By PAULENE POPARAD

An extended discussion regarding how best to call in a developer’s bond helped push the Chesterton Advisory Plan Commission meeting, which already had conducted a lengthy public hearing, to almost three hours Thursday.

A motion, authored by member Mike Bannon, passed directing commission attorney Charles Parkinson to propose how the town’s procedures could be improved when the cash or letters of credit developers post as bonds guaranteeing work will be done have to be called.

The catalyst was $18,048 the town received after the commission recently ordered that an infrastructure bond posted for Rose Hill Estates subdivision be called, or cashed in; some infrastructure has yet to be completed and a deadline has passed. The town plans to hire a contractor to do the work using the bond money.

Town deputy clerk-treasurer Joanne Lewis said the money was wired transferred to the general fund, leading commission member Steve Yagelski to ask if state tax officials will consider it new miscellaneous income and deduct that amount from elsewhere in a budget. Some questioned how the $18,048 can be appropriated out of the general fund to pay a contractor when the state hasn’t even approved a 2007 budget to appropriate from.

Bannon said he’d be hard-pressed for the state to make the town reduce a budget if it uses the $18,048 for what it was intended. “That’s ridiculous, but I’ve seen the ridiculous before.” Replied commission member Steve Yagelski, “Anything’s possible.”

Member George Stone said the town budget and money from called bonds are totally separate transactions. Member Jeff Trout’s concern was that although the town needs to hold developers’ feet to the fire if they don’t comply, he questioned if it will cost more for the town to get the money and use it. “Otherwise we’re hammering a guy and it’s costing us to do it.”

A second discussion ensued over the form of a new Rose Hill sidewalk guarantee bond, which Parkinson said needed to be amended. “We need something more than you calling them, asking them to change it,” said Bannon, calling for a new procedure.

Member Frank Sessa said maybe the town needs to require cash upfront instead of bonds. Town engineer Mark O’Dell said it would be ridiculous to have a bond posted but the town can’t pull it and use it.

Mentioned was possibly pulling a developers license to do business, or halting all work in developments whose bonds are not in compliance. Building commissioner Mike Orlich questioned if that would be tied to the developer alone, or to other permits for homeowners in that subdivision like for a deck or a pool.

Also Thursday, the commission unanimously OK’d secondary plat for the two-lot LZK,LLC subdivision which would add two building parcels on the north end of the former Jewel parking lot on the east side of State Road 49 south of Indian Boundary Road. One lot will be the site of a new, expanded Pizza Hut.

LZK principal Jeff Katz said since all infrastructure for the project will be private, he won’t be required to post a bond.

On another matter, by a 4-3 vote the commission agreed to have a public hearing Sept. 20 on a proposed recreation impact fee to benefit town parks. Trout, Sessa and Stone voted no with Yagelski, Bannon, Sig Niepokoj and President Fred Owens voting yes.

Stone said the park zone improvement plan and proposed ordinance a committee has been drafting is voluminous and complicated requiring a thorough reading and consideration. He suggested having the committee make a presentation Sept. 20 and having a public hearing at a special meeting.

Bannon said the Town Council will take final action on the matter and the public can comment there, also. Orlich said if the commission isn’t comfortable making a recommendation to the council Sept. 20, the commission can continue its impact fee discussion.

Posted 8/20/2007