1 - Village of Palatine

TYPE: RESOLUTION SUBMITTED BY: PLANNING & ZONING DATE: 6/25/2012
DESCRIPTION: A request for draw upon the Planned Development Letter of Credit for the
development known as Michigan Court Planned Development at the southeast corner of
Michigan Avenue and Plum Grove Road.
(Michael's of Palatine Construction Co. - Case No. 06-36) (District: 2)
COMMITTEE ACTION:
DATE:
BACKGROUND:
On September 10, 2007, the Village Council accepted a Letter of Credit in the amount of
$50,000 to insure the completion of the planned development. The Letter of Credit is set to
expire on July 24,2012. The developer has not completed the development. Therefore, the
Village is seeking:
Authorization to draw on a planned development letter of credit.
ANALYSIS:
• Work remaining to be completed includes various items related to the approved plans and
conditions of the planned development.
• The developer and the bank were advised that extensions were required but no extensions
have been received to date.
ALTERNATIVES:
1. Authorize the draw on the Letter of Credit.
2. Do not authorize the draw on the Letter of Credit.
RECOMMENDATION:
Staff recommends that a draw be authorized upon the letter of credit. In the event an
extension is received prior to the expiration date, the Village could refrain from calling the draw
at the bank.
ACTION REQUIRED:
Consider approval of a Resolution granting authorization to draw upon the Planned
Development Letter of Credit in its entirety to ensure the letter of credit will not expire.