While the design and exact footprint of the buildings has not been determined, preliminary designs show the northern structure to be constructed at the location of the lower city parking lot on Water Street across the street from the library and behind the Times Publishing Company building.

According to Ellen Higgins, vice president of business development for Common Bond Properties of Minneapolis, Minn., the monthly rent for the senior units would range from about $600 to $800. Higgins also said the seniors in the living units would have an income of 50 to 60 percent of the median income in the area, which would be from $22,600 to $27,120.

Construction on the townhomes could begin as soon as plans are presented and municipal approvals are granted. River Mill Investments hopes to have the townhomes built and sold by the end of 2008. Construction on the senior housing units and commercial space is proposed to start in the middle of 2008 and could take about 18 months for completion.

The second phase of the project also consists of two buildings, one directly north of the dam and one just south of the dam. The northern structure would include 48 residential units and commercial space. The other would consist of 52 living units.

The success of phase one and market conditions at the time of construction would determine the amount of commercial space, the mix of units and whether the units would be condominiums or apartments. Construction on the second phase would likely occur in three to five years.

The city of Watertown purchased much of the property from Larry Mistele for $550,000 and in addition paid $55,000 to Kohlenberg Properties of Oconomowoc for signing that firm's offer to purchase over to the city. The city's land investment totals $605,000.

The Wisconsin Department of Natural Resources has preliminarily agreed to pay 50 percent of the cost of the public portion of the development which would include expansion of the Riverwalk along that area, and the commons area which is currently being contemplaced on land close to the dam and the power plant. That DNR grant, if approved, would be approximately $110,000.

The Wisconsin Department of Commerce is also reviewing the possibility of a $900,000 grant to the city for a new sea wall in the area and other work. Mayor Ron Krueger said the commerce department has been supportive of efforts to eliminate blight and at the same time develop riverfront property and he said it appears this project fits those goals well.

The city of Watertown will also contribute some of the money it received from the additional property taxes paid by the development. The amount the city will be able to contribute will be dependent on the taxes paid and the other financial obligations the city has with the project.

Krueger said the city's commitment is to fund its share of the project through the grants and the Tax Incremental District financing revenues over a period of years.

Higgins noted at the Committee of the Whole meeting that the senior housing development to be constructed on the north edge of the property, over part of which is the city's parking lot, would likely be five stories in height rather than the original plan of four stories. She said this was necessary to include an additional 18 senior housing units and as a result increasing cash flow for the property.

The city has a new building height limit of 70 feet and that will accommodate a five story building.

That northernmost building is expected to have individual parking spaces in the lower level, six to seven retail stores on the ground level and the apartments on the third, fourth and fifth levels. These apartments would be senior housing with some rented at market prices and some at prices based on income.

River Mill Investment is a joint venture of four companies. Spectrum Development of Wauwatosa will act as the lead developer of the project and Common Bond Properties will contribute a large senior housing structure to the development. Kohlenberg Properties and Icon Properties of Madison will assist in the development of commercial space and any market rate housing incorporated into the project.

In other action Tuesday night, The first reading of an ordinance setting new outdoor burning restrictions in the city was approved by the council.

Any resident who takes part in burning outdoors would be required to obtain a permit. Those with commercial fire pits would also need a burning permit.

Residents would not be allowed to burn such items as refuse, garbage, leaves or plant life.

After some discussion, council members decided to keep the fee to obtain a permit at $5 instead of increasing it to $10. Permits will be issued by the city clerk's office instead of the fire department.

A motion was made to suspend the rules and act on the second reading at Tuesday's meeting, but not enough aldermen approved the proposal.

Council members also approved a resolution setting the 2008 city payroll.

The resolution sets the annual salary of the municipal judge at $28,352, part-time city attorney at $37,132, part-time assistant city attorney at $21,713 and part-time cable television coordinator at $18,870.

According to the resolution, the hourly pay rates for police auxiliary will be $9.46, crossing guards will be $9.24, an inspector election worker will be $7, a chairman election worker will be $7.50, a part-time cable television assistant will be $13.16, a master of science public health nurse will be $25.66 and public health nurses and registered nurses will be $24.37.

The resolution also sets the rates for auxiliary personnel of the fire department and wastewater employees.

Full-time employees hired prior to Jan. 1, 1996, are eligible for longevity and will receive extra funds each year. Employees with over eight years on continuous service will receive an extra $175.50 annually and those with 12 years will get an extra $351. Employees with more than 16 years of continuous service will get $526.50 annually.

All employees that are covered by the city's pay plan salary schedule that was adopted on Nov. 16, 2004, will receive a 2.5 percent salary increase on Jan. 1, 2008.

A resolution setting the hourly rates for responsible parties to use the city's fire equipment was approved by the council.

The equipment and hourly rates are as follows: Engine company at $300 per hour; ladder company at $400 per hour; heavy rescue company at $200 per hour; ambulance at $175 per hour; tanker at $250 per hour; and brush unit, single axle flat bed truck and command car at $150 per hour.

Aldermen approved a resolution authorizing the water department to purchase automatic testing equipment that administers tests for chlorine, fluoride and pH at the treatment plants.

The equipment will be purchased from Hach Company for $30,744.

A resolution authorizing repairs to the emergency siren on Carriage Hill Drive that blew over during a recent storm was approved by the council.

Repair costs are estimated at $17,000 if the street department provides a metal pole. The Emergency Government Capital Outlay Account has $10,000 available for the repairs and the remaining funds will come from the city's contingency account.

The city will file a claim with its insurance carrier and any reimbursement money will first go to replenish funds from the contingency account.

The final reading of an ordinance rezoning 117 N. Eighth St. from central business to two-family residential was approved by the council.

Council members also approved several other resolutions during Tuesday's meeting. Those resolutions included:

- Eliminating the reading of various committee minutes during council meetings.

- Selecting Chase Bank to perform the city's bank services for 2008 through 2010.

- Amending the city's park and open space plan.

- Setting a section of the bond schedule for curfew hours for minors.

- Authorizing the Health Department to purchase $3,450 in office furniture.