Town pitches in for builder's shortfalls Rt. 9 development was less than half built when builder went bankrupt BY JESSICA SMITH Staff Writer OLD BRIDGE - The bankruptcy of Kara Homes has left at least one township housing development in the lurch. With Horizons at Birch Hill left partially built and missing integral elements, and unmet expectations at other developments built by Kara, it remains unclear how or when the issues will be resolved. "The one thing we can't let happen is for this thing to stay in limbo," Mayor Jim Phillips said. "We've got to move." Since the East Brunswick-based developer declared bankruptcy in October, the matter has been in the federal court system. Township officials found it necessary to hire special counsel because of the specialized and complex nature of the issue. On Monday, the council voted to authorize the extension of legal services for up to $10,000 from Capehardt & Scratchard in the proceedings. "We just want to do everything we can to protect the residents," Township Business Administrator Michael Jacobs said. The performance bonds deposited with the town by Kara Homes are one point of contention, as officials are unsure about whether creditors will attempt to seize the monies as part of the bankruptcy proceedings, council President Patrick Gillespie said. The bonds are used to ensure that a developer lives up to its promises and builds to specifications agreed to with the township. Gillespie said town officials are doing everything in their power to ensure that the taxpayers are not burdened by the issue. In the case of the Horizons development, on Route 9, an approval was originally granted to build 253 senior homes. There are now 81 that have been built and are being occupied. The fate of the remainder has yet to be determined, though Phillips said he believes the project will eventually be taken over by another entity, which will complete the building process. "That day couldn't come soon enough," Phillips said. The remaining 170 homes are in various stages of construction, with some only consisting of the framework, and others yet to be started at all. Another issue at Horizons is the lack of infrastructure. The paving of roads has not been completed, consisting only of the rough base coat, and a sewer plant was never built, Phillips said. The development is now operating with a temporary sewage treatment system. Common areas, such as the pool and clubhouse, are only partially constructed. "It's a disaster," Phillips said. "It's more of a hazard than an amenity." The township absorbed the costs of removing large storage bins from the development, as well as putting fencing up around the swimming pool. Clearing of the roads and snowplowing were also paid for by the town. "All of the things that were supposed to be done by Kara, we did just as a matter of public safety," Phillips said. While the situation at another Kara development, Bridgepointe, off Laurence Parkway, is not as pressing as those at Horizons, residents there have expressed dissatisfaction with the builder in the past. All of the housing and amenities were built in recent years, but the homeowners' association fought to ensure that the builder did not get its performance bond back without finishing improvements such as landscaping and sidewalks. Residents of Kara's Farrington Ridge, off Route 34, raised the same concerns in 2005. Phillips said it has been an uphill battle trying to make the developer finish its projects. "All of this is a major pain in the neck for everyone involved," Phillips said.