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RIVERSIDE -- The Riverside City Council voted 3-2 Thursday to enter into an agreement with the Washington County Casino Resort and Washington County to fund a new sewer and wastewater treatment plant to service the city and a casino coming into the east edge of town.

The infrastructure project, which is estimated to cost just more than $8 million, will be paid for with tax incremental financing, or TIF, revenue bonds. The Washington County Casino Resort will find a private entity to act as lender.

The money will be repaid over 10 years with property tax revenue from the $107 million casino, golf course and hotel. Under a TIF district, property taxes are collected, but taxes generated by improvements are redirected toward repayment of bonds or reinvested in the property.

The new water facility will provide enough capacity to serve the casino and the city of Riverside, plus it will allow for a 25 percent growth in usage from the casino and could handle a doubling of usage from the city.

The casino will pay a $750,000 hook-up fee to tap into the city's new infrastructure.

Joe Massa, general manager of Catfish Bend Casino, part of the group that will open the Riverside casino, said the approval of the TIF district and larger water plant sets the stage for Riverside to grow.

"You can't grow without infrastructure," he said.

Sam Torrey was one of two council members who voted against the agreement. Torrey expressed concern that the plan includes fees for completing the project on a rushed timeline. He wanted the council to meet with the city engineer to discuss other options.

"I think the council and the mayor have lost control of the water issue," he said. "We're supposed to spend taxpayer money wisely. (Paying for an escalated building schedule) is not wisely."

Mariellen Bower was the second no vote.

Glenn Patton, a Washington County Casino Resort board member and local developer, plans to put in a commercial and residential development when the casino comes to town. He said the city will be able to make money off the TIF district in the long run.

"There will be other developers coming in," he said. "This community will have so many wonderful things happen to it."

Terry Lutz, president of McClure Engineering Company of Fort Dodge, is drawing up plans for the water project and will put together a cost estimate. After his plans, which will be overseen by the city engineer, are completed, the city will have a hearing to approve them. The city will be in charge of receiving bids and awarding contracts.