By Myrna Trauntvein
Times-News Correspondent
Mona continues to be in the middle on a dispute
between a developer and a contractor even though they do no
want to be involved.
George Johansen sent a letter to the city to inform
them that he was going to choose the option of going to
court in the dispute between Lyn Bonner and himself as to
contracted work done and not paid for.
Bonner and Jason Ivans told council members that they
had been trying to work with Johansen on the problem but had
been unable to meet with him.
"We can stop building permits until you solve the
problem," said Mayor Bryce Lynn.
"We offered to pay one-half of the amount if he should
reduce the lean by that much but he rejected our offer,"
said Bonner.
Quinton Kay, council member, said he had offered the
city office as a meeting place for the two (Bonner and
Johansen and their attorneys) to meet. He thought a meeting
had been slated for May 31 but it did not transpire.
Ivans, manager of the subdivision project and a
partner in O'Sullivan Investment LC, said he could not meet
with Johansen on May 31 because his partner was out of town
and because he was not even notified of meeting by the
Johansen company until the day before the meeting was
proposed.
The bond guaranteeing the project was signed in July
and it is due to expire in 18 months from the signing date.
In addition, said Kay, the city may have to step in and call
a default on the bond.
"You are just nip and tuck on the bond," said Kay.
He showed Bonner and Ivans a list on items still to be
paid for by the company. If the city had to pay the debts
owed by using the bond, said Kay, there may not even be
enough to do so.
The bond amount remaining was $181,000,
The money still to be paid out included a read rebuild
on 700 South which would cost $20,000 and the several
thousand dollars Johansen has billed.
There is also an outstanding bill of $95,000 to Staker
Paving for work done on the project.
"That bill is closer to $80,000 and should be resolved
soon," said Ivans.
He said the company was working with the Bank of
American Fork and would make certain there was enough in the
bond to cover expenses in case of default.
However, he said, he had met with Staker Paving and
that bill would soon be paid and that amount would still be
in the bond so that, he said, should relieve some of the
concern.
"We will comply with the city ordinance," he said.
Ivans, also an attorney, said he would go to court in
defense of the stand taken in the Johansen dispute. All
O'Sullivan wanted was for a detailed billing to be submitted
by Johansen because some amounts charged were in
question.
"We will go to court if we have to," Ivans said.
Before a bond can be released, said Kay, the
subdivision has to be accepted. If there is still work to be
done and items to be repaired or replaced, the bond will not
be released until the work is done.
"The bond needs to cover 20 percent of the residual as
a hold over," said Kay.
Ivans said that his company had been trying to meet
with Johansen.
"For the first four months, they just blew us off," he
said.
"You agreed that we (the city) would set up a meeting
with both of you," said Harry Newell, council member.
The city had done its part but the meeting had not
taken place.
The letter the city had received, said Lynn, indicated
that meeting time was over and that Johansen had made the
decision to let the courts decide what was right and wrong
between the two disputers.
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