Developers continue to haggle over street improvements
On the night that Marion City Council was to finalize bond documents for streets at County Club Heights housing addition, another request was made by the subdivision developers.
During the Monday evening meeting, developers Doug Sharp and Roger Hannaford III asked the city to pay for the construction and overlay of Country Club Drive, the street that goes from Tanglewood to the addition.
Attorney Chris Costello represented the developers and said they are looking for fairness.
Costello told the council that when Sharp and Hannaford started the development 13-14 years ago, the city commission led them to believe that Country Club Drive would be paved by the city after five homes were developed. Unfortunately, no documentation could be located of the city's commitment to the project.
"The developers want the same consideration as other homeowners who get roads to their properties," Costello said.
"What kind of a road did the city promise?" councilman Stacey Collett asked.
Currently there is a graveled road to the subdivision with the intent of Country Club Drive and Fairway Drive being hard surface roads.
There are seven lots in the housing subdivision with all lots being sold.
"We were told that we had to follow city codes regarding development because it was in the city limits," Doug Sharp said, including city sewer and water, and having the area platted. The developers and current landowners would like to enjoy some of the city benefits by having a paved roadway but don't want to pay for the connecting road work.
The cost estimate of the road work and other fees associated with the work is $81,000 for both streets. Property owners signed a petition, requesting the work be completed and were willing to pay special assessments based on the amount of property they own and the cost of the streets.
The city's portion of Country Club Drive, along city-owned property, is $20,564. The developers' portion is $16,899 on Country Club Drive. Property owners along Fairway Drive will be assessed for the cost of that street.
Costello and the developers asked the city to pay for the entire Country Club Drive overlay.
Councilman Gene Winkler said it appeared that the city already had paid more than $100,000 for the development of the project. He pointed out that updated subdivision regulations require developers to pay for all of the development costs of new housing subdivisions up front. Then those expenses are passed on to those who purchase the lots.
"This situation puts us in a bad spot," Winkler said, "because none of us were on the council at that time and there are no clear obligations."
"One of the problems that we have is that we cannot sell lots here for what it would take to cover those kinds of costs," Sharp said. Earlier in the meeting Sharp said the lots in the subdivision sold for $8,000 each and he questioned whether lots with all amenities could be marketed and sold in Marion.
"It's a fairness issue," Sharp said. "We took a risk with the development. We're just asking to be treated like the fellow across the street," referring to John Fredrickson who lives north of the subdivision.
Street work was to begin Oct. 14 but the original petition had to be rewritten, setting back the work schedule.
The council approved the bond documents for the project but did not determine who was paying for what. The city could pay for the entire project which would increase the bond payments.
Mayor Mary Olson asked city attorney Dan Baldwin to negotiate with Costello and discuss at the next council meeting.
