$4 MILLION CALHOUN WATER PROJECT COULD GO DOWN TUBES - Customer Interest Remains Low

(12/30/2006)

By Bob Weaver Interest is lukewarm in a $4 million dollar project that would bring water to residents along State Route 16 from Arnoldsburg to the Upper West Fork Park and to residents living in an area encompassing Millstone, Sand Ridge, and Sassafras Ridge to Russett. The project could be lost unless the 183 minimum customers are obtained by January 31, 2007. "It is imperative that residents sign-up prior to the approaching deadline, recognizing that due to cutbacks in federal funding, future efforts to revive this project are expected to be unsuccessful," said a Mt. Zion PSD press release issued yesterday. The lender says the necessary user agreements must be obtained by January 31, 2007, indicating the funding is at risk of being lost. So far the sign-ups have remained stagnant since 74 customers signed agreements earlier this fall. The project needs 109 more customers to put the project to bid. Members of the Mt. Zion PSD are planning a door-to-door campaign to try and reach the minimum amount of customers. The district has received funding from the the Rural Utilities Service (USDA) for $2.4 million and the Calhoun Commission has obtained $1.5 million from the Appalachian Regional Commission. If the necessary user agreements are not obtained, the PSD will be forced to examine alternatives or abandon the project altogether. Bringing water projects to rural areas often takes ten or more years before they are constructed. The project was moved forward by the Calhoun Commission and the Mt. Zion PSD to bring public water to southern Calhoun and Sand Ridge, aid property owners whose water supplies are depleted and not good for drinking, increase property values and offer new opportunities for development in those sections of the county.

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