Waste water treatment plant, NuTek are on council agenda

Published 9:31 am Saturday, November 2, 2019

City Engineer Steven Lang will be reviewing design alternatives for the expansion/upgrade of the waste water treatment plant during the Austin City Council’s next regular work session.

The proposed designs and upgrades are part of the city’s effort to achieve phosphorus reduction in order to meet limits set by the Minnesota Pollution Control Agency. They are also to help account for projected city population growth, which is estimated to reach almost 29,000 people by 2040.

The cost of meeting MPCA standards has been a major issue for the city as the estimated price tag is over $70 million. City leaders have lobbied state legislators and Gov. Tim Walz and have submitted a bonding bill request to help pay for the upgrades.

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Three design plans will be discussed with the council;

• Expansion/upgrade existing treatment process – This carries an estimated construction cost of $71.2 million with an estimated 20-year net present value of $93.3 million;

• Combined activated sludge treatment process — This carries an estimated construction cost of $77.9 million with an estimated 20-year net present value of $91.7 million; and

• Separate domestic and industrial treatment processes — This carries an estimated construction cost of $94 million with an estimated 20-year net present value of $120.3 million.

City Administrator Craig Clark will discuss a letter of intent to NuTek Bioscience about building in Creekside Business Park during the work session. Nutek, an industrial ingredient provider of plant-based drug fermentation protein used in the manufacturing and development of pharmaceuticals, has asked the city to provide an economic development package.

The proposed building would be 56,000 square-feet and would require an estimated capital investment of $8-$10 million for the building and $15 million in buildouts and equipment.

NuTek’s financing plan depends on securing investors for the project to fund their share of the construction costs as well as equipment and other buildout components. The Austin Port Authority, who owns Creekside Business Park, would coordinate much of the project, though the council must support the Port Authority’s approval of the Tax Increment Financing district and the issuing of bonds for construction of the facility representing 80 percent of the construction costs.

The council’s next regular meeting will be held at 5:30 p.m. on Monday, Nov. 4, in the City Council Chambers located in the basement of City Hall. The work session will be held in the conference room across the hall from the Council Chambers immediately following the meeting.

For a complete agenda, visit www.ci.austin.mn.us/city-council.