Long before Nestle agreed to nestle near Interstate 69’s Exit 22, the city of Anderson had done preliminary studies on the drainage, water and sewer capacities near The Flagship business park, said Board of Public Works Chairman Rob Sparks.

An 880,000-square-foot facility and distribution center will eclipse most or all demands the city has previously met, particularly when it comes to infrastructure capacity.

“This is the largest infrastructure demand we’ve done in Madison County,” said Mary Starkey, executive director of the Corporation for Economic Development.

“It’s too early in the construction process to decide at what capacity the Nestle factory will need for the water and electricity,” said Pam Krebs, Nestle manager in the division of brand affairs.

Starkey said the food plant had “very specific requirements” as far as the amount of electricity and water or traffic flow and the city is working to provide them.

Starkey said since the plant is designed with growth in mind, “they are cautious that we are meeting all of their requests for expansion capabilities.”

Getting Nestle up and running with utilities and other infrastructure will require about $10 million, money that will come from tax increment financing (TIF) bonds, state infrastructure grants and utility fees.

Indeed, the city has taken major leaps in an effort to be ready:

n Over the next three years, $4.8 million from the city utility budget will go to an electrical substation.

“They are a substantial power user,” said Starkey. “A project of this size is so automated and requires ... uninterruptible electrical service.”

n The city, state, CSX Railroad and CED are stakeholders in the single rail spur to be installed by the time Nestle receives an occupancy permit. Design work for the estimated $700,000 project is yet to be completed, according to documents by Connie Smith, city spokeswoman.

n Drainage rerouting plans are under way. Anderson goes before the Madison County Drainage Board July 26 for approval of an open drainage ditch from the proposed Nestle site to Foster’s Branch Creek, due west of the plant. Estimated cost is $650,000, said the city.

n The city plans to install a 12-inch water pipe that comes into the property and will extend to the 73rd Street right of way.

“That’s a minimal expense since lines currently exist,” Sparks said.

n Road work includes making 73rd Street into three lanes from Martin Luther King Jr. Boulevard to County Road 350 West, and extending 73rd Street from 350 West to Layton Road (400 West). There will also be an access road from 73rd Street to 67th Street with completion plans for late next year. The city hopes to ease traffic flow of semitrailer trucks, employees and visitors. Cost is in the neighborhood of $3.3 million.

n The $650,000 sanitary sewer system comprises a lift station and an 8-inch main and work will begin this year. The main will be completed with the 73rd Street roadwork by 2007.

The system will handle five lines in 2009, and must be expanded to six by 2011. “The more lines needed to make products, the bigger the waste stream is,” Sparks said.

Nestle’s property taxes are paying for the improvements, Sparks said.

“We’re trying to meet their needs without being a burden to the rate or taxpayers,” said Sparks. “The entire Nestle site is a private real estate deal between CED and Nestle. The project generates tax revenues that will be collected by TIF (tax increment financing) and used to pay for the infrastructure directly related to the Nestle site.”

Starkey said Nestle’s investment makes it easier for new businesses to make Anderson home since expanding utilities and infrastructure will already be in place. An example is the planned Anderson University academic wing to adjoin the existing Flagship Enterprise Center, and the proposed Flagship Business Accelerator for established companies is to be built near the Nestle facility.

“I think our current system is operating at or near capacity,” said Art Patterson, executive director of the Flagship Enterprise Center. “The infrastructure and utility improvements made in anticipation of the Nestle plant will improve service levels to the existing center.”

Nestle should be operational spring 2008.

“Our infrastructure plans are getting finalized as we speak,” Sparks said, “and hope to begin construction in the very near future. Some of the numbers have changed, and this whole project is an ongoing work.”