HomeMy Public PortalAbout2003_04_08_r053The Town of
] .eesburg,
.. irginia
PRESENTED April 8, 2003
RESOLUTION NO. 2 0 0 3- 5 3 ADOPTED April 8, 2003
A RESOLUTION: MAKING A REDUCTION AND APPROVING A SUBSTITUTE
PERFORMANCE GUARANTEE AND AUTHORIZING A TIME
EXTENSION FOR COMPLETION OF THE PUBLIC IMPROVEMENTS IN
LEESBURG GATEWAY CONDOS
WHEREAS, Council Resolution g99-277 adopted on September 14, 1999 approved a letter of
credit from the Resource Bank in the amount of $130,393.84 for the Leesburg Gateway Condos; and
WHEREAS, Leo Chiang Development III Limited Partnership, the developer of the Leesburg
Gateway Condos has requested that the Town Council accept a cash bond as a replacement for the letter
of credit from the Fanquier Bank 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 the Leesburg Gateway Condos and certified that the value of work
performed is $93,693.84; and
WHEREAS, a final inspection has been performed and all bonded improvements have been
installed and the developer is currently working on completing punch list items; and
WHEREAS, the Director of Engineering and Public Works recommends reducing the
performance guarantee for public improvements in Leesburg Gateway Condos, approving a substitute
performance guarantee and.approving a time extension to July !4, 2003.
THEREFORE, RESOLVED by the Council of the Town of Leesburg in Virginia as follows:'
SECTION I. The bond amount for Leesburg Gateway Condos in the amount of $130,393.84 is
reduced to $36,700.00.
SECTION II. A cash bond in the amount of $36,700.00 for Leesburg Gateway Condos is
approved.
SECTION III. Acceptance of a cash bond to replace the letter of credit issued by Resource Bank
for Leesburg Gateway Condos is conditioned upon an amendment to the contract for Installation of Public
A RESOLUTION:
-2-
MAKING A REDUCTION AND APPROVING A SUBSTITUTE
PERFORMANCE GUARANTEE AND AUTHORIZING A TIME
EXTENSION FOR COMPLETION OF THE PUBLIC
IMPROVEMENTS IN LEESBURG GATEWAY CONDOS
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.
SECTION IV. The letter of credit from the Resource Bank in the amount of $130,393.84 is
released contingent upon receipt of the cash bond.
SECTION V. The town manager shall notify the developer that liability for cash 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 Leesburg Gateway Condos.
SECTION VI. A time extension to July 14, 2003 is approved.
PASSED this 8t~ day of April 2003.
ATTEST:
of Council
~ C. Un~tattd,
Town of Leesburg
R:03\GatewayCondosRedSubPerfTimExt