Hamburg Township Extends Discount On Water Taps
February 8, 2022
By Mike Kruzman / email@example.com
The Hamburg Township Board of Trustees has approved another discount on water tap fees- one that could help bring a needed development.
At their latest meeting, Supervisor Pat Hohl said the township has 1,520 water taps from the Livingston Community Water Authority, but have only used 17. He said that once-$2.7-million to $2.8-million bond was based on the false perception of what would be happening with the economy in the early 2000s. Based on the bond, those excess taps should be selling for around $9,000, but that appears to be unrealistic with the history and overwhelmingly vast number of them remaining unpurchased. Hohl said he has checked with the township’s bond attorney, and they have the authority to offer and extend a discount, which has been approved twice previously. Five tiers of discounts were presented in memo to the Board, beginning at $4,500 for one to five taps, and progressing to $3,000 for 101 or more.
Hohl then shared insights on a potential buyer for some of those taps that has been targeting a new multi-family housing development in Hamburg, beginning back in 2014. He said that with a financing commitment to move forward, they have every expectation they will now. Hohl said when the project originally began, they were asking for incremental tax financing and other incentives to build the apartments, which he added they “really do need.” The township’s response at the time was that they would discount the taps to make it more agreeable, as they do have so many of them.
Hohl said the developer would likely be seeking 172 taps for 208 units. Green Oak Township might also purchase 500 to 600.
The Board of Trustees, with 3 members absent, voted 4-0 on approving the discount through the end of 2022. After that, they may consider continuing it if they choose.