The Lake Station City Council tabled a long-anticipated vote on the sale of its water utility plant Feb. 15 so it can propose a counter offer to Indiana American Water.
Following an appraisal last year, the company offered $20.7 million for the plant. The sale would mean city residents would begin receiving their water from Lake Michigan instead of its well system, now in place.
Councilman Rick Long, D-5th, moved to table the vote so the city could make a counter offer. His motion passed 5-2.
“I’m an old horse trader,” Long said after the meeting in explaining his motion. Long said the plant is now self-sustaining, bringing in $1.8 million in revenue from water bills, he said. Monthly bills, however, are projected to increase, he said.
Indiana American Water spokesman Joseph Loughmiller said Feb. 16 he had no comment on the city’s move to table action on the sale and make a counter offer.
The city has been considering the sale for about 14 months in an effort to pay off debts that have decimated its general fund.
“We do look forward to getting this issue resolved, sooner than later,” said Mayor Chris Anderson. He said the city received the 87-page sale offer from Indiana American Water about two months ago.
In addition to paying off its debts, Lake Station would make about a $9.5 million profit that Anderson said could be used for improvements to parks and other areas.
Indiana American Water officials made a presentation to residents Feb. 9. They said if they acquire the plant, that residents can expect about a $6 monthly decrease in their water bill. About 2,900 residents rely on the water service.
The city’s $12 million water plant, at 2898 Union St., opened in 2015.
Carole Carlson is a freelance reporter for the Post-Tribune.
