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Council hears update on CHRC lot sales, unpaid park-fee claim and recommended bond‑avoidance payments
Summary
Council members were briefed that VanBuskirk has sold lots without completing a buyout and has not paid park-fee obligations (about $35,000). Staff recommended the city start monthly payments ($13,655.17) to prevent a bond default from triggering coverage by pledged gas revenues; council approved adding the check to the claims list.
City staff updated the council on ongoing issues with the CHRC/VanBuskirk development. Staff said a title company contacted the city after lots that had not been purchased from CHRC appeared to be marketed, and noted there has been limited direct communication with VanBuskirk; the city attorney is handling negotiations. Staff also said developer payments tied to park-fee obligations—$1,500 per sold lot under the original purchase agreement—had not been received, and staff estimated approximately $35,000 is owed to the city.
Finance staff said the CHRC bond was secured by lot sale proceeds and, in case of a default, the city had previously allowed natural-gas‑revenue collateral to be associated with the bond. Tobias Shantz recommended the city begin a monthly recurring payment of $13,655.17 to CHRC to avoid triggering a default action that could require the pledged gas-revenue remedy; the council moved to place the payment on the claims for approval. In the meeting Tobias stated the outstanding balance referenced as "$756,526" when council discussed the total remaining on the books for the CHRC bond. The council directed staff to proceed with placing the payment on the claims list and to continue coordination with the city attorney on any sale/lot sign-off issues.
Why this matters: the item involves financial exposure related to a multi‑lot development, unpaid contractual park fees, and a bond guarantee structure that relies on pledged revenues. The council took a procedural step to place a proposed monthly payment on the claims list while legal negotiations continue.
