Council discusses wastewater system agreement between Tea and Sioux Falls


The city council approved the preliminary development plan and rezone for Pinnacle Estates Addition.

Kelly Nielson, Nielson Development, submitted preliminary plans to develop Pinnacle Estates east of Nine Mile Heights Addition. The site is 37.8 acres, where Nielson has plans for 107 residential lots, one twin home lot, four 4-plex lots, 2.43 acres of multi-family development (about 42 units), 2.25 acres of city park and 23,713 square feet detention facility.

Nielson told the council he was willing to either donate $10,000 for the city park in the Pinnacle Estates or do paving for off-street parking at the park. The council approved the rezone from agriculture to planned development for Pinnacle Estates Addition.

Jason Kjenstad with HDR addressed the council about the joint powers agreement for use of regional wastewater system between the city of Tea and the city of Sioux Falls. He went through the document they have been working on before they hold a first reading. No action was taken.

Kjenstad noted they plan to tie into the Sioux Falls system near Interstate 229. He also talked about what Tea will do with their lagoons. Kjenstad expects in the future the lagoons will go away.

Right now the city of Tea has a flow of 425,000 gallons a day. In the agreement, the flow limitation would be 1.3 million gallons a day and the contract would be for 20 years. Kjenstad noted they want a minimum in the agreement so there is always water flushing through the main.

He also talked about payment and rate of return risk charge. Sioux Falls uses a regional governance model and include a risk premium.

In the absence of planning and zoning administrator Kevin Nissen, city engineer Ben Scholtz talked about the Heritage Addition initial development plan.

Scholtz said Nissen wanted to send back some comments about the northeast corner and it not being able to use that as dedicated open space because it’s NRC. Some of it can be used as open space.

Mike Runge said they would likely be developing the addition in a couple of phases and would likely do the detention right away.

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