EM village board takes no action on Settlers Ridge proposal for private wells
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By LeAnn R. Ralph
ELK MOUND — The proposal to supply water using private wells for additional development at the Settlers Ridge apartment complex has gone nowhere with the Elk Mound Village Board.
Even if the Settlers Ridge developer, Jim Rooney, were to install private wells for Phase 2 of the development, the village would still have to spend an estimated $1.6 million on infrastructure for sewer and water lines and the road, said Mark Levra, director of public works, at the Elk Mound Village Board’s August 19 meeting.
Rooney met recently with Levra and Terry Stamm, Elk Mound village president, to talk about the issue of supplying water to additional development at Settlers Ridge.
Residents can have private wells if they follow the regulations, but the ordinance also stipulates that as soon as village water service is available, the resident must hook up to the village’s water supply, Levra said.
Using a private well for Phase 2 of Settlers Ridge would benefit Rooney but it would not benefit the village because Elk Mound would still have to install the water and sewer service lines and the road, he said.
Rooney said the village had paid once for water service to Settlers Ridge, so he expected the village would pay again, Levra said.
In December of 2021, the Elk Mound Village Board approved the sale of an $895,000 taxable tax increment revenue bond anticipation note for Tax Increment Finance District 2 to fund incentives that would be paid to Rooney for the Settlers Ridge development.
When all phases of Settlers Ridge are completed, the population of Elk Mound is expected to triple.
Water system
Elk Mound has received estimates on improving the water supply for the village that would include a new reservoir and improvements to the system that would increase the water pressure available for the entire village, including Settlers Ridge.
Increased water pressure would be beneficial for fire fighting capabilities as well.
The improvements to the water system are estimated at $2.1 million.
Levra said he had told Rooney about the estimate for improving the water system and that Elk Mound had applied for a grant two years in a row but did not get the grant.
Rooney blamed the problems with funding on the village’s “bad money management,” Levra said.
Stamm and Levra told Rooney they could not make a decision on the proposal for private wells and would bring the item to the village board for consideration.
Private wells for Settlers Ridge would not be regulated by the Public Service Commission of Wisconsin, but rather, by the Wisconsin Department of Natural Resources, Stamm noted.
Developer incentives
The village could pay for an extension of the existing water system for Settlers Ridge, but the investment would not pay for itself, Levra said.
Phase 1 cost the village $1.1 million, and since the cost of everything keeps increasing, extending the water system for Phase 2 would likely cost $1.6 million, he said.
The City of Menomonie and the City of Eau Claire, for example, do offer incentives for developers, but those incentives do not include infrastructure, Levra said.
The incentives are typically tax breaks or placing the development in a Tax Increment Finance District, he said.
The Village of Elk Mound has already created Tax Increment Finance District 2 that includes the Settlers Ridge development.
For Phase 1, the village “showed their hand wide open,” and “it was a bad game of cards,” Levra said.
Rooney told Stamm and Levra that if the village would not pay for the infrastructure to include the sewer and water service extensions and the road that he would “donate the land for charity,” he said.
Paying for the sewer and water service extensions and the road is not in the best interests of the village, Stamm said.
Rooney can have a private well, but he would need a permit for it. When municipal supplies lines are available, then he must hook up to the municipal water supply, Levra said.
If Rooney installs private wells, and the village has water available in two years, Rooney will not want to hook up the municipal supply because of the money he spent on the private wells, he said.
Rooney would probably want an agreement that would stipulate he could use the private wells for Settlers Ridge for 10 years, Levra said.
If the village pays for the infrastructure that “is right out of the village’s pocketbook.” If the village provides some tax breaks, that would not impact the village immediately, he said.
Paying more than $1 million for infrastructure means that the payback does not come fast enough for Elk Mound to “make up” for the amount of money, he said.
The village also has consulted with Ehlers, Inc., the village’s financial consultants, and the village has extended itself enough for a while, Stamm said.
Consideration
Tim Benjamin, village trustee, said he was not especially interested in a “bunch of private wells” being installed in Elk Mound.
Rooney “can” install the private wells, but Elk Mound does not have $1.6 million to install the other infrastructure that will have to be there, Levra said.
If Rooney installs private wells, but there is no sewer service to the apartment complex, the apartment complex would not be functional, he said.
One of the considerations, under the circumstances, is whether it is even worth it for the village to consult with Ehlers or the DNR, Stamm said.
Several village board members noted that consulting with Ehlers also costs the village money.
The village has no more money to spend on the Settlers Ridge project now, Stamm said.
Stamm called for a motion to approve the proposal for private wells for the Settlers Ridge development, but the village board did not offer any motions, and the agenda item died for the lack of a motion.
