County officials face backlash over controversial development agreement

November 27, 2024 | Clay County, South Dakota


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County officials face backlash over controversial development agreement
In a recent county commissioners meeting, Chris Larson from Play Union Electric raised significant concerns regarding the Munger addition development project, highlighting potential conflicts between city requirements and rural utility services. Larson emphasized that the city is mandating a pre-annexation agreement between the developer and the city, which could adversely impact rural electric and water services.

Larson explained that while the developer seeks guidance from rural utility providers, the agreement would ultimately exclude them from the decision-making process. He expressed frustration over the financial implications, stating that the rural electric service would be required to invest in infrastructure without the assurance of recovering costs, as the city would take control of the utilities post-development.

Currently, the policy requires developers to cover 100% of the backbone infrastructure costs, with provisions allowing homeowners to pay minimum fees over ten years. However, Larson warned that if the pre-annexation agreement proceeds, it could force rural utilities to decline participation in the project, jeopardizing both the developer's plans and the community's access to essential services.

The discussion underscores the complexities of joint jurisdictional issues in urban planning and the need for collaboration between city officials and rural service providers to ensure equitable solutions for all stakeholders involved.

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