DRAPER — Before it could treat drinking water near Point of the Mountain, the Metropolitan Water District of Salt Lake and Sandy had to add a little sweetener.
About $10 million worth.
Draper city officials and Metro agreed Monday to an out-of-court settlement that will allow the service district to construct a $200 million water treatment plant on 106 acres of what Draper had hoped would be part of its SouthPointe commercial development.
In return, Draper will receive more than $10 million in benefits from Metro, including fill material for a new road, a 5-acre landing site for hang gliders, landscaping along Highland Drive and Minuteman Drive, a $1.2 million trail system, $2.4 million in savings on a new water storage tank, new transportation and general plans for the SouthPointe area and cash to pay for planning costs and staff salaries.
The Draper City Council approved the settlement early Monday. Metro's Board of Directors was scheduled to meet late Monday morning and also was expected to ratify the agreement.
"It's a little pain for both sides, but the reality is they (Draper officials) negotiated tenaciously and cut themselves a great deal," said Metro general manager John Carman. "We can make our schedule if we can start moving dirt by the end of March, first part of April."
The plant is expected to open in 2006.
Draper City Manager Eric Keck said city officials realized it would be difficult to keep the water plant out of the city.
"We looked at the long-term picture and ascertained it was in our best interest to find a means by which they could locate in the community and we can all move forward and cooperate together," he said. "We want to be good neighbors."
The City Council previously denied Metro's request for zoning changes to permit construction of the plant on land the water district owns. But Metro sued the city in November, saying the site at 300 W. 15000 South is only place in the Salt Lake Valley suitable for a new water plant.
The struggle moved to the Legislature this month with SB50, which would have made it impossible for local officials to impose zoning restrictions on water treatment plants that serve more than one community. Lawmakers temporarily postponed action on the bill in hopes the two parties could reach an agreement.
Metro attorney Cullen Battle said the district always was willing to give Draper benefits it could legally provide. But it would have been illegal to give Draper free water service or cash payments to offset possible losses in tax revenue, he said.
Draper officials have said they will lose about $3 million a year in potential tax revenues because the water plant will occupy half of the developable land in the SouthPointe area.
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