News Talk 94.1/AM 1600 Where The Upper Cumberland Talks
The Double Springs Utility District has agreed to sell the City Of Cookeville a portion of its water service area.
Cookeville will pay 1.84 million for the 4.5 square miles. It includes 535 customers. City Manager James Mills said the agreement is fair to both sides.
“Some of these areas like on Ridgedale (Drive) have been in the city since the 70s and have been served by the Utility District,” Mills said. “The bulk of this was annexed in the early 2000s. I think this is the right thing to do for our citizens.”
The service area runs east to west from Holiday Road to Tennessee Avenue and north to south from Highway 70 to Interstate 40. Mills said it’s an area of high-projected growth over the next 20 years.
The city would acquire some $1.18 million in assets as part of the sale. The contract calls for the city to pay $200,000 when the contract is executed and two equal payments of $819,829,50. The first payment would be due on or before August 31, 2021 when all customers are transferred. A second payment would be made on the one-year anniversary.
City officials and Utility District board members have been discussing a deal for years. Contract terms came together in the last several weeks.
The city drafted the agreement, which has been approved by the Utility District’s board. City Council will approve the agreement Thursday night.
