Laundromat charged a bundle for water hookup Merla: $300K connection fee is excessive; costs should be capped BY KAREN E. BOWES Staff Writer KEYPORT - A businessman hoping to open a Laundromat contends he is being put through the ringer. In order to open the establishment, the borough is charging the man $300,000 for a new water and sewer connection, despite a previously existing connection already on site. The business owner was represented at the Nov. 6 Borough Council meeting by Lake Hopatcong attorney Bernd E. Hefele. The owner gained the borough's approval to convert the space from a dress shop to a Laundromat. Arguing his client was unaware of the large fee until after renovations were complete, Hefele asked that the fee be lowered because "at a $300,000 connection fee, Keyport isn't getting a Laundromat." The attorney further suggested that the fee be waived altogether for "change of use" situations in order to encourage new business in town. Councilman Robert Bergen defended the charge, saying new users need to make up for past debt service that longtime water users have already paid. "I think at some point in time they should pay a greater share," Bergen said, referring to new water users. Administrator Pete Valesi, a former water and sewer engineer, also spoke in favor of charging fees for commercial buildings undergoing a change of use, saying he has heard of businesses in other towns being charged over $1 million for a connection. Bergen agreed with this point, saying he too had heard of towns charging large businesses $1 million for a connection. Mayor John Merla disagreed strongly, noting neighboring towns such as Aberdeen only charge a one-time connection fee for new buildings and none at all to buildings undergoing a change of use "There is opportunity for us to collect," Merla said, "but new construction is where we should be heading." Bergen and Valesi both said a Laundromat would inevitably use more water than a dress shop, thereby putting a strain on the borough's water system. "If the main breaks, the onus has to fall on the new user," Valesi said. Merla argued that water is not free and owners will be charged for whatever amount they use. "I don't think we should charge them excessive fees," Merla said. During the course of the evening, two additional examples of similar cases were mentioned. Valesi noted a West Front Street building, charged $89,000 for a connection, is now in the process of being converted from a retail shop to a restaurant. In that case, the property has had the same owner for over 12 years. Construction is currently halted. Merla mentioned another example, one of a woman being charged approximately $85,000 for a connection after applying for a change of use. According to Merla, the woman ultimately decided to sell her property. Merla asked the administrator to alter the borough law that addresses connection fees, lowering it or capping it. "I think you should propose something for the next meeting," Merla told Valesi. "Because if we're going to amend this ordinance, we should do it." Valesi agreed but could not determine at the time how he would draft the document or at what amount the fee would be capped. This topic was also debated among the councilmen with no conclusion decided. The next meeting is scheduled for Nov. 21 at 8 p.m.