ROYAL CITY - Port of Royal Slope officials hope upcoming water system improvements attract new business to the area.

The port plans to start drilling a new well in April or May as part of $1.75 million in water system upgrades, according to Cathy Potter, the port's director.

Other improvements include adding a new pumping station and a 100,000 gallon reservoir, and extending a water main to the Hiawatha Industrial Park, which is adjacent to the port's industrial park.

Potter called the federal funding obtained for the project "a lot of money for this area."

"We hope it opens us up for other business," Potter said. "To us, it's a nice big project."

A company considered putting in a packing facility, but wasn't able to do open the business because of the current water issues, she explained.

The port has wanted to drill an industrial well since 2007, but lacked the funding to do so.

In 2009, a state Department of Health (DOH) engineer approached port officials about doing a consolidation study to examine the industries and businesses at the Hiawatha Industrial Park.

At the time the Hiawatha Industrial Park was developed, the owners drilled an exempt well and were only allowed to use 5,000 gallons of water daily, she explained.

The DOH found some compliance issues and water quality problems, she said.

"They came to us. They knew we had a good water system," Potter recalled.

The port eventually obtained a $1.4 million grant from the U.S. Economic Development Administration, a $170,000 Grant County Strategic Infrastructure Program (SIP) grant and a $25,000 SIP loan.

The port contributes $150,000 for the project.