HomeMy Public PortalAbout1994_09_27_R203The Town of
Leesburg,
Virginia
RESOLUTION NO.
A RESOLUTION:
PRESENTED September 27,
94-203
ADOPTED September 27 ~
DECLARING THE DEVELOPER OF THE UNION COURT SECTION 1
SUBDIVISION IN DEFAULT OF ITS CONTRACT FOR INSTALLATION
OF PUBLIC IMPROVEMENTS AND AUTHORIZING THE
PERFORMANCE GUARANTEE FUNDS BE SPENT TO COMPLETE THE
PUBLIC IMPROVEMENTS
WHEREAS, Patterson Place, Inc., the developers of Union Court Section 1, 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 Sovran Bank in the amount of $37,684.00 was provided by
the developer to guarantee the installation of public improvements in Union Court Section 1; and
WHEREAS, Sovran Bank notified the town that it would not renew the letter of credit and the
developer could not provide a substitute performance guarantee and was declared in default of its
contract with the town by Resolution #91-232 adopted on October 9, 1991; and
WHEREAS, a claim was made for the letter of credit funds and the town was paid the full
amount of $37,684.00 on October 23, 1991; and
WHEREAS, the developer requested a one-year time extension to complete the public
improvements; and
WHEREAS, a time extension to July, 1992 was authorized by Resolution #91-264 and the
$37,684.00 paid to the town was held as the performance guarantee; and
WHEREAS, the developer failed to complete the public improvements within the one-year time
extension and has not responded to written notices to complete the project and has not fulfilled the terms
of its contract; and
WHEREAS, AMRESCO, successor to Sovran Bank, obtained ownership of the Union Court
Section 1 Subdivision from Patterson Place, In., because of the developers failure to repay loans secured
by the property; and
1994
1994
-2-
A RESOLUTION: DECLARING THE DEVELOPER OF THE UNION COURT SECTION 1
SUBDIVISION IN DEFAULT OF ITS CONTRACT FOR INSTALLATION
OF PUBLIC IMPROVEMENTS AND AUTHORIZING THE
PERFORMANCE GUARANTEE FUNDS BE SPENT TO COMPLETE THE
PUBLIC IMPROVEMENTS
WHEREAS, AMRESCO has sold the remaining lots and the new owner is not responsible for
completion of the public improvements; and
WHEREAS, neither Patterson Place, Inc., nor AMRESCO have responded to written notices
to complete the public improvements in accordance with the contract for installation of public
improvements; and
WHEREAS, the town holds sufficient funds to complete the public improvements; and
WHEREAS, it is now the town's obligation to complete the public improvements since the
project has been abandoned by the developer.
THEREFORE, RESOLVED by the Council of the Town of Leesburg in Virginia, as follows:
SECTION I. Patterson Place, Inc., is hereby declared in complete default of its contract for
installation of public improvements for Union Court Section 1.
SECTION II. The Town Manager is authorized to spend up to the full amount of the $37,684.00
which the town holds as the performance guarantee for Union Court Section 1 to complete the public
improvements, acquire necessary right-of-way or easements, and otherwise complete the project in
accordance with the town's standards and specifications.
PASSED this 27th day of September , 1994.
f~mEST:
Clerk of Council
r:union.ct
/-:. ~L James E. Clem
Mayor