Rambaut Residents Willing to Pay for Dam Repairs

A majority of the homeowners around Rambaut Lake appear ready to meet the township's conditions for assistance in getting the lake's deteriorating dam repaired.

At least 14 of 21 lakefront residents said they were willing to form a lake association and assume the financial responsibility of a loan co-signed by the township at a hearing Tuesday at Memorial Town Hall.

"We made real progress tonight," Mayor Rudy Boonstra said.

"I think we're building momentum," said Tom Buda, a lakefront homeowner.

The tally of contributors could end up being greater than the 14 who stood to indicate their interest in what the township has proposed as the best solution to the homeowners' dilemma. At least four residents who live nearby said they'd be willing to participate, and residents in attendance purported to speak for others who would assume the financial obligation.

If the future lake association had 21 members participating financially, the estimated annual loan obligation per homeowner would be $3,446, assuming a 10-year note financed at 2 percent interest, Committeeman Brian Scanlan said. The township would co-sign that loan and ensure repayment by likely imposing liens on their homes.

The township is willing to provide a meeting space for Rambaut homeowners to further discuss the possibility of reforming what was once known as Beekmere Inc., a now-defunct lake association that had overseen the privately-owned, 7.5-acre body of water. Officials indicated a willingness to send a representative or two to observe deliberations, with Committeeman Chris DePhillips saying the township has no real preference in how an association is organized, as long as it's created.

Loan possibilities, background

The $3,446 annual obligation assumes dam work would cost $650,000, per an assessment the homeowners had received in recent years that was recently reviewed and found to be accurate.

Homeowners currently face Department of Environmental Protection mandates to repair the aging dam, which assessments have stated could be breached in the event of a serious storm. Residents face the possibility of fines, and the state has threatened to remove the dam itself and effectively eliminate the lake if action isn't taken.

However, some residents currently voluntarily pay dues for lake upkeep and don't have the money or legal standing to achieve financing independently. A lawsuit in recent years, filed against residents and the township, had tried to compel nearby homeowners to contribute to the lake's finances to ensure the future of the 7.5-acre body of water.

With the suit dismissed, the township has been trying to facilitate a solution to the problem, as all officials want to find a way to save the lake. The governing body has stressed that it is not interested in mandating action—it will merely assist the homeowners.

However, residents in attendance questioned whether voluntary participation on behalf of homeowners would reach a critical mass necessary to make financial obligations palatable.

Resident Harry Immerman observed that without a township mandate, the homeowners can't compel neighbors to do much of anything.

The township acknowledges that reality but officials remained hopeful that shared interest would be enough to reach an agreement.

"You're forced to rely on the good will of neighbors," said attorney Ray Wiss, who moderated the session on behalf of the township.

While "there will always be free riders... it shouldn't stop good people" from taking action, Scanlan said. 

Resident Jonathan Strauss, who lives off the lake, tried to rally the crowd, observing that "nothing's for free in this world." If they spend their money to get the dam repaired, "everyone will receive a benefit," via their homes' market values.

The idea of a co-signed loan had emerged in a prior hearing on the matter, after the township rejected calls to take more direct involvement. Those calls continued Tuesday, with some suggesting the township take ownership of the lake and assume its obligations, while others wondered if the township would contribute some money in concert with a loan.

Charles Lieberman, a lakefront homeowner, revisited arguments he had made in the past, telling the governing body that the entire township has a shared interest in Rambaut Lake. Therefore, "the best solution is for the town to take over the property and assess throughout the town."

Although all on the committee "believe the lake has value," DePhillips said, "only certain people have a proprietary interest."

"I don't think it's fair to ask the entire town to cover the costs," Scanlan said.

Boonstra flatly told the crowd, "I sense no interest on the governing body of taking over the ownership of Rambaut Lake."

Wiss suggested that the offer to co-sign a loan was a "significant contribution," as the residents would be able to take advantage of the low 2 percent rate the township could command.

Resident Ben Margiotta suggested the loan be extended to 20 years, which would lessen the annual financial impact and perhaps compel more residents to contribute. Township officials said such notes are usually financed over 10 or 15 years but would research whether a 20-year plan is possible.

Legal association

The loan will only proceed if the homeowners agree to reform what was once known as Beekmere. Current ownership is hazy, as the defunct organization technically has title to the lake.

"A lake association definitely needs to be restarted," Scanlan said.

Boonstra said it would be next to impossible to achieve financing without a legal association, although the township doesn't necessarily have a preference in how such an association is formed.

For example, Wiss told the homeowners that they could have a tiered system of membership, depending on how many residents nearby but off the lake choose to join. The association itself could determine what type of activities are permitted at Rambaut, as well as who has access to the water.

Wiss assured the crowd that such a structure would ensure the lake remains private, and such an association would be a free-standing body independent of township control.

The attorney also addressed concerns by Immerman, who wondered what would happen should residents try to back out of the association in the future, thereby increasing obligations on the remaining members. Wiss said a deed restriction could be a condition of membership, if the homeowners so choose, to ensure the association remains at critical mass.

Homeowners plan to work with the township to find a date when a public meeting space may be available to debate their next steps.