August 6, 2012 – Packet - Borough of Hightstown

The Borough Attorney confirmed that the Borough has taken the proper measures and process to declare the default.
Roll Call Vote: Council members Bibens, Bluth, Doran, Quattrone, Thibault and Woods voted yes.
Resolution adopted, 6-0
Resolution 2012-190
BOROUGH OF HIGHTSTOWN
COUNTY OF MERCER
STATE OF NEW JERSEY
A RESOLUTION OF THE BOROUGH OF HIGHTSTOWN DECLARING A DEFAULT IN THE
CONSTRUCTION OF THE RESIDENTIAL DEVELOPMENT KNOWN AS “ENCHANTMENT AT
HIGHTSTOWN,” AND AUTHORIZING THE BOROUGH TO TAKE ALL APPROPRIATE ACTIONS TO
SEEK COMPLETION OF THE OUTSTANDING IMPROVEMENTS THROUGH THE DEVELOPER’S
BONDING COMPANY AND PERFORMANCE BOND.
WHEREAS, construction of the residential development known as “Enchantment at Hightstown” (the
“Development”) was commenced in or about December of 2004; and
WHEREAS, in connection with the approvals granted by the Borough of Hightstown (the “Borough”) for the
Development, the developer, Enchantment at Hightstown, LLC (the “Developer”), a subsidiary of Robertson Douglas
Group, was required to post a performance guarantee and a cash guarantee in order to insure the faithful completion of
all site improvements associated with the Development, in accordance with the requirements of the New Jersey
Municipal Land Use Law, N.J.S.A. 40:55D-1, et seq.; and
WHEREAS, the performance guarantee was issued by Westchester Fire Insurance Company, and bears Bond
Number KO6685882 (the “Westchester Bond”); and
WHEREAS, though all of the residential homes constructed in the Development are now completed and
occupied, certain site improvements remain incomplete and/or require maintenance; and
WHEREAS, during the eight (8) years which have elapsed since the commencement of construction of the
Development, the Developer has been notified of these deficiencies on numerous occasions by the Borough Engineer,
but the Developer has failed or refused to take satisfactory corrective actions; and
WHEREAS, the Borough believes that the completion of the outstanding improvements has taken far too long,
and that the said improvements must be completed as soon as possible in order to ensure the safety and convenience of
the residents who now reside within the Development; and
WHEREAS, in view of the above, the Borough hereby wishes to declare the Developer to be in default of its
obligations relating to the construction of site improvements at the Development; and
WHEREAS, a detailed cost estimate of the outstanding improvements, as prepared by the Borough Engineer
dated July 6, 2012, is attached hereto as Exhibit “A” and is made a part hereof; and
WHEREAS, the total cost to complete the outstanding improvements, as estimated by the Borough Engineer, is
$365,726.50; and
WHEREAS, the current amount of the Westchester Bond is $1,061,885.40; and
WHEREAS, the Borough is also holding ten percent (10%) of the amount of Westchester Bond in the form of a
cash guarantee; and
WHEREAS, in view of the Developer’s continued and prolonged failure or refusal to complete the outstanding
improvements, the Borough Engineer has recommended that the Borough should take all necessary steps to pursue
completion of the said improvements by utilizing the Westchester Bond and/or the cash guarantee referenced above;
and
July 16, 2012 - 4 -