The Brunswick-Glynn County Joint Water and Sewer Commission voted Thursday to enter into an agreement with a developer planning to build 138 townhouses on Oak Grove Island.

According to a preliminary engineering report, Carolina Holdings Group Partners is contracted to purchase land on the island from Oak Grove Island Limited, on which it plans to develop 138 townhouses.

The nearest sewer line is two miles away, so the developer brought an early proposal to the utility in July in which the developer would pay for upgrades in exchange for equal value in water and sewer system tap-in fee credit.

A shell of a pump station still sits on Oak Grove Island, which was intended to serve what would be sewer basin 4132. No pumps were ever actually installed in the structure, however, said JWSC Deputy Director Andrew Burroughs.

As per the final agreement, the JWSC will provide enough sewer tap-in fee credits for the development Carolina has planned and limited reimbursement for project costs that exceed the credit value.

In exchange, the developer will install the necessary equipment in the empty pump station and water and sewer pipes to service the area.

Dorminy said the utility expects the cost of the project to exceed the value of the tap-in fee credit, which is enough for 150 townhouses. Should it actually exceed the value of the developer’s credit, the JWSC will reimburse the developer by giving it 70 percent of tap-in fees charged for access to pump station 4132.

The JWSC will bid out the project, while the developer or the JWSC may manage it.

The agreement is good for 10 years, while the reimbursement arrangement will end five years from the date it’s signed by both parties, Dorminy said.

The text of the agreement states either party can pull with 60 days’ notice to the other. As the developer assumed the costs associated with construction until the project is complete, there’s no risk to the utility, Dorminy added.

Some commissioners said they wished they’d had more time to review the agreement before the meeting and mulled deferring it. Ultimately, they approved the agreement 7-0, but Commissioner Tripp Stephens said he wanted any such future agreements at least a week in advance of the meeting at which they will consider approving it.

In other business, the commission voted to award a $245,000 design contract for one of a special-purpose, local-option sales tax project to engineering firm Hussey Gay Bell. The firm will design engineering plans to either overhaul or replace a sewer pump station in Brunswick.

Commissioners also voted unanimously to put out a notice requesting cost estimated on a study to determine the feasibility of expanding the water and sewer systems around Brunswick without service and to sign an agreement with the city in relation to a project to repave and upgrade drainage and utilities along L Street.

The utility commission’s next meeting is scheduled for Feb. 21.

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