County to finish road in subdivision

Wednesday, March 30, 2011

The Marshall County Roads department will be finishing construction of a road in a private developer's subdivision and it's not illegal, nor is it favoritism.

A construction bond posted by the developer had to be called because economic circumstances resulted in his decision to file for protection under the bankruptcy court.

John Smiley, a ranking leader at the county garage, explained the situation to county planning commissioners last week, concluding that the performance bond - a kind of insurance policy to assure completion of the work - would pay for the county's construction costs.

The road in question is Azalee Lane in Azalee Acres, a housing subdivision on the east side of Pyles Road north of Chapel Hill, Smiley said. Water service to the homes is across a utility right of way from Thick Road, which is on the east side of the subdivision.

Approximately 800 feet of Azalee Lane already has a road base and gravel, but no tar and chip surface has been applied, he said.

That part of the road is in a part of the subdivision named The Reserve.

With information from Don Nelson, the county's building and zoning official, and the county trustee's office, Smiley recommended that planning commissioners "call the bond," meaning that the insurance policy known as a performance bond should be utilized to pay for the cost of completion of the road. Discussion during the March 22 planners' meeting also referred to the performance bond as an escrow bond.

Citing current prices for road oil and chipped rock, Smiley said the bond amount would be consumed by the road department's costs.

"That will eat up the whole bond and taxpayers won't have to pay," Smiley said.

Planning Commission Chairman Dr. Ray Wakefield called for a motion. Commissioner Todd Tietgens seconded Commissioner Bill Derryberry's motion to call the bond and the vote was unanimous.

Joseph Daughrity was the developer of Azalee Acres, according to public records and discussion during the commission meeting.