Town Board could fix problems at Lake Village subdivision
Four development partners still trying to iron out problems
The Steamboat Pilot & Today, July 20, 2008
Steamboat Springs — The Hayden Town Board could set the gears in motion to take over infrastructure repairs at the Lake Village subdivision at its meeting tonight.
On the agenda are two resolutions: one to formally begin the process of calling in the bonds and letters of credit for the development and one to hire legal counsel to assist.
The subdivision, off Routt County Road 53 in southern Hayden, is unoccupied. Asphalt has crumbled around some manholes, and the roads require a lift to be level with the curb. On May 29, the partnership building the subdivision sought an extension to work out those repair issues, liens filed by one of the partners and bankruptcy issues.
That extension expires Friday.
Robinson Construction, which is based in Oregon and has no connection with RN Robinson & Son of Hayden, handled much of the work. It filed liens last year saying it had not been paid. Other partners have denied the claim.
"We wouldn't still be negotiating, they wouldn't be negotiating with us, if we had been paid," Robinson Construction project executive Kirk Moisan said. "I think that speaks for itself. I don't know anybody who would show up Monday if they hadn't been paid."
Another Oregon company, Robinson and Sons, is part of the partnership building Lake Village. Mountain Adventure Property Investments also consists of local company Grassy Creek Holding; local company 4-S Development; and Oasis Development, an Oklahoma subsidiary of FSB Bancorp. Grassy Creek and 4-S are locally owned and control 61 percent of the company's stock. Mountain Adventure and 4-S have filed for Chapter 11 bankruptcy.
When the town gave the partners an extension, trustees required that the developers provide weekly updates on progress. Those have not been forthcoming, Hayden Mayor Lorraine Johnson said.
Moisan said he has been in touch with Hayden Town Manager Russ Martin, who was out of town Tuesday. Moisan and Roger Johnson of Grassy Creek Holding said they were planning to attend tonight's meeting at Hayden Town Hall.
Moisan said his company was waiting to find out what kind of infrastructure repairs would be needed.
"We're sending people there right now," Moisan said Tuesday. "We're waiting for information from the company doing the investigation on the pipeline. We're mobilizing now, as we speak."
Lorraine Johnson said the board would make a decision after discussing the matter tonight.
"They're not communicating with the town," she said. "They were directed the night that we extended this that they were going to give us weekly updates prior to our meetings, and that's not happening. And they've been sent a letter stating that they were not in compliance with what we requested that night, and there's been no response back from it."
Lorraine Johnson noted that Martin had been keeping in closer contact with the developers and would have more information. Tonight's resolution states that "if information comes in prior to the meeting, (Martin) will do (his) best to forward it on."
Roger Johnson said he was hoping to have the bankruptcy issues and liens settled soon.
"This is a negotiation, a process," he said. "I'm hoping for a resolution sometime this month."