City to explore annexation, sewer extension for new vet clinic

     The Monticello City Council held a special work session on Feb. 26 to discuss several items. They started off the evening diving into a proposition to provide city sewer services for the new Family Veterinary Services facility off Business Highway 151/S. Main Street.

   The business is owned by Jamie and Tyler Freye of Monticello. Tyler was on hand during the work session to answer any of the council's questions.

   The Freyes purchased 2 acres from Roger Stephen for their new vet clinic. They are proposing to annex 19 total acres into the city. This encompasses everything north of Oak Street Logistics to Bradley Drive, west of the pond.

   City Administrator Russ Farnum has been working with the Freyes and Stephen on the project. Farnum laid out the project thus far for the council…

   “The proposal was to annex a portion of the (Stephen) property, including the Freyes’ proposed lot, create an Urban Renewal District (TIF) to provide TIF funding to either pay for, or reimburse, the cost of extending the sewer,” stated Farnum. “Freye also requested tax rebates to offset the additional taxes that would be part of the annexation.”

   The Freyes are planning to build a 5,000-square-foot small and large animal vet clinic, with room for grooming and boarding. There would also be an 1,800-square-foot attached garage, and an 1,800-square-foot attached large animal treatment facility. The total square footage would be around 9,000.

   Their business plan calls for around 15 to 20 full-time employees, and another 10 part-time.

   “Our planned construction was to break ground this spring for construction and opening in the fall of 2024,” Freye noted in his communication with the city.

   He said the biggest difference between constructing in the county versus the city is the requirement of a septic system to accommodate 1,000 gallons a day. This would be quite expensive.

   “Due to the way the process of annexation and creation of a TIF district, there is not a way that the city could have the sewer in place to accommodate the Freyes’ aggressive construction schedule, which started in March, and leading to opening the business in the fall,” noted Farnum.

   The estimate to extend sewer to that property is around $320,000. Farnum said he reached out to Jones County Economic Development regarding the possibility of grants. However, this project does not meet the requirement of the grants available.

   Farnum outlined several options for the council to consider:

   • Annexation into the city would be a pre-requisite to providing sewer to the property.

   • How much would the city’s share of the projects be compared to Freye or Stephen? How should the city pay for its share?

   • If the city takes part in the cost share, will the council further want to provide the Freyes with tax incentives?

   • Who would be responsible for constructing water main, fire hydrants, streets, cub/gutter, sidewalks, etc.?

   “Their expense for a septic system is growing astronomically quickly,” said Farnum. “They are asking for sewer sooner, maybe. Happy to accommodate that, but we do have some obstacles that we need to talk about on the city side.

   “Typically it’s the developer’s obligation when platting and developing a subdivision to build the streets and infrastructure and create lots in which people would build homes or businesses,” continued Farnum. “As an economic incentive, typically communities do build part of the infrastructure, if not all of the infrastructure, to service subdivisions. And this is part of a subdivision.

   “As part of the bigger picture, anything we do here becomes then something people look to for other developments in town,” concluded Farnum. “It’s not precedent per se because every situation is weighed on its own merits. It steamrolls.”

   Council member Dave Goedken asked Freye if they’d grant the city a utility easement to build sewer out further. Freye was not opposed.

   While the council would have to find the funds for such a project, Freye said all he’s really concerned about is a timeline.

   He said they could even delay bringing the entire business to the site until sewer could be provided.

   “We would curtail water usage, delay bringing the entire business to this property, or develop a smaller water-usage business if plans for the city were pushed out further,” he offered.

   Noting the $320,000 price tag, Freye said they are investing a considerable amount into this project as well.

   “Taxes are 40 percent higher for us to be in the city. That’s a $40,000 tax bill for this business. It’s a pretty big economic growth opportunity and that’s one business out there.”

   The question was raised if a business of this nature would be an issue as far as the city’s sewer system is concerned.

   “Russ reached out to a consultant who has no concern about our waste in the city sewer system,” offered Freye. “The majority of the solid waste inside would not cause any havoc with the sewer as well, because that would create problems for us inside the building as well.”

   “They’re also nowhere near the flow that would require a pre-treatment agreement with the DNR,” added Farnum.

   Council member Mary Phelan asked Freye if they’d be willing to share in the cost of the sewer project.

   “This is not in our budget, nor was it on our radar,” she said. “The timeline is awful aggressive.”

   Freye said they wouldn’t be interested in a cost share unless there would be a pay-back from other properties/businesses/homes connecting. He said they’d resort to paying for a septic system at that rate.

   “This could create a lot of economic growth for the city,” said Freye of further residential housing options.

   “It’d be easier if we knew we were getting a residential development immediately,” said Goedken.

   “But who knows when we’ll get that development,” said Council member Scott Brighton. “It won’t be cheaper (to do this) five years from now.”

   It was the consensus of the council for the city to move forward with the project while ironing out the financial details.

   “We have several different options,” said Farnum.