HomeMy WebLinkAboutWD-64-92 THE CORPORATION OF THE TOWN OF NEWCASTLE
REPORT
Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE File# .hL�
Date: JULY 20, 1992 Res.
Report#: File #: D.03 A-2 . 003 By-Law#
Subject: P. K. DEVELOPMENTS INC. , PLAN IOM-774,
COMPLETION OF OUTSTANDING WORKS
Recommendations:
It is respectfully recommended that the General Purpose and
Administration Committee recommend to Council the following:
1. THAT Report WD-64-92 be received;
2 . THAT the Director of Public Works be authorized to issue a
'Final Notification Letter' , FORTHWITH, to P. K. Developments
Inc. (Plan 10M-774) , and their solicitor, stating a completion
deadline of August 29, 1992 for all outstanding works;
3. THAT upon expiration of the aforementioned deadline, the
Director be authorized to take all necessary actions to
correct and complete all outstanding works at the full expense
of the developer;
4. THAT funds required for such works be recovered by drawing
down the developer's Letter of Credit, in accordance with the
terms and conditions provided for in the Subdivision Agreement
between P. K. Developments Inc . and the Corporation of the
Town of Newcastle; and
5 . THAT P. K. Developments Inc. and the Royal Bank of Canada be
advised of Council's decision and be provided with a copy of
Report WD-64-92 .
101) 1
REPORT NO. : WD-64-91 PAGE 2
REPORT
1.0 ATTACHMENTS
No. 1: Key Map
2.0 BACKGROUND
2 . 1 The Corporation of the Town of Newcastle entered into a
Subdivision Agreement, registered April 25, 1986, with P. K.
Developments Inc. to develop lands by plan of subdivision,.
located in Courtice and described as Plan 10M-774 (Attachment
No. l) . The agreement required the developer to construct all
roadworks including hot-mix paving, gravel shoulders, topsoil
and sodding of ditches, storm sewer system, streetlighting and
street trees, hereinafter referred to as the 'Works ' .
2 .2 The initial roadworks were completed by the developer in 1986 .
Since that time, there has been no significant activity to
complete or maintain the works.
2 .3 The outstanding works include, but are not necessarily limited
to, storm sewer work, minor base asphalt repairs, reshaping,
topsoiling and sodding of ditches, gravel shoulder
improvements, improvements to the turning circle at the south
limit and surface asphalt paving.
2 .4 In addition, there are numerous snowploughing invoices dating
back several years that have not been paid by this developer.
Attempts have been made by registered and regular mail to
collect these outstanding amounts but no response has been
received to date.
2 .5 The same developer, under the company name 'Gearing Farms
Limited' , defaulted in his obligations relating to a nearby
development, Plan 1OM-751, in 1989 . The Town completed the
works at that time at the developer's full expense.
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REPORT NO. : WD-64-92 PAGE 3
2 .6 The existing Letter of Credit was calculated in 1988 dollars
for Performance/Maintenance amounts . Taking into
consideration the accumulation of outstanding invoices to
date, the inflation since 1988 and the lack of positive
communication from this developer, it is felt that the Town
should act expeditiously to complete the works at this time.
2 . 7 Under Section 5. 17 of the Subdivision Agreement the Director
of Public Works has the authority to order the work completed
at the expense of the developer, subject to the approval of
Council and upon written 'Notice' being given to the developer
and his surety.
2 .8 In the event the developer does not complete all outstanding
requirements by August 29, 1992, the Town will proceed with
these works at the full expense of the developer. The Town
currently holds a Performance/Maintenance Guarantee to ensure
the completion of these works, in the form of an irrevocable
Letter of Credit in the amount of $35,377 . 91.
Respectfully submitted, Recommended for presentation
to the Committee,
Walter A. Evans, P.Eng. , Lawrence E. Kots f ,
Director of Public Works Chief Administr i e Officer
NC*WAE*ph*hj
July 8, 1992
Attachment
I
REPORT NO. : WD-64-92 PAGE 4
pc: P.K. Developments
Box 12, R.R. #3
Bowmanville, Ontario
L1C 3K4
The Royal Bank of Canada
Ontario International Centre
Royal Bank Plaza
180 Wellington Street West
Toronto, Ontario
M5J 1J1
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PEBBLESTONE ROAD
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IP .K.DEVELOPMENTS
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�.. ...........................: ATTACHMENT NO.
KEY MAP ATTACHMENT N0. 1
WD-64-,92