Winona Lake Developer Upset With Sewer Cost

July 28, 2016 at 4:25 p.m.

By Dan Spalding, Times-Union Staff Writer-

WINONA LAKE - Rusty Koenigshof is crying foul after town officials nearly tripled the sewer fee for his new residential development known as Lexington Manor.

Koenigshof aired his concerns in a letter to the town and in person Tuesday after learning an earlier agreement to charge him $9,666 had been set aside in favor of new plans that would cost him $26,000.

Koenigshof argued the town agreed to the $9,666 figure in 1996 and presented a letter from the town as evidence. In that letter the town told him contributions toward the sewer line would be based on projected average daily flow.

The 1996 charge was based on $540 per home. Fifty homes are planned in the development, which is currently under way, he said.

But town council voted earlier this month to establish sewer tap fees for property along County Road 250E that includes the higher figure for Lexington.

When the new charge was approved, nobody mentioned the previous proposed charge for Lexington Manor.

When Koenigshof brought up the issue, town attorney Jim Walmer noted the letter did not constitute a contract.

Council agreed to research the issue and look over plan commission documents before making a decision.

Koenigshof said the newest hitch isn't the first problem he's had with the town. He and other developers had to cancel earlier development plans after the town backed off plans to construct a sewer lift station near Pierceton Road.

"I feel these folks have waffled a great deal," Koenigshof said.

Town council president Brent Wilcoxson said he doesn't remember the issue being discussed in 1996.

"We have to look back and see what the situation was and what kind of agreement, if any, was made. If there was an agreement, then we'll honor it. If not, we've got an ordinance in place," he said.

Wilcoxson said he believed the letter was prepared "by a staff person and never made it through the channels."

The letter also outlined the need for Koenigshof to pay $5,000 to realign the sewer depth. That payment was already made, he said.

That payment helps suggest there was an agreement, he said.

"I think we'll prevail with patience," he said.

In other matters, town council:

• Approved plans by the housing authority to seek a $250,000 grant for owner-occupied housing rehabilitation. The town recently exhausted a $200,000 grant, and the new grant is a continuation.

• Denied a request by Harry Langford to vacate an alley near Esplanade. Langford recently bought a home that is being renovated at 1110 Court Street. The vote was 3-2 to reject the request. Wilcoxson and Randy Ruppel opposed the motion made by Harold Dunn.

• Announced private garbage service will begin June 29 with Worley's Disposal. Current policies will remain in effect, but pickup day for Stonehenge will change to Tuesday.

• Announced the Indiana Department of Environmental Management will look into a questionable discharge on the north side of the lake near a group of condominiums. Concerns about the discharge were voiced recently.

• Announced the town will investigate whether to work with the state to build a boat ramp south of the park for public access. All council members except Ruppel supported the idea.

• Approved the preliminary step toward supporting Grace College's acquisition of an economic development revenue bond. The town would have no liability in the bond, which would be used for several projects including renovations to the Westminster Hotel.

The bond will be for a maximum of $3 million. [[In-content Ad]]

WINONA LAKE - Rusty Koenigshof is crying foul after town officials nearly tripled the sewer fee for his new residential development known as Lexington Manor.

Koenigshof aired his concerns in a letter to the town and in person Tuesday after learning an earlier agreement to charge him $9,666 had been set aside in favor of new plans that would cost him $26,000.

Koenigshof argued the town agreed to the $9,666 figure in 1996 and presented a letter from the town as evidence. In that letter the town told him contributions toward the sewer line would be based on projected average daily flow.

The 1996 charge was based on $540 per home. Fifty homes are planned in the development, which is currently under way, he said.

But town council voted earlier this month to establish sewer tap fees for property along County Road 250E that includes the higher figure for Lexington.

When the new charge was approved, nobody mentioned the previous proposed charge for Lexington Manor.

When Koenigshof brought up the issue, town attorney Jim Walmer noted the letter did not constitute a contract.

Council agreed to research the issue and look over plan commission documents before making a decision.

Koenigshof said the newest hitch isn't the first problem he's had with the town. He and other developers had to cancel earlier development plans after the town backed off plans to construct a sewer lift station near Pierceton Road.

"I feel these folks have waffled a great deal," Koenigshof said.

Town council president Brent Wilcoxson said he doesn't remember the issue being discussed in 1996.

"We have to look back and see what the situation was and what kind of agreement, if any, was made. If there was an agreement, then we'll honor it. If not, we've got an ordinance in place," he said.

Wilcoxson said he believed the letter was prepared "by a staff person and never made it through the channels."

The letter also outlined the need for Koenigshof to pay $5,000 to realign the sewer depth. That payment was already made, he said.

That payment helps suggest there was an agreement, he said.

"I think we'll prevail with patience," he said.

In other matters, town council:

• Approved plans by the housing authority to seek a $250,000 grant for owner-occupied housing rehabilitation. The town recently exhausted a $200,000 grant, and the new grant is a continuation.

• Denied a request by Harry Langford to vacate an alley near Esplanade. Langford recently bought a home that is being renovated at 1110 Court Street. The vote was 3-2 to reject the request. Wilcoxson and Randy Ruppel opposed the motion made by Harold Dunn.

• Announced private garbage service will begin June 29 with Worley's Disposal. Current policies will remain in effect, but pickup day for Stonehenge will change to Tuesday.

• Announced the Indiana Department of Environmental Management will look into a questionable discharge on the north side of the lake near a group of condominiums. Concerns about the discharge were voiced recently.

• Announced the town will investigate whether to work with the state to build a boat ramp south of the park for public access. All council members except Ruppel supported the idea.

• Approved the preliminary step toward supporting Grace College's acquisition of an economic development revenue bond. The town would have no liability in the bond, which would be used for several projects including renovations to the Westminster Hotel.

The bond will be for a maximum of $3 million. [[In-content Ad]]

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