The Hayden Town Board on Thursday agreed the town will contribute to utility improvements related to the Valley View Business Park development.
Developers of the park requested the town contribute half of about $71,000 in projects that will loop water sources near the Vista Verde subdivision and extend an off-site sewer line to the business park.
They broke ground on the project at Crandall Avenue and Routt County Road 37 earlier this week.
Looping the water lines will increase fire flow pressure to Vista Verde and create a second water source for the subdivision and business park, Town Manager Russ Martin said.
Although that project has clear benefits for the town, extending the sewer line from land owned by Peabody Energy to the business park mostly will benefit that development in the near future.
However, contributing to that project could set a good precedent for encouraging industrial development, a goal emphasized in the town's comprehensive plan, Martin said.
"It follows the comprehensive plan, and that's why I entertained it," he said, emphasizing that such incentives would not apply to residential development.
The town will contribute to the projects by crediting as much as $30,000 in water and sewer tap fees in the business park. Developers, in turn, must develop buildings using those taps within two years, or pay the tap fees.
If developers follow through with the buildings, the town likely will recoup the tap fees and more with property taxes.
"I think it's a great incentive," Trustee Ken Gibbon said. "We tend to win either way."
Martin marked $30,000 as the contribution limit because that's the amount of sales tax revenue the town, by state law, can transfer from its general fund to its enterprise fund.
That means current utility customers won't be paying for the projects.
"It's intended to try to encourage higher ratepayers (from the business park) so future rates can be shared across the board," Martin said Friday.
Utility issues also played into the Town Board's consideration of annexation agreements for two properties south of Hayden along C.R. 53.
The properties, owned by Frank and Sue Weidner and Thomas and Jaylyn Trapp border a 25-acre parcel directly east of the proposed Lake Villages subdivision. Developers of that project want to build a road connecting the subdivision to C.R. 53.
Annexation of the Weidner and Trapp properties -- which are not related to the road project -- are contingent on annexation of the 25-acre property.
The annexation agreement for the Weidner and Trapp properties proposed the owners tap into a private 2-inch water line at their expense until a standard 8-inch line is completed near their properties.
The Town Board in the past, however, has discouraged out-of-town taps to 2-inch lines, which aren't up to the town's requirements for multiple users, and board members said they did not want to make any exceptions.
"I think we should stay with the standard line and taps," Mayor Chuck Grobe said.
An 8-inch line, which isn't necessary for the first phase of the Villages at Hayden development, likely won't be built in the area for at least several years.
Martin said Friday that the board would be more likely to approve an agreement on the condition the landowners build an 8-inch line to their properties, though the owners may not be prepared to take on that expense.