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125 Development asks selectboard to accept insurance bonds instead of cash; neighbor alleges permit violations
Summary
Coleman McDonald of 125 Development asked the board to accept insurance bonds in place of cash for multiple phases of an $80 million project; board members asked for written bond language, planning-board sign-off and town-engineer inspections, and a neighbor alleged the developer is already violating driveway and easement permits.
Coleman McDonald, representing 125 Development Corporation, asked the selectboard on June 2 to permit insurance bonds rather than cash or certificate-of-deposit bonds for multiple items tied to a large, multi-phase project off Puzzle Lane. He said accepting insurance bonds would ease a significant financial burden as the project moves into phase two and prepares 44 housing units and additional industrial space.
“We're asking the board to… consider going back to an insurance bond,” McDonald said, noting that a major insurance company would underwrite the surety and that the requirement to post cash CDs is hurting the project's cash flow.
Board members said they were sympathetic to the developer's financing concerns but raised enforcement and verification worries rooted in past experience. One selectman suggested a split approach—accept insurance bonds for some items but require cash for other elements—and the board asked that any change include clear written verbiage, an explicit requirement that the planning board sign off before release, and town-engineer and building-inspector site inspections with written reports.
Tom Lackborg, a builder working on the project, and McDonald described phased completion and DOT coordination. The board emphasized it would not release funds without planning-board approval and engineer verification.
Neighbor Tim Tanner urged the board to reconsider the special treatment, saying the developer is already in violation of permit terms. “He's already in violation of his driveway permit already… He's got trailer trucks in and out of there. He's not supposed to have any trailer trucks,” Tanner said, asserting that landscaping and truck activity have blocked his easement access.
The board did not vote to accept insurance bonds that night. A motion to approve insurance bonds in lieu of cash was discussed but the board required that the developer provide written bond verbiage and DOT sign-offs for higher occupancy or turning-lane triggers before any formal decision. The board also asked planning staff to document inspection and approval procedures and to ensure that the planning board's sign-off would be a precondition to any bond release.
What comes next: McDonald will return with proposed bond verbiage and required DOT documentation; the selectboard and planning board will coordinate inspections and written reports before any release or acceptance of insurance bonds.
