Working with Local Government and Utilities to Get Your Laundromat Project Completed on Schedule and on Budget
Russ Arbuckle has been involved in more than a few laundromat buildouts and retool projects through the years. And he has seen his share of horror stories when it comes to working with local municipalities and utility providers.
“I could write a book on this subject,” laughed Arbuckle, president of Wholesale Commercial Laundry Equipment SE, based in Southside, Ala.
“I had one project delayed due to a moratorium on opening the street, because it had just been redone. The inspector on this project insisted we replace the two-inch galvanized water supply. Of course, we told him it would be no problem to run a new, two-inch copper line – to which he responded that we couldn’t dig up the street. ‘Well, then we can’t replace the line,’ we rebutted. This went on for about 15 minutes, until my assistant asked the inspector if this was an Abbott and Costello routine.”
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“We had a retool where the new fire marshal insisted that the vinyl siding the store owner wanted as a wall covering had to come down, because it was an ‘exterior product.’ When I asked what made the vinyl siding an exterior product, he responded that this was how it was described on the product packaging – and that was the entire basis of his argument. We provided fire, smoke and hazardous materials ratings from the Vinyl Institute of America that showed lower smoke, fire and hazardous materials ratings than other ‘interior’ coverings, including Formica-type laminates. But to no avail. The fire marshal refused to pass our fire/life safety inspection until the vinyl came down.”
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“Another project required LP gas. So, basically, we installed a ‘tank farm’ with six 250-gallon tanks, fencing, signage, etc. – to meet all city and state codes. About a week after receiving the Certificate of Occupancy, the building inspector who had issued the CO informed the laundromat owner that he was shutting down the store because he ‘didn’t like the way the tanks were set up.’”
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“One project – in which I had sold equipment to a sub-dealer/contractor – involved a situation where an individual signed a lease, had sealed drawings done, and then called in the sub-dealer/contractor. When they applied for permits, they were told the sewer authority didn’t have enough sewer capacity for his store, unless he installed 10,000-gallon tanks and pumped the wastewater into the sewer system between the hours of midnight and 2:00 a.m. The leased building had nowhere near enough space to do that, so the laundry owner couldn’t move forward. And he wound up paying the landlord nearly $100,000 to let him out of the lease.”
“Delays happen,” agreed Karl Hinrichs of HK Laundry Equipment, headquartered in Armonk, N.Y. “Delays happen all the time and in every possible aspect of building or retooling a store. The real question is when do delays not happen?”
Dealing with Local Government
A key culprit with regard to project delays is local government, which oversees electrical, plumbing, mechanical and building inspections. What’s more, additional inspections may be required for footings, structural integrity, framing, insulation and anything that will be hidden within the walls. And any city or town that has a paid fire department also will require fire department approval of your plans and a final inspection.
Given that, the most common issues with local government typically include zoning, inspections and impact fees.
“Many times the biggest hurdle is convincing inspectors that doing a family’s wash in a laundromat actually saves on utilities,” explained Ted Ristaino of Yankee Equipment Systems in Barrington, N.H. “Yes, laundromats consume large amounts of utilities, but on a pound-for-pound basis, they consume less, especially water. This concept is important if discussing impact fees.”
Signage typically falls under zoning regulations, and you clearly need to know how big of a sign you can hang before you purchase it. Also, keep all inspection services well aware of what is going on with your project and make sure they inspect and sign-off on plumbing and electrical work before closing up that work.
Delays due to inspection services are costly but usually can be remedied through a meeting of the minds early on in the project with the local inspectors.
“Occasionally, an acrimonious relationship with an inspector will slow down a project, but getting a clear picture of what the city or town wants at the beginning of the job will go a long way to smooth the path,” Ristaino noted. “Remember, you will need the inspector’s signature to open the store, and the quicker you resolve an issue the better.
“With inspection services, you either do what the inspector requests, get the manufacturer’s manuals to prove that what you are doing is required for the safe operation of the equipment, or contact the inspector’s supervisor and plead your case. For the most part, you want of avoid legal intervention, if at all possible.”
Working with Utility Providers
In many cases, the larger issues causing project delays revolve around utilities.
“Assuming there will be an adequate amount of water and gas coming into the building is not a smart way to start your project,” Ristaino said. “In the Northeast, digging in the street for gas and water lines usually stops in mid to late November and won’t begin until late March or early April. So, a miscalculation could cause at least a six-month delay, not to mention adding substantially to the cost of the project.”
This also applies to retools, especially if you are replacing smaller capacity machines with larger ones. And don’t overlook electrical volume, as you will run into the same lengthy delays.
“Whenever a project gets delayed because of utilities, the main impact is a three- to nine-month delay, which translates into increased costs and anxiety,” Ristaino explained. “Dealing with utility companies can be very challenging. They work on their own timelines.”
The Five P’s
Laundromat project timelines don’t seem to be shortening in the near future.
In fact, Arbuckle is reporting stricter regulations regarding the requirements for architectural and engineering drawings, delays in getting those drawings completed, and longer wait times for the cities to approve the drawings and issue permits.
“Now, supply-chain issues have been added to the mix, as well as the fact that most quality contractors are extremely busy, so trying to get work scheduled has gotten tougher,” he said. “Stores that 10 years ago might have taken four to six months from concept to grand opening are now taking up to a year or longer.”
Many project delays are supply-chain driven, according to Ristaino.
“With so many different manufacturers involved in a project, it just takes one supply-chain delay to delay the entire project,” he said. “This also applies to getting electrical components and other installation items. Factoring in supply-chain delays can put a project 12 to 15 months out.”
To assure your laundromat project remains on schedule and on budget, Ristaino stresses the Five P’s – Prior Planning Prevents Poor Performance.
“Make sure your distributor provides the necessary utility requirements to your contractor and that your contractor is familiar with the utilities in the building and in the street,” he suggested. “And whenever possible, use local contractors who are familiar with the inspection departments.”
Before shelling out any capital, do your homework, Arbuckle added. This includes checking with the local utility companies and water/sewer boards to see what types of costs and fees may be involved. Also, check with your building department to discover what the typical lead times are for plan reviews.
“If you can, talk to the plan examiner and ask about any red flags or issues that cause him to reject drawings and require re-draws,” Arbuckle advised. “Also, ask your contractor to do a pre-construction walk-through and plan review with the building inspector so that everyone understands what he is looking for. Most inspectors have some issues or pet peeves that can cause problems and additional expense down the road. It’s rare to win an argument with a building inspector, so make sure you and your contractor have an understanding of what he is looking for.”
Hinrichs strongly suggest using an experienced team of professionals, including a veteran distributor, architect and general contractor.
“Use local talent whenever possible, and build relationships,” he explained. “I also would go to the building department, introduce yourself and ask for their help in looking at your project. Developing a relationship with the building department might make your job easier, and it certainly won’t make it harder. After all, for every week your store is delayed in construction, you’re losing potential revenue. Use professionals, get your store built or retooled faster, and start making money sooner.”
[In Part 2 of this feature article, laundromat owners will share their thoughts and first-hand experiences with their own store project challenges.]
