Contradictory Loan Amounts surface over Mayor's Ryan Creek Sewer Project

In a September 26, 2010, article entitled Franklin: The final frontier, Don Behm of the Journal Sentinel wrote:
…Milwaukee County's last frontier finally would be served in the next few years as part of an agreement between Franklin and the Milwaukee Metropolitan Sewerage District[MMSD]. On Monday, MMSD's commission will be asked to approve extending sewer service to the far corners of the city.
Development would follow the pipes, Mayor Tom Taylor said.
The city is seeking nearly $31 million in low-interest Clean Water Fund loans through the state Department of Natural Resources so that it can build a large sewer across the frontier...
On January 10, 2011, our sister publication, BATTLE JOINED wrote an opinion piece entitled: Questions surround Ryan Creek Interceptor Project and in April THE FRANKLIN INDEPENDENT JOURNAL published an editorial entitled: Is it too good to be true?, which also questioned the prospect of the RCI Project.
Today we learned from City Hall sources that, yesterday, Franklin Mayor Tom Taylor received a letter of approval for not a $31 million loan for this project, but a $38 million loan from the Wisconsin Department of Natural Resources (DNR).
Maureen Huebeler, Financial Assistance Specialist, Environmental Loans Section confirmed the loan approval and amount to THE FRANKLIN INDEPENDENT JOURNAL in a telephone conversation this morning.
In covering the contentious skirmishes over Mayor Taylor’s blitzkrieg to ram this project through the common council and a number of government bodies including Milwaukee County—at the expense of Franklin taxpayers, we sent Mayor Taylor the following email on Friday, May 20 and to-date have received no acknowledgment of our email or answers to our questions posed in it:
Mr. Mayor:
Referring to the Ryan Creek Interceptor Project, this article on JSOnline reported in-part, the following:
...Franklin Mayor Tom Taylor said the sewer line would lead to property tax relief by adding homes and businesses to the tax rolls. Strict limits on property tax increases included in Gov. Scott Walker's budget proposal would allow increases based only on the value of new construction or approval by referendum. New development in Franklin would lead to more tax revenue for the county, Taylor said.
"You'll get 19% of every new tax dollar that's generated," he told supervisors of the county's share of the revenue that will be generated.
He said the sewer line would also open the county-owned property surrounding the County Correctional Facility-South to development. [County Supervisor] Weishan scoffed at that notion, because of the proximity to the lockup. But Taylor said county officials have mulled the idea of moving the correctional facility and eventually selling the land for development.
In fairness to you is the reporter's story of the meeting accurate and has he accurately reported your comments?
Thank you.
Fred V. Keller, Co-Editor & Publisher
THE FRANKLIN INDEPENDENT JOURNAL
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Maureen Huebeler in the DNR Environmental Loans Section confirmed to us that the loan application she processed and approved was for $38 million and was submitted on June 1. If truth has no agenda. What is the mayor’s agenda when it comes to this project?
Ms. Huebeler also confirmed that the City will make a [taxpayer funded] interest only payment in March 2012 and an interest and principle payment, [also taxpayer funded], in May 2012 along with another interest only payment in May 2012. At this time, Ms. Huebeler was unable to provide us with the amounts of these payments.
If, as reported, MMSD would begin buying the sewer from Franklin in 2015, under terms of a proposed intergovernmental cooperation agreement. The district would take ownership of the interceptor in 2031, after paying an estimated total of $41.1 million in principal and interest. How does the new $38 million price tag affect this intergovernmental cooperation agreement?
Will $38 million in "value of new construction" allow the mayor to increase prpoerty taxes without going to a referendum?
Finally, will Franklin taxpayers ever truly know the complete, final cost of this project or its true return on investment? I would expect our elected city officials would have all the answers to these questions.
Throughout our coverage on the mayor’s project it has become obvious to us that The Milwaukee Journal Sentinel, THE FRANKLIN INDEPENDENT JOURNAL and the 35,000 residents of the City of Franklin have been mislead by from the start by Mayor Taylor and the Common Council about the cost of the Ryan creek Interceptor Project. The mayor’s silence and refusal to respond to our questions only serves to widen the credibility gap between the mayor and the people of Franklin.
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Today we received the following cost breakdown for the controversial $38 million Ryan Creek Sewer Project from a City Hall source:
Loan application amount: $38,322,000
Includes $250,000 for Franklin's local cost for stub sewers; $29,125,000 in
estimated construction costs, the balance is design, G&A, staff and
professionals, easements, contingency, etc.
Contact the mayor or your alderman with any questions or comments you may have on this issue.







