Guelph-Eramosa council has refused to assume responsibility for the Riverwalk subdivision in Rockwood, citing outstanding drainage concerns not addressed by developer Charleston Homes.
Chief Administrative Officer Janice Sheppard told council on Monday night the only issue remaining with the development, located east of Highway 7 at the south end of Rockwood, is obtaining a drainage easement across an adjacent property.
“The easement should have been secured by the developer at the time the property was disposed of, but was missed by the developer during the transaction,” Sheppard said.
Charleston Homes has a $155,500 security deposit with the township, which it is now requesting be returned to coincide with the township assuming the subdivision on Riverwalk Place, a small cul-de-sac off of Cobblestone Place.
Sheppard said according to the township’s lawyer, the municipality can assume the subdivision and retain $10,000 of the deposit “to clear up the issue of obtaining the drainage easement.” She suggested the township follow the lawyer’s recommendation.
But councillors disagreed, viewing the full security deposit as the township’s only real bargaining chip.
“I can’t understand why we would give this up,” councillor Doug Breen said of the security deposit. He explained drainage is a major concern and if something goes wrong and the township has to fix it, “$10,000 isn’t going to go far.”
Mayor Chris White suggested the township maintain $50,000 instead, yet the rest of council was not satisfied with that compromise.
“Why don’t we maintain the security deposit as it is,” councillor Reta Moyer suggested. She said the developer signed an agreement in 2000 saying it would fulfill all its obligations before receiving its deposit back.
Public Works Manager Ken Gagnon told council there are no known drainage problems in the area and no other problems with the subdivision, but Breen said the township should withhold the entire deposit.
“It’s not done,” Breen said of the subdivision agreement. “If it’s that small of an issue, then it shouldn’t take much [for the developer] to get it done.”
Council voted unanimously in favour of withholding the entire security deposit. Councillor Roger Knapp was absent.
