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Developer: utility relocations and easements are driving unexpected costs
Summary
Millhouse told the council that off-site utility work and a water line found on private property have increased project costs—stormwater bids rose from $750,000 to $1,120,000 and WaterOne requires a $565,000 upfront payment to secure relocation materials—creating schedule and title risks.
Millhouse's Devin Coffey told the council the project has encountered significant off-site utility complications that have increased costs and raised title and schedule risks. "That guy that gave us that bid will not honor that bid now... Our next up bid is $1,120,000 on that," Coffey said of stormwater work, comparing it with an earlier $750,000 estimate. He described the combination of increased bids, easement renegotiations and new field findings as "one of the biggest train wrecks" they've seen on a project.
Coffey said the developer discovered a water main that surveyors, the utility and prior records placed in Dearborn Street is actually located on private property; because of that location WaterOne is requiring Millhouse to pay $565,000 up front to secure materials for the relocation. Coffey said that payment must come from developer funds before the land can close because the title company and lender will not insure a parcel with the illegally located water line. He added that if easement agreements fail, Johnson County Wastewater might pursue condemnation, which could delay the project by roughly four to six months.
