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Homeowners pushed to pay fees after developer leaves

By Karen Cimino Wilson | Independent Tribune

Published: November 15, 2009

Seven homeowners were left with the bill for extended water and sewer lines when a local developer stopped worked on The Mills at Rocky River in Concord.

Now the homeowners are trying to fight the city, asking that the fees be waived.

The Mills at Rocky River is a community that was under development by Grace Development, Crosswinds Development and Ryan Homes, which was the primary builder. The neighborhood was planned with homes starting at $220,000. Higher end homes in the development were expected to sell for more than $360,000.

Concord spent more than $4.8 million to extend water and sewer services to The Mills. The developer was supposed to pay for the extension of the lines, as well as a new pumping station.

But it never happened. Seven homes were completed and sold. Two remain vacant. The other lots remain undeveloped, residents said.

Ryan Keller, a resident of The Mills, spoke Thursday during a public hearing regarding the adoption of the preliminary assessment roll for a sanitary sewer collection system extension in the Rocky River and Reedy Creek Watershed Drainage Basin. The fees range from about $2,500 to $6,000, according to residents.

"We have been asked to pay," Keller said. "We ask city council to please waive the fees for these seven homeowners."

Concord City Council voted to continue the public hearing because the city used the wrong address on notices it sent to council members.

Wells Fargo, formerly Wachovia, foreclosed on most of the site where The Mills was supposed to be built. It has been asked to pay $4.7 million for the water and sewer the city extended to the property.

"This issue came as a complete surprise to Wachovia," said Paul Carty, a vice president with the bank in charge of asset management on The Mills property.

Carty said the bank has been working to get a developer lined up to build more homes. Plans are in the works to finish 30 lots, but that won't happen if the bank has to pay the hefty fees, Carty said.

"This is an unusual situation," said Concord City Manager Brian Hiatt, but there's nothing the city can do.

State law requires cities to treat all municipal utilities customers equally, so the waiving the fee isn't an option.

Mayor Scott Padgett and other city council members said they wish they could do something for the homeowners saddled with the fees.

"We are very sorry for what has happened," he said. "As of now, there's no legal recourse for us to waive this for you."

City Attorney Albert Benshoff said the city has already waived more than $63,000 in fees for removing waste from the site. Additionally, the city has spent money on other code enforcement issues and problems on the site.

• Contact Karen Cimino Wilson: 704-789-9141