Crown Harbor Homeowner Association

Date: April 21, 2013
To: Crown Harbor Board of Directors
From: Dave and Gene: CH Eastern Property Committee

We met with Jessica Grossman from Tim Lewis Comminutes regarding their requests for drainage easements for the Neptune Beach/McKay property next door. It was a productive meeting, and we discussed the both the historical and proposed easements the proposed 49 unit development residential development.

The Easement: First we need to emphasize that the two new drainage easements are not new pipes. We went over the maps of the existing drainage piping. We should point out that there is additional piping up on the north end of the Government property. We will be getting a copy of those as soon as Jessica gives us a more descriptive map. There are several things about the piping and proposed easement that are important.

1. History: The drainage easements were put into place at the time our HOA was created. Half of the McKay property drains to the west. The other half drains towards McKay Street. When the GSA (General Services Administration) split off the property on the south end of the site, two drainage pipes where on the site and drain into the main drains on our property. Those pipes have been functioning since the time our drainage lines were put in place as part of the original development. Prior to our project the government land probably drained directly into the Bay. Therefore, the proposed use does not do something new.

2. Legal Transfer of the Easement from the GSA (General Services Administration) to Tim Lewis Communities: We discussed the question of what legal rights we had regarding the new proposal. Of course Jessica insisted that the transfer would stand up in court. The Committee was not certain and would suggest to the Board that we get our own legal opinion. We were not eager to incur the costs but would like to know for sure what the legal status is. We are having difficulty tracking down documents that show the easement and any agreements entered into between GSA and the original developers of the property. It is possible that the existing pipes constitute a grandfathered easement. Those easements could stand, and we would have no recourse.

3. There will not be Additional Flow into the Drains on Kings: The new development will not add to the load of water in the drains from the existing properties. In fact, because it is proposed to be residential and not the parking lot, it is likely there will less surge type run off. Landscaping and lawns tend to hold more water and new State laws require puddle and ponding sites. The water is also likely to be cleaner than what comes from the parking lots today.

Indemnification: We had a lengthy conversation regarding legal liability in the event that the main drains get clogged and do not flow. We want assurances that Tim Lewis Communities would help maintain the main pipe on Kings. We also wanted an agreement with the new HOA that we would not be liable for any overflows or flooding on the new property. Jessica indicated that they would work on something to alleviate our concerns.

What do we want on the Property? At some point we have to decide what suits our interests on the property. The Board needs to discuss the options again.