City approves preapplication for Industry Dr. water


The Henderson City Council approved a preapplication for the funding of a water line to businesses along Industry Drive in Vance County.

According to Assistant City Manager Frank Frazier, the city’s match for the project would be 5% or $10,000. He said that seven businesses have committed to the project so far, and three more are needed.

Member Garry Daeke indicated that the city is going to spend $10,000 for potential customers, but the businesses don’t want to be annexed. He asked if the money was being spend on potentially nothing.

The installation of city water on Industry Drive, most of which is located outside of the Henderson city limits was originally brought to the council by member Sara Coffey in a council meeting in April of 2010. Her subsequent discussions with businesses located along the road indicated that they were not interested in annexation because of the liability of city taxes, but still wanted water and sewer service.

Frazier indicated that only a water line was being considered due to the comparatively high cost of a sewer line installation.

City Manager Ray Griffin responded that the council has not yet addressed the issue of water/sewer service and annexation. He said that he was responding to a council request to seek grants, and that the North Carolina Rural Center was the best grant opportunity.

In August of 2008, the Henderson City Council voted unanimously to amend city code to require voluntary annexation by new developments seeking city water and sewer service. Although the parties making the request are not new developments, the installation of city water could open the land to development not currently possible because of issues along Industry Drive of non-potable groundwater.

Member Mike Rainey asked if owners would be asked to contribute to the project. Griffin responded that that is one of the options. He went on to say that a method for meeting the match must be negotiated if the city chooses not to annex.

Rainey asked if the city was setting a precedent of asking those who annex to contribute to the cost. Griffin responded that running water and sewer lines is part of the process of annexation.

City Attorney John Zollicoffer recalled to members that the city used to have areas seeking annexation pay to lay water and sewer lines as well as install pump stations before annexation would be considered.

The motion to approve the funding preapplication passed unanimously.