New Hanover County leaders approved two construction contracts on Monday for the first phase of a project that will bring new water and sewer lines to the county’s northern end.

In partnership with Cape Fear Public Utility Authority (CFPUA), New Hanover County plans to install eight miles of new water mains and 10 miles of wastewater mains as part of its Last Frontier Project. The effort aims to accommodate increasing growth and development in the northern part of the county.

“The addition of this infrastructure dovetails with existing CFPUA projects in the same area, which will result in the ability to develop the surrounding acreage for both residential and commercial purposes,” Eric Credle, the county’s CFO, told the board of commissioners on Monday. “We expect this project will provide significant economic benefits to the county, including long-term growth, inflating growth of the tax base, as well as additional housing opportunities.”

In 2022, New Hanover County entered an interlocal agreement with the public utility authority to establish a framework for the new infrastructure project. Per that agreement, CFPUA will manage the design, bidding and construction process, while New Hanover County will be primarily responsible for the cost, Credle said. Once built, CFPUA will also maintain and repair the water and sewer lines.

Initial cost estimates for the project had climbed significantly from $26.5 million in the fall of 2022 to $42.6 million in the fall of 2023 due to inflation and industry demand, Credle said. However, bids for the first two sections came in lower than projected.

Gary McSmith, CFPUA’s chief engineer, said the lower costs stem, in part, from a better bidding environment. Last year, the utility authority received an average of 2.4 bidders per project. This year, the entity has received an average of 3.3 bidders.

“There just weren’t that many bidders in the marketplace, that was driving up the price,” he told the board Monday.

The board of commissioners unanimously voted to award S&L Contracting LLC a contract for the Greenview West Area sewer force main for $3.3 million. Including administration and design fees, the sewer line – which runs north of Murrayville Road – will cost $3.6 million.

The board also unanimously voted to award T.A. Loving Company a contract for a sewer force main along Sidbury Road and the Greenview East area sewer force main, which runs south of I-140, for $3.7 million. The project, including fees, will cost just over $4 million.

The Last Frontier Project, now estimated to cost $39.6 million, will be paid for with $29.55 million in state budget funds, with the remaining costs funded by debt proceeds.

Construction on the two awarded projects is expected to wrap up in December 2025. The other four phases of the Last Frontier Project are set to wrap up design in December, bid in February 2025 and complete construction in the first quarter of 2026.