Douglas County staff proposes $1.16 million Canyons South security draw

Douglas County staff is asking county commissioners to authorize a conditional $1,165,855.65 draw from a letter of credit securing warranty improvements in Canyons South Filing 2. The county would hold any proceeds until Engineering inspects and accepts the work for full-term maintenance, the staff report says.

The Board of County Commissioners is scheduled to consider the draft resolution Nov. 10. It would authorize the board chair or vice chair to draw the funds by Nov. 15 if the letter of credit is not extended. If the developer extends the credit through Nov. 15, 2027, before a draw, the resolution would have no further effect and no draw would occur, under the proposed resolution.

In an Oct. 5 notice, Engineering asked HT Canyons South Development, L.P., to extend the credit for at least a year and submit an amendment by Nov. 9, the county’s correspondence says. Staff said Engineering had not received an amendment when it prepared its report.

The security covers warranty improvements across all phases of Filing 2. The draft resolution says Engineering determined the developer had not completed its obligations under the subdivision improvements agreement and was in default. Under the agreement, the security must remain in place until Engineering inspects the work and grants Full Term Maintenance Acceptance. The staff materials do not specify which improvements remain unfinished.