HomeMy Public PortalAbout1994_03_08_R044The Town of
Leesburg,
rg nta
RESOLUTION NO. 94-44
A RESOLUTION:
PRESENTED March 8, 1994
ADOPTED March 8, 1994
AUTHORIZING A TIME EXTENSION FOR INSTAI.I.ATION OF PUBLIC
IMPROVEMENTS AND APPROVING A PERFORMANCE GUARanTEE FOR
TAVISTOCK FARMS, SECTION 9
WHEREAS, The Poretsky Building Group, Inc., developers of Tavistock Farms Section 9, did not
complete 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, a letter of credit from Perpetual Savings Bank, FSB in the amount of $38,500.00 was
provided by the developer to guarantee the installation of public improvements in Tavistock Farms
Section 9; and
WHEREAS, by Resolution No. 91-228 adopted October 9, 1991 by the Town Council declared
Poretsky Building Group, Inc., the developer of Tavistock Farms Section 9 in default of its contract for
installation of public improvements and authorized the Town Manager to prepare and sign the documents
necessary to request payment of the performance guarantee funds; and
WHEREAS, a claim was made for the letter of credit funds and the town was paid the full
amount of $38,500.00 on November 4, 1991; and
WHEREAS, by Resolution No. 91-263 adopted November 26, 1991 by the Town Council
authorized a one-year time extension for installation of the public improvements for Tavistock Farms
Section 9; and
WHEREAS, by Resolution No. 92-248 adopted December 8, 1992 by the Town Council, SAD
Realty Corporation, the new owner of Tavistock Farms Section 9, 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 Section 9 and was given six month time extension;
and
A RESOLUTION:
-2-
AUTHORIZING A TIME EXTENSION FOR INSTALL&TION OF PUBLIC
IMPROVEIVIENTS AND APPROVING A PERFORMANCE GUARANTEE FOR
TAVISTOCK FARMS, SECTION 9
WHEREAS, the $38,500.00 paid to the town would continue to be held to guarantee the
installation of public improvements for Tavistock Farms Section 9; 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 (URTC~), and has
been unable to fully perform its obligations under the referenced public improvement performance
agreements, or serve as developer of the Tavistock Farms Section 9, due to its insolvent position; and
WHEREAS, SAD Realty Corporation, the current owner of Tavistock Farms Section 9 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 improvement plus
time extensions; and
WHEREAS, 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 Tavistock Farms to a bona fide land developer; and
WHEREAS, SAD Realty, Inc. and the RTC completed the bidding process for the sale of
Tavistock Farms with Arcadia Development Company identified as the successful bidder; and
WHE~, 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.
A RESOLUTION:
-3-
AUTHORIZING A TIME EXTENSION FOR INSTALLATION OF PUBLIC
IMPROVEMENTS AND APPROVING A PERFORMANCE GUARANTEE FOR
TAVISTOCK FARMS, SECTION 9
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 Section 9, which will extend the completion date to
March 26, 1994.
SECTION II. The $38,500.00 paid to the town will continue to be held to guarantee performance
under the outstanding public improvement performance agreement for Tavistock Farms Section 9, as
approved in Resolution 92-248.
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.
ATTEST:
Clerk of Council t (J
"Jmes E. Clem, Mayor
Town of Leesburg
r:.tavistock.9