By BECKY KISER
Hays Post
Some homeowners in King’s Gate First Addition in northwest Hays are unhappy with the neighborhood’s local developer, Covenant Builders, and its president Katherine Burnett.
Jeremy Green, 4112 Covenant Drive, told Hays city commissioners Thursday night he and his neighbors were “blindsided” by a recent notice from the city about assessments the 52 property owners are liable for now that a park improvement district previously created in the city is completed.
Green, who built his house in January 2013, said “from day one, we were all told that Covenant Builders would pay for that park. That was stated by Burnett and several of her workers. We were under the understanding that this came under the current curb and guttering specials and that Covenant would take care of it.”
He gave the commission a number of signatures of his neighbors and said he would be getting more.
Efforts to contact Burnett were unsuccessful Friday morning.
King’s Gate Addition was platted and began development in 2010. In 2012, the developer petitioned the city for establishment of a benefit district to fund improvements to King’s Gate Park, a small neighborhood park at the north end of the development. A resolution was approved by the city commission allowing for special assessment of the park improvements.
There was no public notice of the petition in 2012.
“At the time, Covenant Builders owned the majority of the lots. There were maybe 4 or 5 that were sold,” recalled City Manager Toby Dougherty. “Burnett received signatures that were affixed to the petition which requested a waiver of public notice because of that.”
Covenant Builders was awarded the low bid of $75,000 for the park construction project on June 28.
Design engineering, bond issuance and interest brought the total cost to $82,163.49, Finance Director Kim Rupp told the commissioners. The assessment is for 10 years split equally per square foot within the improvement district.
The neighborhood wants the park, according to Green, who added he has “no problem with paying taxes, but tell me I’m going to be paying taxes.”
“It’s only a few thousand dollars per house, but it’s the principal behind it.”
Information provided by Rupp shows the highest assessment in the district is $2,322.75; the lowest assessment is $810.27.
Rupp told the commission several of the affected homeowners had already talked to him and City Clerk Brenda Kitchen about the matter.
Mayor Henry Schwaller pointed out the city has a policy that “every development will have green space to be paid for by the developer or through specials, or the developer will give the city some money.”
“The validity of the proceedings is, I don’t think, questionable,” said John Bird, city attorney. “The fact of the matter is the city followed the rules, which include that public notice is given various times. What usually happens in these things, I think, is the developer because they have total control over the project at first, they’ll sign off on things that bind those lots later. But that’s really between the developer and the people that purchase the lots later.
“It sounds like you definitely didn’t have very good communication with each other. .. You weren’t blindsided by us,” Bird concluded.
“I get that,” Green agreed.
Bird told Green he and his neighbors “probably have a remedy. It’s just not here.”
According to Rupp, there is a state statute requiring a seller to notify the buyer of any special assessment, even if it’s pending.
Green also said there are several lawsuits underway regarding flooding in King’s Gate First Addition.
“You can’t just keep giving, giving and giving to this builder when there’s issues. They need to be addressed. Something’s got to be done,” he said.
Commissioners thanked Green for bringing attention to the issue.
“It is important to note that we do use the general bonding authority of the city in order to make these developments happen,” commissioner James Meier said. “Even though it’s special assessed to the properties, it’s still a general obligation bond. I think we do need to be aware of when these sorts of things happen. We’re under no requirement to bond for developers. I think this is a good discussion and good information for us to have.”
A public hearing will be held March 14 during a regular commission meeting to consider an ordinance levying the special assessments.
A second public hearing will consider the Heart of America Second Addition (Resolution No. 2016-010) for water, sanitary sewer, storm sewer and street improvements included in the extension of Ninth Street east to Commerce Parkway.
Heart of America Second Addition will have a 15-year assessment of $277,836.51 spread against each lot.