BY SARAH KINGSBURY • The News Examiner • April 15, 2010
Builders in Fairvue Plantation and Foxland can once again obtain permits to build homes in the subdivisions.
The Gallatin City Council passed a resolution authorizing the permits at a special-called meeting Tuesday, April 13.
The permits will be issued on a limited basis after being reviewed by city engineer Nick Tuttle and will require that the sidewalks related to the property be completed before the certificate of occupancy is approved.
“We were all real excited; we felt like it was a real positive thing the city did last night,” said Shane Holt, sales director for Botsko Builders, which has built a total of 54 homes in the two subdivisions. “We really didn’t know what to expect.”
Botsko Builders had three projects that were put on hold after the city stopped issuing the permits, including that of Dennis and Kathy Barber, a retired couple in Michigan who were trying to build their “dream home” in Foxland. The Barbers wrote a letter to the mayor in March after the permits were halted.
“… We have already made a significant investment in your community,” the Barbers wrote. “This action is not leaving us with a favorable first impression of the city of Gallatin and is forcing us to second guess our decision whether to build in Fairvue or not.”
The city was allowed to stop issuing permits according to subdivision regulations after the developer, TLP Devco, was declared in default on $3.5 million in infrastructure bonds for road, drainage and sidewalk improvements.
But those bonds are typically agreed upon by the city, the bonding company and the developer and do not involve the building companies. During public recognition portions of council meetings since the city halted the permits, some builders said it seemed like the city was unfairly punishing them for something they had no control over.
“But in fairness to (the city), I think that they were just trying to stop any more damage when they stopped the permits,” Holt said. “A lot of people all over the country are experiencing things with this economy with regards to real estate development that they’ve never experienced before.”
Because there aren’t many homes built yet in Foxland, the city decided that permits would not be issued for those lots unless water, sewer and electric utilities were already in place.
City talking to bonding companies
City Attorney Joe Thompson reported to the council at the meeting that his office had been in contact with the three bonding companies that insured the infrastructure for the developer.
Thompson had said in previous meetings that he was uncertain whether the companies would be able to pay the claims or how long it might be before the city saw any money to complete the work.
But within the past two weeks, Thompson said the bonding company representing the majority of the needed improvements had sent an engineer to the sites to begin evaluating the claim.
“I think this is a very good and positive sign,” he said.
Thompson added that employees of TLP Devco had made themselves readily available to assist the bonding companies as needed in the claim assessments.
Reporter Sarah Kingsbury can be contacted at 575-7161 or skingsbury@mtcngroup.com.
