Wastewater Plant expansion loan awarded, City does not expect to use entire 11.8 million dollar loan.
Pickerington loses funding to purchase Hickory Lakes
By TAMARIA L. LIDDELL
The Eagle-Gazette Staff; tliddell@nncogannett.com
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PICKERINGTON -- The city was approved for a loan to expand its wastewater treatment plant last week, but funding to buy Hickory Lakes is no longer available.
On Thursday, the Ohio Environmental Protection Agency, Division of Financial and Environmental Assistance, approved the revised loan application for the Water Pollution Control Loan Fund, giving the city up to $11.8 million to expand the plant.
In November, City Council voted to take the $3.3 million of interest on the loan to purchase Hickory Lakes, an 88-acre private park. Under the EPA's Water Resource Restoration Sponsorship Program, wastewater treatment plant operators can include a wetlands restoration project, such as Hickory Lakes, as part of the application.
The city was planning to preserve the property and use it as an outdoor education facility.
Funding for Hickory Lakes was available last year, but a referendum attempt by opponents of the expansion delayed the loan application process.
Referendum petitions were verified by the Fairfield County Board of Elections in December and later ruled invalid by the city's special legal counsel. The delay proceeded past the EPA's Dec. 11 board meeting when the funding would have been awarded.
Although the loan was still available, there was no longer any funding available for Hickory Lakes as of Jan. 1.
"It's really unfortunate that such a great project would be killed by an attempted referendum," said Councilman Doug Parker.
It's a case of bad timing, said Steve Malone, environment supervisor of the Ohio EPA's Division of Environmental Financial Assistance.
"If they didn't have the referendum petition come in, they could've had funding for the loan and Hickory Lakes at our December board meeting -- unfortunately, that didn't happen," Malone said.
If funding became available, the city would need another project to fund Hickory Lakes, because funding must happen simultaneously.
It's unlikely the city will do this, said Mayor David Shaver.
"I can't foresee us having funds to do that," Shaver said.
Tonight, City Council is expected to introduce a resolution to keep Hickory Lakes on the EPA's 2004 contingency fund. They may act on it at today's meeting in order to meet the Feb. 13 deadline for the 2004 program year.
"It's dead at this point, but we're keeping open the possibility," Shaver said.
Hickory Lakes co-owner Sharon Buscilla is disappointed in the announcement.
"They've lost a good thing for the community because of political issues," said Buscilla, who owns the property with her husband, Gary. "The city's still going forward with the wastewater treatment expansion because they have to and they may reduce the loan, but I don't think they can save $3.3 million."
The referendum attempt was never about Hickory Lakes, said Mitch O'Brien, one of the petition sponsors.
"Unfortunately they were a victim," O'Brien said. "My intent as a sponsor was to keep slow growth intact."
There was no evidence of the property's benefit, Shaver said.
"We never fully evaluated Hickory Lakes for its business worthiness; there was never an appraisal done prior to the proposal to buy it or what it'd cost to maintain or run the property," Shaver said. "Without that information, it's difficult to say whether it's a loss to the community or not."
Hickory Lakes was a contingent project last year, but funding became available. There's little possibility this will be the case this year, Malone said.
"There's a lot more projects ranked ahead of them in priority," Malone said. "We're glad to try to do as much as we can, but it's very competitive across the state."
At this point, the property will stay in the family, Buscilla said.
"The city has not communicated with us one way or another," Buscilla said. "They have not asked us to hold the property. If we have an offer from someone else we will consider it. Right now we're moving forward and continuing the business."
The city doesn't plan on using the total $11.8 million for the plant expansion, said Frank Wiseman, acting city manager.
"The city and contractor (PAE and Associates) are proceeding with the contract and looking to reduce costs where possible," Wiseman said.
Originally published Tuesday, February 3, 2004