Robinson Construction and the town of Hayden could extend their agreement on Lake Village subdivision, meaning the Oregon-based contractor would do more work than planned.
Robinson would finish the concrete trails and the landscaping at the unoccupied subdivision in southern Hayden. In exchange, the company would get whatever is left from a letter of credit with Vectra Bank. Hayden required developers to get that letter, worth $502,000, to ensure that infrastructure work was done.
That probably would amount to more than $100,000 for Robinson, Town Manager Russ Martin told the Hayden Town Council on Thursday.
"That's their request," Martin said. "We've agreed to do that. We have no other reason to keep those funds."
But council members were wary about approving anything and asked to see agreements in writing. Martin said Vectra Bank also was interested in putting together a letter of credit to back the second lift of asphalt that's needed on the streets at Lake Village. It's unclear who would do that work.
The subdivision has been tied up since Robinson Construction filed liens on the project in 2007, alleging that it hadn't been paid. Developer Mountain Adventure Property Investments since has filed for bankruptcy protection. The subdivision is in the hands of a state Chapter 7 bankruptcy trustee.
Robinson Project Executive Kirk Moisan has said developers told the company to stop work after the liens were filed in 2007. The project sat unfinished and awaiting repairs until the town and Robinson reached an agreement a month ago.
A new deal expands that work.
"What we've been working on is trying to create a settlement agreement between Vectra Bank and Robinson Construction Co. that can be proposed to the trustees so that project can start moving forward, and taking into account what the town would like to have for a certificate of occupancy," Moisan said Tuesday.
The company probably will finish the original scope of work in the next week, and the concrete trails and landscaping would add at least a month, he said. If Hayden officials agree to another letter of credit at Vectra for the asphalt lift, it probably would be worth $250,000 to $300,000, Martin told the council.
Martin noted that the town sometimes grants certificates of occupancy without that second lift of pavement - if it has a letter of credit and a guaranteed date of completion. Council member Chuck Grobe said he was tired of guarantees.
"We've had how many dates of completion?" he said. "And the Town Board has turned it down, let them go on and on and on every time."
Town Council members decided to wait to see a written agreement at their Aug. 6 meeting.
"Here's the deal," council member Tom Rogalski said Thursday. "We can tell them we're interested in the offer, throw it at 'em, and in two weeks, we can still pass or play."