The Crested Butte News Serving the Gunnison Valley since 1999
“Obviously they have no intention to pay the bill”
The Crested Butte Town Council unanimously agreed Monday to direct the staff to begin legal proceedings against the developers of the Foothills of Crested Butte annexation proposal. A “mechanical lien” was deemed the best course of action to try to collect the approximately $98,000 the developers owe the town.
The money is due through an annexation reimbursement agreement signed by both parties in 2008. The agreement calls for the developers to reimburse the town for time spent by staff and consultants’ on evaluating the potential annexation.
The annexation proposes 44 acres to be developed with about 160 homes. Part of the site sits on the old community dump, and that has been a huge stumbling block in the annexation process.
Last week, Foothills partner Brant Bryan said the developers had lost confidence in the town annexation process and were taking a timeout from paying bills sent by the town.
After a 40-minute executive session behind closed doors with special counsel Gerry Dahl on speakerphone, the council agreed to begin the process of liening the property. The staff was also directed to contact the property owners, both the developers and the banks that lent them the money for the land purchase, to try to facilitate a solution.
“It seems obvious by the message Foothills sent to the town through the press that they have no intention of paying the bills,” said councilperson Jim Schmidt. “I think it is appropriate to take measures to collect that bill and feel this action is in the best interest of the town citizens.”
The rest of the council agreed and a lien will be filed with the county.
In a related matter, the council set for public hearing an ordinance that allows the town to more easily collect money owed it. The ordinance would allow the town to certify an amount owed, and then have the county treasurer add that amount to the property tax bill. If the bill is not paid, the property gets put up for sale just as if property taxes are not paid.
“It is a quick, effective way for municipalities to collect charges,” explained Dahl. “It is a very effective, cost-efficient way to collect fees.”
“This is what most towns do to collect money in a number of issues. It is outside of the court system so it is relatively cheap,” said Town Manager Susan Parker. Parker used the example of trying to collect delinquent water and sewer bills.
The ordinance will be up for public hearing at the February 16 meeting.
Town Attorney John Belkin stepped aside from the discussion of the proposed ordinance and the collection of the Foothills debt because of a potential conflict. Before becoming town attorney, he had worked with the law firm Bratton Hill, and had documented the loan transaction for one of the banks that lent money for the purchase of the Foothills property.
Dahl has worked with the town over several issues in the past 25 years and will be the lead attorney in the Foothills collection matter.
