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Cashiers developers willing to put up $1 million for sewage treatment plant

By Rose Hooper
Player one: "Somebody has to step up to the plate and take a mighty swing, a mighty risk."

Player two: "But first you need a fair and equitable playing field."

Game plan: Securing an additional sewer treatment plant for Cashiers.

Player one, Cashiers attorney Bill Coward, told the Tuckaseigee Water and Sewer Authority board Tuesday night that he represented a group of individual investors willing to put up $1 million to purchase another treatment plant for Cashiers. The current 100,000-gallons-per-day plant is operating at capacity with a moratorium on additional hook-ups.

Investors, in dire need of sewer services for expansion of their businesses, are willing to purchase the plant and deed it over to TWSA, Coward said. That scored points with the TWSA board.

However, the penalty flag was thrown when Coward said those same investors would need the additional 100,000 gallons for their own operation. That prompted objection from Joe Carter, TWSA board member, and Raymond Large, TWSA attorney.

As the second player in the game, TWSA is a public body and needs to represent everybody "fair and equitably," they replied to Coward. "TWSA can't be controlled by a private group."

Coward countered that the additional plant will not only allow Cashiers to operate at 200,000-gallons capacity, but that it would make TWSA eligible to apply for another 100,000 gallons permit, for a total of 300,000. While the developers would require 100,000 for their own use, that additional 100,000 would be available to the general public, Coward said.

The developers are planning to purchase a used plant from the town of Mooresville, which TWSA Executive Director Jerry King said would meet local and state permitting regulations. King added that he "had some problems" with the Cashiers proposal, including increased maintenance costs that would be TWSA's responsibility.

Also, he pointed out, "If we increase our flow substantially, we will have to increase our three pump stations and provide stand-by power." King estimated that cost would be $80,000 per pump station.

Currently, the Cashiers plant is permitted to discharge into the Chattooga River. "My guess is we'll never get a permit for adding extra treated sewage into that river," King said.

"Despite the lack of taps, growth continues, at the risk of spoiling surface waters from the proliferation of septic systems," said Michael "Buddy" Smith, Cashiers Area Chamber president. "For the Cashiers Area Chamber of Commerce, this virtual moratorium on environmentally-safe development is unacceptable."

As one of the developers, Smith said his group is giving TWSA a "way to eliminate this moratorium, protect the environment, triple revenue - all with no capital investment by TWSA."

Developers are "betting $1 million on this," Coward said. "It's a calculated risk, and if they lose, they lose big. But they are betting their investment will pay off."

Smith reminded the TWSA board that "the Cashiers area contributes a substantial share of county revenues from property taxes. Further development would only increase this contribution."

While the developers are not seeking any return on their investment, they would like to be reimbursed for out-of-pocket expenses. Smith explained that would be a simple matter of dividing the cost of the new plant by the additional capacity that would be available.

"It is expected that TWSA will choose to go ahead and obtain permission for the full 200,000 additional capacity. We would only want the right to control the distribution of half of this additional capacity. It would be sold to us at the minimum rate of $10 per gallon. According to Victor Lofquist, an engineer with W.K. Dickson of Asheville, $10 per gallon is a reasonable price and in line with what others are charging. Even if the price is a little high, it is better than having no taps at all."

"As an old mediator, I see a lot of room for mediation here," said TWSA board member Marion Jones, who proposed a working session between the two players. Both agreed.

In other action Tuesday night, by a majority but not unanimous vote, the board awarded the Dillsboro water and sewer improvements project to Stillwell Enterprises of Sylva, whose total bid was $372,000. Low bidder on the project had been J&L Specialty Co. of Franklin with a bid of $358,760.

Back to Archive: 08/17/00.