HomeMy Public PortalAbout1998_01_13_R011The Town of
Leesburg,
rglma
RESOLUTION NO.
A RESOLUTION:
PRESENTED January_ 13, 1998
98-11
ADOPTED January_ 13, 1998
DECLARING THE DEVELOPER OF KINCAID FOREST
SUBDIVISION SECTION 1 ULTIMATE STORMWATER
MANAGEMENT POND 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
WHEREAS, Leegate Corporation, N.V., and its agent First Potomac
Development Company, the developers of the Kincaid Forest Subdivision Section 1
Ultimate Stormwater Management Pond, 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 extensions; 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 Ultimate Stormwater Management Pond for the past ten (10) 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 December 16, 1993 which states that the Developer shall perform all
A RESOLUTION:
-2-
DECLARING THE DEVELOPER OF KINCAID FOREST
SUBDIVISION PHASE 1,SECTION 1 ULTIMATE STORMWATER
MANAGEMENT POND IN DEFAULT OF ITS CONTRACT
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
WHEREAS, the Town Council authorized time extensions on December 12, 1995
by Resolution #95-253 and November 26, 1996 by Resolution #96-253; 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 Ultimate Stormwater Management Pond in the current amount of $32,700.14;
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 Ultimate Stormwater Management
Pond and to request payment pursuant to the corporate surety bond from American
Motorists Insurance Company in the amount of $32,700.14 which guarantees
A RESOLUTION:
-3-
DECLARING THE DEVELOPER OF KINCAID FOREST
SUBDIVISION PHASE 1,SECTION 1 ULTIMATE STORMWATER
MANAGEMENT POND IN DEFAULT OF ITS CONTRACT
the installation of public improvements in Kincaid Forest Section 1 Ultimate Stormwater
Management Pond.
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 Ultimate Stormwater Management Pond.
ATTEST:
PASSED this 13th day of January, 1998.
~J~rnes E. Clem,
Mayor
Town of Leesburg
Clerk of Council
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