HomeMy Public PortalAbout1998_07_28_R173The Town of
Leesburg,
rg ma
PRESENTED July28, 1998
RESOLUTION NO. 98-173
ADOPTED July 28, 1998
A RESOLUTION:
DECLARING THE DEVELOPER OF KINCAID FOREST
SUBDIVISION SECTION 4A 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 4A,
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
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 in Kincaid Forest Subdivision Section 4A has occurred
during 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 July 22, 1996 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 4A IN DEFAULT OF ITS CONTRACT
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 4A in the current amount of $216,000.00; 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 4A and to request payment pursuant to
the corporate surety bond from American Motorists Insurance Company in the amount of
$216,000.00 which guarantees the installation of public improvements in Kincaid Forest
Section 4A.
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 4A.
A RESOLUTION:
-3-
DECLARING THE DEVELOPER OF KINCAID FOREST
SUBDIVISION SECTION 4A IN DEFAULT OF ITS CONTRACT
PASSED this 28th day of July, 1998.
ATTEST:
Clerk of Council
Jafnes E. Clem, Mayor
Town of Leesburg
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