HomeMy Public PortalAbout2001_09_25_r151The Town of
l .eesburg,
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RESOLUTION NO.
A RESOLUTION:
PRESENTED September 25, 2001
2001-151 ADOPTED September 25, 2001
MAKING A REDUCTION OF THE PERFORMANCE GUARANTEES FOR
PUBLIC IMPROVEMENTS INSTALLED
SUBDIVISION PHASE 2A AND
PERFORMANCE GUARANTEES FOR
SUBDIVISION PHASE 2A AND PHASE 2B
IN DRY MILL TOWNHOUSE
APPROVING SUBSTITUTE
DRY MILL TOWNHOUSE
WHEREAS, Council Resolution #200046 adopted on February 23, 2000 approved corporate
surety bonds from the Amwest Surety Insurance Company in the amount of $137,958.76 for Phase 2A
and $64,737.75 for Phase 2B; and
WHEREAS, on June 29, 2001 the Town of Leesburg received notice that the Amwest Surety
Insurance Company became the subject of an Order of Liquidation, Declaration of Insolvency, and
Injunction and all bonds have been cancelled; and
WHEREAS, KL Olde Towne, LLC, the developer of the Dry Mill Townhouse Subdivision Phase
2A and Phase 2B has requested that the Town Council accept corporate surety bonds from the
Lumbermens Mutual Casualty Company as replacements for the corporate surety bonds from the Amwest
Surety Insurance Company and is requesting approval of the same; and
WHEREAS, the town's Director of Engineering and Public Works has reviewed the public
improvements installed to date in Dry Mill Townhouse Subdivision Phase 2A and certified that the value
of work performed is $97,184.00; and
WHEREAS, the Director of Engineering and Public Works recommends reducing the
performance guarantee for public improvements in Dry Mill Townhouse Subdivision Phase 2A and
approval of substitute performance guarantees for Dry Mill Townhouse Subdivision Phases 2A and 2B.
THEREFORE, RESOLVED by the Council of the Town of Leesburg in Virginia as follows:
SECTION I. The bond amount for Dry Mill Townhouse Subdivision Phase 2A in the amount
of $97,184.00 is reduced to $40,775.00.
A RESOLUTION:
-2-
MAKING A REDUCTION OF THE PERFORMANCE GUARANTEES FOR
PUBLIC IMPROVEMENTS INSTALLED IN DRY MILL TOWNHOUSE
SUBDIVISION PHASE 2A AND APPROVING SUBSTITUTE
PERFORMANCE GUARANTEES FOR DRY MILL TOWNHOUSE
SUBDIVISION PHASE 2A AND PHASE 2B
SECTION II. The substitute corporate surety bonds from the Lumbermens Mutual Casualty
Company in the amount of $40,775.00 for Dry Mill Townhouse Subdivision Phase 2A and $64,737.75 for
Phase 2B in a form approved by the town attorney are approved.
SECTION 1II. The corporate surety bonds from the Amwest Surety Insurance Company in the
amount of $137,958.76 for Phase 2A; and $64,737.75 for Phase 2B are released contingent upon approval
by the town attorney of the substitute corporate surety bonds from the Lumbermens Mutual Casualty
Company.
SECTION IV. The town manager shall notify the developer that liability for corporate surety
bond funds has been reduced as outlined in Section I of this resolution and that this reduction does not
constitute acceptance of public improvements by the town or relieve the developer of responsibilities
outlined in the contract for public improvements for Dry Mill Townhouse Subdivision Phase 2A.
PASSED this 25th day °f September 2001' ~x~ ~'~
B.JYW~b, Mayor
Town pf Leesburg
A/T, jTEST:
~erk of Council
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