The park I am trying to finalize a purchase on has water provided by the city via master meter. My intention in buying the park has always been to install meters and sub-meter water. I have talked with the city and they would consider installing their own meters at each individual site, for a fee. Sounds great, right! However, the cost would be $1,500 per space. They may consider replacing the main trunk line while doing this (same price). We’d have to deal with the branch lines.
This would be a huge timesaver for us because they would handle all billing, etc. and we would be out of the water business.
48 space park. Total city cost = 48 x $1500 = $72,000. If we did our own meters total cost = 48 x $300 = $14,400. This is a turn-around park. May sell in 3-5 years.
I’ve heard Dave say he’d do it even if it was $800 per space. But what about $1,500? One concern is the $72,000 up front cost, versus a $14,400 cost that I can pay for as installed.
My question is what value will this add to the park?
48 x $25(avg water bill) x 12 x .6 x 10 = $86,400 value add? In theory, installing my own meters will create the same numbers right?
Thoughts are appreciated!!