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Thursday, 16 December 2010 19:20

For city, station a potential revenue source


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With the first public hearing on a proposed solid waste transfer station done, city council and staff must digest the comments they heard Wednesday night.

For residents, the proposal represents an imposition and nuisance with possible environmental consequences.

What the proposal represents to the city is additional revenue, Mayor Emery Doughtie said.

“We’re getting ready to start the budget process,” the mayor said. “Unless we look at ways to generate new revenues we have to look at the tax base. We are limited. We have to look at all sources or raise the tax base.”

Doughtie said the city is not trying to compete with established waste management businesses. Having a transfer station, he said, “We would have control over our costs and dealing with waste.”

According to a memo from City Manager Paul Sabiston to city council, the initial projections for revenues and expenses are based on a total volume 28,000 tons of solid waste per year.

The city’s own residential solid waste and debris accounts for approximately 7,200 tons per year, the remainder an estimate of the commercial waste in the city, the memo says.

The city estimates an increase in revenues over expenses with a transfer station of $102,071 to $282,814. “This gain in annual net income is greater than the original memorandum provided to you as a result of the interest rate for a loan has dropped from 4 percent to the new market rate of 3.05 percent and the term of the loan for the repayment of the facility was extended from 10 years to 20 years in accord with traditional loan terms for such facilities,” the memo states.

Cost of the transfer station, according to the memo, is $700,000 over 20 years.

Meanwhile, Bill Dreitzler, North Carolina technical and operations manager for ms consultants, told council the cost estimate does not include buying the property of the sites the city is considering.

 

A ranking system Dreitzler used lists the top sites as the following:

 

Highway 158 off Deep Creek Road, the old landfill site, which contains 10 acres of land the city owns. Early evaluation lists this as the top site although there are wetlands issues and the soil must be examined.

 

Highway 158 at the old airport opposite the former Harley-Davidson dealership. This site is 50 acres and the biggest issue is sewer.

 

The industrial area behind Kennametal, a 30 acres parcel, which has access issues and would possibly need road improvements.

 

The industrial area off Patch Rubber Road, a 4.6 acre parcel, which has access and size issues.

 

Highway 301 behind Waste Industries, the old quarry site which has drop off and soil issues.

 

Chantilly Road near Coastal Lumber, a flat piece of land which significant earth work would have to be done, which would add to the construction costs.

 

Rhea-Smith Road off Sam Powell Dairy Road near the old airport, 44 acres of land with drainage and existing land use issues.

 

 

Lance Martin

Lance Martin

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comments  

 
0 #2 Gary 2010-12-17 12:59
There is money to be made in taking on the less desirable industries, but the cost to the quality of life and property values for the people nearby should be considered. Is the extra $180k in revenue really worth the long-term impact? It's really not that much money in the larger scheme of things, is it?
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0 #1 concerned citizen 2010-12-17 03:10
Not to mention that many people that live around these proposed sights use well water.
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