The Elko New Market City Council on Thursday agreed to give permits and more than $3 million in subsidies to a California bottled water company for a major plant in the small south metro city, despite concerns by some residents that it would drain the aquifer and create more plastic pollution.
The project, which would hook up to the city's public water line and eventually draw 310 million gallons per year from the Prairie du Chien-Jordan aquifer, still needs a permit from the state Department of Natural Resources (DNR). That process will likely take until the fall, city officials said.
A group of residents have spoken out against the plant, which would be owned and operated by Niagara Bottling, because of the potential to deplete the aquifer that supplies drinking water to much of southern Minnesota.
"This doesn't seem like a good idea," said Laura Osman. "I'm not really sure that Niagara Bottling is a company that's trustworthy."
Carolyn Miller said residents are asked to water their lawn every other day to conserve water while Niagara will eventually be pumping 400 to 500 gallons per minute.
"Water is the new gold," she said in an email. "Why would the city [or] county suddenly decide it's a good idea to sell our water to an out-of-state, for-profit company, for pennies on the dollar, with forever rights?"
Others objected to the plastic bottles the plant would create. The company sells bottled water to retailers like Walmart and Costco.
Mayor Joe Julius said that "this amount of public discord" was new to the City Council.
"People are upset because they love their community," he said. "It's a huge change to them."
But he said the amount of water being drawn from the aquifer is a fraction of what's used in Lakeville and Faribault, cities that use the same aquifer.
"I think the onus is mostly on [the DNR] to make sure what we're asking for is reasonable," he said.
The project cleared a hurdle in February when the DNR deemed an environmental review unnecessary for the project and determined it would not harm the environment or local water supply.
The company has opened similar facilities in New Mexico, Texas, Michigan and Wisconsin in recent years.
Niagara Bottling representatives, who attended the council meeting, said they had no comment on the project.
Subsidies provided by city
The council approved several items Thursday night, including a plan to replace affected wetlands, permits for six silos that are taller than what's typically allowed, and a "significant user agreement" between the city and Niagara for the water usage.
The council also approved a resolution supporting Niagara's application for a Department of Employment and Economic Development subsidy of $405,000.
The city is "not too involved" in that subsidy, which is essentially a grant, Julius said.
Officials also approved a second subsidy — a reduction in water and sewer connection fees, which are paid to the city. Niagara will get a $3.1 million discount on those fees.
"Subsidies like this ... are given out all the time, regardless of whether [the company] has the economic means to make it work," he said. "This level of subsidy is less than what other users would have demanded."
City officials have long been trying to spur development in Elko New Market and have said the new plant would help defray the high cost of water there by adding to the tax base. The city opened a big water treatment plant in 2016, but the cost is only spread out over 1,400 households.
Julius said it was a big day for Elko New Market, now that they've approved the city-level items that will allow for the first user to move into their industrial park.
About 20 people showed up to voice their opposition to the Niagara plant. Several said they didn't like the city providing subsidies to the large company.
"I think that all of us that live close by knew development was coming," said Jonathan Carlson. "It just feels wrong that they rolled out the red carpet for an industrial client like this."
