Sugar Grove to take control of water, sewers in unfinished Settlers Ridge
In response to homeowner concerns, the village of Sugar Grove has inspected the water system and the storm and sanitary sewers in the unfinished subdivision of Settlers Ridge and is negotiating with developer Kimball Hill Homes to take control and responsibility for maintenance.
Sugar Grove Community Development Director Rich Young said the inspection, which cost $3,000 including legal fees, revealed no major problems. He said the village wants to take control of the public works portion of the subdivision soon, particularly its water treatment plant and two deep wells.
Only 110 homes are completed out of a total of over 300 finished lots. Settlers Ridge is near Route 56 and Gordon Road.
Kimball Hill filed for chapter 11 bankruptcy earlier this year. According to an agenda item from the Oct. 21 village board meeting, Kimball Hill is no longer marketing Settlers Ridge and the community is for sale.
It's no surprise that finalization of an agreement between the village and Kimball Hill involves money. Kimball Hill put up 12 security bonds when developing Settlers Ridge. Builders typically establish letters of credit, cash or bonds when making a commitment to a community to finish public improvements in a development. Municipalities can then use the credit, cash or bonds to complete public improvements left unfinished.
"They are looking for a reduction of the bonds because most of the work has been finished," Young said. "Normally, a village would inspect the public works and accept everything at once to take over for perpetual maintenance. In today's times, we are doing it piecemeal. We want to reduce some of their bonds and retain others."
Young did not specify amounts, but he noted that the final coating on the roads still needs to be completed, sidewalks need to be graded, more landscaping needs to be done, and portions of the storm sewer system need to be completed.
The village held a meeting for residents of Settlers Ridge in August to share news and hear their concerns. Another meeting may be held in November.