The County Planning Commission is holding a public hearing

June 12, 2024
Author: Dwayne Page

What type of surety bond, if any, should a developer secure to ensure the installation of infrastructure in a given area before obtaining final approval from the county government to build the development?

The DeKalb County Regional Planning Commission held a public hearing Monday night during its regular monthly meeting on the types of bond instruments the county should accept in the future in lieu of installed public improvements. No one showed up at the public hearing to comment. The planning commission took no action after the public hearing, but may bring up the issue again, possibly next month.

During Monday evening’s meeting, Tommy Lee, deputy director of the Upper Cumberland Development District, who serves as UCDD staff planner and DeKalb County advisor, explained what the county currently accepts regarding bond instruments and options available if the planning commission decides to change the law.

“At the beginning of the year we talked about reviewing the types of sureties we accept in lieu of improvements, or whether we want to continue to accept sureties in lieu of improvements. We can leave it as it is, or we can change it,” Lee said. “We are currently allowing final approval of the platform without the infrastructure being fully installed if a surety bond is provided to guarantee its installation. We currently accept three types of surety instruments and they are as follows: We accept the establishment of an escrow account for the full amount of the estimated cost of the required improvements plus 10%. We also currently accept a certified check for the full amount of the estimated cost of required improvements plus 10%. Finally, we accept an irrevocable letter of credit for the full amount of the estimated cost of the required improvements plus 10% from an approved bank. We also have forms that need to be filled out when we accept these surety instruments,” Lee explained.

“The City of Smithville recently eliminated surety bonds. They no longer accept surety instruments,” Lee said. “They (the city of Smithville) ran into a problem where a gentleman sold the development before it was completely installed and then it somehow slipped through the cracks. Everything ended up being built the right way, but it could have ended in disaster. That’s what made them (the city of Smithville) do this,” Lee said.

“White County, where I am also a planner, is limited to only irrevocable letters of credit from a bank within 50 miles of the courthouse with an automatic renewal date. What they have come down to is a letter of credit that is renewed every year unless they release it,” Lee continued.

“No matter what we do, we should write in our bylaws that surety bonds cannot have an expiration date, and if they (developers) can’t get a surety bond without an expiration date, then we don’t need (cannot accept) their surety bond,” Lee said .

“I will bring you a copy of the White County resolution. You can see it and if you don’t like it, you can do it, Lee concluded.

The issuance of the guarantee results from the actions taken in April by the spatial planning commission to amend the district division regulations to include new provisions for developers. The goal is to better ensure adequate road access for emergency vehicles and sufficient water supplies for firefighting in new district housing developments consisting of five or more lots before final site approval by the planning commission.

The new regulations, with changes, resulted primarily from an already approved platform for a development called Silver Point Shores on Aunt Helen Road in DeKalb County near Silver Point, which has been in development for at least two years. Concerns arise from the fact that access to and through access roads in this estate is difficult (narrow), especially for emergency vehicles such as fire trucks and ambulances, and that 31 plots in this estate do not have a water source (well) or fire protection system. have already been sold by the developer for a total of over $3.5 million. Members of the planning commission also had doubts whether the developer’s guarantee, i.e. a cashier’s check (valid for up to 180 days, but apparently already expired) for $40,000, would be sufficient in this case.

County Fire Chief Donny Green first brought his concerns to the planning commission and county commission last fall. According to Chief Green, DeKalb County has grown in recent years with new housing development, especially around the lake, but with that comes growing concerns about adequate access to infrastructure in those areas. Access of fire trucks and ambulances to the investments in the event of a fire or other emergency is a problem due to the many narrow and steep district roads leading to these investments. Water supply infrastructure is also an issue in some places, causing concerns about sufficient water pressure to extinguish a fire. Chief Green said his intention in raising this issue was not to point fingers at anyone, developer or public official, but merely to highlight growing concerns about public services and public safety and find ways to alleviate these problems. continued cooperation with the Planning Commission and the District Commission.

While the revised regulations, adopted in April, now apply to any new developments made before final approval of the subdivision plan, Lee said that over the past five years, any new development that has already received at least preliminary approval from the planning commission cannot be held until new standards.

The new rules adopted in April provide as follows:

“For investments of five (5) lots or more, the following conditions apply:

1. All lots must be supplied from a public water source.

2. All lots must be located within 300 meters of a fire hydrant installed on a water line with a minimum diameter of 6 inches or a recognized alternative water supply (per ISO standards)

3. All public, private or district roads must provide access to the planned investment from the nearest state route with a surface of at least double surface (chipped). Access roads shall be a minimum of nineteen (19) feet in width and none shall have a slope greater than ten (10) percent. Any access road that does not meet these requirements will be adjusted to these standards at the developer’s expense. The plat will not be approved until these standards are met and the DeKalb County Highway Superintendent has inspected and approved the access roads and roads involved in the development.

4. The DeKalb County Fire Chief shall make a recommendation for each plat, via a signature line on the end plat, prior to approval by the Planning Commission, confirming adequate access for emergency vehicles and the availability of an adequate water supply for fire suppression for any new development.

5. A common mailbox area must be approved by the United States Postal Service for all proposed roads within the development.”

Planning Commission members are Rick Cantrell (citizen member), Danny Pirtle (citizen member), Harold Bain (citizen member), Alan Webb (citizen member), Jack Barton (citizen member), Beth Pafford (county commissioner), Greg Matthews (commissioner County), Andy Pack (County Commissioner) and Jeff Barnes (County Commissioner).