HomeMy Public PortalAbout1991_10_09_R221'The Town of
Leesburg,
l Tirginia
PRESENTED October 9, 1991
R~SOLUTION NO. 91- 2 21
ADOPTED October 9, 1991
A R~SOLUTION:
AUTHORIZING SUBSTITUT~ AGReEMeNTS AND APPROVING SUBSTITUT~
PERFORMANCE BONDS FOR TAVISTOCK FARMS SECTIONS 1, 3, 4, §, 6, 7,
10, 11 AND 12; 13, 19, 20 AND 21; 14, 18, OFFSIT~ WATERLI1N-~, AND
OFFSITE SANITARY SEWER
WIq_g~, the Town Council approved letters of credit from Perpetual Savings Bank, FSB as
performance guarantees for various sections of the Tavistock Farms Planned Residential Development
in the omounts listed as follows:
Section 1 $ 180,000.00
Section 3 40,426.00
Section 4 122,400.00
Section 5 117,498.00
Section 6 200,556.00
Section 7 400,000.00
Section 10 725,403.00
Sections 11 and 12 882,694.00
Sections 13, 19, 20 and 21 1,637,094.00
Section 14 230,878.45
Section 18 356,004.00
Offsite Waterline 50,663.00
Offsite Sanitary Sewer 31,281.00
WHEREAS, SAD Realty Corporation, the new owner of the Tavistock Farms Planned Development
as a result of a loan foreclosure, has presented new contracts for installation of public improvements
and new corporate surety bonds from the Homestead Insurance Company of New Jersey to replace
the contracts and letters of credit provided by the Tavistock Farms General Partnership, the former
owner, in the same amounts as listed above for each section; and
WHEREAS, although the Homestead Insurance Company has an A6 Best Key Rating they do not
meet the town's minimum requirements for a surety; and
WHEREAS, corporate surety bonds issued by Homestead Insurance Company as performance
guarantees for public improvements are accepted by neighboring northern Virginia jurisdictions
including the Loudoun County Sanitation Authority; and
WHEREAS, Perpetual Savings Bank, FSB, the owner of SAD Realty Corporation, has entered the
Accelerated Resolution Program administered by the Federal Office of Thrift Supervision and is unable
A RESOLUTION:
-2-
AUTHORIZING SUBSTITUTE AGREEMENTS AND APPROVING SUBSTITUTE
PERFORMANCE BONDS FOR TAVISTOCK FARMS SECTIONS 1, 3, 4, 5, 6, 7,
10, 11 AND 12; 13, 19, 20 AND 21; 14, 18 OFFSITE WATERI.INE, AND
OFFSITE SANITARY SEWER
to renew or extend the letters of credit issued as performance guarantees for Tavistock Farms beyond
the current expiration dates; and
WHEREAS, SAD Realty Corporation is unable to obtain any surety bond or letter of credit other
than the surety bonds from Homestead Insurance Company due to the financial status and pending
Federal Government takeover of Perpetual Savings bank; FSB; and
WHEREAS, when the Federal Resolution Trust Corporation (RTC) takes over the assets of
Perpetual Savings Bank, FSB, in accordance with the Accelerated Resolution Program, the letters of
credit can be disaffirmed (cancelled) by the RTC; and
WHE~, the Town Attorney, Director of Finance, and Director of Engineering and Public
Works recommend acceptance of the corporate surety bonds from Homestead Insurance Company as
performance guarantees for the above listed sections of Tavistock Farms because of the pending
takeover by the RTC of Perpetual Savings Bank~ FSB.
THEREFORE, RESOLVED by the Council of the Town of Leesburg in Virginia as follows:
SECTION I. The Town Manager shall execute new contracts for installation of public
improvements with SAD Realty Corporation for the sections of Tavistock Farms listed below.
SECTION II. Corporate surety bonds issued by Homestead Insurance Company as performance
guarantees for the installation of public improvements in various sections of Tavistock Farms in a form
approved by the Town Attorney in
the amounts listed below are hereby approved:
Section 1 $ 180,000.00
Section 3 40,426.00
Section 4 122,400.00
Section 5 117,498.00
Section 6 200,556.00
Sect/on 7 400,000.00
Section 10
Sections 11 and 12
Sections 13, 19, 20 and 21
Section 14
Sect/on 18
Offsite Waterline
Offsite Sanitary Sewer
725,403.00
882,694.00
1,637,094.00
230,878.45
356,004.00
50,663.00
31,281.00
A RESOLUTION:
-3-
AUTHORIZING SUBSTITUTE AGREEMENTS AND APPROVING SUBSTITUTE
PERFORMANCE BONDS FOR TAVISTOCK FARMS SECTIONS 1, 3, 4, 5, 6, 7,
10, 11 AND 12; 13, 19, 20 AND 21; 14, 18, OFFSITE WATERLINE, AND
OFFSITE SANITARY SEWER
SECTION III. The public improvements shown on the plans approved by the Director of
Engineering and Public Works for the sections of Tavistock Farms listed in Section I above, shall be
completed by June 24, 1993 in accordance with the terms of the contract for installation of public
improvements.
SECTION IV. The letters of credit issued by Perpetual Savings B~k~ FSB and provided by the
Tavistock Farms General Partnership for the sections of Tavistock Farms listed in Section I are
hereby released.
PASSED this 9th day of October , 1991.
ATTEST:
Clerk of Council
tavistock. 134
Town of Leesburg