With Focus Property Group the Successful Bidder, Will that Fact Change the City's Position on Pulte's Mandate to Construct that Off-Site Road? We Asked the City.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

       This is in follow up to our recent interview with John Ritter, CEO of Focus Property Group (Interview). We would like to further update the community on the status of Pulte's agreement to construct a portion of Bicentennial Pkwy. and Maryland Pkwy. to the west of Sun City. That portion of those parkways is shown in the map at the bottom of this page by way of the heavy black solid line and labeled in the accompanying Legend "NEW  ACCESS ROAD."

    We recently corresponded with the City of Henderson on how the City viewed the terms of the Pulte's Annexation Agreement on constructing those off-site access streets in light of Focus Property Group becoming the successful bidder on that 1940 acre parcel to the west of Sun City. Would (or could), we wondered, the City change its mind about the terms of their Agreement, thereby possibly letting Pulte off the hook to construct those streets? After all, everyone had expected Pulte to be the successful bidder. Since Pulte was now the unsuccessful bidder, it was not clear whether that fact would alter the City's position on Pulte bearing the obligation to construct those off-site streets. To find out more, we asked for the City's position on this matter?  

        In an exchange of  communications with Liza Conroy, Assistant City Attorney, she wrote of the City’s agreement to what we understood were the terms of the Annexation Agreement insofar as Pulte’s off-site roadway construction obligations were concerned.

 

 

 

         In our correspondence to the City, Liza Conroy

 agreed with what we had

written below: 

 

 

 

        

        “I do not see anything in your response which would preclude

        Pulte from having to assume complete financial liability for that

        portion of the [off-site road] work covered by the Agreement,

        whether Pulte or Focus (or their subcontractor) actually performs

        the work called out under the Agreement. Whether or not Pulte and

        Focus come to a different and mutually agreeable financial

        arrangement, I would assume, is strictly between those two

        parties.” [E-mail to Liza Conroy.]

According to Liza Conroy, the City believes that Pulte and Focus will want to work together to produce a mutually beneficial result. Regarding the construction of a defined portion of Bicentennial Pkwy. and Maryland Pkwy. on that 1940 acre parcel pursuant to the Agreement, Liza Conroy wrote as follows: 

         “The Pulte obligation is in addition to the Focus obligation [to

        build the streets within their proposed development.] The City

        required it because it was unknown who the ultimate buyer of the

        1940 would be and it was also unknown what the construction

        schedule would be.  So, the Pulte obligation was put into the

        annexation agreement to guarantee that the access street would be

        built in accordance with a construction schedule for homes built

        by Pulte.  In other words, there is no obligation for a buyer of

        land to build a road until such time as the land is developed.

        Since the City could not know what the construction schedule for

        the 1940 acres would be or even who would own it when it

        negotiated the annexation agreement with Pulte, the City

        guaranteed the construction of the street by Pulte, even if Focus

        never built anything on their land.”

 

         “However, the real key to this road is its alignment.  Bob

        Wilson's comments are directed at the likely scenario that Focus

        and Pulte will work together on an alignment that will best serve

        Focus's interests in establishing their plan of development (the

        layout of neighborhoods and subdivisions) since the street will

        be on Focus's land.  However, Pulte is obligated to make sure the

        road is built based on their construction schedule, not Focus's.

        So, if Focus doesn't build or work with Pulte, then Pulte will

        lay out a roadway alignment which, if the City approves it, will

        be built by Pulte.  We see them working together, however,

        because it benefits both of them.”  [E-mail from Liza Conroy.]

      Just prior to Conroy's response, Bob Wilson had written: "As things are currently progressing, there seems no reason to believe the terms of the annexation agreement will not be met." Following that dialogue, which included his discussion of the street alignment issue, Liza Conroy sought to clarify and expand on the City's position as reflected above.

    For further information on this general topic and related matters, visit our Commentary Menu page. Commentary Menu Page

Ron Johnson

5 September 2004
 

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