Genesee County water pipeline would boost
economic development in region

A proposed Genesee County water pipeline may help draw more than water and lower rates to the region—it also could hold the key to more economic development and prosperity for the region.

The pipeline, which would draw water from Lake Huron, would cost about $600 million and also would help supply water to Lapeer and Sanilac counties, according to a recent study. Despite the cost, however, building the pipeline would save area businesses and residents an estimated $200 million over the next 30 years, and also would give the region more control over its economic future. Construction of the pipeline also would create about 500 jobs for a three- to five-year period.

“Ten years ago, water was not considered a competitive commodity in Michigan or in Genesee County,” said Ed Donovan, Senior Vice President of Economic Development at the Genesee Regional Chamber of Commerce.

But by 2015, Donovan predicts that water will be the new oil.

Investors and companies routinely ask economic development officials about current and projected water rates, details about the water source itself, and the reliability of the delivery system, Donovan said. With water scarcity and restriction issues in the Southwest and the Southeast, that trend is only expected to increase over the next few years. And for many companies, having ready access to the country’s largest supply of freshwater may be the deciding factor that lures them to Michigan and to this region.

“By 2015, these trends will be our reality, and how we respond will determine our job base and the eagerness of companies to invest in Genesee County,” Donovan said.

Tim Herman, CEO of the Regional Chamber, agrees.

“With this pipeline, we have an unprecedented opportunity here in Genesee County to help chart the course of our economic future,” Herman said. “And with current economic conditions and the decline of the auto industry, we simply cannot afford to let this opportunity pass us by. By creating our own reliable source of water, and tapping into an ever-increasing demand, we will be able to provide companies with a reliable, cost-effective source of water. And that will mean new investment and industry in Genesee County and the surrounding region.”

With a reliable water source, competitive rates, a workforce aligned to the new economy, and the area’s world-class infrastructure, Genesee County will be “a Tier 1 competitive community in Michigan,” Donovan said. Having a reliable water supply also can help diversify the local economy by making water available to a wide variety of industries.

If the region does not build its own pipeline, however, it will pay a very high price in the long run—economically and otherwise, Donovan said.

“It (building the pipeline) is just one of several things that if we don’t work to get right, we’ll become a big wasteland,” he said. “Our economic future is in our hands more than ever before.”

County Drain Commissioner Jeff Wright last week told representatives from the three-county region that  project construction could begin as early as next year.

The pipeline would be operated by a new water authority, which would include the cities of Flint and Lapeer, and Sanilac, Lapeer, and Genesee counties. Construction of the pipeline also would include the cost of pumping stations, twin pipelines along part of the route, water treatment facilities in all three counties, and an inland reservoir in Lapeer County.

“We will control our own future if we own this water system,” Wright said. But if the region does not act soon, there might not be another opportunity, he said. “This will be our last chance in controlling our own destiny.”

As it stands now, Genesee County residents and businesses get their water from the Detroit system. And just last week, the Detroit City Council approved a rate increase that would equal 9.5% for Genesee County residents. The rate hikes are tied to the increasing cost of borrowing money for capital improvement projects, such as the construction of a Flint Transition System.

The Detroit system also is in need of significant upgrades and would involve the construction of a Flint Transition System. That facility has an overall projected cost of $348 million, and estimated annual operating costs of about $724,000 a year.

Detroit officials have maintained that construction of the facility would lower rates to county residents and businesses over time. But the county would have to sign a new 30-year agreement to continue getting water from the Detroit system, and area residents would have to pay about $7 more per household to cover operating costs and debt retirement for the new Flint Transition System.

Wright and engineering officials from Wade Trim and ROWE Professional Services Co. have said that the study points to building the pipeline as the best option. According to study estimates, building a new pipeline would be less costly for businesses and individuals than paying for improvements for the current Detroit system.

“So if we’re going to pay,” Wright said, “we might as well own our own system.”