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Council denies developer request to release subdivision guarantee funds early
Summary
Goldcrest Homes asked Riverdale to release $100k–$200k in escrowed improvement guarantees early to cover subcontractor deposits; staff recommended denial citing state guidance and risks to the city, and council voted to deny the request.
Riverdale City Council on July 21 denied a developer request to allow early partial release of escrowed improvement guarantee funds for the Coleman View Estates subdivision.
Brandon Cooper, city staff, told the council that the city typically releases funds only after the corresponding improvements are inspected and accepted; he said the recommended action in the packet was to deny the request because releasing funds early “puts the city at risk in the event that those improvements don't get completed.” Developer representative Thadien Falls asked for a partial release of funds to allow subcontractors to receive 50% deposits, arguing many public amenities are near completion and that deposits would avoid duplicate costs; Falls said they were "99% complete with phase 1, 90%... with phase 2." Staff and multiple councilors raised concerns about precedent, statutory constraints and weakening the city’s security (the city is currently holding roughly $810,000 in guarantees and the developer’s request would reduce that by about $100,000–$200,000). After debate Councilor Hansen moved to deny the request; the motion to deny passed on roll call.
