LID would be used for that half.

"It's just a sign of what's to come," Nelson said. "It's very expensive, and we have to pass it on to our customers. Can they afford it? No."

Council member Joe Myers pointed out that sewer lines for commercial expansion had been a goal in the city's land use plan.

That document went through several public hearings before it was passed, he added.

"Long-term plans called for this to occur," Myers said. "We informed the public extensively that we were going to seek this opportunity."