By Josh Davis, Assocaite Editor

(Dec. 21, 2017) The Town of Berlin policy to offer new developments financing for up to five EDUs over five years will be extended to existing businesses that wish to expand.

The original policy for EDUs, (“equivalent dwelling units” used to measure water consumption) was formally adopted in January, but had been an unofficial practice of the town for a number of years.

Town Administrator Laura Allen several elected officials were interested in allowing expanding businesses to take advantage of financing for EDUs, which can be costly to purchase outright.

Councilman Elroy Brittingham said the move was an incentive for businesses to expand.

“I see it as a form of … shop local,” Allen said. “It’s sort of an incentive for our current businesses to stay and reinvest in Bearlin.”

Permitted uses now include existing businesses that wish to expand, undeveloped properties currently served by well and/or septic tanks and undeveloped properties whose owners ask to be connected to town water and sewer services.

According to a staff report included in the council packet, “Enabling businesses to finance EDUs delays the payment for water and sewer capacity to the Town. Experience has demonstrated that does not create a cash flow issue for the Town.”

Councilman Zack Tyndall said he was concerned “in the very near future we’re going to have an issue where our financing rate is going to be significantly lower than what somebody’s going to receive at a bank, which is going to encourage financing through the town.”

“I don’t think the government should be the sole route of financing,” Tyndall added.

However, Finance Director Natalie Saleh said the financing charge was not meant to be competitive with bank loans, but was simply a means of cost recovery for the town.

“It’s not a bank interest rate … by any means,” Saleh said.

Councilman Troy Purnell moved to approve the policy change and the vote was unanimous.