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Speaking on behalf of the property owners south of I-69, Tom Kenny of JPT Acquisitions, LLC presented to the commission a revised proposal to reimburse property owners for the capital expenditures surrounding the area's development during a public workshop Monday night.

"We're looking at almost three years working on this project," Kenny said, citing the property was annexed into the city in 2005 and since then the property owners have been divided between north and south of the expressway due to the ongoing struggles. "There have been community breakdowns for sure. We're positive the city and its leaders will hear our side of things."

Developers introduced themselves, and Kenny gave a brief overview on the impact future development would have on the city. Kenny said this would be a roughly 20% increase in land growth along with the creation of about 2,000 jobs. Using 2000 US Census numbers from median household income, he said the city would gain a little more than $700,000 in revenue from these new jobs.

He also mentioned some big name retailers eyeing the area, stressing the point that something needs to be done soon.

"You know about the Lowe's situation," Kenny said. "Target is also looking at this. They are interested as well."

The current estimate to design and construct the water and sewer improvements for the property is roughly $12.3 million. Kenny said the developers are willing to pay their share of the special assessment district, around $10 million up front, but would like a cost recovery plan implemented for the portion of the project that does not benefit the property owners. According to the proposal, property owners would receive pre-paid tap fees that can be transferred to their customers based upon the final cost of the project, including interest.

Part of this cost recovery plan was presented an outline of the sewer district showing the amount of acreage property owners would be affected. Out of approximately 1,830 acres, only 614 acres would benefit the owners; the other 1,216 acres, or 66% of it, would not benefit them. Kenny proposed the idea of property owners being reimbursed for 66% of the initial cost. An example he gave for Ray Clemens Properties located south of the expressway was its total cost for water will be $468,137; but he would be reimbursed $308,970 of that total, or 66% of it. Clemens would also receive 64 sewer and water residential equipment units (REUs).

But Mayor Bill Sprague stated giving money back to the property owners would not benefit the taxpayers, and added it wouldn't be fair to other developers who have worked with Lapeer in the past.

"We're not going to take and refund tap monies to the property owners," he said. "This money goes to other citizens in Lapeer. We have never done that before. We would have developers heading up at the door saying 'How come we didn't get that deal?'"

More discussions took place on the necessity of the amount of water pipelines constructed throughout the area. Kenny said engineers told them a proposed water pipeline along Baldwin road wouldn't be necessary to get water in that area. But Doug Piggott, senior planner for Rowe Incorporated said if a water main went dead, no water would be able to get to the area.

Kenny presented a proposal to the commission late last year, which was rejected. The city is proposing to sell 10-year bonds and charge back the initial property owners for all costs. Of the $12.3 million cost, the city is paying around $2 million.

In the end, Sprague said the issue that can be touched on is finding an ideal percentage of the sewer system does not benefit the property owners. Some properties in the sewer district, like Windwater south of the expressway, have 228 acres in the sewer district, but none outside of it. Raco Development has 73 acres in the district and 41 outside of it.

He added he would like to have everything decided on by the next commission meeting.

"Time is getting to the point where it's becoming our enemy," he said. "We have to do something. We're doing everything we can. We can get these bonds at really, really good rates.

"We need to make some dust fly this spring."

Jeff Hoard can be reached at (810) 664-0811, Ext. 8127 or jeff.hoard@lapeergroup.com