Cost of connecting to city sewer?

General question - A park that I am looking into has a lagoon and the owner said that he is in the city and has city pipes on both sides of his park. Does anyone have any experience transitioning a park from a lagoon/septic to city sewer?  I called the city to get an estimate and they will be getting back to me.  I just wanted to hear any first hand experiences from anyone else.How long is the process?How much does it typically cost if it’s not much distance?Does that cost get worked into the deal?Thanks for any help!

Is the park currently on the city tax rolls or is it still part of a township?  Here’s why I ask…I have seen cities annex properties from townships to increase the city area (and tax base).  Typically with annexation comes access to municipal services such as water and sewer.  If the city wants the park on the tax roll they might negotiate costs to connect to the water/sewer.  Keep in mind annexing to a city will probably increase your real estate taxes.As far as costs getting worked into the deal, you should be paying based on the current income and expenses.  That means there should be current expenses for the lagoon maintenances, testing, etc.  This will be direct savings to the bottom line once you take the time/money to connect to municipal water/sewer and the residents pay their own utilities in the future.  Figure out how much expenses are due to the current system, subtract your real estate tax increase due to now being in the city, and cap that number at a generic 10% cap rate.  Now you have a general idea of how much “value” will be added.  In additional to value added due to an increase in net income, you will likely vastly widen your market for potential buyers if you ever decide to sell.  Most buyers won’t want a lagoon system.Good luck!

If you are in the city, you should be able to get hooked up to their sanitary sewer system.  However, get a written, firm number from them.  I see 3 major costs in doing this.  One, the actual city fee will likely be by the bedroom for all lots including empty lots and will probably be tens of thousands of dollars.Two, the cost of the contractor who will intercept existing lines and tie them to the city line.  Get firm numbers; it may take 2 or 3 job walks by 2 or 3 contractors to nail it down.  No estimates and no ‘not to exceed’ numbers, firm only, no contingencies.Three, the cost of remediation of the pond.  After connection to the city lines you should be able to pump the remaining pond effluent into the city system, although they may want you to do that during the wee hours of the day.  Then, you will want to reclaim the pond area to turn it into useable land.While the cost may be high, you will be adding value and salability to your park and you will be adding value to your tenants lives.  The costs would want to be worked into the deal.  And since you don’t know everything that the current owner knows, it may be that the pond and associated costs are the real reason he’s selling it to start with.Please let the forum know what your final decision is, this is a very interesting case.Jim Allen