Professional Documents
Culture Documents
Sanders Pond Road
Sanders Pond Road
SANDERS POND – PROPOSED ROAD
Hello,
As you probably know, RBF Construction has been negotiating with Mundy Township to provide a
secondary entrance to the Sander Pond subdivision. In recent years RBF has been low bid and
successfully completed several projects in Mundy Township, so we were approached by former
township supervisor, David Guigear, last fall for potential alternative solutions to provide paved access
to your subdivision. The township was unsuccessful securing an easement to Linden Road from the
egress out‐lot in Sanders Pond. It is our understanding a proposal to pave Cook road was voted down
despite majority support from the Sanders Pond residents. Cook road also didn’t provide secondary
access for emergency vehicles.
Over the winter RBF secured options to purchase the two parcels of property between Sanders Pond
and Linden Road. We then provided a cost estimate to the township which went through several
revisions and is still being negotiated. The first proposal was presented at the board meeting on April
22nd.
A lot of comments and concerns have been expressed about the current proposal. Namely, why should
Sanders Pond residents pay for a road that benefits a private developer. Without question, RBF
Construction is a for profit business. It is our understanding an independent estimate was provided by
Rowe Professional Services for a similar Linden Road access route. The township has not provided us a
copy, but it is our understanding we are significantly lower than the estimate obtained before our
involvement with this project. The reason we are lower is due to the value created by developing
potentially 14 buildable lots in a desirable area. We have factored this into the proposal and if approved,
RBF Construction will be going out of pocket to construct the road and will not see a return until we
build and sell houses on the new lots.
This is a unique situation and it does not allow for public bid. We believe we have provided a balanced
compromise to benefit the Sanders Pond residents, current land owners, and RBF as the developer. The
only feasible alternative at this point is for the township to force its hand and take property by eminent
domain. From experience, that is not a pleasant procedure, but it is a viable option. However, court is
never quick and never cheap. If successful, the township will have to pay legal fees and 125% of the
appraised land value. They will then have to pay an engineering firm to design, bid, and provide
construction services. As an engineer, this usually runs 7‐10% for design and another 5‐7% for
construction (in the ballpark of $150,000 for this project). RBF provided a cost of $37,200 for all
engineering and surveying. This is part of the sweat equity we are using to make the numbers work. As a
township, the legal and engineering fees would be non‐refundable up to the point of bidding. Currently,
contractors are busy and prices have been exceeding the engineers estimate. There is potential a
traditional approach would yield better results, but also a potential it could cost a lot of money to find
out RBF already had the best bid.
We are also approaching this project with open ears. After the first meeting some of the complaints
made a lot of sense. We proposed a 7” concrete road with 6” limestone base that exceeds county
standards. We did this to extend the SAD (tax levy) over 20 years instead of 10 to reduce the monthly
cost to Sanders residents, but this increased the overall price. The county is obligated to maintain the
road after installation, so we have provided alternate bids for the minimum concrete and asphalt
specifications. The minimum asphalt road will reduce cost by $105,000, bringing the total SAD down to
$868,550. Depending on the duration of repayment and interest rate, the township will be calculating
the potential annual cost per resident.
As explained to us by the township attorney, the SAD rules do not allow assessment of future lots. This is
the reason the existing property is only assessed for two units rather than the 14 proposed lots. It also
only gives VETO power to the two current land owners, although that does not mean the township
board has to approve the road. Publicly elected officials are not known for going against the will of the
people. While the SAD rules are an obvious benefit to us as the developer, we understand it’s not fair.
RBF has suggested making the future 14 unit condominium association responsible for their fair share of
the road. If legally possible, we would support obligating the new homes to a monthly road fee equal to
the individual SAD cost.
Some have objected to the extension of sewer using township money. For new road construction, it is
not uncommon for a municipality to extend utilities in conjunction with road construction. However, the
township recognized this is not a direct benefit to Sanders Pond residents, so they pulled this cost out of
the SAD and we understand they are proposing to use current surplus funds from the sewer budget.
Again, this was factored into the cost of the project. Without sewer, the 14 lots are not possible and the
project is not tenable.
Regarding RBF Construction’s relationship with existing board members, we prefer to work close to
home. It’s not uncommon to encounter a friend or relative in a position of power. Understandably, the
optics will always look bad in these situations. I work with my brother‐in‐law and my father. My cousin
and aunt are on the township board. RBF has been negotiating with the township supervisor, who is
new and this is our first potential project working with him. The board members were not informed of
our road proposal until the packets were sent out for the April 22nd meeting. My cousin is the son of a
former township board member who owns one of the parcels needed to access Linden Road. While the
nepotism is ripe, it’s also one of the advantages we had to secure the option on the property at a
reasonable price. He trusts us and is willing to wait until the property is developed before he gets paid.
My cousin, who I see once a year at Thanksgiving, has already recused himself from voting as did my
aunt, who I see nearly every week at my grandma’s for lunch, but she’s so honest a dump truck full of
diamonds wouldn’t even turn her head.
Regarding RBF Construction’s reputation, the company was formed in 2010. We have grown steadily
over the last 9 years, pulling ourselves out of the recession based on performance and workmanship.
Nobody is perfect, but the vast majority of our clients, both private and municipal, are happy with our
work. We have successfully completed projects with nearly every municipality in the county and beyond.
We employ a versatile staff qualified in municipal, commercial, industrial, and residential construction.
Staff experience includes decades of general contracting, along with civil engineering design and
inspection. We self‐perform sewer, water, storm, excavation, foundations, valve and pump
replacement, land balancing, road development and construction, and chemical feed and storage
systems. If the public will supports our proposal, we look forward to providing our services.
Whether for or against, please attend the next township meeting on May 13th at 7:00PM. Please note, the board
cannot vote to approve the SAD at this meeting. It is an opportunity for discussion and public comment. RBF will
be there with open ears.
Regards,
RBF Construction, Inc
Brett A. Jory, P.E.
Vice President