The sponsor of a housing development will compensate homeowners at The Villas of Chautauqua Point for repairs to the road leading into the Town of Chautauqua development and other improvements, under a settlement with the state Attorney General's office.
Chautauqua Point Development Corp. will turn over to the local homeowners association 23 vacant building lots, which have a value estimated between $250,000 and $350,000, state officials said. Money generated from the sales will fund the repairs. The settlement amounts to an average of $14,700 to $20,600 per unit owner.
State investigators said they found "significant defects in the property that were not disclosed in its original offering plan." The road serving the property was supposed to be 16 feet wide with a 12-inch gravel base, but was actually 12 feet wide with a 6-inch base of sand and gravel, they said.
Other problems included failing retaining walls and an improperly functioning drainage system, state officials said.
The development, which was begun in the late 1980s, has sold 17 of its 40 proposed lots, said Dustin Nelson, an attorney representing the sponsor. "The settlement was fair and everybody cooperated to try to bring it to some reasonable resolution."
Charles McBride Jr. became the owner of the development company following the death of his father in 1993.