Council approves amendment to Whispering Coves phase 1 after months-long dispute over unfinished public improvements

The Verona Common Council on Feb. 24 approved a staff-recommended First Amendment to the Whispering Coves Phase 1 development agreement that allows limited items to be moved into a Phase 1B with a June 30, 2025 completion deadline, but stops short of the developer’s request to permit building to start while additional Phase 1 work remains unfinished.

The amendment matters because it resolves a year-long dispute over whether the developer Ford Development Group (FDG) had completed required public improvements for Phase 1, and whether building permits for homes should be issued before several punch-list and season-dependent items are finished.

Ford Development Group representatives told the council they had substantially completed the required public improvements and asked the council to allow building permits to be issued while outstanding items would be finished by June 30. Dan O’Callaghan, appearing for Ford Development Group, said the contractor and project engineer had certified substantial completion and asked the council to apply the June 30 deadline to all addendum items so “building permits for phase 1 [could] move forward in the meantime.” JSD Professional Services director Hans Justason told the council his firm supports the staff amendment and that the remaining items are “nominal” and “should not cause the building permits to be delayed.”

City staff and the city attorney strongly disagreed that the work was ready for full acceptance. City attorney (Attorney) Kleinmeyer argued the list in Addendum 2 shows remaining work and identifiable defects that must be corrected before acceptance and final release, and told the council, “I disagree with them. Substantially complete.” Kleinmeyer pointed to known defects including broken sidewalk panels and a broken water valve box and cited the development agreement’s one-year guarantee period for defects after acceptance.

City engineers and public works staff told the council much of the outstanding work is season-dependent or requires long-lead materials; staff proposed moving specific items to a Phase 1B (for example, sluice gates, permanent wet well covers and planting and establishment of infiltration-basin vegetation) with a firm June 30, 2025 deadline. Public works staff also said some temporary measures (including temporary wet-well covers) must be completed within 10 days of the amendment’s execution. Project manager Manning told council members that several items are either not installable in winter (topsoil/plantings) or await delivery of manufactured components.

Council members debated enforcement and precedent. Several alderpersons said they sympathized with prospective homeowners waiting to build but emphasized consistency for how the city enforces development agreements. Alder O’Nahoke said she would not support the developer’s full request, adding the city must be consistent across projects. Alder Hook and others criticized the developer’s timetable and the repeated need for council intervention. Developer representative Ron Hinchew acknowledged contract cost increases and supply issues and said the project’s costs rose from $3.9 million to $5.3 million, which delayed completion efforts.

After discussion the council voted to approve the First Amendment as recommended by city staff (not the developer’s broader request), with a motion by Alder Tucker Long and a second by Alder Braithwaite. The motion passed.

The approved amendment requires: updated plans within 10 days that reflect the changes; completion of a set of Phase 1B items by June 30, 2025; and immediate completion of specified temporary cover measures within 10 days of execution. The amendment also preserves the city’s right to draw on the existing letter of credit if the developer fails to complete Phase 1B work by the deadline.

The council’s action leaves unresolved tensions about contractor timelines and municipal enforcement of development agreements. City staff noted the agreement for Whispering Coves was executed in 2021 and that the public improvements were originally scheduled to be completed within an 18-month window; staff told the council they had considered drawing on the letter of credit but had instead worked with the developer to reach the current compromise.

What happens next: the developer must supply updated plans for city-engineer approval within 10 days and complete the Phase 1B items by June 30, 2025 or the city may draw on the letter of credit to finish the work.