HomeMy Public PortalAbout1991_10_09_R232The Town of
Leesburg,
[/irginia
RESOLUTION NO. 91-232
A RESOLUTION:
PRESENTED October 9, 1991
ADOPTED October 9, 1991
DECLARING THE DEVELOPER OF THE UNION COURT SECTION I
SUBDMSION IN DEFAULT OF ITS CONTRACT FOR INSTAIJ.ATION OF
PUBLIC IMPROVEMENTS AND AUTHORIZING THE TOWN MANAGER TO
PREPARE AND SIGN THE DOCUMENTS NECESSARY TO REQUEST PAYMENT
OF THE PERFORMANCE GUARANTEE FUNDS
WHEREAS, Patterson Place, Inc., developers of Union Court Section I, 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
WHEREAS, Patterson Place, Inc., has requested a one year time extension for completion of the
remaining bonded improvements; and
WHEREAS, a letter of credit from Sovran Bank was provided by Patterson Place, Inc., which
guarantees the installation of public improvements in Union Court Section I in the current amount of
$37,684.00; and
WHEREAS, the town has received a written notice from Sovran Bank stating that the letter of credit
will not be renewed beyond the maturity date which is October 14, 1991; and
WHEREAS, Patterson Place, Inc., has stated to the town that it cannot obtain a substitute
performance guarantee from another institution; and
WHEREAS, in order to guarantee that the town will have sufficient funds to complete the public
improvements, if Patterson Place, Inc., fails 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:
SECTION I. The Town Manager is hereby authorized to declare Patterson Place, Inc., in default
of its contract for public improvements for Union Court Section I and to request payment pursuant to the
letter of credit from Sovran Bank in the amount of $37,684.00 which guarantees the installation of public
improvements in Union Court Section I.
SECTION II. The Town Manager is also authorized to prepare and execute all documents necessary
to enforce all terms of the contract for public improvements for Union Court Section I.
A RESOLUTION:
-2-
DECLARING THE DEVELOPER OF UNION COURT SECTION I SUBDIVISION
IN DEFAULT OF ITS CONT1L&CT FOR INSTAI,LATION OF PUBLIC
IMPROVEMENTS AND AUTHORIZING THE TOWN MANAGER TO PREPARE
AND SIGN THE DOCUMENTS NECESSARY TO REQUEST PAYMENT OF THE
PERFORMANCE GUARANTEE FUNDS
PASSED this 9th day of October, 1991.
ATTEST:
Clerk of Council
Robert Sewla, Mayor
Town of Leesburg
union.crt