The Black River Falls Utility may have found the land on which it will build its new $3.5 million facility, and it would save utility customers nearly $320,000 and significantly reduce the overall cost of the project.

The Black River Falls Utility Commission voted unanimously at its regular meeting on Monday night to acquire 14.75 acres of land from the Black River Falls Area Foundation Board of Trustees for $15,000 per acre, or a purchase price of $221,000.

The purchase is subject to regulatory review and approval from the state of Wisconsin Public Power Commission.

“We were hearing so much concern on the price of the acreage for the building,” Foundation chairman Gil Homstad said to the commission. “We brainstormed possible ways to cut costs, and the possibility of the Foundation selling the land came up.”

Prior to the vote, the utility was considering an option on a 12-acre parcel of land on the McNulty property at a cost of $45,000 per acre for the new facility — with a requirement that the entire parcel would have to be purchased at a cost of $540,000.

The Foundation acquired the land on Highway A across from Burnstads supermarket approximately 12 years ago from the McNulty family, Homstad said. They had an option on two pieces of land for the development of a community park. One option was purchased, but the McNulty land was not because of lack of funds.

The Foundation was prepared to let the option on the property lapse, but Milt Lunda suggested that the Foundation purchase the McNulty land for future city recreation purposes, as well as for possible school purposes. Because the Foundation did not have available funds to purchase the property, Milt and Lidy Lunda donated the money needed to acquire it.

The Foundation set aside 10.2 acres of the land for future school use before they approached the utility and offered it the remainder.

City Utility Manager Jerry Ewert said the Foundation’s land meets all of the basic criteria the utility is looking for to build the new facility. It will provide convenient access to customers, provide for efficient and fast service of lines and equipment, have good road access, be served by the utility electric, water and sewer facilities and it is a location that can be annexed into the city of Black River Falls.

Not only does it meet the utility criteria, but it will also offer significant savings to utility customers from the original project price of $3.5 million; the estimated cost per acre is one-third less than originally hoped, and the utility will save $80,000 in costs of bringing utilities to the site. In addition, the city will receive an annual increase of an approximately $30,000 payment in lieu of taxes.

The purchase of the land will not be final until a feasibility study is conducted, as well as several surveys of the land. Also, the utility still needs to complete an application process that will go before the state’s Public Service Commission, which acts in the interest of consumers and will subject the project’s plans to strict scrutiny. Ewert said he hopes to have the application process completed in the next two to four weeks, if not sooner.

“It’s still the same process as before,” Ewert said.

Homstad said if the sale goes through, not only will it save utility customers money, the money used to purchase the land from the Foundation will go back into the community. “We will be carrying out our original intent and that of Milt Lunda by using the money for recreational purposes,” he said. “It’s a win, win, win result.”