Osgood gas rates to increase; Council shoots down apartment proposal

At the May 19 meeting of the Osgood Town Council members approved a rate hike for gas customers that over a three-year period will amount to around 39%.

According to Gas Superintendent Steve Wilhoit, the gas division has
not had an increase in the past 24 years. Wilhoit noted that the rate increase will amount to about $19.00 extra per month to the average household.
Wilhoit explained that due to increase of materials and more including hiring an employee, the increase is needed. He said the cost they pay to the gas company is based on usage. While it sounds counterintuitive, the more gas you buy, the cheaper it becomes. He said Best Metal is a big customer that helps offset the costs for residents. He did note that there is some interest in someone coming into the now vacant CaseMakes building which would help to offset the large loss of gas use from that building.

The gas rate increase has been published in the local newspaper and this was the final reading, which was approved by those in attendance at the meeting, which were Council President Chris Kuhn, Sr. and Bill Roberts. Holly Meador was absent. Tammy Wilhoit, Clerk-Treasurer was also in attendance with attorney Lynn Fledderman.

The next item on the agenda was Travis and Toya Neal Rental Properties LLC asking if the town could provide sewer for a proposed expansion of Buckeye Village Apartments. Travis noted that Buckeye Village went from being government owned to private ownership in the fall of 2025 and has gone through some changes. This would expand that site to add two buildings with up to 24 apartments. These are not low income, government subsidized units. “We are not asking for any variances and will be in complete compliance with Ripley County codes and ordinances,” Travis noted.

He addressed the board saying multi-family housing is needed in a safe environment. He noted that the town and school would benefit from the nearly $2M project proposed. He said he gets about five requests from people to rent per week. “There is a definite shift to renting.” He noted that with the revitalization of the downtown area, he felt this would be a perfect place for people to live. He said they would be using local people to do the work and provided a list of those individuals.

Travis said that while he anticipates more of a retirement community, people who are 18 years of age and up will also be accepted. He said the town wouldn’t have to worry about individual utility bills etc. all of that will be built into the rent and he be responsible for it. He was clear in saying they were asking for no variances, he understands having to add parking spaces, and everything will be in zoning compliance. President Kuhn noted that the local fire department had given an unfavorable recommendation for the project, citing something about the gas department.

“You’re telling me the gas department won’t support this?” Travis asked.
A letter was presented that the Gas Utility Review did not support the project. The letter read in part, “The Town of Osgood Gas Department has identified a direct conflict between the proposed site plans and the existing gas infrastructure currently serving Buckeye Village. The current gas service line feeding Buckeye Village is located directly within the proposed construction area shown on the submitted plans.”

It went on to say the gas line would need to be rerouted and a new utility route established prior to development proceeding. It outlined the approximate cost and had concerns about the storm water management plan.
The letter noted the project would need to be reviewed against both Town of Osgood ordinances and the Ripley County Planning & Zoning requirements for full compliance. Also at issue was the number of units and parking space availability.

Under the General Comments section of the letter it read, “This project presents several infrastructure, utility, drainage, and development concerns that should be thoroughly reviewed prior to any approval consideration. The Town should ensure all utility relocation costs, engineering expenses, drainage planning, and required infrastructure improvements are clearly assigned to the developer prior to project approval.”

Steve Wilhoit, who is the Gas & Street Superintendent for the town wrote, “I do not give this project a favorable recommendation at this time.” He went on to say, “My concerns are based largely upon the outcome and long-term impact of Mr. Neal’s previous quadplex projects located on the south side of town. In my opinion, had those projects been properly reviewed and constructed fully to expected standards and code requirements, they would not have been approved in their current form.”

Wilhoit said these previous developments continue to have negative feedback from members of the community and are a topic of concern due to appearance, development quality and overall impact. In closing, the letter said, “I do not believe this proposed project represents the direction that best serves the appearance, long-term planning, and overall interests of the Town of Osgood and our community.”

Travis told The Versailles Republican he felt kind of blind-sided by the whole meeting when he was just asking if they could provide sewer and was trying to give an overview of the project. The town would be given an entire set of final plans addressing parking, storm water, utilities, setbacks, and floorplans upon submittal for an official building permit.

He reiterated that he wasn’t asking for any special variance or a variance of any type. He said he brought a similar project before the Council last year in June and no one responded one way or the other. He said he knew he would be responsible for any and all costs associated with utilities, whether they had to be moved or whatever. He said he knows he has to pay for all costs involved and never asked for anything from the town and furthermore understands the permitting process and all site engineering and structure compliance has to be in place.

Council President Kuhn noted that he would want to know what the building is going to look like. To that Travis said, “I’m at a complete loss.”

Attorney Fledderman advised him that the first step was keeping the superintendents happy and he would need to talk with the fire chief.
Travis said he has reached out to the Osgood Fire Department and they have yet to meet with him, and he has reached out to the State Fire Marshall for advice. He said since that May 19 meeting, he has decided to eliminate the need for gas and go total electric. Travis also met with sewer department to get information on sewer accessibility and is waiting for those answers. In referencing his project on the south side of town, he asked which codes or violations were committed, with no response from council. Travis stated the existing project went thru all the proper channels of permitting and was even reviewed by the state and returned to the county level for permitting. He also noted that project on the south side of Osgood being referred to will generate $40,000 in property taxes alone and additional revenue of over $20,000 to the utility department, it is just frustrating to think the meeting started with overall usage of gas being down and a price increase warranted, and your potentially giving 24 gas furnace and water heaters, and told it is not wanted.