A roughly 20-acre, 300,000-square-foot commercial project in Nipomo took a step forward Wednesday when the Nipomo Community Services District tentatively offered to provide it with water and sewer service.

While expressing happiness at the green light, landowner George Newman told the district's board of directors that fees for developers in the community were too high - a trend that could hinder construction in Nipomo.

The Nipomo Village Plaza proposal includes 272,700 square feet of commercial space, including restaurants, office and retail, and an assisted living facility. The district provided the project with an “intent-to-serve” letter in November 2002, but it expired before Newman could complete his utility plans, said Bruce Buel, NCSD general manager.

Intent-to-serve letters indicate the district's commitment to provide a project with water and sewer service if the developer meets certain criteria.

Newman's new letter is valid for two years, plus a one-year extension if he can show “due diligence” in progress on the project.

The project is expected to require 30 acre-feet of water per year, but Buel said that estimate may be conservatively high. An acre-foot is equivalent to 325,851 gallons, which is enough water to meet the needs of 10 people in an urban environment.

Capacity fees for the project are expected to be about $825,000, but those charges could be increased because they are dependent to some degree on the district's supplemental water project. The original pipeline project, which was designed to pump water from Santa Maria to Nipomo, is predicted to cost more than $24 million, four times what was originally estimated.

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Newman said it's unfair that developers are forced to shoulder such a significant amount of the project costs. Many developers, he added, won't be able to complete projects if costs stay so high.

“I'm feeling the crunch big time,” Newman said. “ ... I'd like the board to consider a broader base for funding. Projects just don't pencil out anymore.”

In response, Director Cliff Trotter said developers have to cover the majority of the costs, because homeowners shouldn't have to bear that burden.

“The money's got to come from somewhere,” he said.

Randi Block can be reached at 347-4580 or rblock@santamaria

times.com.

Dec. 14, 2006