Henrico, Powhatan withdraw from reservoir project

Henrico and Powhatan counties announced they are withdrawing from the Cobbs Creek Reservoir project after negotiations stalled with Cumberland County.

Although the $200 million project has received its state and federal permits, officials in the counties have been unable to agree on annual payments that Henrico and Powhatan would make to Cumberland for hosting the 1,107-acre facility.

"I think Powhatan and Henrico will pursue other locations and other partners" for a water supply, Henrico County Manager Virgil R. Hazelett said yesterday.

Cumberland Board of Supervisors Chairman William F. Osl Jr. called Powhatan's decision to withdraw "extremely disappointing." He hadn't heard officially from Henrico but said he knew the negotiations were in trouble.

"Eventually, people start to dig in their heels," he said.

Osl said he believes that Cumberland's demands have been reasonable because it would have to deal with the disruptions and environmental risks associated with a reservoir in the county.

And while he was receptive to renewed talks, Osl added that Cumberland would pursue other partners. "We've got a good project. We've got a good handle of the finances for it."

The difference between what Cumberland wants and what Henrico and Powhatan were offering would amount to about $32 million over 50 years, said Robert K. Pinkerton, Henrico's deputy county manager for community operations.

Specifically, Henrico and Powhatan balked at Cumberland's request that the annual payments in lieu of taxes cover various planning activities, training, equipment and staff positions in the sheriff's office and general government, he said.

Pinkerton would not provide further details in the hope that talks could be resumed. "This is not off the table completely," he added. "It's close."

Henrico, which already gets water from the James River, had planned to be Cobbs Creek's biggest user, drawing 30 million of its 47 million gallons per day after the facility opened sometime between 2017 and 2020. Powhatan and Cumberland were to receive 10 million and 7 million gallons per day, respectively.

The reservoir would be filled with water from the James when flows are sufficient. Water would be released back into the river during droughts to augment river flows. Henrico and Cumberland have been working on the project since late 2002, Henrico officials said.

"I'd love to see the project go forward," Hazelett said. "We've spent a lot of time and effort. It's a huge regional effort."

Each of the counties had agreed to pay the reservoir's capital costs based on their projected use, Hazelett said.

Hazelett and Powhatan County Administrator Carolyn Cios sent separate letters Wednesday, notifying Cumberland officials that they were withdrawing from Cobbs Creek and would be pursuing other options. The letters followed separate closed meetings by the two counties' boards of supervisors Tuesday. Powhatan's board voted 5-0 to sever ties with the Cobbs Creek project.

Powhatan Board of Supervisors Chairman Robert R. Cosby said Cumberland simply wants too much.

"They were trying to make it an economic benefit of having it in Cumberland County," he said. "That's not the idea of trying to supply water to localities."

Cosby also complained that Cumberland was insisting on control over plans to manage the buffers and watershed area for the reservoir. He said Powhatan had argued that the regional authority that would own and run the reservoir should play a role.

"It's over," he said of Powhatan's involvement. "I want the people to know we gave it our best shot. It's not feasible. We don't have that kind of money. Cumberland just wanted more than we could afford."

Hazelett estimated that Henrico has spent about $200,000 on Cobbs Creek. Powhatan officials could not estimate their costs to date.

Contact Will Jones at (804) 649-6911 or .