Committee advances resolution, development agreement for Velcom Mobile Home Park septic-to-sewer conversion

The City of Tumwater Public Works Committee voted April 3 to place Resolution R2025-008 and a development agreement with Tumwater Seventieth Ave LLC on the April 15 City Council agenda for a public hearing and recommended council approval thereafter.

City staff (Dan) described the project as a conversion of 39 existing units at Velcom (Velcom Mobile Home Park) from on-site septic systems to public sewer. "We penciled this project out a couple of years ago," Dan said, and staff described an estimated total project cost presented in committee of about $2,300,000. City staff said $666,666.66 of the project was eligible under Ecology’s program, of which Ecology committed $500,000 and the city would provide a matching contribution of roughly $166,666.67 to cover the eligible costs.

Nut graf: the project aims to remove aging septic systems in a higher-density mobile home park, reduce risks to groundwater and drinking-water systems, and enable incentives and reimbursements that would make the conversion financially feasible for the park owner.

Greg, representative of Seventieth Ave LLC and owner/operator for the park, addressed the committee about project economics and housing plans. Greg said his internal estimates put per-unit costs higher than the city’s earlier estimate and described a broader development plan: he told the committee the conversion would allow the park to add about 10 new pads under the city permit and that the owner plans to install and sell new manufactured homes on those pads (Greg described sales prices in the $200,000–$250,000 range), using the sales proceeds to help finance the conversion. "Moving from septic to sewer does not enhance our ability to charge higher rents ... tenants are not gonna pay a higher rent because they're on a sewer system versus septic," Greg said, describing the financing challenge and the negotiated approach with the city and state grant.

Staff said eligible grant reimbursements could cover abandoned septic system removal, restoration, permitting and design, certain connection fees and latecomer reimbursements, and that the developer (Seventieth Ave LLC) would act as project manager, contracting for construction and reporting receipts for grant reimbursement. The city described additional incentives it offers to reduce connection fees for conversions and to support low- and moderate-income housing.

The committee approved a motion to place the resolution and development agreement on the April 15 council agenda for a public hearing and recommended the council approve and authorize the mayor to sign after the hearing.

Ending: A public hearing is scheduled at the April 15 council meeting; if council approves, staff said project reimbursement and construction plans will proceed under the development agreement and Ecology grant timeline.