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Planning board discusses options to handle developer bond escalation
Summary
Board members and staff debated whether to build escalation contingencies into bonds or require higher upfront contingencies after counsel signaled complexity; members expressed caution about reducing bonds without stricter upfront protections.
The New Boston Planning Board discussed how to handle developer bond escalation and contingency language for long‑running projects, amid concerns about the town’s ability to secure funds if costs rise over time.
A board member said he had sent correspondence to town counsel about adding an escalation clause or multiyear bond protection; counsel responded that the idea is “a little bit complicated,” and staff are still researching options. The member said the town may need to be cautious when reducing bonds and suggested higher upfront contingencies for long projects such as Forest View, which has run more than a decade.
Another board member warned that adding an escalation line that automatically increases bond amounts could require the town to ask developers to post additional money later, which may be impractical. “He thinks that’s difficult because now we’re in a position where we’re asking them to put up more money,” a committee member said, noting the developer reaction if asked to add funds mid‑term.
Board members said they will continue the conversation at a future meeting and review the bond worksheet material from the town engineer before making policy changes. The item was left pending further counsel input and discussion scheduled for the next meeting.
Next steps: staff to follow up with counsel on feasible bond language options and provide the board the engineering bond worksheet for review.
