"Now my investment is possibly in jeopardy," he said. "I don't know what's going to happen. And I said, 'Could you give me a guarantee?' and the board said, 'There is no guarantee.' I can guarantee if you don't build the house that it's not going to change the situation now."
Poleto said that building a house in that space will only make the situation better for the neighboring residents as he would build a catch basin at the bottom of the hill and add a second gutter to reduce the amount of run-off.
"You'll cut the water flow by 30 percent," he said. "It will definitely be a better situation with the house being there."
It did not convince Tallmadge, however, as he said that adding a catch basin and a double gutter is simply identifying that there is a drainage problem, and he said building a raised ranch would make the rest of the neighborhood look awkward.
"If you have to go through that much trouble to divert the water then you probably shouldn't be building on it," he said. "Plus, it's going to look goofy because all the houses are built in an old style and then they're going have this brand new house. It's not good for the neighborhood."
Tallmadge said his neighbors have had water flow into their newly built garage even though they are above where the lot is located. He said that if water is flowing there, then the situation will only be worse for him.
Clifford Raeihle, a resident at 25 Arcadia, has lived on the street for the past 10 years and said he has experienced problems with the sewer, which is directly across from the lot, overflowing, as well as the road being constantly torn up.
"The street's been torn up about 10 times in the 10 years that we've lived here," he said. "They're constantly digging up the road because of water problems."