Planning panel keeps $56,000 of D.R. Horton Clearwater Springs sidewalk bond to cover road repairs, asks staff to clarify process

The Johnson City Regional Planning Commission on July 8 approved a reduction of the Clearwater Springs Phase 2 sidewalk bond posted in connection with D.R. Horton, cutting the total held back to $56,000 from $237,600 and directing city staff to work with Public Works and the development community to clarify bonding and documentation going forward.

Planning staff told the commission that Public Works recommended not releasing the full $237,600 because the city needs assurance that pavement damage occurring during construction will be repaired. "The problem that comes up with the roads is that they get dinged up during construction, and there are pits and gouges and things like that in the roads. So we've asked them to do a mill and resurface because they asked for the final surface instead of just leaving the base course down," said Wallace McCulloch, a Public Works representative who came forward to answer technical questions.

That recommendation conflicted with public comment from Elizabeth Rowe, who said she represents D.R. Horton and previously worked as a planner. Rowe told commissioners the Truist letter of credit the city accepted ‘‘only includes sidewalks and asphalt if it is damaged during the construction of sidewalks’’ and that, in her view, "there is no argument as to the condition of the sidewalks being complete and accepted nor any true damage to the roadway that is attributed to the sidewalk construction." She asked whether the commission could deny a full bond release when all bonded work is complete.

Staff replied that the bond estimate on file lists sidewalks plus milling and resurfacing for $237,600 and that Public Works wants a remaining balance held to ensure pavement repairs are made and to guard against water intrusion into the road subgrade. Planning staff placed the reduction on the floor with a recommendation that remaining process questions be addressed through the JC Builds forum or through follow-up work between planning and Public Works.

A motion to reduce the bond to $56,000 and to direct city administration to evaluate and clarify the bond documentation and the process — including coordination with Public Works and discussion at the JC Builds forum — passed on a roll call vote (6–1). The commission asked staff to return with clearer documentation and to work with the development community to ensure future bond estimates and the city’s accepted form of security align.

The commission’s action reduces the amount held in the city’s control while leaving a reserve intended to fund milling/resurfacing if inspections determine that work is required.