HomeMy Public PortalAbout1997_06_10_R142The Town of
Leesburg,
rg ma
RESOLUTION NO.
A RESOLUTION:
PRESENTED aune 10, 1997
97-142
ADOPTED June 10, 1997
DECLARING THE DEVELOPER OF KINCAID FOREST SUBDIVISION
SECTION 6B IN DEFAULT OF ITS CONTRACT FOR INSTALLATION OF
PUBLIC IMPROVEMENTS AND AUTHORIZING THE TOWN MANAGER
TO PREPARE AND SIGN THE DOCUMENTS NECESSARY TO REQUEST
PAYMENT OF THE PERFORMANCE GUARANTEE FUNDS
WHEREAS, Leegate Corporation, N.V., and its agent First Potomac Development Company, the
developers of the Kincaid Forest Subdivision Section 6B, have not completed all the required public
improvements and other bonded 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
previously approved time extension; and
WHEREAS, the town has received notice that Leegate Corporation N.V. filed for bankruptcy
under Chapter 11 of the Bankruptcy Code on April 23, 1997; and
WHEREAS, no work has been completed in Kincaid Forest Subdivision Section 6B for the past
six (6) months; and
WHEREAS, Leegate Corporation N.V., and First Potomac Development Company are not in
compliance with paragraph 14 of the contract for public improvements dated November 3, 1994 which
states that the Developer shall perform all things called for herein within a period of two years from the
date of the contract, but extensions of time may be granted if approved by the Town Council; and
WHEREAS, the Town Council authorized a time extension on November 26, 1996 by Resolution
No. 96-249; and
WHEREAS, a corporate surety bond from American Motorists Insurance Company was provided
by Leegate Corporation N.V., and First Potomac Development Company, which guarantees the installation
of public improvements in Kincaid Forest Section 6B in the current amount of $661,097.03; and
WHEREAS, in order to guarantee that the town will have sufficient funds to complete the public
improvements a claim for payment of the corporate surety bond funds must be made.
A RESOLUTION:
-2-
DECLARING THE DEVELOPER OF KINCAID FOREST SUBDIVISION
SECTION 6B IN DEFAULT OF ITS CONTRACT FOR INSTALLATION OF
PUBLIC IMPROVEMENTS AND AUTHORIZING THE TOWN MANAGER
TO PREPARE AND SIGN THE DOCUMENTS NECESSARY TO REQUEST
PAYMENT OF THE PERFORMANCE GUARANTEE FUNDS
THEREFORE, RESOLVED by the Council of the Town of Leesburg in Virginia as follows:
SECTION I. The Town Manager is hereby authorized to declare First Potomac Development
Company and Leegate Corporation N.V. in default of their contract for public improvements for Kincaid
Forest Section 6B and to request payment pursuant to the corporate surety bond from American Motorists
Insurance Company in the amount of $661,097.03 which guarantees the installation of public
improvements in Kincaid Forest Section 6B.
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 Kincaid Forest Section 6B.
PASSEDthis 10th day of June _, 1997.
AT~ESTh .
Clerk of Council
es E. Clem, Mayor
n of Leesburg
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