Council demands security funds
News
Posted By Joni MacFarlane, Editor
Posted 1 month ago
Stung by developers not paying security funds before putting shovels in the ground, the municipality is taking no chances with the Gold Creek subdivision.
Livingstone Ventures Ltd. of Lethbridge was told last week to pay the municipality $900,000 as a security deposit prior to approval of the development agreement and construction starting.
Livingstone's Mike Hoffman told council on July 20 his company is seeking to move ahead and "looking to get business accomplished".
The company plans to develop 25 lots on approximately 100 acres of land north of Frank. Council approved the Area Structure Plan in April 2009. No development agreement has been signed yet.
"We understand that work cannot begin on the project until the bond is posted with the [municipality] even after the development agreement has been signed," wrote Livingstone's Jason Eveleigh.
Livingstone presented estimates for work such as shallow utilities, roads, and water systems. The total cost of the work came in at $738,085 but the fine print said the "estimate has an
accuracy of plus or minus 20%".
Councillor Ian MacLeod felt there should be a guarantee of $1 million to ensure contingencies.
Councillor Dean Ward agreed that another 20 per cent on $738,000 would be "huge".
"With the mounds of dirt left on the 52 acres [for Blairmore's River Run project], it makes me nervous," said Ward. "It very much concerns me."
Councillor Larry Mitchell said he had no problem with the $738,000 but Councillor MacLeod argued against it.
"We've been burned before," he said. "The most glaring one is Bridgecreek. I'm in favour of the $900,000."
Gordon Lundy, chief administrative officer, confirmed that the municipality asked for the full amount of $1.4 million from Southmore and would not release the funds until the final touches are put on the Blairmore development.
Councillor Ward made a motion to approve the development agreement subject to a security deposit of $900,000 in place from Livingstone Ventures.
The motion was approved by a vote of 4-2 with Mayor John Irwin and Councillor Larry Mitchell opposed. Councillor Gary Taje was absent.
