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Engineer recommends 30% bond reduction and separate basin bond for Crossings development
Summary
Township engineer told the committee the developer's performance bond can be reduced to 30% (about $800,000) and suggested bifurcating the bond so basin-related work remains secured until completed; the committee asked for an estimate of basin replacement costs.
Delanco’s township engineer reported on the Crossings development and recommended reducing the developer’s performance bond to the statutory 30% of the original amount while considering a separate bond for basin work.
Engineer Eric Fox told the committee he met with HOA representatives and developers on outstanding punch-list items and recommended a bond reduction. "We we're only required to reduce it down to 30% of the original bond," Fox said, adding that the township could ask the developer to post a separate bond for the basins so basin work would remain secured even if other work is released.
Fox said the township will prepare an estimate for what it would cost the township to complete basin repairs itself "because that's essentially what a bond is" and that bifurcation could be a negotiating tool with the developer. He estimated the 30% figure at about $800,000 (the 30% remainder of the original bond) and said the performance bond remains in place until the work is complete, after which it becomes a maintenance bond.
The committee directed staff to meet with representatives from D.R. Horton and to return with specific financial terms and a basin-cost estimate to inform any bond-reduction action.
Separately, Fox reported that the township road program work on Delaware Avenue is substantially complete, punch-list items remain and the project is on budget. He confirmed the township received a state grant to complete additional work next year, including handicap ramps tied to the drainage and repaving project.
