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On a voice vote on a necessity hearing on the merits of a proposed development at M-24 and Turrill Road, city commission members unanimously voted in favor of the project and authorized city administration to set the assessment rolls and to notify the affected property owners of the decision.

The city proposes to extend sewer lines from the Michigan State Police Post on M-24 3,300 feet south to Turrill Road and to build 14,000 feet of new water main looping from and existing 18-inch line at the corner of Saginaw and Clark roads south on Clark Road to Turrill Road; then west on Turrill to M-24; and then north on M-24 until cutting over to an existing 12-inch main on Baldwin Road.

The project is estimated to cost approximately $4.9 million.

Kim Roberts of Oxford, in attendance, wanted to know whether property owners in the proposed Special Assessment District (SAD) would be assessed for the improvements based on acreage or lineal feet of road frontage. Thomas Hubbell, the city's assessor, said that would be determined at a later hearing.

The project, when completed, will bring water and sewer service to a 62-acre parcel on the northeast corner of M-24 and I-69, which has already been approved for the construction of a Lowe's Home Improvement store, one other yet-to be-named big box store, several restaurants and a number of out-parcels. The project would also potentially provide sewer and water service to roughly 300 acres of city and Lapeer Township land on the north side of I-69.

ÊThe project could expand vastly in scope when the council meets again in two weeks, if land owners in the annexed area south of I-69 can come to terms with city officials.

A month ago city commission members passed a resolution effectively killing the extension of sewer and water service to the area after property owners refused to sign affidavits pledging not to challenge's the city's plans in the area.

Commission member Mike Robinet announced his intention to ask commission members to rescind that resolution at the commission's May 19 meeting, if there is a new agreement with property owners in place.

If there isn't council members are likely to move forward with plans to create a SAD on the roughly 300 acres of annexed land north of the expressway. According to John Lyons, the city's public works director, the SAD would include 25 parcels with six owners.

City officials have been wrangling with property owners south of I-69 over where to run sewer and water lines and who should bear how much of the cost for 10 months. City Manager Dale Kerbyson noted that in the last two months alone, the cost of pipe needed for the project has shot up 40%.

On the line, said Mayor Bill Sprague, is roughly $1 billion in development investment and as many as 2,000 permanent jobs.

According to Kerbyson, if the city moves forward with an SAD on the north side of I-69 independent of the property south of the expressway, the cost of extending water and sewer service to that area could rise substantially above the $10 million currently budgeted for the work.

Phil Foley may be reached at (810) 664-0811, Ext. 8148 or pfoley@lapeergroup.com.