Judge orders municipality to release builder's bonds

BY DAVE BENJAMIN
Staff Writer

Mark Seda JACKSON - A series of 13 performance bonds has been released by the Township Council to builder U.S. Home (also known as Lennar) after a state Superior Court judge ordered Jackson to hand over the money.

Judge Eugene D. Serpentelli's decision supported the position that a representative of the builder had recently stated. The attorney representing Lennar said that the council members, who in recent weeks had refused to release the performance bonds, would be ordered to do so.

They were.

On Aug. 8, the council voted to release the bonds, under notification from the court that failure to do so would result in the court releasing the bonds on Aug. 10.

The performance bonds were held by Jackson for the purpose of guaranteeing the quality of work at the West Lake Village residential development.

Council members were not happy with the decision.

Councilman Jason Gudaitis said he strongly disapproves of releasing the bonds.

"It is with great regret that I am voting yes," he said.

Councilwoman Emily Ingram voted yes, with no other comment.

Councilman Scott Martin said he was regrettably voting yes.

"The court has tied our hands," he said.

Councilwoman Ann Updegrave said she agreed with the other council members and voted to release the bonds.

Council President Angelo Stallone reiterated Gudaitis' comments and voted to release the bonds.

Larry Hartman, a resident of West Lake Village, said there are still issues in the development.

"We still have many problems and nobody has ever responded, to the best of my knowledge, and obviously nobody has ever responded to my problems."

Hartman said there are problems with items such as swales and sidewalks. He said driveways that were pitted were replaced.

"They acknowledged there was a problem and they were going to replace the sidewalk to our house, which they've never done," Hartman said. "They [also] acknowledged there was a problem with the swale and we get flooding from time to time. We've been in the house for five years and have continuously requested repairs."

Mayor Mark Seda said he had a meeting involving the township administrator, township attorney and two representatives from Lennar to see if the issues could be resolved.

"Their response was they wanted their bonds released regardless of the issues," said the mayor. "I said to them, 'Well, how do we fix the problems?' "

Seda said two days later he received a letter regarding a lawsuit against Jackson. He said the township was being forced to release the performance bonds and said if the town did not comply it would be required to pay Lennar's legal fees.

"I don't feel they deserve" the performance bonds, Seda said. "I think this lawsuit is unfounded, but it is what it is. It's unfortunate, but my hands are tied."

"What is the purpose of having performance guarantee bonds if they [Lennar] don't have to perform?" Hartman asked.

"They have to perform on road improvements and the sidewalks at the street," Seda said. "The sidewalk that runs from your driveway to your home is not a bonded item. Your driveway is not a bonded item. The trees on Rye Court are not a bonded item."

"So the performance bond doesn't mean anything," said Hartman. "It has no value to the residents."