AG 1993 09 20 - Laserfiche WebLink

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Memorandum September 1, 1993 Page -2- business (now bankrupt), has been contaminating the well water of several homes in the area and is now being considered as a federal Superfund site. This site is just upstream from the Howell Center. We provided documentation to the Commerce Finance Center on the severity of the issue and requesting reconsideration of their preliminary decision not to fund the water portion of the Howell project. While recognizing the true need they indicated that they would not be able to fund a water grant. They also pointed out that with changes in the requirements a future grant for water to the site could not be approved. We then turned to Mr. Davi~ Phillips, N.C. Department of Commerce Secretary to see if he would consider the use of discretionary funds to take care of the future problem. In addition to your phone call to Dave Phillips, letters were sent from this office, the County, and Gerald Fox of Mecklenburg County seeking assistance. Presently, it appears that there will not be any grant funds available. We are now exploring another possibility. This is a loan program. North Carolina Department of Environment, Health, and Natural Resources has a revolving loan program that may provide a source of financing water lines along NC 24/27. The estimate to extend water to serve the Howell Center, the homes with contaminated wells, and the general area is $317,400. The last loan approved under this program was at 2.9% interest for a 7 year term. Basing our project cost on that percentage and loan period, the County payment would be approximately $4,000 per month. The loan program operates with applications accepted twice a year. The upcoming deadline is Sept~em~er 3__0, 1993. The water contamination problem is only getting worse as time passes. Thus far we have been trying to find grant monies so that the project would not cost the County any money or at least a small amount. While this does not look feasibl~ the loan program does. Alternatively, we could ignore the problem and point to it as a Mecklenburg County problem. Not only would that be wrong but it would also be shortsighted. The contamination is spreading and will soon be in Cabarrus County and, gone unchecked, will eventually contaminate the wells used at the Howell Center. We do have interest by Mecklenburg to participate in the waterline extension, but again no firm commitment (financially or otherwise). Obviously, before we pursue this option any further, I need clarification from you and the Board of Commissioners. Not only are we being faced with an environmental emergency only getting worse each and every day, we also have a tremendous latent demand for water lines in the area of the sewer lines. If we do get water lines in this area, we will need to properly size the lines. This brings me back to the beginning of the memorandum.