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Updated over 3 years ago on . Most recent reply

Account Closed
  • Investor
  • Carson City, NV
7
Votes |
20
Posts

Deferral for City connection fees

Account Closed
  • Investor
  • Carson City, NV
Posted

We are looking to build 2 8 plexus in a town of 9000 with current 100% occupancy rate in Nevada. The market is screaming for multi family and we are hoping to answer the call......as soon as materials costs drop. The City is begging us to build it as well as the property managers in town. The city has said they will work with us to get the project done.

We have put our team together with engineering and construction but have ran into a problem. As experienced developers know connection and impact fees can be substantial. Many cities will defer these costs with a lien. Since we are in a town of 9000, the city is reliant on these fees to break even each year. To bring my situation into perspective, we are looking at an amount of $297,000.

We asked the city if they would defer and they said we have to pay at permitting or before Certificate of Occupancy is issued. So at the beginning or end of construction. So much for helping us get it done.

This forum is full of people way smarter and more creative than I. Can anyone give me some suggestions on a creative way to get the city to not lower their costs but defer the costs while making it beneficial to them. I have considered asking them to set up a loan with interest we can pay over a certain period. I would think although the money is over a few years that the interest would be what’s gets them to ease up. Can anyone provide some advise on this for me?

Thanks everyone.

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