HomeMy Public PortalAbout1992_02_25_R024The Town of
Leesburg,
lnla
RESOLUTION NO.
A RESOLUTION:
PRESENTED February 25~ 1992
92-24 ADOPTED February 25~ 1992
APPROVING A SUBSTITUTE PERFORMANCE GUARANTEE FOR PAXTON
SECTION 2
Section 2 is hereby setatoneyear.
PASSED this 25th day of February,
ATTEST ..
Clerk of Council
1992.
R~bert E. Sevila, Mayor
Town of Leesburg
WHEREAS, Council Resolution #92-7 approved a cash performance guarantee in the amount of
$187,966.60 as security to guarantee installation of public improvements by the Paxton Development
Corporation, as shown on plans approved by the Director of Engineering and Public Works for Paxton
Section 2; and
WHEREAS, the Paxton Development Corporation, the developer of Paxton Section 2, has presented
a letter of credit from Farmers and Merchants National Bank in the amount of $187,966.60, confirmed by
Crestar Bank, in place of the approved cash performance guarantee.
WHEREAS, the term of the letter of credit conf~rmed by Crestar from Farmers and Merchants
Bank is for one year with a provision for automatic renewal thereafter; and
WHEREAS, the normA! term for a performance guarantee is 2 years as listed in the town's contract
for installation of public improvements.
THEREFORE, RESOLVED by the Council of the Town of Leesburg in Virginia as follows:
SECTION I. The letter of credit from Farmers and Merchants National Bank, confn-med by
Crestar, in the amount of $187,966.60 is approved in place of the approved cash guarantee in the amount
of $187,966.60 from the Paxton Development Corporation to gtmrantee the installation of public
improvements for Paxton Section 2.
SECTION II. The initial term of the contract for installation of public improvements for Paxton