ThisWeek CW 06-18-2015
http://www.thisweeknews.com/content/stories/canalwinchester/news/2015/06/15/city-seeks-deal-so-it-can-maintain-sewer-line-access.html
The city of Groveport is hoping to broker an agreement between a local homeowners association and the Indiana & Ohio Railway Co. so the city can maintain access to a sanitary sewer line that runs beneath railroad property and serves the Founder’s Bend subdivision.
Unless the city is successful — and Law Director Kevin Shannon is optimistic it will be — Founder’s Bend residents could find themselves saddled with paying licensing fees to the rail company.
Shannon told Groveport City Council June 8 he’d been made aware that developer Rockford Homes had exercised a contract clause by which it passed licensing fees on to the Founder’s Bend homeowners association. The licensing fees are due to the railroad for permitting the city sewer line to run beneath Indiana & Ohio Railway property.
According to Shannon, the amount due on July 1 is $3,035 — and that figure is set to increase by 5 percent every year, forever, with no cap.
“The development didn’t go the way it was planned and Rockford Homes entered an assignment … to put this on the homeowners association,” Shannon said. “That’s not exactly our issue, but obviously, the association is being unduly burdened … and that is our sewer line that we can’t risk losing access to.”
He said he has been in touch with representatives from the railroad who, he said, are open to negotiations with the city and to the potential of allowing the city to take over the fees.
“We already have another agreement with them where we pay about $1,400 a year. We don’t know if we can get that same deal with a cap, but it’s a starting point,” Shannon said. “The problem is that Rockford entered into this as a financial agreement between the railroad and a company meant to make ongoing profits, but then threw it off on these residents.
“It is my understanding that the railroad understands the difference between a business and a municipality that just needs to take care of its public utilities,” he said.
Councilman Ed Rarey asked if there was anything that Rockford Homes could be held responsible for, but Shannon didn’t see that as a realistic option.
“The homeowners are responsible for this until we finish a deal, but I hope I can have it wrapped up this month,” he said. “We already paid $1,000 for the application fee to make this switch, so the railroad knows there is a good-faith effort being made.
“I don’t see any reason for either side to delay this,” Shannon added. “I think ultimately, both the railroad and the residents want the city to be responsible for this.”
Council members unanimously approved emergency legislation June 8 authorizing the city to enter into an agreement with the Founder’s Bend homeowners association and the Indiana & Ohio Railway Co. so the city “has immediate access” to the sanitary sewer line.