Port of Allyn, housing developer negotiate contract

Port of Allyn commissioners are taking a “time out” on signing a water connection agreement with MTT Construction, Commissioner John Sheridan said at Monday’s special meeting to discuss the contract.

“We are not going to make any decisions today” Commissioner Judy Scott said.

MTT plans on buying lots in the Allyn plat from Batjack Holdings, J & J Development and Cedarland Homes, all governed by Joseph Cedarland, according to state corporate filings.

Cedarland called the contract “burdensome” at the meeting.

“There’s no way as a builder I would sign that document,” Cedarland told commissioners.

He said he has been in real estate development for 25 years in multiple cities and counties and has not seen the type of bonding requirements the port is asking for in the contract.

“That’s for public works type jobs, in a city where you’re tearing up public streets,” he said.

Mason County just approved two sewer line extensions for another project of Cedarland’s with no bond required, he said.

The proposed contract asks MTT for a maintenance bond.

“Developer shall provide a maintenance bond in the amount of ten percent (10%) of the construction costs as documented by Developer, but in no event in an amount less than Three Thousand Dollars ($3,000.00) per ERU. The maintenance bond shall guarantee that the Extension Infrastructure transferred to Port by bill of sale shall remain free of defects and in proper working order without the need for maintenance for two (2) years after Final Acceptance of the Extension Infrastructure by Port and shall be in a form acceptable to Port,” according to the contract.

The agreement states “the developer or Cedarlands, its predecessor in interest” was denied water service by Washington Water and Lakeland Water Company.

“In the case of MTT Homes, there’s no reason they should have any burdensome requirements put on them because that line extension was inspected by the port, the pressure test was overseen by the port’s engineer, and Lary Coppola, the past director signed off on it,” Cedarland said.

He said the contact’s requirements caused difficulty for small businesses, especially while the real estate market is “challenging” and interest rates are high.

MTT requested the water in May and the contract has just been drafted, Cedarland said.

“That’s a long time,” he said, calling the proposed contract a “roadblock.”

Scott said the port will meet with its attorney after the meeting regarding the contract and any changes would have to be approved by counsel.

Commissioners authorized Executive Director Travis Merrill to present a new draft contract to MTT, if advised, after he spoke with the attorney.

After the vote, Cedarland said he wondered why the water connection agreement was being held up.

“It’s not being held up,” Merrill said.

He explained that the port gave MTT water availability letters a few weeks ago.

“They just didn’t agree with the conditions,” Merrill said.

“As a port we must do our due diligence by law,” Scott said.

“We’re not trying to throw you guys under the bus,” she added. “We also have to protect the municipality.”