PORT ANGELES — A major sticking point in the long-proposed Carlsborg sewer project has been how to pay for it.
That question will be answered in part today if the Clallam County commissioners approve the use of rural economic development funds to back pay a $10 million state loan to build the a Class A sewer and wastewater treatment facility off Carlsborg Road.
The county’s “Opportunity Fund” is a short name for the Rural Counties Economic Development Act Fund, a nine-tenths of 1 percent portion of state sales tax.
“It’s something the state gave to rural counties that don’t get a lot of sales tax revenue,” County Administrator Jim Jones said.
The money can be used at commissioners’ discretion for public infrastructure projects that lead to economic development, Jones said.
$900,000 per year
Clallam County’s share of the state funding is about $900,000 per year.
The county and the Clallam County Public Utilities District are partners in the decade-old proposal to build a $15 to $17 million Class A sewer and treatment plant.
The PUD will operate the facility if the county follows through on building it.
Commissioners today will consider authorizing a $450,000-per-year repayment of the $10 million Public Works Trust Fund Loan from the Opportunity Fund.
A condition in the resolution requires that the necessary loan documents, permits and agreements with the PUD be signed before the Opportunity Fund can be tapped.
Commissioner Steve Tharinger said the Opportunity Fund will give the county “flexibility in structuring how the payment structure will be set up.”
The cost to individual property owners has not been determined.
“There’s quite a few steps still necessary to go through,” Jones said. “This resolution is just basically saying, this is the board’s wish.”
Reasons for support
Two of the major reasons that the commissioners support the sewer are:
■ Nitrate and other groundwater pollution from existing septic tanks.
The Clallam County Board of Health supports the project for this reason.
Some opponents of the sewer project say existing septic systems have not been proven to be the source of the nitrate pollution.
■ A Growth Management Act hearings board ruling in 2008 that found the Carlsborg Urban Growth Area invalid and non-compliant with state law because it lacked adequate urban infrastructure or funding for a sewer.
Businesses can’t expand under interim zoning rules that have been extended six times for sixth months at a time.
The sewer issue has pitted some residences against business owners who want to expand but can’t because a lack of a sewer.
About a year ago, the grass-roots Citizens For the Preservation of Carlsborg submitted a petition with more than 170 signatures from property owners opposed to the sewer.
Cost a big concern
Cost was cited cost as the chief concern in a series of public hearings on interim zoning.
Some sewer opponents have said they would like the UGA to be abolished altogether, and for Carlsborg to be redesignated as rural.
Carlsborg because an urban growth area in 2000.
County commissioners this month said they support the sewer because of the economic benefits.
Carlsborg supports more than 1,000 jobs.
The PUD was awarded the $10 million, 0.5 percent-interest Public Works Trust Fund loan in May.
The state loan has a five-year deferral and can be repaid over 30 years.
The project has been in Clallam County‘s capital facilities plan since 2009.
Clallam County had already committed $4 million to the project.
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Reporter Rob Ollikainen can be reached at 360-417-3537 or at rob.ollikainen@peninsuladailynews.com.