The owners of Avery Trace Apartments was given a payment plan and an ultimatum to keep their water bill paid after racking up several hundred thousand dollars in arrears.

Port Arthur City Council on Tuesday opted to waive a $188,286.62 for the commercial account at 4020 FM 365 that was due to water leaks documented by the customer December 2022 to June 2023.

The motion to waive the bill is contingent on compliance with a 12 month payment plan in the amount of $382,495.10 for charges accrued from Oct. 22, 2022 through Dec. 30 and also payment on the current monthly water charges for the next 12 months.

The overdue water bill payment put the council in an odd spot. Under usual circumstances the city would shut off water service to a resident that fell behind in payment. But this is an apartment complex with hundreds of units representing residents that had, in faith, paid their bills to Avery Trace management.

Councilwoman Tiffany Hamilton Everfield said she wanted the community to have a good understanding of the situation in regards to the commercial account and the decisions made.

“It is immoral for you to have collected money from our residents for water payments, for their usage in addition to administrative fees and you not pay your water bill,” Everfield said in a comment directed at the apartment complex. “You have put us in a situation to either waive this amount or put a lock on the meters which now means that residents that have paid their water bill to you would not have water service.”

She called the situation wrong and unfair and likened it to stealing from the city’s residents.

Avery Trace owners had previously been offered a payment plan but defaulted, she said. 

Councilman Thomas Kinlaw III said he has a strong stance on the issue as it puts him in a situation. 

“We are talking about 200, 300 units that’s out there that the citizens of Port Arthur that actually paid their water bill. I’m totally upset about this because I have to make a decision today to ensure that their water will stay on,” Kinlaw said. “My hands are tied but it’s not at the fault of the citizens of Port Arthur that live in Avery Trace.”

Should the owners of the apartment complex default on their agreement the city could be forced to lock the water meters. They could also file a lien against the property and inform the U.S. Department of Housing and Urban Development. 

Apartment Property Management Services LLC of Florida took over management of the complex in 2023.