After extensive meeting with the Red Lodge City’s bond attorney last Thursday, Mayor Ed Williams told the City Council, Tuesday, he has decided to delay the Special Improvement District (SID) plans for the Country Club Estates to help improve the roads there. Williams cited difficulties in accomplishing “all the necessary tasks and improvements finished prior to the potential cold weather.”
The City also has to contact the Carbon County Treasurer for a percentage of taxes that are either, delinquent or late.
“These are crucial in the assignment of the assessments to those buying the bonds,” said Forrest Sanderson, Community Development Director.
The Montana Appraisal Division will also need to be contacted to provide the City with the names, property evaluations and land within the district.
“Although SID will benefit the residents, the City’s credit rating stands behind that district, but if people in that district didn’t want to pay, the City becomes the fee simple owner through a tax deed. But the City’s general, or obligated other funds such as Resort tax, would be liable for retiring that debt. The Bond Council stressed we get a proposed district boundary map out,” said Sanderson.
“Creation can happen quickly, but if you take the time to consider, you’ll end up with a better product, with bonds more merchant friendly, and at lower interest rates. In the long term it will save the residents and city money,” said Sanderson.
The matter was raised at the June 10 Council meeting because during this past winter the plows started to dredge up pieces of paving on the roads in Country Club Estates. The paving that is coming up is about half the thickness of what is typical in Red Lodge. The Mayor said at that meeting the base of the roads in the Estates is "very, very good." He said there is a lot of moisture penetration under the roadbed that is causing a lot of the problems.
The estimated cost will run to $1.4 million in order for this to comply and the cost will be directed to residents of the district, which equates to approximately $1,500 per lot for each and every lot platted in Country Club Estates and includes Di amo n d C Links.