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_I <br />JAN <br />2 1985 <br />BOOK <br />14 8 <br />reserved and paid for <br />69 taps in the North Beach Water <br />Company. <br />Attorney Henderson felt the Board is associating bad faith with <br />mere delays in construction, and he wished to assure them that <br />the delays that have taken place have been a result of the water <br />problem and also the financing requirements for the entire 69 <br />unit project. He pointed out that most construction lenders <br />require presales, and presales generally are based on having a <br />unit to show. The two units being constructed are being built <br />out of pocket without financing, and there currently is a valid <br />building permit with construction taking place. <br />Commissioner Scurlock asked how it is that projects such as <br />Bay Tree and some others have been able to proceed in spite of <br />the water problem. <br />Attorney Henderson noted that they had a temporary reverse <br />osmosis plant, and water was not the only problem. He felt if <br />the Board is going to start cancelling site plans, they should do <br />so only on a showing of bad faith. He disagreed with Attorney <br />Brandenburg's views and questioned the ability of the Board to <br />take away vested property rights. He also felt the money spent <br />should be taken as an evidence of good faith, and they have <br />expended over $200,000 including the water, not to mention <br />engineering, and soft costs. Attorney Henderson informed the <br />Board that both Mr. Cairns and his construction supervisor, Rick <br />Taylor of Rux Construction, are present to answer questions. He <br />further noted that plumbing was recently inspected and approved, <br />and the foundation and footings were inspected and approved in <br />1983. <br />Commissioner Scurlock asked Mr. Taylor if he has a contract <br />to complete the units, and Mr. Taylor replied that he has a <br />letter of intent, not a formal contract, but the letter states <br />that a contract will be written in the near future. He stated <br />that at present they are in the process of working out some of <br />the fine tuning as to what actually is going in the units, and he <br />is being paid on a cost-plus basis. <br />58 <br />M M <br />