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County committee declines immediate refund of $600,000 reservation fee; authorizes negotiated settlement
Summary
Rollins Property Land Holdings requested return of a $600,000 reservation fee after city of Lebanon declined to serve the property; the committee denied an immediate refund but authorized a county representative to negotiate a possible compromise and return with a proposal within 30 days.
Charles Bone, attorney for Rollins Property Land Holdings, asked the Wilson County Sanitary Sewer Access Committee for a refund of a $600,000 reservation fee after the city of Lebanon indicated it could not or would not serve the Rollins property (Highway 452).
Christopher (county staff) summarized the record: the committee requires a 10% reservation fee at approval, normally nonrefundable under committee materials and the approval letter; the Rollins request was unusual because the city of Lebanon initially sought an approval letter from the county before issuing its own written approval. Christopher said city memoranda later described pump station and force-main improvements with a cost estimate of roughly $12,400,000.
Why it matters: the request involves a large sum and competing obligations. County counsel and the financial manager both advised caution. The county attorney (Mike) told the committee there is no existing refund provision and recommended any refund, if considered, be narrowly tailored to this case to avoid setting a precedent. Financial manager Maynard said a partial refund could be considered but stressed the county must avoid creating an open precedent.
Applicant position: Bone and his law partner, Sam Jackson, argued the parties had performed on their part and that an intervening denial of service by the city of Lebanon made performance impossible. Bone asked the county to “let us have our money back” and proposed the county keep interest if it returned principal.
Committee response and action: after extended legal and financial discussion and consideration of prior extensions and the city’s engineering requirements, the committee did not grant an immediate refund. Instead the committee voted to authorize county representative Mike (role confirmed by committee as a county negotiating representative) to negotiate with the applicant on behalf of the county and return to the committee with a proposal in less than 30 days. A voice vote approved that motion.
What the record shows: staff documents provided to the committee included meeting minutes of the July 5, 2023 approval, the July 18 approval letter that stated the 10% reservation fee was nonrefundable, subsequent city of Lebanon letters describing required improvements and associated costs, and an email record of two extensions of the $600,000 deposit due date. Christopher reported he believed the $600,000 reservation payment had been received in early September 2023.
Next steps: the county’s designated negotiator will return with a recommended settlement or proposal for committee approval at the next meeting, targeted within 30 days.
