A proposed 553-acre annexation into the city of Mill Creek would still be profitable even if a second big-box retailer isn’t built in the area, 35th Avenue SE. needs extensive repairs and costs for fire protection services increase.
Those were the findings presented Tuesday by finance director Joanne Gregory at the Mill Creek City Council meeting. City Council members requested revised figures to take into account other scenarios following the Sept. 5 Council meeting.
According to two different scenarios presented, the area could bring in between $459,547 to $509,547 annually.
“We purposely used a conservative estimate,” city manager Steve Nolen said.
The new figures set aside an additional $100,000 a year for five years to maintain and repair 35th Avenue SE., a county-built road that has had problems sinking in various locations.
The road has become a major concern of City Council members, particularly Mayor Terry Ryan, who said the road’s condition “could tip everything” in terms of whether the annexation is approved or rejected by the Council. The road’s condition is of such concern to the Council that it will likely be a separate discussion item at a future meeting.
Public works director Doug Jacobson said he’s talked with Snohomish County officials regarding a possible maintenance agreement should the annexation go through. Jacobson said he plans to meet with county officials more on Monday to work out further details of a possible agreement.
The annexation, which if approved would be the largest in city history, could be voted on before mid-October, possibly Oct. 11. Doing so would allow the city to take advantage of tax revenues in the first quarter of 2006, Gregory said.
Despite the figures, some Council members had concerns that the figures might be too optimistic. Dale Hensley expressed some concerns that not enough revenue was removed for a proposed second big-box retailer, but Gregory said the formula accounted for a store that would be smaller than the Lowe’s on 132nd Street SE.
Ryan, meanwhile, said that if the Wal-Mart project on 132nd doesn’t come to fruition, the annexation could be a financial drain on the city.
“I’m not trying to throw out roadblocks,” Ryan said, explaining that he was trying to cover every possible scenario. “I think it’s a reasonable question.”
Other Council members, such as Mike Todd and Mark Bond, were satisfied with the revenue projections.
“I think that’s enough of a buffer,” Todd said.
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