HomeMy Public PortalAbout1998_01_13_R010The Town of
Leesburg,
rg ma
RESOLUTION NO.
A RESOLUTION:
PRESENTED January 13, 1998
98-10
ADOPTED January 13, 1998
DECLARING THE DEVELOPER OF KINCAID FOREST
SUBDIVISION SECTION 1 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 Phase 1,
Section 1, 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 1
for the past ten (10) months; and
WHEREAS, Leegate Corporation, N.V., and
Company are not in compliance with paragraph 14
First Potomac Development
of the contract for public
improvements dated December 16, 1993 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 may be granted if approved by the Town Council; and
A RESOLUTION:
-2-
DECLARING THE DEVELOPER OF KINCAID FOREST
SUBDIVISION SECTION 1 IN DEFAULT OF ITS CONTRACT
WHEREAS, the Town Council authorized a time extension on December 12,
1995 by Resolution #95-250 and November 26, 1996 by Resolution #96-248; 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 1 in the current amount of $247,424.38; 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.
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 1 and to request payment pursuant to the
corporate surety bond from American Motorists Insurance Company in the amount of
$247,424.38 which guarantees the installation of public improvements in Kincaid Forest
Section 1.
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 1.
A RESOLUTION:
-3-
DECLARING THE DEVELOPER OF KINCAID FOREST
SUBDIVISION SECTION 1 IN DEFAULT OF ITS CONTRACT
PASSED this 13th day of Januatw, 1998.
J~/es E. Clem, Mayor
Sown of Leesburg
ATTEST:
Clerk of Council
R:kincdl