All Forum Posts by: Nikolas Engel

Thank you everybody!

I appreciate your support and advice. There is so much to learn here - especially what to look for during due diligence!!

This all came to light by an easement request from a neighboring developer. They will do a survey to locate all conduits in the ground. 

I am very surprised by the attitude of the electric utility provider who does not think that this mess has anything to do with them. 

I am waiting for a response from the public locate service, thank you @Ronald Rohde, I did not even know that office exists. 

@Bruce Woodruff and @Henry Clark

Thank you guys, in the meantime I found out that there is a gas line and a telecommunication line also without easement agreement. I should have seen all of this during due diligence - steep learning curve on my end. 

I will engage with the utility providers to work on an easement with specific legal description, not just a template covering the entire land of the property.

Thank you again for helping me understand how to navigate this situation. 

@Ronald Rohde and @Scott Mac

Thank you Gentlemen for you input. No party knows where the cable runs exactly - we just know it is connected to two vaults left and right of the building. Checked on recorded easements last week, nothing to be found in title report. Removal would heavily impact the entire grid serving no only our building but also other private and public infrastructure. 

How do you establish the worth of an easement? And how do you bring a big energy provider to the table to talk about it? 

In any case, as a first step they will have to do the utility location service to be in a position to draft a legal description for the new easement. 

Thank you both again!

Hello,

I just found out that our local electricity provider runs a cable in our ground behind a commercial building we own without and easement in place. The cable connects two vaults and is part of a bigger electricity grid servicing private and public infrastructure. The provider does not even know where exactly the cable runs, we only know the start and end point (the two vaults).

We bought the building about two years ago and have no knowledge of history how this situation came together. 

What are issues to consider at this point and how would you proceed in a situation like this? 

Thank you for your response!

@Kristi Kandel, thank you for your reply and advice. I appreciate your offer to have a quick chat on this matter - thank you, please check you inbox.

Thank you, I am looking now for a dry utility consultant in my area.

@Matt Devincenzo thank you! 

Who would I contact to get those three points done - is that what a dry utility consultant is for? In your experience, how open is the other side to engage in those three points? 

Or can I just request them to provide those three points as a basis for compensation?

Gentlemen,

thank you very much for your replies. It helps me to understand the situation better - I don't want to take advantage of my neighbor but also make sure he doesn't take advantage of me. Great advice here - as always.

With gratitude, Nik

Dear all,

A neighboring mixed-use development is requesting to modify an existing easement we have with the electric supplier in our area. The aim is to enable the electric supplier to make modifications to the electrical circuit that runs underground through our property. The neighboring project would be connected to that circuit.  

I have no experience in this matter and ask for help to be not taken advantage off. 

Is this a normal everyday business requests? Is it the industry standard to usually grant those requests for free? Or do they usually come with a financial compensation for the burden involved?

Than you for helping me understand this request. The property is located in Oregon.

@Chris Seveney thank you for your input. How do you put the income and the rent (plus NNN) in relation? Is 1:1 enough, or do you look for a better ratio? What do you do if the income is connected to the business?

@Tim Delaney thank you Tim, I was wondering about that point too and would be surprised if it is different in my case. I still find it strange that my potential guarantor is not just sending the tax returns over...On the other hand the business has never been late on rent.