St. Charles cracks down on another troubled subdivision
The Artesian Springs subdivision in St. Charles has a large draining pond at its center, but a decision made this week by city officials indicates the development is financially under water.
It's not the first piece of new construction in the city to fall on hard times, but it is the last of its kind on the city's radar for failure to complete necessary land improvements.
Aldermen voted this week to cash in an $80,000 letter of credit against the project to complete the construction of roads and maintenance repairs on the existing infrastructure in the development.
Even that move won't bring complete relief to the residents in the subdivision.
City staff members estimate the needed infrastructure works will cost about $95,400. But officials have been unable to get the developer, Irv Brummel, to complete the public street, storm sewer and sidewalk despite three years of pressure.
In July 2011, a sinkhole began to form in the subdivision, which is off Route 64 near Peck Road, because of the incomplete maintenance. The hole was eventually filled in, but the remaining work was never completed.
City officials informed Brummel of their intent to use the letter of credit to complete the infrastructure, though Brummel did not show up to the council vote this week to defend his inaction.
Artesian Springs is a subdivision of 12 single-family homes not too far from the proposed Corporate Reserve development. That project could feature more than 300 rental units, but aldermen have expressed concern about how the market will absorb all those new residents if the project is approved. A failed Corporate Reserve could add to the city's ongoing problem with incomplete subdivision infrastructure.
Like Corporate Reserve, Remington Glen subdivision is just off Route 64. It, too, became a failed development project. Last year, aldermen cashed in a $129,000 letter of credit on that property when it fell into foreclosure with $160,000 worth of incomplete construction.
The city used the letter of credit to finish $115,000 of public street and sidewalk construction as well as storm sewer improvements. The rest of the work awaits completion if and when a new developer takes control of the project.