A legal spat between Pembroke and Allenstown over their shared sewer plant could put a temporary damper on a series of housing developments on the docket in Pembroke.
The two towns share the costs of the Suncook Wastewater Treatment Facility, which is owned by and located in Allenstown. A case before the New Hampshire Supreme Court will determine who owns the profits from a program at the plant that processes septage for commercial haulers – and the increased capacity at the plant that was paid for, in part, through those revenues.
Discussions in both towns about an upgrade to increase capacity kicked off in 2005 when the state notified the plant it was maxed-out and put a moratorium on new connections. Pembroke contends that the revenues from the septage program belong to both towns, and that the capacity generated by a 2009 upgrade, called the BioMag project, should also be shared. Allenstown disagrees, and has argued that the septage program didn’t cost Pembroke anything and that the town breached its contract when it failed to put a single plan before its voters to try and pay for the BioMag project.
A Superior Court judge last year sided with Allenstown.
“Without evidence that Pembroke was involved at any stage of the funding, design, and implementation of the BioMag project or suffered any loss as a result of the project, it would be unfair for it to benefit from a project wholly accomplished by Allenstown,” judge Diane Nicolosi wrote in her order.
Attorneys for Allenstown and Pembroke presented oral arguments before the state Supreme Court in February. A decision is expected some time this year, but it could be another six months before the justices issue their ruling.
Meanwhile, Pembroke has seen heavy interest from developers. Between three projects alone, more than 200 new housing units are before the town for zoning and planning approvals.
“What I’m understanding is that Allenstown disagrees with Pembroke on available capacity. Allenstown will not give Pembroke an answer on any of the projects for sewer capacity until such time as the court has determined who (owns) what,” Paulette Malo, the operations director for the Pembroke sewer commission, wrote in an email.
If Allenstown prevails on all counts, Pembroke could still buy capacity from its neighbor. But what that financial arrangement would look like, and how much it would cost, is unclear.
“I do not have any more information for you until we receive a court decision,” she said.
Bob MacCormack, a developer planning a 75-unit project – mostly condos – next to the Pembroke Pines Country Club, said he’s not “overly concerned.”
He said he has at least 33 sewer hook-up permits that predate the lawsuit. As for the rest, he said he’ll just have to wait and see the outcome of the lawsuit and what the two towns ultimately agree to.
“In the end, I believe that municipalities are reasonable,” he said.
(Lola Duffort can be reached at 369-3321 or lduffort@cmonitor.com.)