What To Pay For Utility Easment?
Hello all! I am new here & have a small infill (5 lots) project that has too low (only by a foot or so) of an elevation to drain several of the lots into the existing street sewer. I wish to avoid having to pump the lots, and have the option of attempting to acquire an easment from several adjacent
property owners, which would facilitate tying into the public sewer system. My dilema is how much to pay for a 10-foot "utility" easment? I say "utility" because run-off must be collected here also. The easment would be from ~150 to 200 ft long.
The lots are ~5,000sf, which will sell for 7-800k when built out. I have no expierence with pump/grinder systems, but have been told this would decrease viability -- possibly even in the "wild" market of the SF bay area.
Any advise would be greatly appreciated! And thank all of you for the shared knowledge included on this site! Sean
Hi Nancy, & thanks for the reply.
My engineer has advised me that, although grinder pumps would be permitted, this would greatly decrease the value and desirability of the project. To what degree, I am unsure. Additionally, the pumping system(s) and back-up power add a great deal to the project cost. I suppose I should find out the apx. cost of pumping and use this number for a reference in making an offer for an easement. What do you feel would be a reasonable amount for an similar easement in your area?
Sean
[ Edited by sfbayarea on Date 05/07/2005 ]
acquiring a "private easement" can be tricky. Is this easement for underground water drainage? Where will the easement go..is it at the boundary of the adjacent tract? are they any other easements there? Will your easement hamper further development on the tract or encumber it? Find out what easements are there....contact that specific entity and ask for the real estate group...right of way group....easement acquisition group etc....see if they have acquired other easements in the area......is your easement the 1st 2nd or 3rd encumbrance on the property? Easements have value and are appraised.....every one is different and could be valued from a $1psf and up....the adjacent property owner does not have to grant you an easement...but your offer may tempt him to grant it to you............