Payment for Real Estate Development Extensions
In cases where a water department or company is asked to lay mains and extensions in undeveloped property by a land company proposing to open up the territory for residential and business purposes it would seem a fair plan that the expense of this opening and development should be borne by the land company, provided of course that the water department or company is willing and agrees to reimburse the developers for this outlay when the use of the water through occupancy shall bring in sufficient income to equal the rate of return agreed upon in the contract or determined by a public service commission or other governing body.
In this case, as suggested by Dow R. Gwinn, in another column, the land owner is enabled by the mere cost of the laying of the mains and service pipes to the curb and of setting of the meters to give his prospective purchasers and tenants the advantage of a water supply. He has no responsibility for procuring the supply, for boilers, pumps, filters, etc. He does not have to operate a water plant for the supply of his land holdings. He enjoys the benefit of the special prices obtained by the municipality or water company, and finally he is eventually reimbursed for hist outlay when his property is placed upon a paying basis to himself and the water department.
This plan seems not only an equitable one but also one which should work to the advantage of all concerned. No doubt the real estate developer will be only too glad to have the work of main laying, etc., taken off of his hands by the water department or company of the city or town, and it is certain that the latter will much prefer to do the work than have it done by private and irresponsible parties with the result that when the property developed becomes eventually a part of the municipality, as of course it will some day, of probably having to tear up the streets and do the work over again. The city or company laying the mains will naturally do the work with the same standard of size and efficiency as the remainder of the public streets and thus when the property is turned over to the municipality it will need no alterations as far as the water supply is concerned.