HomeMy Public PortalAbout1990_09_12_R223L. ~,;~£
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PRESENTED September 12~ 1990
RESOLUTION NO. 90-223
ADOPTED September 12, 1990
A RESOLUTION:
AUTHORIZING A TIME EXTENSION FOR INSTAI.LATION OF PUBLIC
IMPROVEMENTS AND APPROVING A PERFORMANCE GUARANTEE FOR
POTOMAC CROSSING SECTION lC
WHEREAS, the Potomac Crossing Corporation, the developers of Potomac Crossing Section lC,
has not completed all the required public improvements in accordance with the approved construction
drawings and town standards within the two-year period agreed to in the contract for public
improvements plus approved time extensions; and
WHEREAS, the time period authorized by the Town Council for the inst~]]stion of public
improvements in Potomac Crossing Section 1C expired on September 1, 1990; and
WHEREAS, a letter of credit from United Savings Bank in the amount of $385,740.00 was
provided by the Potomac Crossing Corporation to guarantee instm]lAtion of public improvements in
Potomac Crossing Section lC; and
WHEREAS, work to complete the public improvements is currently underway and is expected to
be finished in 4 to 6 weeks; and
WHEREAS, United Savings Bank is presently in conservatorship with the federally appointed
Resolution Trust Corporation (RTC) acting as receiver for the assets and obligations held by United
Savings Bank and has been recharted and rems,ned United Federal Savings Bank; and
WHEREAS, United Federal Savings Bank has stated that it will honor the letter of credit issued
by United Savings Bank to the full extent allowed by the contract for public improvements; and
WHEREAS, the letter of credit from United Savings Bank in the amount of $385,740.00 provided
by the Potomac Crossing Corporation to guarantee insts]lstion of the remaining public improvements
for Potomac Crossing Section lC has been renewed by United Federal Savings Bank and will expire
on November 1, 1990; and
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RESOLUTION - POTOMAC CROSSING SECTION lC
WHEREAS, the Director of Engineering and Public Works has approved the amount of
$385,740.00 to guarantee installation of the remaining public improvements in Potomac Crossing
Section lC.
THEREFORE, RESOLVED by the Council of the Town of Leesburg in Virginia as follows:
SECTION I. The renewed letter of credit from United Federal Savings Bank, approved by the
town's Director of Finance, in the amount of $385,740.00 and in a form approved by the Town
Attorney, and a time extension to November 1, 1990 for the installation of public improvements in
Section lC are hereby approved.
SECTION II. In the event the public improvements in Potomac Crossing Section lC are not
satisfactorily completed by October 31, 1990, as determined by the Director of Engineering and Public
Works, the Town Manager is hereby authorized to declare the developer in default of its contract and
the Manager is authorized to request payment pursuant to the letter of credit or other performsnce
guarantee, and to enforce all terms of the contract for public improvements.
PASSED this 12th day of September ~ 1990.
Robert E. Sevila, Mayor
Town of Leesburg
ATTEST:
C~erk of C~cil
potomac. 1C