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Council declines bond-reduction request for Hillside Subdivision, cites 110% coverage policy
Summary
A developer asked the council to reduce the letter-of-credit/cash bond to free funds for off-site water work; after reviewing contractor estimates and city attorney guidance on the city's 110% coverage policy, council voted to deny the request.
A developer seeking a reduction in required bond posted for Hillside Subdivision told the council he had bids that would allow him to complete off-site water connections and other infrastructure if additional funds were released. He said materials prices had fallen and he had funds and contractor commitments to finish key items, including a bore under Worm Creek.
Council reviewed the documentation, which included estimates for a 12-inch water line across a hollow and work down 800 East, and discussed the city’s development agreement requirement that bonds provide approximately 110% coverage of unfinished improvements. The city attorney warned that stepping down bonds prematurely could set a precedent and would reduce the city’s ability to call on funds if a developer failed to finish work. After debate, the council voted to decline the reduction request; members said they were willing to extend time limits if needed but would not lower financial protections until work is complete.
