BURNET — A bond to cover road construction in an uninhabited Smithwick subdivision is on hold while Burnet County awaits some legal advice.
“We are within our rights to do it,” Precinct 2 Commissioner Russell Graeter said.
More than a year ago, The Club at Waterford partnership posted a bond — known as a “performance bond” — valued at more than $217,000 to ensure The Club paved several roads in the Waterford Club subdivision of Smithwick.
The partnership posted the bond to meet county subdivision regulations, Precinct 3 Commissioner Ronny Hibler said.
However, The Club recently filed for bankruptcy, and a “small section” of the promised road paving is incomplete, Hibler added. The commissioners may decide to finish the paving in the event a new contract cannot be settled with a new commercial contractor, Hibler said.
Meanwhile, about $13,640 of the bond posted by The Club will remain in county coffers until further notice, County Attorney Eddie Arredondo said.
“The Burnet County Commissioners Court considers The Club at Waterford to be in default of its obligation,” Arredondo added.
Also, the commissioners have asked the Allison & Bass law firm in Austin to determine whether the county can accept a new bond (known as a “replacement bond”) from a new owner to finish the paving in Smithwick, County Environmental Services Director Herb Darling told the commissioners.
The Austin attorneys are looking into the case, Darling said.
“It is an interesting situation,” he added.