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HomeMy Public PortalAbout2002_01_23_r014The Town of l .eesburg, irginia PRESENTED January 23, 2002 RESOLUTION NO. 2002-14 ADOPTED January 23, 2002 A RESOLUTION: APPROVING A SUBSTITUTE PERFORMANCE GUARANTEE FOR SYCAMORE HILL PHASE I, SECTION 5 AND RELEASING THE LETTER OF CREDIT FROM WELLS FARGO BANK, N.A. WHEREAS, Council Resolution #2000-31 adopted on February 8, 2000, approved a letter of credit from the Wells Fargo Bank, N.A. as security to guarantee installation of public improvements as shown on plans approved by the Director of Engineering and Public Works for Sycamore Hill Phase I, Section 5; and WHEREAS, BRE/Sycamore Hill L.L.C., the developer of Sycamore Hill Phase I, Section 5, has requested that the Town Council accept a cash bond as a replacement for the letter of credit from the Wells Fargo Bank, N.A. and is requesting approval of the same; and WHEREAS, the Director of Engineering and Public Works recommends approval of a cash bond for Sycamore Hill Phase I, Section 5; and WHEREAS, the Director of Finance recommends approval of a cash bond for Sycamore Hill Phase I, Section 5 with the condition that the interest paid to the developer shall be the amount generated by market rate interest as earned by the Town. THEREFORE, RESOLVED by the Council of the Town of Leesburg in Virginia as follows: SECTION I. A cash bond to replace the letter of credit issued by the Wells Fargo Bank, N.A. in the amount of $41,753.00 is approved. A RESOLUTION: -2- APPROVING A SUBSTITUTE PERFORMANCE GUARANTEE FOR SYCAMORE HILL PHASE I, SECTION 5 AND RELEASING THE LETTER OF CREDIT FROM WELLS FARGO BANK, N.A. SECTION II. Acceptance of a cash bond to replace the letter of credit issued by the Wells Fargo Bank, N.A. for Sycamore Hill Phase I, Section 5 is conditioned upon an amendment to the contract for Installation of Public Improvements between the town and the developer stating that if a cash escrow is posted as the performance guarantee, the funds on deposit shall generate market rate interest, as earned by the town. PASSED this 23rd. day of January 2002. ATTEST: ,,Gl~k of Council - B.J. We6/b, Mayor Town of Leesburg R:SycalS¢c5SubPerfGuar