By Dawn De Busk

Staff Writer

NAPLES — The outcome could end up one of two ways: the weather cooperates and the paving for Brandy Pond Crossing development is completed, or the paving goes undone and the Town of Naples takes over the completion of the project.

On Tuesday morning, attorneys for two parties — the Town of Naples and Front Nine Homes, LLC — signed an agreement with a date of Nov. 23 for remaining work to be wrapped up. 

Front Nine Homes, LLC, is the company that manages the 17-lot subdivision, Brandy Pond Crossing. Developer Paul Hollis owns Front Nine Homes.

About a month ago, Hollis came before the board and said that the paving had been postponed but it would be done during the first or second week of October. A contractor had been hired to do the work. 

On Monday, Naples Town Manager John Hawley updated the selectmen on the status of the project. As the last week of October began, there is no pavement on the road. Cold weather prevented it from getting done this week. The paving was not the only thing that is behind schedule. The shortlist includes finishing the catch basins, paving the road and putting in the fire pond. Additionally, the entrance at Route 114 must be moved. 

It was stressed that the town is responsible only for items approved by the Naples Planning Board in the site plan and recorded with the Registry of Deeds. 

But, first the town must tap into the letter of credit, which is the funding set aside if the developer fails to complete the project on time.

The board voted to take legal action if the lawyers did not reach an agreement. But, that pact was signed. 

Jensen Baird Gardner & Henry, out of Portland, represented Hollis. Meanwhile, the town hired Eaton Peabody, out of Bangor, for this case.  

“Our town representation is Drummond and Woodsum but they had a conflict and were not able to represent us for this situation,” Hawley said.

The town manager highlighted the next steps for the town now that the legal agreement has been signed. 

“We now wait until Nov. 23. If the work that still needs to be completed is not, the town will place a demand on the letter of credit funding and once the funding is received, use the funds to finish the work as per the approved plan,” he said. 

The new amount of the letter of credit is $248,615.95. 

“There is still a good likelihood that [paving] will happen but at this point in the year, paving opportunities are dictated by atmospheric conditions. If we have too many poor days, the paving might not happen,” Hawley said. 

“There are parameters when you can pave and not pave — the weather, the humidity, the temperature. At some point, the asphalt factories just close down,” he said.  

Going forward, the town is making some changes so this won’t happen again.

“New ordinance language is being drafted that would require bonding. Bonds are secured funding put up usually by a bank and offer greater security to a community in that a demand on the bond is less legally cumbersome. The letter of credit is only as good as the financial backing and as we have learned, isn't always as good at the piece of paper it is written on. In our case, it would require a lawsuit to draw down those funds because the backer of the LOC did not produce the funds upon demand last October (2019),” Hawley said. 

“We will also be recommending that roads in new subdivisions be constructed to the base pavement level prior to the issuance of any building permits. The final over lay of pavement would then be required after the majority of the lots have been built upon,” he said.