Warren County declares Dominus Incorporated in default, authorizes use of escrow to repair subdivision streets

Warren County commissioners voted unanimously to declare Dominus Incorporated in default for incomplete public improvements in the Altria State Subdivision Sections 1 and 2 in Clear Creek Township and authorized notice of default to the surety and release of escrow letters totaling $93,336.20 to finish the work.

Commissioner Grossman, Commissioner Young and Commissioner Jones recorded “yes” votes during a roll call after the board considered county engineering and legal staff summaries of a long-running developer nonperformance issue.

The county engineer’s office told commissioners that the subdivision streets were placed under security agreements in 2005–2006, that multiple punch lists dating back to 2019 called for pavement repair, and that county inspections show the pavement has not performed and needs resurfacing. The county estimated resurfacing for both sections of the subdivision at about $175,000, while escrow letters and bond-related funds on deposit total $93,336.20, leaving a shortfall.

Matt Clark, Clear Creek Township administrator, said townships are “creatures of statute” and do not have authority to call performance bonds; he and trustees asked the county to consider absorbing costs beyond bond proceeds. Clark told the commissioners the township’s road superintendent and trustees had concerns about accelerated pavement deterioration and additional risks such as catch basins and stormwater infrastructure that a camera inspection might reveal.

County legal counsel told the board the county may file an action against the corporation and that the county could pursue the bank holding the escrow if funds are not available. Commissioners directed the county administrator and prosecutor to pursue the bank (Chase) for the escrowed funds and authorized proceeding to complete paving now using the county’s resurfacing contract. County staff said the county would attempt to recoup expenses from the escrow and from the corporation but warned that recovery from the developer may be unlikely because the corporation’s remaining assets appeared minimal.

The resolution instructs staff to use the escrow letters and related security agreements (security agreement numbers 05-055P and 06-001P) in possession of the county to obtain $93,336.20 to complete uncompleted improvements, and to give formal notice of default to the surety company. The board also authorized the county prosecutor to join the corporation and the bank as parties in any recovery action, if necessary.

Commissioners and staff emphasized timing: engineering staff recommended proceeding quickly to capture favorable asphalt prices and to avoid further deterioration that could require full-depth repairs. The board approved a change order to the county paving contract to have the work scheduled and funded up front, with the county to pursue recovery afterward.

The resolution passed by unanimous roll call. The county will undertake the resurfacing, present findings from bank inquiries to the board and report back on any recoveries or additional legal steps.