February 20, 1999
Fostoria gifted with Reservoir
By Malinda Ruble
Staff Writer
FOSTORIA &emdash; The city received a $5 million gift this week from the state &emdash; ownership of Reservoir 6.
In 1988, city officials entered into an agreement with the state to help finance the construction of the reservoir, but the state's understanding and the city's understanding of that agreement were not the same.
Mayor Jim Bailey said Friday he received a letter in March 1998 from the Ohio Department of Natural Resources' Water Division stating it was time to begin paying back the state the $4,455,670 plus interest.
The letter stated the payments were to begin in 1998, 10 years after the construction, and continue for 15 years, ending in 2013.
''We were under the understanding that the reservoir was nearly $8 million and half was paid by loans and half by the state. But the city signed an agreement in 1988 and agreed in 1998 to begin purchasing the state's equity in the reservoir. The city's understanding was it was a grant,'' Bailey said.
Former Mayor Ken Beier had signed the agreement.
After 10 months of negotiations, Bailey said he received a letter Thursday confirming a new agreement allowing the city to receive all equity.
''And in return, we have to do some things in terms of promoting fishing at reservoirs, some things on how we fill it to build up nutrients for fish and make it always open for fishing. It is a wonderful agreement as far as we were concerned,'' Bailey said.
The agreement was made in December 1998, but was not final until new Ohio Gov. Bob Taft signed it this week.
''The highlight of the agreement is the state agrees to relinquish equity to the city. The city is now the sole owners of the reservoir. There should be a lot of fish out there eventually. And it means the citizens don't have to pay all of that money and we continue to have more than enough water for development,'' Bailey said.