The Town of Huntsville will be completing the final bit of road network in Woodland Heights as the original developer has defaulted on the agreement.
The subdivision was built in three phases, two of which have been built and the town has assumed the roads. Phase three, which began development in 2007, includes the last road of the subdivision — Nature’s Way — noted a report presented to General Committee on January 24. Several of the lots on that road now have residential buildings but the road has not been completed per the original agreement and has not been assumed by the Town.
Last fall, staff tried unsuccessfully to contact the original developer — the company no longer exists. The original engineer for the project could not be located either.
“The unfortunate part in this is the original developer is deceased and nobody seems to be taking ownership,” said Steve Hernen, Director of Operations and Protective Services.
Per the agreement, the Town of Huntsville is holding $175,800 in cash securities in a trust account to allow the Town to complete the project in the event of a default of the developer. The Town will have to engage a new engineering firm to complete a deficiency list for Nature’s Way, issue a tender for and oversee the necessary work, and provide a final report to the Town. The Town will then assume the road and it will be added to the municipality’s capital plan.
Deputy Mayor Karin Terziano questioned whether the work should be done now with construction ongoing on lots on Nature’s Way. “Do we risk destroying what we do now?”
Hernen replied that there are deficiencies in the road now, and that the Town is currently maintaining it without being paid for it. “We’ll do it and if any construction or developers damage the road as we move forward we will hold them liable,” he said.
Hernen also noted, in reply to a question from Councillor Jonathan Wiebe, that the Town is reviewing its processes to protect itself in such instances. “We’ve been talking about increasing securities when things are delayed,” he said. “We are taking steps to correct it.”
Don’t miss out on Doppler! Sign up for our free newsletter here.
Ron Armstrong says
A simple way in which the Town can protect itself against damage to a roadway while construction of homes is taking place is for the Town to take a deposit from the lot owner upon issue of a building permit. The sum of $2,500 is suggested to be held by the Town until an inspection is carried out prior to issuing an occupancy permit, If there is no damage to the roadway the deposit can be refunded to the homeowner. If there is damage, the Town can retain the funds and make the repairs in future, when all of the homes in that section of the roadway are built/occupied, or the Town can carry out any repairs on a lot-by-lot basis as occupancy permits are issued. The normal damages are usually minor in nature. Much depends upon the timing of applying the top lift of asphalt. If the final lift occurs after all the homes on the street are built, there is nothing to be damaged. The deposit is usually intended to cover more serious damage from heavy equipment during construction of the home. Those damages are usually self-correcting when the final lift is laid down. In urban development projects, homes are usually built and occupied only a short time after the base coat of asphalt is laid down. In rural developments, the rate of absorption is slower, some lots are not built upon for several years or longer, In either case, when the Town takes and holds a deposit the funds are always available to make any necessary repairs.
Ian Gibbard says
There are hundreds of trails that have not been brought up to municipal standards, does this not set a precedence and open the door for others to ask the town to bring their roads up to standard and have the town assume them also?
Stephen Hernen, Director of Operations says
Ian, you are correct that there are hundreds of other trails and unopened road allowances that are not maintained or assumed as road within the municipality. The difference with this road in question is that it was part of a subdivision agreement when the developer received approval. One of the conditions was that the developer would complete the road to Town standards at which time the Town would assume the road. The developer was required to provide the Town with a security deposit in the case that they did not meet the terms and condition of the subdivision agreement. The developer has not met those terms and conditions. The Town of Huntsville is now simply using the security deposit to complete the work. The end result will be a road that meets the standard and will be assumed by the Town and this will all be completed at no cost to the taxpayer as we will use the security deposit to fund the work.
Ian Gibbard says
Thank you for the clarification.