The Las Vegas Water District has not been talked about too kindly by owners of Las Vegas Commercial Property since a new water service surcharge was implemented this spring. The charge for fire prevention water lines into buildings was asking landlords to pay in some cases more than 300 percent of what they were forking over prior to the increase.?The new surcharge for water to fight fires ended up becoming the fuel for an inferno of outrage by local business and property owners.
The timing could not have been worse. Commercial property owners are facing continued strife in occupancy rates and working ovetime to win the business of the small number of tenants seeking office, industrial or warehouse space throughout the Las Vegas Valley.
Because of the colorful feedback, which was not just the vitriol of frustrated business owners but a real threat to ending business, Pat Mulroy, head of the Las Vegas Water District, will apply a $44 million credit to the water bills of those affected by the geyser-like spike in water costs. Conveniently, a profit surplus was discovered that could be used to douse the cloud of bad PR in which Ms. Mulroy?s team was engulfed.
Overall, and relatively speaking, water costs are pretty reasonable in Las Vegas, especially for residents. However, surprise costs like this signal a real threat to business growth, something Ms. Mulroy promotes as the very reason our region needs to dedicate more money to uncovering new sources of hydration.
Somebody sent some mixed messages.
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