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Burns Harbor officials discuss unfinished Portland’s Landing Phase 2 roads, bond and liability questions
Summary
Town officials reviewed concerns from residents about uncompleted Phase 2 paving at Portland’s Landing, examined a 2018 treasurer’s check held as security, and directed staff to contact the developer for a plan. No formal action or vote was recorded.
At a Burns Harbor town meeting, board members discussed residents’ complaints that streets in Portland’s Landing Phase 2 remain unpaved while Phase 1 repaving funded by a grant has been completed.
The discussion focused on whether the town has enforceable remedies, the status of a financial guarantee written as a treasurer’s check for $197,516 dated February 2018, and how “substantial completion” of the subdivision affects the town’s leverage to require finishing work. Town staff and board members agreed to contact the developer to request a timeline and status update.
The issue was raised after residents and a board member questioned why streets in Phase 2 have not received a topcoat despite underground infrastructure being accepted earlier. Town staff said performance bonds typically run five to seven years and that certified or treasurer’s checks may be treated differently than surety bonds. Board members also noted construction-cost inflation since 2018 — staff estimated a possible 30–60% increase to current repaving costs compared with the 2018 estimate.
Officials discussed enforcement options raised in the meeting transcript: calling the bond, placing a lien on the development, and requiring the developer to complete punch-list items before the town releases any guarantees. Participants said the roads had not been formally accepted by the town for maintenance, though the transcript records that the roads are being plowed and treated as town roads for traffic enforcement and public use. That raised concern about liability for town equipment when plows hit irregular or incomplete surfaces.
Board members and staff identified one remaining vacant lot in the phase and noted engineering guidance that “substantial completion” is a technical standard (commonly described in the meeting as roughly 95 percent complete) indicating the subdivision is functioning for its intended use; speakers said that status can affect the town’s requirement to compel remaining work.
There was no formal motion or recorded vote on the record. The board directed staff to contact the developer, obtain documentation (including the treasurer’s check or bond records), and return with clarifying information about the financial guarantee and timelines.
Residents, the street commissioner and board members raised the public-safety and equipment-damage issues tied to continuing to plow and maintain roads that have not received final paving. Several speakers urged communication with the developer as the first step before pursuing liens or legal action.
The topic concluded with staff agreeing to follow up with the clerk/treasurer and to provide the developer’s responses to the board at a future meeting.
