HomeMy Public PortalAbout1994_03_08_R043 The Town of
Leesburg,
oVirg. ·
lnla
RESOLUTION NO. 94-43
A RESOLUTION:
PRESENTED March 8, 1994
ADOPTED March 8, 1994
AUTHORIZING A TIME EXTENSION FOR INSTAI,LATION OF PUBLIC
IMPROVEMENTS AND APPROVING PERFORMANCE GUAHANTEES FOR
TAVISTOCK FARMS, SECTIONS 1, 3, 4, 5, 6, 7, 10, 11 & 12, 13, 19, 20 & 21,
14, 18, OFFSITE WATERLINE AND OFFSITE SANITARY SEWER
WHEREAS, by Resolution No. 91-221 adopted October 9, 1991 by the Town Council, SAD Realty
Corporation, the owner of the Tavistock Farms Planned Development, was allowed to become the obligor
under certain public improvement performance agreements (Form PC-2) pertaining to the installation
of required public improvements in Tavistock Farms with these referenced performance agreements
secured by corporate surety bonds issued by Homestead Insurance Company of New Jersey; and
WHEREAS, the Town Council accepted the corporate surety bonds issued by Homestead
Insurance Company despite the fact that Homestead Insurance Company did not possess a license to
transact fidelity and surety insurance in Virginia and did not hold a financial size rating of XV or better,
as evaluated by Best's Key Rating as referenced in Section 13-94(3) of the Subdivision and Land
Development Regulations, for reasons stated in Resolution No. 91-221; and
WHEREAS, Homestead Insurance Company has been determined to be a secure and adequately-
funded issuer of corporate surety bonds possessing a financial size rating of VI and a quality rating of "A"
(Excellent), as evaluated by Best's Key Rating in both 1991 and 1993, whose bonds are accepted by
numerous neighboring Norther Virginia jurisdictions and the Loudoun County Sanitation Authority; and
WHEREAS, SAD Realty Corporation is wholly-owned by Perpetual Savings Bank, F.S.B., a failed
financial institution which has been taken over by the Resolution Trust Corporation CRTC"), and has
been unable to fully perform its obligations under the referenced public improvement performance
agreements, or serve as developer of the Tavistock Farms Planned Development, due to its insolvent
position; and
WHE~, the Town Council on December 14, 1993 adopted Resolution No. 93-236 authorizing
SAD Realty Corporation, the owner of the Tavistock Farms Planned Development, a three (3) month time
extension to February 24, 1994 for their contracts for public improvements to complete the bidding and
sale of TavisWck Farms to a bona fide land developer; and
WHEREAS, SAD Realty, Inc. and the RTC completed the bidding process for the sale of
RESOLUTION: TAVISTOCK FARMS
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Tavistock Farms with Arcadia Development Company identified as the successful bidder; and
WHEREAS, a settlement date of February 22, 1994 was scheduled but it has been postponed due
to a suit challenging the bidding process and the awarding of the sales contract to Arcadia; and
WHEREAS, SAD Realty Inc. is moving to have the suit dismissed and to sell the property to
Arcadia and has requested a 30-day time extension of the public improvements contracts between SAD
Realty, Inc. and the town.
THEREFORE, RESOLVED by the Council of the Town of Leesburg in Virginia as follows:
SECTION I. A thirty (30) day time extension for the public improvements performance
agreements is hereby approved for Tavistock Farms, which will extend the completion date to March 26,
1994.
SECTION II. The corporate surety bonds issued by Homestead Insurance Company presently
in force guaranteeing performance under the outst_~nding public improvement performance agreements
for the Tavistock Farms Planned Development~ as previously approved in Resolution #91-221, shall
remain in fun force and effect.
SECTION III. SAD Realty Corporation and the RTC should continue to make every effort to
expedite the sale of Tavistock Farms to a viable developer so that the development of the property may
resume as soon as possible.
PASSED this 8th day of March, 1994.
~/James E. Clem, Mayor
Town of Leesburg
ATTEST:
Clerk of C~oun~
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