A mobile home park on 70th Avenue in Tumwater is being converted to the city sewer, and the municipality is helping the developer with the effort.
The Tumwater Public Works Committee endorsed an agreement on April 3 with Tumwater 70th Ave LLC, the developer of Velkommen Mobile Home Park, to reimburse the company for expenses related to the conversion.
The city is able to help with the costs through the help of a grant from the Washington State Department of Ecology. The grant is for $500,000 and requires a $166,666 match from the city.
The agreement covers the conversion of 39 units and specifies the developer would be responsible for hiring contractors, managing construction, removing the existing septic systems, and submitting appropriate documentation to the city.
In return, the city will reimburse the developer for eligible costs up to $666,666. The city will submit these expenses to the Department of Ecology, which will reimburse the city for costs.
Dan Smith, the director of the city’s water resources department, said the home park was identified as one of the city’s higher risk neighborhoods that the city should aim to convert.
While septic systems offer certain advantages, Smith noted that in areas with urban densities, they are more likely to introduce contaminants into the groundwater.
However, conversion can be expensive with costs ranging from $10,000 to $40,000 per unit, according to Smith, which is why the city sought grant funding to help incentivize the developer toward conversion.
Greg Piantanida, one of the developers of the mobile home park, was present at the meeting to tell the committee that conversion was a weighty issue because of financial constraints.
“This was a difficult decision because, candidly, moving from septic to sewer does not enhance our ability to charge higher rents,” Piantanida said.
He said that he spent three years negotiating with the city for the agreement, which was only finalized by securing the grant.
“The negotiations have been tough. Over the last three years, the city has been demanding at times, but I will tell you council members that all the people we've dealt with at the city have been gracious, professional, (and) a pleasure to work with,” Piantanida said.
The decommissioning of the septic system would also create the opportunity to build 10 additional units on the land currently occupied by the drainage field. Smith noted that connecting those new units to the sewer system are outside the scope of the agreement.
With the committee’s endorsement, the agreement will now be forwarded to the city council’s agenda on April 15. The council will need to hold a public hearing before authorizing the agreement.
Once approved, Smith said he aims to complete the project within the year. The contract itself mentions that the conversion project is anticipated to take six months.
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MrCommonSense
Why are taxpayers paying for the private landowner of a "cash cow" mobile park paying to connect it to sewer? If there is some agreement for the property owner to pay this money back over time, fine. If my septic fails, is there money for the single family owner to connect? And the grant money frees up land available for 10 more unit. Simply a gift to the property owner. Of course he'll pay LOTT and the city big money when those units are connected, but that's the cost of doing business. What is that land worth? I'm sure there is lots more to the story, but taxpayers should not be picking up the tab for this. The negotiators needed a financial calculator.
Wednesday, April 9 Report this
Southsoundguy
What a terrible idea.
Thursday, April 10 Report this
HotTractor
Converting from septic in such a densely populated location is good. Expecting taxpayers to pick up the tab for increasing the value of the property is business as usual. Good job on the negotiator for developer of Velkommen Mobil Home Park, that person is probably getting a percentage payout of the amount. Well done screwing over the taxpayer.
Thursday, April 10 Report this
CommonSenseSenior
Does anyone on Council look at who actually owns this property before making these decisions? Those LLC's are sometimes hidden behind layers of names but this one is owned by GP Realty Finance in Bellevue, WA, a financing investment firm, whose business is commercial real estate financing/lending. They have the funds to have done this without freebies. They are not some poor mobile home park owner who the city is helping to keep affordable living. Not even close. And this done just as EHB 1217 Rent Stabilization Bill is being considered because of all the buy-up by investment groups and out of state corporations of our mobile home parks. Our WA mobile home parks were affordable places for seniors. Now investment firms, corporations buy them and make them unaffordable by huge rent hikes that no senior on a social security check can afford. They increase homelessness while the council gives them money for something they could have paid for since their business is 'commercial real estate lending.'
Thursday, April 10 Report this
CommonSenseSenior
Talk to your Council at the public hearing or before the agenda for final endorsement on April 15. No one connected to this out of area investment group lives in Tumwater, cares about Tumwater residents, votes in Tumwater. Their sole aim in buying up mobile home parks is to raise the space rent and make more money. This isn't the only one they own. In this case the 10 additional units allows them to make more money off the back of Tumwater low income folks or drive them out by space rent hikes and put newer units in at much higher prices. We don't need to use Tumwater funds even as a loan--for this kind of thing. Make him use his own money if he wants those 10 additional units. He's not so much a developer as article states but is in fact the Principal owner along with his son of a financing investment firm. Look at their website: GP Realty Finance in Bellevue, WA.
Thursday, April 10 Report this