EDA clarifies Hammel House & Co. agreement to allow limited release of deferred assessments

The Harmony Economic Development Authority on Sept. 1 addressed a developer question about deferred assessments in the Hammel House & Co. development agreement and clarified how those assessments could be handled when lots are listed for sale.

Chris Giesen, EDA staff member, reviewed a memo about the agreement and said the question was primarily about preserving the deferred assessments as security while avoiding closing delays for lot buyers. Roxanne Johnson, representing the developer as the developer's real estate agent, was present for the discussion.

After extended discussion, the board determined that a formal modification to the development agreement was unnecessary. Instead, the EDA agreed that, at the developer's request, the board may release deferred assessments on specific lots that have been effectively "paid off" (for example where penalty payments have been made). Giesen noted two penalty payments had been made as of the meeting, meaning up to two lots could qualify for release under that approach.

The board reaffirmed that the development agreement still requires the construction of one qualified house per year and that the developer remains responsible for any penalty payments. Board members said the EDA would not become involved in secondary agreements between developers and lot purchasers designed to enforce build-out obligations.

The board did not vote to amend the agreement; staff will record the clarification and respond to the developer's request process in writing.