City council members agreed Monday to split the costs of extending a sewer line to PrairieLand Partners’ site on the northeast edge of town. The John Deere dealership plans to build a new 64,000-square-foot facility on 25 acres along the west side of U.S. 169.
By a 6-1 vote, the council voted to spend up to $108,000 — half the projected costs — with PrairieLand picking up the rest of the tab. Council member Carl Slaugh was the lone dissenting vote; Nickolas Kinder was absent.
Engineers believe they can extend a gravity main north from Allen County Regional Hospital for about 875 feet, leaving about 2,400 feet of force main left to install. A gravity main is a sanitary sewer that uses gravity; force main systems use pressurized sewer pipe to transport wastewater by pumps in lift stations. The total cost for the expansion is estimated to cost $216,000.
The decision to assist PrairieLand comes after an August vote to help the company extend water service. The City agreed to provide the equipment and labor necessary for the expansion. PrairieLand estimates the new store will cost about $14 million to build.
SLAUGH began discussion of PrairieLand’s request by wondering if a mill levy hike or rate increase would be necessary to fund it. “If you take that money from a reserve,” said Slaugh, “you need to somehow replace it.”
But City Administrator Matt Rehder begged to differ, and when asked by council member Kim Peterson if he believed the city could absorb the cost, Rehder said he did. “We think this is a prudent financial move,” said Rehder. “If it wasn’t prudent, we wouldn’t have even brought it up. The sewer fund is in a much different shape than the water fund.” 
After further discussion with Slaugh, Mayor Steve French strongly advocated the city approve PrairieLand’s request for assistance — and to consider the alternatives.
“The last time we did any economic development activity, I believe we gave about $125,000, and Carl, I’m not aware of us having to raise any mill levy to recuperate it,” said French.
“If we’re not going to offer anything to anyone, we’re going to continue to fall further and further behind,” French continued. “And I know you believe, Carl, that if they’re going to come here, they’re going to come here, regardless. But I think we’re seeing that’s not true. We’re seeing too many other companies getting drawn to other cities by what they do and can offer, whether it’s in-kind or monetary, or tax breaks. This is a new day of doing business. Cities are going to have to give something.
“So I agree that there needs to be a concern about the checkbook, but we’re assured today that we have a healthy fund, and I’d like to see us support them. We’ve supported businesses in the past,” said French.
Council member Joelle Shallah agreed, observing that PrairieLand would also become a paying customer of the extended utilities, helping offset the costs.
Assistant City Administrator Corey Schinstock also saw advantages to the expanded sewer service. With the city assuming responsibility for the sewer line, said Schinstock, First Christian Church or future homes could potentially tie into the city’s service.
Prairieland’s Iola store manager Dale Lalman was pleased with the progress. “We can’t say it enough: we’re thrilled that the city is partnering with us,” Lalman told the Register. “This is exactly the support we were looking for. We want to be in communities that want us to be there. And I felt that strongly last night.”
FURTHER boosting PrairieLand’s plans for the new location, the city council also unanimously approved the company’s request to initiate an Industrial Revenue Bond process. The bond financing involves a 10-year 100% tax abatement and a sales tax exemption on items for the construction of the facility. PrairieLand would pay all costs of the bond issue. Before any financing proceeds, the company must complete a cost-benefit analysis, conduct a public hearing, and file a resolution of intent.
Most recently, Industrial Revenue Bonds were also used to fund the Family Physicians building on East Street and the Sonic/Kneisley facility on West Miller Road.
