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Lae Vega* - September 20, 1968 |f W 23-1-51 Mr, S. £. Bennetts ( oo - Mr. Vfm. Reinhardt Mr. 0. It. Cory) Your letter September 1 5 , file 36-15* trans­mitting propoeed agreement with Philip A. Shipley and associates to cower extension of water mains into Orest-wood Homes tract, under Role 9-A* the agreement was presented to the subdiwiders for execution and, after conference with their Attorney, It. Governor Clifford A. Jones, the subdiwiders request the following changes. (1) Article XI, Paragraph 21 they state that the largest portion of the ooet oowere the 2550 feet of 8-inoh approach piping along Charles ton Boulevard to the tract} and that refunds are U n i t e d to revenues reoeived from the first three blocks. Only 3 6 houses eould be constructed in the first thrss blocks and w i t h this re­striction they eould never get back even a reasonable portion of the cost, they ask that refunds on subsequent houses conetrueted he also applied to this refund, X recognise the fairness of their request, but do not see how w e ean make reference in this contract to a second contract w h i c h does not yet exist. The original plan was to make one contract to cover the entire con­struction, but at their request, for convenience in financing, we divided the water main installation into 2 parts. (2) Article XXX, Paragraph 3# regarding es­timated cost* the subdiwiders draw attention to the fact that this provision places the contract on a oost-plus basis, to which they object on the basis that they have made some commitments to their associates on the total cost of constructing on facilities in the tract and this might run the water main cost up to an unreason­able figure. X have advised them that wi§ do not antici­pate an expend!ture over the estimated oost of $5 9 6 5 .00, which inoludes a oontlngenoy item, the uttuaed portion or which will be refunded to them. However, they state they would prefer flat contract and w e can return the unused