Question for the group:
I have a 387 space community in CO, it is approx 40 years old. Unfortunately it has a master metered natural gas system. I have not had many problems with it, however it is a major concern (particularily in these winter months) and represents, in my mind, a substaintial future liability. The system does not appear to have had proper cathotic protection over the years, last week the clubhouse began to have a natural gas odor, long story short, the approx 100’ run of supply line needs to be replaced as it is full of tiny holes. I believe this run is similar in age to the rest of the community. Taking a page from Frank’s book, I’ve contacted a local propane company.
Coincidentally the local natural gas company just came in and added coverage to his primary area of service and he lost a huge portion of his business. He has hundreds of tanks on his lot and has agreed to convert the entire community, tanks, new yard lines, convert the appliances/furnaces in the homes for $80 per home. He will then direct bill each resident for their usage. I am very inetrested in moving forward with this as it would drastically reduce my exposure.
My question is; considering the system is still functioning (in fact outside of the clubhouse no known issues currently exist) should I take this step, should I anticipate a negative effect on value? Appraisers, potential buyers, lenders? I intend to own the community long term, I don’t think the tanks are very attractive, however comparing that impact concern and maintenance of the system long term I think I perfer the tanks. Frank, and others any thoughts/ adivce on this? Thanks in advance. Ben