…..In 2007, Walton and Oconee counties formalized a partnership to create a 1,370-acre, 12 billion gallon regional reservoir with an initial projected cost of $ 170 million. The overall cost estimates for the project once completely built are about $ 350 million…. While initially going full steam, efforts appear to have slowed down….. The Walton Tribune - May 2, 2010 . AVOC Three Part Series . Part 1: HLC Background Information – Financial Commitments Part 2: Challenges for Hard Labor Creek and Hall County’s Glade Project; Part 3: HLC Project is basically stalled with limited information on how and when it will proceed – with slowed growth and development. .

AVOC

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December 3, 2010

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Hard Labor Creek Background Information – Financial Commitments

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Wendell Dawson, Editor, AVOC, Inc

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While Hard Labor Creek Reservoir has been noticeably absent from local coverage in recent months, there are other sources of information that indicate the financial challenges involved.    The 401 Permit Consultant, Attorney Tommy Craig, has been involved in a large project in Hall County called the “Glades”.    There has been coverage in the Gainesville area raising questions about its viability.

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Those articles have also quoted Oconee and Walton officials about the challenges facing the Hard Labor Creek Reservoir in view of the ‘bursting’ of the Housing Bubble.

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Hard Labor Creek Flow near proposed Dam site -2009

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Hard Labor Creek Website

http://hardlaborcreek.com/index.php

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Hard Labor Creek Reservoir Site Map

http://hardlaborcreek.com/images/stories/maps/HardLaborCreekRegionalReservoir.pdf

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See Retired IRS Official Charles Baugh Analysis of HLC Tax Liability for Oconee

Hard Labor Creek Debt Service for Oconee CBaugh.5.08.pdf x

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6-25-07 Oconee-Walton Water Agreement raises concerns of citizens on tax & other issues

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7-19-07 Walton’s Hard Labor Creek Reservoir still having challenges

6-25-07 Oconee-Walton Water Agreement raises concerns of citizens on tax & other issues

6-15-07 Oconee County is moving into a huge commitment that will be around for grandchildren

6-6-07 Oconee 'delegates' taxing authority with Walton Agreement

6-4-07 Oconee to sign 50 year contract with Walton on $ 353 million reservoir project

3-7-07 Oconee to join Walton Reservoir on split Vote – 3 to 2

5-4-10 Hard Labor Creek Reservoir project behind schedule

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The Walton Tribune       May 2, 2010

http://www.waltontribune.com/story.lasso?ewcd=c5f5ba0639a5a253

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Reservoir project behind schedule

By Robbie Schwartz

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While ground was supposed to be broken on the Hard Labor Creek Reservoir later this year, focus has shifted to becoming “shovel ready,” a result officials say is a result of the economic slowdown.
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In 2007, Walton and Oconee counties formalized a partnership to create a 1,370-acre, 12 billion gallon regional reservoir with an initial projected cost of $ 170 million. The overall cost estimates for the project once completely built are about $ 350 million. Walton County has a 71 percent stake in the project, assuming the equivalent in financial obligations as well as water produced once the project is complete. Oconee County is assuming the remainder of debt and likewise percentage of the up to 62 million gallons a day of water produced once completely built out………………..

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While initially going full steam, efforts appear to have slowed down and shifted to completing land acquisition and all major design elements required for the project, becoming “shovel ready” when economic conditions improve. Most of the work to date has been accomplished on time and either on budget or under budget. Less than half of the $ 170 million phase I monies have been bonded out to cover land acquisition, mitigation and major design work. The rest of the monies will be bonded out when the project nears the building phase of the dam and 8 million gallons a day water treatment plant……..

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“The overall schedule for project construction will likely be delayed,” said Jimmy Parker, a vice president with Precision Planning, the firm serving as project managers for the reservoir. “Based on historic growth trends, original projections indicated that both counties would require additional water supply sources by 2014. With the economic downturn and slowdown in both residential and commercial growth, water demand projections have decreased thereby delaying the critical date for project completion.”
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In May of last year, Walton County raised its water rates in part because of lower than expected revenues as well as increased water purchasing costs. A portion of the rate increase was also required to meet debt obligations for the Hard Labor Creek project, totaling $ 1.98 million this year.

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While Little has indicated there are no plans for another raise in rates, published reports last week indicated Oconee County is considering a water rate increase for the first time in 10 years due in part to debt obligations for the reservoir.
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Reservoir officials estimate the economic impact on the reservoir, while it has afforded portions of the project to be completed well under budget, will ultimately delay the project a year or two.
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“The Hard Labor Creek project is scheduled to be built out from an initial capacity of 8 million gallons per day to full capacity of 63 MGD over a 30 to 50 year period as water demands increase,” Parker said. “The schedule for the initial phase of the project, which is planned to produce only 8 million gallons of water per day, will be driven by economic recovery and the demand for additional water supply.” ……………….

7-29-10 Important Water Issues for area - Jackson County wins appeal in Reservoir Lawsuit

Court of Appeals upholds reservoir lawsuit ruling - Jackson Herald -Wednesday, July 21. 2010

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Jackson County’s suit was met by a Motion to Dismiss by the Upper Oconee Basin Water Authority.A local Superior Court Judge did not grant the motion to dismiss.   Recently, the Georgia Court of Appeals upheld the judge’s ruling.…..

…….. Oconee County made a huge mistake in getting involved with the Hard Labor Creek Project in Walton County.    Treatment facilities and supply lines were already in place and owned at Bear Creek Reservoir in Jackson County……

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8-8-10 Goal of slowed down Hard Labor Creed Reservoir Project is to be ‘Shovel Ready’

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The Walton Tribune    August 8, 2010

http://www.waltontribune.com/story.lasso?ewcd=c78d7ce36deacfe2

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Shovel Ready

By Robbie Schwartz

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In its early years, it was mired amid allegations of collusion. More recently, it has been deemed unnecessary at times as well as a detriment to the environment, seen as a savior to regional water woes during the recent drought and a burden during the current harsh economic times. The willing participants have also changed along the way.
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No matter what bumps have come in the road, including the delay this year in breaking ground, officials for the Hard Labor Creek Reservoir maintain it is necessary for the future and, more importantly, going to be a reality — just not by its initial completion date of 2014.
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Then, earlier this year, though no formal vote was ever taken, officials from both counties indicated to the Hard Labor Creek Management Board the intent is to become “shovel ready” and not move beyond land acquisition and design stage of the project.
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Getting to the starting line
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“We are saying we are shovel-ready now because for most funding guidelines, this means you can start the project within six months,” said Jimmy Parker, a vice president of Precision Planning Inc., the firm serving as project managers for the reservoir. “If federal stimulus dollars were to roll in, or state money made available because of the water wars, we are shovel ready right now.”
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Though ground will not be broken on the dam site anytime soon, dirt is still being moved for the project. On Wednesday morning, dump trucks were traversing along a swath of land with a small creek off of Pleasant Valley Road. Crews are working in both counties on mitigation sites approved to offset the damage the reservoir will have on the local habitat of Hard Labor Creek and surrounding wetlands. At the Pleasant Valley Road site, workers are adding meanders to the creek…..

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While the shovels are at the ready, what would it take for the project to move forward?
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“We would have to see a change in the current economy,” Little said. “We would have to see the foreclosure market go away and some real developing start taking place here in Walton County. The state or Gwinnett County could also show interest in the project again.”
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While taking the wait-and-see approach, Walton County last year made a $ 1.98 million interest-only payment for the money already bonded out. The county will make interest-only payments until February 2015. According to reports, Oconee County will make payments between $ 309,486 to $ 1.22 million on its bonds through the life of the bond, which comes due February 2038. Attempts to reach Oconee County officials for this story were not successful…………..

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