HomeMy Public PortalAbout1991_04_09_R080 The Town of
Leesburg,
Tirginia
RESOLUTION NO.
A RESOLUTION:
PRESENTED April 9, 1991
91-80 ADOPTED April 9~ 1991
DECLARING THE DEVELOPER OF LEESBLFRG AIRP~ BUSINESS CENTER
BUILDING "B" IN DEFAULT OF ITS CONTRACT FOR INSTAIJJATION OF
PUBLIC IMPROVEMENTS AND AUTHORIZING THE ACTING TOWN
MANAGER TO PREPARE AND SIGN THE DOCUMENTS NECESSARY TO
REQUEST PAYMENT OF THE PERFORMANCE GUARANTEE FUNDS
WHEREAS, the Ward Corporation, developers of Leesburg Airpark Business Center Building "B",
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; and
WHEEEAS, the letter of credit from The Washington Bank, provided by the Ward Corporation which
guarantees the inst~llution of public improvements in Leesburg Airpark Business Center Building "B", in
the amount of $58,500.00 will expire on April 11, 1991; and
WHEREAS, the town has received a notice of non-renewal of the letter of credit from The
Washington Bank; and
WHEREAS, the Ward Corporation has stated in writing to the town that it cannot obtain either a
renewal of the letter of credit from The Washington Bank or a substitute performsnce guarantee from
another institution; and
WHEREAS, the Ward Corporation has requested a reduction of the performance guarantee and the
town's Director of Engineering and Public Works has reviewed the public improvements installed to date
for Leesburg Airpark Business Center Building "B" and certified that the value of the work performed
exceeds $46,800.00, which is 80 percent of the initial amount; and
WHEREAS, in order to guarantee that the town will have sufficient funds to complete the public
improvements if the Ward Corporation fail.~ to complete the project, a claim for payment of the letter of
credit funds must be made.
THEREFORE, RESOLVED by the Council of the Town of Leesburg in Virginia as follows:
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SECTION I. The letter of credit from The Washington Bank in the amount of $58,500.00 is reduced
to $14,625.00, which includes the value of the uncompleted public improvements and $2,925.00 for the
maintenance guarantee.
SECTION II. The Acting Town Manager is hereby authorized to declare the Ward Corporation in
default of its contract for public improvements for Leesburg Airpark Business Center Building "B" and to
request payment pursuant to the letter of credit from The Washington Bank in the amount of $14,625.00
which guarantees the inst~llAtion of public improvements in Leesburg Airpark Business Center Building
~B~.
SECTION III. The Acting Town Manager is also authorized to prepare and execute all documents
necessary to enforce all terms of the contract for public improvements for Leesburg Airpark Business
Center Building ~B~.
PASSED this 9tl~ day of April ,1991.
ATTEST:
building, b
Robert E. Sevil~ Mayor
Town of Leesburg