1 - Village of Palatine

TYPE: RESOLUTION SUBMITTED BY: PLANNING & ZONING DATE: 6/25/2012
DESCRIPTION: A request for draw upon the Public Improvement Letter of Credit for the
development known as Palos & Dundee Subdivision at the southeast corner of Palos and
Dundee Roads.
(Inverness Financial, Inc. - Case No. 05-84) (District: 1)
COMMITTEE ACTION:
DATE:
BACKGROUND:
On August ih, 2006, the Village Council accepted a Letter of Credit in the amount of
$120,311.95 to insure the completion of the project improvements. Subsequently, the letter of
credit was reduced to $51,446.65. The Letter of Credit is set to expire on July 14, 2012. The
developer and the bank were notified about the expiration and the required extension. The
Village has received no extension. Therefore, the Village is seeking:
Authorization to draw on a public improvements letter of credit.
ANALYSIS:
• Work remaining to be completed includes various project improvements and a one year
maintenance period.
• The developer and the bank were notified that the extension was required. They were
requested to have the extension submitted by June 29, 2012.
• No extension has been received by the Village. Without the draw on the letter of credit, it
will expire on July 14, 2011.
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 Public Improvement
letter of credit in its entirety in order to ensure that the letter of credit will not expire.