Council declines developer's request to reduce Hillside Subdivision bond
Summary
After reviewing contractor estimates and legal advice that the city requires bond coverage equaling 110% of unfinished work, the council declined a developer's request to reduce the Hillside Subdivision bond and recommended the developer maintain the existing bond or seek extensions.
A developer requested a reduction in the bond for Hillside Subdivision so he could use released funds to complete off‑site water work and other infrastructure. The developer presented cost estimates (including a 12‑inch water line across a ravine) and said material cost decreases had improved cash flow; he asked the council to reduce the bond so he could proceed immediately.
City staff and the city attorney explained development agreements typically require bond coverage of 110% of remaining work to protect the city if a project becomes insolvent. Council members debated precedent and taxpayer risk; one councilmember said the city had previously granted a reduction once but expressed reluctance to set a routine precedent. After discussion the council voted to decline the requested reduction and advised the developer to keep the bond current or request an extension if needed.
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