Developer Centex backs out of deal Company financially backing project's new buyer

Robyn Rosenthal, rrosenthal@flushingobserver.com * 810.766.6310

CLAYTON TWP. - In another show of the times, one of the township's largest developers is pulling out.

Centex Homes, owner of Cole Creek Estates, announced at the township board meeting that it has a tentative agreement to sell the project to another developer. The buyer has not been disclosed.

The Township Board last week gave conceptual approval to reword a legal agreement that included having Centex pay to bring water and sewer to the site. Because there is an outstanding balance, Centex needed township approval to move forward with the sale of the property on Morrish Road near I-69.

"This project has been dynamic and I think it's been very successful, said Kenneth Bullis, who represented Centex at Thursday's meeting. "Centex is going nowhere. We're still tied to the agreement."

Bullis said Centex is financially backing the buyer. Corporate Spokeswoman Julie Hines said she could not comment on the pending sale. She said the company remains committed to its customers.

Centex is one of the nation's largest construction companies and took over plans to develop the 160-acre site after the original developer, Landon Group, sued the township to allow a 768-unit manufactured housing community. Out of court, Landon and the township agreed to a planned unit development and Landon agreed to cover the costs of bringing water and sewers to the development, a total cost of about $1 million.

In the agreement, Centex was to pay for 50 sewer tap-ins each year for eight years, up to 387 homes. Of the $2,250 tap-in fee, $958 went toward the township's $1.7-million bond indebtedness for the Western Trunk sewer line. The remaining went toward Centex's share of the sewer line.

Township Supervisor Rod Shumaker said Centex has built 121 homes so far. The first year, Centex paid for 49 tap-ins, the second year 51 tap-ins and last year 21 tap-ins. Shumaker said he learned of the possible sale after he approached Centex about the outstanding tap-ins from 2007.

Officials at this month's meeting calculated that Centex still owes the township about $238,000 on that agreement. At the meeting, Bullis said Centex is prepared to prepay for 175 tap-ins, or about $167,650. The remaining balance - about $70,000 - will be paid to the township from the remaining tap-in fees, he said.

"This whole thing was started in good faith," Bullis said of its agreement with the township. "Do you see 31 houses being built in there in the next 3 1/2 years? It's hard to predict. We didn't see this coming."

Shumaker said the agreement would ensure that the township gets the promised reimbursements, yet still allows Centex to sell.

"They have been in my opinion a very good neighbor," Shumaker said. "It's very nicely done. It's opened our community to low and moderate home purchases."

At the start of development, Centex homes were to range in price from $120,000-$180,000. Shumaker said most of the homes are around $190,000.