Brandon Leuallen, The Business Times

At a Jan. 14 joint meeting between the Grand Junction City Council and stakeholders to discuss a potential increase in impact fees for residential and commercial development, the conversation shifted to concerns that higher fees could continue to drive developers to build outside city limits.

The discussion also included how the Persigo sewer system intergovernmental agreement affects whether a development is subject to City of Grand Junction impact fees or the lower and fewer fees imposed by Mesa County.

President and CEO of the Grand Junction Area Chamber of Commerce Candace Carnahan said, “We have concerns that increased fees at the maximum rates plus additional project costs could potentially push, especially commercial development, out into the county as opposed to inside city limits.”

Grand Junction City Attorney John Shaver noted the city’s Persigo sewer system intergovernmental agreement would be a limiting factor in the amount of residential development outside of the city’s incorporated areas.

Shaver specifically addressed commercial development, saying, “For example, if you have a commercial or industrial activity, they’ll need industrial pretreatment services. They’ll need some of the services we provide through connection to the Persigo wastewater treatment system.”

The Persigo agreement is a partnership between the City of Grand Junction and Mesa County concerning the jointly owned Persigo Wastewater Treatment Plant and the definition of sewer boundary lines for new development.

As development occurs within the Urban Growth Boundary outside city limits, the city has the authority to annex these areas and expand its boundaries to include the new development. This allows the city to charge city fees, including impact fees, on the development and collect taxes, while also requiring the city to provide services within the newly defined city limits.

The Business Times reached out to County Commissioner Cody Davis and Persigo Utilities Director Randi Kim to further understand the agreement.

Davis said historically the sewer boundary was not in line with the Urban Growth Boundary, and recently the agreement was updated to bring the two into alignment. 

“The Urban Growth Boundary is meant to define where the city plans to grow over the next 50 to 100 years beyond current city limits.” Davis said.

Clifton and Whitewater

Davis explained that while the city will annex residential and commercial developments within the Urban Growth Boundary, the boundary stops at the Clifton Sanitation District.

If development occurs within the Clifton Sanitation District, which includes the community of Whitewater, the developer would not be required to pay City of Grand Junction impact fees or follow additional city regulations.

“If they are outside the Urban Growth Boundary, they can develop under county regulations and standards,” Davis said.

Pretreatment services 

When asked if the Persigo treatment plant provides pretreatment services that Clifton Sewer does not offer, City of Grand Junction Communications Director Hannah Ellis said certain industries are required to conduct pretreatment at their facilities before discharging waste into the sewer system, rather than relying on the wastewater treatment plant.

Ellis added, “Any development within the 201 service area must meet municipal code requirements,” referring to the Persigo 201 sewer district boundary.