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Spring Hill board accepts staff-backed compromise on Kedron Square bond, developer provides certified check
Summary
The board approved an amended resolution to reduce a $7.4 million letter of credit to a 30% maintenance bond and require a separate cash performance bond to cover outstanding sidewalk and ADA work; developer delivered a certified check for the smaller performance amount at the meeting.
The Board of Mayor and Aldermen of Spring Hill approved an amended resolution on Resolution 25-59 addressing the performance bond for Kedron Square Phase 1B, adopting a staff-proposed compromise that reduces the existing roughly $7,400,000 letter of credit to a 30% maintenance bond and creates a separate, cash-funded performance bond to cover outstanding sidewalk, ADA ramp and crosswalk work. The developer delivered a certified check at the meeting to cover the cash performance bond amount.
CIP Director Ms. Stowell (for the record) told the board the existing letter of credit was set to expire in March and that the Unified Development Code (UDC) requires renewal within 14 days of expiration or the bond is assumed in default. She said staff had worked with the developer and other departments and extended deadlines, but as of the meeting date not all infrastructure was installed.
Development services staff member Miss Sanders described a field change request from the applicant seeking to eliminate some sidewalk ADA ramps and a crosswalk; staff advised that pedestrian-circulation elements approved by the planning commission cannot be modified through a field change and said staff believed the ADA ramps, sidewalk and crosswalk could still be installed to protect pedestrian safety.
Staff proposed an alternative resolution (distributed at the meeting) to reduce the $7,400,000 bond to a 30% maintenance bond (held for one year under UDC policy) and to require a separate cash performance bond to cover the outstanding items. The developer’s attorney, Mr. White, told the board staff’s alternative was “clearly an equitable resolution” and said the outstanding items were estimated at $27,500; he said his client brought a certified check for that amount to the meeting and provided it to staff.
Alderman Fitter moved to amend Resolution 25-59 to adopt the version distributed by staff that evening; the motion was seconded by Alderman Murray. The amendment carried 8 to 0, and the resolution as amended carried 8 to 0.
Miss Dahl explained the amended approach: the performance items would be secured by a cash performance amount (estimated $27,500) while the larger remaining work would be covered by a reduced letter of credit converted to a maintenance bond held at 30% per UDC policy for one year. Staff said both the cash performance payment and the renewed reduced letter of credit would have to be received by March 1 to avoid default.
The board voted unanimously to approve the amendment and the resolution as amended.
No litigation or appeals were announced at the meeting. Staff said the intent of the accommodation was to protect the city’s approved plans and pedestrian safety while addressing the developer’s request for a reduction in the larger bond.
