Supervisors consider withdrawal from developer’s account

EAST FALLOWFIELD » East Fallowfield Board of Supervisors is considering withdrawing more than $300,000 from Dewey Homes’ escrow account for failing to maintain the roads in Manchester Farms.

“(The roads) are not being maintained at an accurate level, as we all know,” said township solicitor Vincent Pompo, of Lamb McErlane. Pompo was seeking approval from the township to begin the steps to demand the release of $324,128 in escrow funds.

Supervisors neared approving the withdrawal at the meeting last week, but discussed potential repercussions before determining how the money will be spent. They tabled the agenda item to develop an agreement with Manchester Farms residents and narrow down the exact cost to perform needed improvements to the development.

After months of attempting to get Dewey to cooperate, township officials say they are getting closer to taking action.

According to supervisors’ Chairman Joe Pomorski, Dewey was contacted multiple times to attend township meetings. Dewey representatives again failed to show at the most recent on Oct. 28.

The township also sent out a notice of default to Dewey and its escrow agent, First Trust Savings Bank.

Pompo said the township is seeking retribution for snow removal and street cleaning, other costs accrued by the township related to maintaining the development, as well as bringing the existing streets in the development up to code. He said all that’s being demanded are requirements of the subdivision land development agreement.

Township officials estimated the cost for improvements to the development at about $115,000. That estimate was made in August when the township explored costs to hopefully push Dewey to take on the improvements.

If the township doesn’t use the total amount withdrawn from escrow, the remaining must be returned.

Supervisors were concerned with how far into litigation re-

ments to the development at about $115,000. That estimate was made in August when the township explored costs to hopefully push Dewey to take on the improvements.

If the township doesn’t use the total amount withdrawn from escrow, the remaining must be returned.

Supervisors were concerned with how far into litigation removing funds from the escrow would take the township.

Pompo said in his experience dealing with requesting the release of escrow funds the banks are willing to cooperate. However, Dewey has a right to take the township to court or request a court order to stop the issuance of the escrow.

“I don’t see Dewey going down without a fight,” Pompo said.

Dewey could potentially argue the Development Permit Extension Act — a Pennsylvania legislation that extended time for developers to complete work without a township suspending the permit — allows it to avoid performing work on the development until it expires in 2016.

However, Pompo said the developers failed to meet the requirements of the subdivision land development agreement. He said, in this case, they are not “barred by the development extension act.”

Dewey Homes is cur- rently in court with Caln Township over unpaid repairs performed at the township’s expense to the King’s Grant Development. Similar to Manchester Farms, the roads are not dedicated and some construction remains incomplete. Caln is seeking $99,011 for “pre-judgment interest,” unpaid invoices and attorney fees.

Caln is not removing funds from the developer’s escrow.

Dewey Homes’ website indicates the Wayne-based company owns two properties in Chester County — King’s Grant in Caln and Manchester Farms in East Fallowfield — and one in Montgomery County called The Links at Raven’s Claw Golf Club.

Manchester Farms is a 110 single-family home development located on West Chester Road between South Caln Road and Misty Patch Lane.