NN suspends King William reservoir project

NEWPORT NEWS - Newport News is suspending activity on the King William Reservoir project, said City Manager Randy Hildebrandt late today.

This is in response to a call he received from the Norfolk District of the U.S. Army Corps of Engineers Wednesday saying they were suspending the project's federal permit, according to a press release.

A U.S. District Court judge recently ruled that the Army Corps of Engineers "acted arbitrarily and capriciously" when it issued a construction permit for the controversial 13-billion-gallon King William Reservoir in 2005.

"After all the time, energy and resources invested in our efforts to assure a safe, reliable, economical raw water supply to our citizens and customers, as well as our municipal partners and customers, Hampton, Poquoson, York County, Williamsburg and James City County, it is extremely disappointing that the federal court decision and the apparent follow-up position of the Norfolk District of the Army Corps of Engineers has put the successful completion of the King William Reservoir project at risk," said Newport News Mayor Joe S. Frank Thursday.

The King William Reservoir is projected to cost the city at least $289 million by the time it comes online in 2020.

Estimates of how much the reservoir will cost over the years ballooned from $75 million in 1989 to $250 million in 2006 and $289 million at the end of 2007.

According to the press release, the March 31, 2009 court decision by the U.S. District Court for the District of Columbia deeming that the U.S. Army Corps of Engineers and the Environmental Protection Agency were "arbitrary and capricious" in some of their permit-related actions, and the Corps' subsequent indication that they plan to suspend the Section 404 permit for the project, are the most recent setbacks suffered by the project.

Efforts to build the reservoir have faced a number of other serious setbacks and survived the process over the past ten years. However, it has become apparent to the City that there is an increasing risk about whether the reservoir, river intake and associated pipelines can be built in light of all the challenges remaining.

This most recent Corps action has triggered Newport News City staff to reassess whether continuing to expend public dollars on a project that is increasingly unlikely to be built is a prudent course of action, regardless of how much potential benefit could ultimately derive from the project if built.