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Hernando Today

County Takes Action Against Hernando Oaks

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By MICHAEL D. BATES

Hernando Today

Published: November 12, 2008

BROOKSVILLE - Chalk up another casualty of the slow housing market.
Construction on phase 3 of Hernando Oaks, which includes 142 lots, has been stalled. And that has prompted county commissioners to issue a $5 million performance bond against the developer to ensure the work will get done.
The developer "failed to promptly and faithfully perform the work identified in the bonds and has failed to complete the project within the time provided," according to a resolution unanimously approved by commissioners.
An estimated $3.5 million of work has been done so far on this latest phase of the golf course community. That leaves about $1.6 million to be completed, according to information from Coastal Engineering Associates Inc.
Commissioner Rose Rocco said the bond should ensure that the rest of the work on phase 3 will be completed.
County Commissioner David Russell said he cannot recall issuing such a high surety or performance bond for a project of this magnitude.
Russell said he understands the market is not the best. But, to be blunt, that is not the taxpayers' fault and the county must protect its assets so that developers live up to the terms of their development orders, he said.
"This is an insurance policy for the taxpayers guaranteeing that the work gets done," he said.
Bob Penrod, project manager for Hernando Oaks, said Tuesday he is confident the delay will be short-lived and that the remainder of improvements in the third phase — including a clubhouse that was scheduled to open this February — will be completed.
"We are going forward," Penrod said.
Hernando Oaks is a gated community located on U.S. 41, about two miles south of Wiscon Road.
The subdivision currently has about 313 homes. The project was originally envisioned to have six phases and contain 975 homes.
County commissioners approved construction plans for Hernando Oaks phase 3 in August 2005. Hernando Oaks II LLP, the developer, posted a $5 million performance bond in October 2006, guaranteeing completion of all required improvements.
Board members in December 2006 approved a final subdivision plat for 142 singe-family lots. However, building permits had not been authorized for the development.
Planning Director Ron Pianta recently told commissioners that the purpose of the bond was to protect the county should the developer default.
Hernando Oaks II LLP contracted with Priority Developers Inc. to build certain on-site improvements including roads, storm drainage, water distribution, sanitary sewer and other infrastructure improvements.
But the developer notified the county that Priority had failed to complete the project infrastructure and that the company was insolvent and unable to finish the work.

Reporter Michael D. Bates can be reached at 352-544-5290 or mbates@hernandotoday.com.

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