HomeMy Public PortalAbout2010_10_13_R134 - Subs. Perf. Guar. Oaklawn at Stratford D 001The Town of
Leesburg,
irginia
PRESENTED October 13, 2010
RESOLUTION NO. 2010-134 ADOPTED October 13, 2010
A RESOLUTION: APPROVING A SUBSTITUTE PERFORMANCE GUARANTEE
FOR OAKLAWN AT STRATFORD - LANDBAY "D"
WHEREAS, Council Resolution #2008-55 adopted on April 8, 2008, approved an
irrevocable letter of credit from Wachovia Bank in the amount of $941,000 to guarantee
the public improvements for Oaklawm a[ Stratford -Landbay "D"; and
WHEREAS, Council Resolution #2010-003 adopted on January 12, 2010,
approved a reduction of the letter of credit from Wachovia Bank to the current amount of
$502,000; and
WHEREAS, Oaklawn Development Partners, LLC, the developer of Oaklawn at
Stratford -Landbay "D" has requested to replace the previously approved letter of credit
with a cash bond in [he amount of $502,000 for Oaklawn at Stratford -Landbay "D" and
is requesting approval of the same; and
WHEREAS, the Director of Public Works recommends approval of a substitute
performance guarantee for Oaklawn at Stratford -Landbay "D".
THEREFORE, RESOLVED by the Council of the Town of Leesburg in Virginia
as follows:
SECTION 1. The substitute cash bond in [he amount of $502,000 is approved to
guarantee the public improvements shown on plans approved by the Director of Plan
Review.
SECTION II. The letter of credit from Wachovia Bank in [he current amount of
$502,000 for Oaklawn a[ Stratford -Landbay "D" is released contingent upon receipt of
the substitute cash bond in the amount of $502,000.
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A RESOLUTION: APPROVING A SUBSTITUTE PERFORMANCE GUARANTEE FOR
OAKLAWN AT STRATFORD - LANDBAY "D"
SECTION III. Acceptance of a cash bond to replace the letter of credit issued by
Wachovia Bank for Oaklawn a[ Stratford -Landbay "D" is conditioned upon an
amendment to the Contract for Installation of Public Improvements between the Town
and developer stating [hat if a cash escrow is posted as [he performance guarantee, the
funds on deposit shall generate mazke[ rate interest as earned by the Town.
PASSED this 13'^ day of October 2010.
is eC~d, Mayor
Town of Leesburg
A ES
Clerk ofC ci
P:U2esolurionsUtcsoWrions 2010\1013 Oaklawn ar Std rd Landbay D Bond Subniwse.doc