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12/03/2019 02:39 PMThe Board of Selectmen (BOS) is considering executing bonds to cover landscaping and development costs for the Northern Heights housing development in North Guilford, as a developer has so far not fulfilled requirements set forth by the Planning & Zoning Commission and Inland Wetlands Commissions.
At its Dec. 2 meeting, the BOS agreed to send demand letters warning the various parties involved in the complicated dispute, which involves an original developer of the property that has since declared bankruptcy, as well as another developer that has taken over construction. There was some confusion at the meeting as to whether the new developer was aware of the requirements.
When a development application is approved by town boards, the approval may require the applicant take additional action to ensure the development is not disruptive to neighbors; in such cases, the applicant must put up money in the form of a bond as a guarantee to the town that those actions will be taken. For the Northern Heights development, two bonds totaling about $23,000 were required to cover the costs of planting several trees as well as the building of detention ponds meant to drain stormwater from roads.
Environmental Planner Kevin Magee said that the town had already called in a bond about a year ago for work on the roads around Northern Heights as well as other detention basins that had not been built correctly. That work has since been completed, he said.
Originally intended as “moderate income housing” targeted at U.S. Coast Guard families, Northern Heights was the source of a long-running dispute between the town and local real estate developer Brian Ferris.
Since Ferris and his companies went bankrupt almost a decade ago, ownership and development of the lots were taken over by more than one group or individual, according to Zoning Enforcement Officer Erin Mannix, including some now being owned by the Coast Guard. First Selectman Matt Hoey said the vast majority of lots have been completed at this point.
A lawsuit by Ferris alleging unfair treatment by the town was dismissed in 2015.
Because of Ferris’ bankruptcy, Hoey said it was possible that other parties could become involved in the bond dispute, if the town were to call the bonds. Ferris’s creditors could claim all or part of the money, which potentially could land Guilford in court again, Hoey said.
Magee said at the BOS meeting the impetus for calling the bonds was Ferris actually approaching town officials about a year ago to request the bond money be returned to him, if the projects were not being completed.
Magee said he did not think any town officials had recently been in contact with the new developer. Hoey expressed some frustration at the Dec. 2 meeting that there had apparently been no attempt to reach out to the new developer before the BOS began considering actions like executing the bonds or sending demand letters.
At the meeting, there was some confusion over exactly how much responsibility the new developer or developers had taken on when they took over for Ferris and whether they were even aware that planting the trees was part of the project. Because of the complicated nature of the bankruptcy proceedings, Magee and other town officials agreed that it was possible the developer was not aware of, or had not absorbed all responsibilities of the original agreement between Ferris and the town.
The demand letters the BOS authorized will set a deadline for responses, Hoey said. If the town doesn’t receive an answer, it will be able to call the bonds and potentially complete the work itself, Hoey said.