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Plum Creek development delays prompt council to set special‑assessment hearings and press developer on construction timeline
Summary
Council set public hearings for Plum Creek lift station/drainage special assessments and Plum Creek Phase 1 special benefit district, while pressing developer Mr. Straub and staff on missed construction milestones, letters of credit and the risk of lots going to tax sale. Staff said certificates of occupancy trigger RHID payments and noted a $380,000 estimate for lift station and electrical work.
The Hutchinson City Council voted July 7 to set public hearings for proposed special assessments tied to the Plum Creek Lift Station and Drainage Special Benefit District and for Plum Creek Phase 1 under the RHID program, with hearings scheduled for July 21.
Angela Richard, director of finance, told council the lift station and drainage package totals approximately $380,000 and includes a roughly $30,000 change order to get electric to the lift station; timing is driven in part by bond issuance deadlines for October. She said the development agreement requires the developer to pay specials until certificates of occupancy are issued, at which point parcels transfer into the RHID and increments are expected to pay bond debt.
Council members pressed developer Mr. Straub for clarity about slow vertical construction and whether the city faces exposure if lots go to tax sale — a scenario councilors said had occurred on past projects. Mr. Straub described engineering delays, lift‑station challenges and higher‑than‑expected costs for underground electric work; he said two houses are sold and that his company has invested "hundreds and hundreds of thousands of dollars" in the project. "We finally do have power," he said, adding that market factors and interest rates have affected sales.
Staff and council discussed contractual protections: Kutak Rock (outside counsel) had drafted the development agreement; staff noted a letter of credit and contract clauses that withhold increment payments if taxes aren't current. Council asked staff to circulate the development agreement and the letter of credit so members can better evaluate options for notice, cure periods and potential remedies if the developer falls short.
Council also discussed whether the RHID and TIF‑like mechanisms are functioning as intended when vertical construction lags. Several members said they want staff to return with options — including notice to the developer and potential enforcement steps — if construction milestones continue to be missed. The council approved the resolutions to set public hearings on the assessments and phase 1 special benefit district by unanimous roll call.
