Developers starting to look at Pikeville
By Sam Atkins
Published in News on October 19, 2004 2:03 PM
PIKEVILLE -- Several developers have shown an interest in building apartment homes throughout the town, which would increase the population and tax base.
"This is going to be a great opportunity for Pikeville to grow," said Mayor Herb Sieger. "This could be a blessing for all of us."
One plan is for 10 rental units initially and finishing with approximately 50 units. There are two apartment homes per unit. They would be built on 15 acres that adjoin the sewage system's lagoon site in town on Big Daddy's Road.
Based on an estimated value of $3.2 million, the town could expect to receive $160,000 over 10 years in property tax value, said Lonnie Graves, town administrator.
It would also gain $72,504 in sewer fees; $144,408 in water fees; and $683,700 in electrical fees over the next 10 years from the property.
The developer has confirmed that he would want to be voluntarily annexed into the town, said Sieger.
Several board members held a work session Monday to discuss this project and others and what would be done for sewer, water and electricity service.
Al Hodge from the state Division of Natural Resources said that if the town has the sewer capacity, he would see no problem for the development tying into the town's system, said Graves.
The town has 3,135 gallons available and the first phase of the development would require 2,400 gallons, so the town does have the capacity for the first phase.
The town would have more gallons available once the new sewer system is in place. The board will open bids for the sewer project at 2 p.m. on Oct. 26 at Town Hall. It will take three months to go over the bid packages. Once hired, the company will have a year to complete the project.
The cost of tying the development onto the town's sewer system should cost about $102,000, said Graves.
The town's electrical service runs alongside the property and tying into the system would not be difficult. The estimated cost to the town is $8,000, he said.
Graves plans to apply for a federal grant to upgrade the entire electrical system. Around $350,000 is needed for the upgrade.
Sieger said the plan is to see if the developer will put the water and sewer lines in at no cost to the town and the town would waive the tap-on fee, which is about $350 plus the cost of labor.
The board did not see furnishing water as a problem either and would just have to change the location of a meter.
Several other people have mentioned developing land for apartment homes, said Town Clerk Kathie Fields.
One tract is on the corner of Main Street and Fort Street, and the developer is planning on constructing two or three units. Another tract is on School Street and there are plans for three or more units there.
There is another plan for building units on Mill Street. She said there is also a lot on Washington Street, but she is not sure what that land will be used for.
Some of the developers are ready to begin construction now and are just waiting to hear back from the board giving them the go ahead, said Ms. Fields.
Board members are planning to contact the developers to find out more information and they may have another work session and a special meeting to approve what will be done with the water, sewer and electricity. Final approval for the developments could come as soon as Nov. 1.
The board may set up meetings with each developer individually to see when they want to start, said Ms. Fields.
Sieger said having all of these developments could boost the town's population by 25 percent and the more people the town has, the better chances of keeping the taxes from going up.
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