Conway Daily Sun
10/1/2004

No bond, says Army Corps

Corps lawyer: We're not in the business of bonding construction projects

Nate Giarnese

TAMWORTH—The U.S. Army Corps of Engineers will not require Club Motorsports, Inc., the developer of a proposed racetrack, to post a bond for the cost of potential environmental restoration.

"We're not going to require a bond," said Army Corps attorney Michael Hicks. "We're not in the business of bonding construction projects."

The citizens' group Focus: Tamworth announced recently that they would ask the Corps to require CMI to post a bond to pay for environmental restoration, should the Derry developer abandon its 251-acre motorsports park project due to cost overruns. The group fears restoration costs would fall onto taxpayers. Developers say they will complete the park's construction on the side of Mt. Whittier in Tamworth at any cost, while standing by their original estimate of $28 million.

Hicks said his office has no history of adding a bond clause to an Army Corps permit. Usually, according to Hicks, local boards will take up any bonding issues. "I asked around and I couldn't find anybody that had heard of us ever requiring bonding a project. "Requiring bonding is an issue for local people to deal with local permits," he said.

"We are involved in environmental evaluation, not financial evaluation," Hicks said. "I know people up there are concerned about this guy," he said, referring to CMI President and CEO Stephen Condodemetraky. "We legally can't take sides, but we didn't go in with blinders on.

"So far as we know, he has the financial means to do the project. He invested a lot of money in legal fees," Hicks said. "We interpret him as a serious developer."

The citizens' group had planned to make its request at the October 6 public meeting in which The New Hampshire Department of Environmental Services and the Army Corps will jointly hear pubic comment at 7 p.m. at the Kenneth A. Brett School in Tamworth on a permit application by Motorsports Holdings, LLC to place fill in wetlands and streams pursuant to the Clean Water Act. Speaker registration will begin at 6 p.m.

The federal permit review will consider whether or not the proposed Valley Motorsports Park and road course will acceptably impact noise level, dust, safety, wildlife and the Ossipee aquifer. According to the Corps the impacts must be minimal.