HomeMy Public PortalAbout1998_08_11_R179The Town of
Leesburg,
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RESOLUTION NO.
A RESOLUTION:
95-179
PRESENTED August 11, 1998
ADOPTED August 11, 1998
AUTHORIZING A SETTLEMENT AGREEMENT WITH AMERICAN
MOTORISTS INSURANCE COMPANY FOR COMPLETION OF THE
PUBLIC IMPROVEMENTS AT KINCAID FOREST
WHEREAS, the Town Council has adopted resolutions declaring the Leegate Corporation, the
developer of Kincaid Forest, in default of public improvements contracts for Sections 1, 4A, 6A, 6B,
8ASB, 9A, 9B, 9C, 9D, 10A, Public Park and Ultimate Stormwater Management Pond; and
WHEREAS, claims have been made for payment to the town of the proceeds of corporate surety
bonds totaling $2,078,616.07 issued by American Motorists Insurance Company (AMICO) to guarantee
completion of the public improvements in Kincaid Forest; and
WHEREAS, Leegate Corporation filed for bankruptcy in April 1997; and
WHEREAS, Mortgage Investment Trust Corporation (MITC), holder of a deed of trust for the
undeveloped sections of Kincaid Forest, completed the foreclosure process in the Spring of 1998 and is
now the property owner; and
WHEREAS, a settlement agreement for completion of the public improvements by AMICO has
been negotiated by town staff; and
WHEREAS, a condition of the agreement is that AMICO will hire a construction contractor to
complete the public improvements; and
WHEREAS, since each section is individually bonded, AMICO could process each claim
separately and complete the improvement or pay the proceeds to the town which would result in an
estimated maximum expenditure of $1,700,000; and
WHEREAS, a maximum cost limit of $1,889,000 for completion of the public improvements is
included in the proposed agreement; and
A RESOLUTION:
-2-
AUTHORIZING A SETTLEMENT AGREEMENT WITH AMERICAN
MOTORISTS INSURANCE COMPANY FOR COMPLETION OF THE
PUBLIC IMPROVEMENTS AT KINCAID FOREST
WHEREAS, a phasing plan for the order of completion of each section has been included in the
agreement to address concerns of the Kincaid Homeowners Association; and
WHEREAS, completing the public improvements through the settlement agreement is a far
better alternative than section by section settlements with AMICO; and
WHEREAS, work is expected to begin within two to four weeks after the settlement agreement
is approved and signed.
THEREFORE, RESOLVED by the Council of the Town of Leesburg in Virginia as follows:
The Town Manager is authorized to sign a Settlement Agreement with American Motorists
Insurance Company in a form approved by the Deputy Town Attorney for completion of the public
improvements in Kincaid Forest.
PASSED this 11th day of August, 1998.
ATTEST:
Clerk of Council
mes E Clem, Mayor
.
Town of Leesburg
R:amicoset