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City forces developers insurance to pay for bike paths

With Woodside Homes in bankruptcy court, Merced was forced to tap the developer's insurance policy to pay for $3 million in improvements to Bellevue Ranch.

The builder promised to build two bike paths with landscaping. Now, the city's forcing it to keep its word.

Through out the year, the city has "called in the bonds" after a developer failed to build the amenities that go along with the new neighborhoods.

City Attorney Greg Diaz said he never would have expected to be spending his year cleaning up after the developers. "This is highly unusual," he noted.