Council denies release of performance bond
Residents irked about flooding; company exec upset with delay
BY REBECCA MORTON Staff Writer

MARLBORO - Residents of Station and Crine roads applauded the Township Council on May 15 after the members of the governing body refused to release the correct performance bonds in relation to Centex Homes' development of Highland Pointe (Marlboro Pointe).

Performance bonds are posted by the developer of a property while construction on a project is continuing. The bonds guarantee that the project will be completed as approved by the municipality, or the town may use the funds from the bond to complete the work that was left undone. The performance bonds are released to the developer after the project has been completed to the municipality's satisfaction.

According to the resolution which denied the release of the bonds, the original performance bonds were issued for Calton Homes, the original developer ofMarlboro Pointe, off Station Road.

Centex Homes acquired the development in 1999 and the original performance bonds were replaced.

Former council members passed a resolution to release the original performance bonds in 2002, however, the numbers were incorrect and the replacement numbers were needed. The Marlboro Pointe project was completed and reports had been received from Centex Homes' engineer and the former township engineer dated 2002 recommending the release of the performance guarantees.

The resolution to release the correct bond numbers was to be heard at theApril 24 council meeting, but after hearing the concerns of resident Tom Corrado, of Station Road, the council members decided to table the matter.

Homeowners flooded Town Hall for the May 15 council meeting when a discussion was held on the pending release of the bonds. Many residents addressed the council during the Citizens Voice portion of the meeting. Armed with photos and documentation, the residents described the flooding problems they have endured since the housing development was built.

Describing the flooding as a deluge of water, residents of Station Road said water as deep as 4 feet engulfs their yards. Corrado presented pictures of the flooding; some of the photos appeared to show that a local brook will soon be providing the water for his in-ground swimming pool.

When the council members took up their discussion on the matter, Councilman Frank LaRocca noted that he had asked for more information regarding the release of the performance bond at the previous meeting when the item had been tabled. He said the requested information had not been delivered.

LaRocca also expressed his aversion to Centex Homes' attorney's reaction to the residents who spoke onMay 15. The councilman said he watched as attorney Matthew Ceres rolled his eyes and huffed each time a resident stood up to speak about the flooding issues they are facing.

LaRocca, who is an attorney, told Ceres, "I don't appreciate it and the residents don't appreciate it."

Considering the condition of the land six years ago when the performance bonds were expected to be released, Councilwoman Randi Marder said she could not imagine the water problems being much better at the time.

"Had I been sitting here six years ago I would have voted no," Marder said.

Council Vice President Steve Rosenthal said he would like to see Centex Homes and the township agree on a way to address the situation.

Noting that the residents were right in saying the council's job is to protectMarlboro's citizens, Councilwoman Rosa Tragni said it was not in the town's best interest to release the bonds.

Mayor Jonathan Hornik, who does not vote on council business, said, "Even if this is a technical snafu, I'm not sure it is or is not, but I don't think the council should be releasing anybody at this point with the degree of flooding and problems we have in this town."

The council then voted 4-0 to deny the release of Centex Homes' performance guarantees.

Council President Jeff Cantor was absent from the meeting.

In a subsequent interview, Robert Fourniadis, senior vice president of Centex Homes, told the News Transcript that there are no deficiencies to speak of at the development, as former Marlboro officials had approved bond releases for the property on two separate prior occasions.

All of the inspections had been completed four years ago and the council at the time passed a resolution to release the bonds. Fourniadis said Centex Homes then had a maintenance guarantee with Marlboro for two years, which also was released by the council.

If there were problems with the land they should have been discussed before the maintenance guarantee was given, Fourniadis said, adding that if problems had arisen during the two-year maintenance guarantee period then that, too, should not have been released, but it had been.

The Centex Homes executive said he is hoping that neither side will have to incur any unnecessary legal costs over the current matter.