Mebane Sues Graham Over Wastewater Costs, Projects Now Stalled

Mebane city government filed suit on December 11 alleging that Graham pursued an $84.6 million upgrade and expansion of its wastewater treatment plant without proper consultation or approval of Mebane officials, and that Graham has sought roughly $18 million from Mebane for the project. Mebane says it will pay no more than $10.7 million toward the work and contends the higher demand is unauthorized. The complaint also alleges that Graham has delayed approvals for two major commercial and mixed use projects as leverage in the dispute.

The two developments affected are a Buc-ee’s travel plaza and a Koury retail and residential project, both sited along Trollingwood Hawfields Road. Both projects have Mebane addresses, but the Buc-ee’s location sits within a joint industrial park created to share revenues and benefits between Mebane, Graham and Alamance County. According to Mebane officials the permitting slowdowns have stalled site work, delayed expected sales tax and job creation and complicated utility planning for the corridor.

The origins of the conflict trace to 2017 when Mebane began purchasing capacity at Graham’s wastewater plant as part of a cooperative arrangement to serve growth in both communities. That practical cooperation has now become a legal fight over how costs and approvals are allocated, and whether unilateral upgrades require explicit buy in from capacity purchasers. The disagreement underscores how municipal infrastructure projects can bind neighboring governments economically and politically long after initial agreements are signed.

Local consequences could be immediate if the Buc-ee’s and Koury projects remain in limbo. Construction delays can reduce near term employment and defer sales tax receipts that fund local services. Utility customers in both cities could also face longer term consequences if cost allocation shifts prompt changes to rates or capital plans. More broadly, the quarrel risks eroding trust between the cities and the county, complicating future joint economic development efforts.

The lawsuit initiates a legal process that may result in courtroom rulings, negotiated settlements or mediation. Residents and businesses in Alamance County should monitor upcoming city council and planning board agendas as officials reconcile financing, permitting and revenue sharing tied to the wastewater plant and the stalled developments.