The costs of doing business

Posted by coaldigger 9 years, 1 month ago to Business
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I thought I would share an experience that my oldest son is having in trying to expand his very successful business. He founded a Commercial irrigation business over 20 years ago. He has grown it to be as large as he can handle and has tried to bring others into the company that he can trust that would allow him to expand further. Four years ago he eliminated his division because he could not find a GM that cared for anything but a paycheck. His smaller company with only operations in MD and DC is more profitable without VA because he runs it more efficiently. He rents office space and a contractor yard because he has been looking for a suitable, affordable property to purchase for 14 years without success.

Recently a property went on the market that had been a landscape contractor's location including a nursery, with 6 greenhouses, office and several storage buildings that has been there for over 30 years. Most properties he has investigated were not "legal" according to county officials, surely this one was. Not! Upon investigation of what would be required, he has determined that he would need to spend $140K to maybe get approval and open up the business. This property is zoned commercial/residential mixed use. It is 6 acres and is surrounded by contractors and trucking firms, all operating outside of county approval. I asked to see his spread sheet on the costs and questioned what some of these items were. Here is his e-mail in response to my questions:

The Special Exception Engineering is for a watered down site plan necessary to submit with the Justification Statement prepared by the Land Use Attorney for the Special Exception Application. A full blown site plan would be required for the Site Plan process if the Use is approved. I will forward a proposal I received. I read a bunch of the Justification Statements on-line and don't see any big deal. I had budgeted $1,000, but, have since received 3 quotes in the $10,000 range. Supposedly there is an art to it. I would write the thing myself, but, The County, Engineer and Attorney all say I have to have representation at the hearing and the letter needs to be just so. All three Land Use Attorneys confirmed that 90% of all contractors in the County are operating without the correct zoning and approval and empathize for the few who try to do it the right way and get jerked around so much. Unfortunately I think this is what I'm up against anywhere I look. Businesses are frowned on, contracting businesses are despised and Landscape Contractors are the scourge of the earth in the eyes of the county."

I commented that appealing to Wesley Mouch would probably not get him anywhere. As the owner of Fountainhead Irrigation, he knew what I was talking about. He employs 8 full time people and 60-80 seasonal employees. Since the DC market is fueled by government spending his season has become every day he can possibly perform outdoor work. He also has snow plows for all his trucks and contracts with commercial customers pretty much at cost to provide work for his crews in the worst weather. His is not the only business that is stymied by costly regulations, they all are and while the small guys generate the most new jobs, they are the ones that can afford it least.


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  • Posted by richrobinson 9 years, 1 month ago
    Wow. This is ripped from the pages of AS. I remember years ago when we changed the name of our business. We had the company that put the existing sign on the front of the building come out and change the letters to the new name. A council member told us we were in violation of the "sign ordinance" and we needed a permit to change it. We were told we had to submit drawings to show what the news sign would look like. I asked to see what types of drawings they had on file for the existing sign and I never heard back. Some of this stuff is beyond petty it is just stupid. Best of luck to your son.
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    • Posted by eddieh 9 years, 1 month ago
      That happened to our business 2 years ago. We required 2 permits ( 1 to erect and 1 for the electrics) for a small sign and another permit to remove the old sign I assumed there would be an inspector, but as it turned out they were only interested in the fees.
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