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Dickinson Allocates $400K for Utilities

by April Baumgarten | Apr 17, 2012
If the City of Dickinson gives $400,000 to extend sewer and water across Interstate 94 near Exit 59, it risks the chance of not reclaiming that money, officials said at the Monday City Commission meeting at City Hall...

If the City of Dickinson gives $400,000 to extend sewer and water across Interstate 94 near Exit 59, it risks the chance of not reclaiming that money, officials said at the Monday City Commission meeting at City Hall.

If the City of Dickinson gives $400,000 to extend sewer and water across Interstate 94 near Exit 59, it risks the chance of not reclaiming that money, officials said at the Monday City Commission meeting at City Hall.

“The ownership changes or can change, and if Roers happens to be the developer, the likelihood of us recovering this initial $400,000 becomes a little more remote,” City Administrator Shawn Kessel said.

The commissioners unanimously voted to allocate funds to Roers Development Inc. on the condition that an agreement is drafted and passed.

Phase 2 of the project could cost more than $805,000, according to a letter from Roers President Larry Nygard. The total project is estimated at approximately $1.25 million.

Roers asked the city to participate in the expansion to facilitate a 300-acre tract of land for commercial and residential use.

Kessel would not comment on exactly what would go on the property. Mayor Dennis Johnson said Roers could announce what businesses would come to the area in May.

If the city would contribute $400,000 to the project, Roers would cover additional funds for the second phase.

Expansion of the city is expected to jump I-94 on the west side, Kessel said, adding sewer and water must also be extended.

If another owner arises, the city could recover that amount through special assessments.

Commissioner Gene Jackson believes a “tremendous tax base” will be created from the project, and the citizens will see other benefits from the development. Kessel added the city could recoup that money through taxes.

Johnson said it isn’t fair that Roers absorb all of the costs for the utilities extension.

“If they come close to developing what they indicated as possibilities, I think we are going to see land adjacent to their development become very desirable land to development,” Johnson said. “That will add a lot of value to that area.”


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