HomeMy Public PortalAbout2009_06_09_R067 - Substitute Perf. Guar. for Paxton Learning Center
The Town of
Leesburg,
Virginia
PRESENTED June 9, 2009
ADOPTED June 9. 2009
RESOLUTION NO. 2009-067
A RESOLUTION: APPROVING A SUBSTITUTE PERFORMANCE GUARANTEE FOR
THE PAXTON MEMORIAL LEARNING & RESOURCE CAMPUS
WHEREAS, Council Resolution #2009-057 adopted on May 27, 2009, approved an
irrevocable letter of credit from PNC Bank in the amount of $372,000 to guarantee the public
improvements for the Paxton Memorial Learning & Resource Campus; and
WHEREAS, The Margaret A. Paxton Memorial for Convalescent Children, the developer
of the Paxton Memorial Learning & Resource Campus has requested to replace the previously
approved letter of credit with a cash bond in the amount of $372,000 for the Paxton Memorial
Learning & Resource Campus and is requesting approval of the same; and
WHEREAS, the Director of Public Works recommends approval of a substitute
performance guarantee for the Paxton Memorial Learning & Resource Campus.
THEREFORE, RESOLVED by the Council of the Town of Leesburg in Virginia as
follows:
SECTION I. The substitute cash bond in the amount of $372,000 is approved to
guarantee the public improvements shown on plans approved by the Director of Plan Review.
SECTION II. The letter of credit from PNC Bank in the amount of $372,000 for the
Paxton Memorial Learning & Resource Campus is released contingent upon receipt of the
substitute cash bond in the amount of $372,000.
SECTION III. Acceptance of a cash bond to replace the letter of credit issued by PNC Bank for
the Paxton Memorial Learning & Resource Campus is conditioned upon an amendment to the
-2-
A RESOLUTION: APPROVING A SUBSTITUTE PERFORMANCE GUARANTEE FOR
THE PAXTON MEMORIAL LEARNING & RESOURCE CAMPUS
contract for Installation of Public Improvements between the Town and 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 9th day of June, 2009.
~~ Gt~~
. . U stattd, Mayor
Town of Leesburg