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
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