At issue is $2 million in privately financed water improvements
The property owners at South Peak have filed a lawsuit seeking a declaratory judgment against the Western Virginia Water Authority. The suit asks the court to determine what South Peak is obligated to install for the Western Virginia Water Authority’s water distribution system in addition to the facilities already installed that serve South Peak.
The property owners are committed to spending $2 million in an investment to enhance the Authority’s water system and have already spent $1.6 million in providing water to South Peak and providing infrastructure improvements benefitting area users.
“With the development at South Peak, this project was an opportunity to help the water Authority make improvements for residents of South Roanoke and Roanoke County while meeting the needs of our new community,” said Hunter Smith, president and principal of Smith/Packett, the developer. “The Authority, a public entity, has long focused on interconnecting the entire water distribution system to provide customers with primary as well as back-up water sources and we have supported these efforts with funding from a privately held company.”
Work began in June 2011 and involved laying a new water pipeline from the Franklin Road area to the South Peak property and dismantling the water tower at South Peak. Although the tank would have eventually been removed by the Authority as part of a future capital improvement program, South Peak agreed to fund its removal.
To date, the project has cost developer Smith/Packett $1.6 million due to scope changes, including additional engineering work the Authority requested. Smith/Packett also purchased more than $100,000 in easements from surrounding businesses – which the company deeded to the Authority. In fact, virtually all of the improvements to the infrastructure paid for by Smith/Packett is owned by the Authority and will benefit not only residents and visitors at South Peak – new customers for the Authority – but area residents as well.
“Since the landowners are covering the costs, Authority customers will bear none of the project expenses,” Smith said. “We offered project alternatives to achieve the results the Authority was seeking, but the Authority declined them. We attempted to speak with the Authority’s board in closed session but we were denied. We made every attempt to avoid legal action. We remain committed to spending the $2 million and reaching the Authority’s goal. This is a conflict we are proactively trying to resolve by asking the Court to provide direction on what obligations, if any, the property owners have under the parties’ agreements. This is not an issue about lack of funding but about doing what is required under the agreements.”
While the issue is being resolved, construction on the Hilton Garden Inn, The Estates at South Peak community and The Peaks condominiums is continuing as scheduled. Eventually, planned retail, restaurant and commercial development at South Peak will both create jobs and provide the Water Authority with new customers.
