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Council denies developer’s request to reduce Hillside Subdivision bond
Summary
A developer asked the council to reduce the cash bond/letter of credit for Hillside Subdivision to free funds to finish off-site water work; after extended questioning about remaining work, bonding levels and city protection, council voted to decline the bond-reduction request.
A developer seeking a reduction to the performance bond for the Hillside Subdivision asked the council to release additional funds so he could complete off-site water work, gas hookups and sidewalks. He said material prices have fallen and that he could complete the crossing over a nearby hollow within weeks if funds were released.
Council members and city legal counsel pressed for detailed estimates of remaining work and cautioned against reducing bonding below the city’s required protection level (the development agreement calls for roughly 110% of remaining improvement costs to be bonded). Legal counsel noted the purpose of bonds is to ensure the city can complete infrastructure if a developer fails to finish the work. Several councilors said they were sympathetic but unwilling to set a precedent of releasing bond funds before improvements are installed and inspected.
After discussion, a councilor moved to decline the developer’s request to reduce the bond for Hillside Subdivision. The motion was seconded and approved by voice vote.
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