R-60-23 Authorizing the Release of the Letter of Credit for Marble Landing Subdivision (Hartz Homes)R - � 0 -z3
418 Main Street I Lemont, IL 60439
TO:
Village Board Meeting
FROM:
Jason Berry, Community Development
THROUGH:
SUBJECT:
A Resolution Authorizing the Release of the Letter of Credit for Marble
Landing Subdivision (Hartz Homes)
DATE:
October 23, 2023
SUMMARY/BACKGROUND
Hartz Construction Co, Inc. has sold the Marble Landing subdivision to builder Beechen and
Dill. Following the amended annexation agreement approved by the Village Board on
September 11, 2023, the Village is to take action and accept water, sanitary, and storm sewer
utilities upon the successful execution of the annexation agreement plus the inspection and
recommendation by the Village Engineer.
The Village Engineer provided his concurrence to the Community Development Department
on October 18, 2023, and recommends the release of two letters of credit (LOC) deposited
with the Village by Hartz Construction Co. In place of this LOC, the Village Engineer has
accepted a maintenance bond from Teton Development, LLC (Beechen and Dill) in the
amount of $154,114.10 for the required two year maintenance period that follows Village
acceptance of utilities. The Village Engineer has also accepted a Letter of Credit in the
amount of $516,062.00 for the remaining site development items, which includes landscaping
and streets.
ANALYSIS
Water Supply: the amended annexation agreement approved by the Village Board at the
September 11, 2023 regular meeting states that the Village "shall accept dedication of said
water mains within thirty (30) business days of execution" of the amended agreement. The
agreement was executed on September 28, after Beechen and Dill closed on the property.
Sanitary and Storm Sewers: the amended annexation agreement approved by the Village
Board at the September 11, 2023 regular meeting states that "upon correction of the current
sanitary sewer system infiltration issue and modification of lift station to three-phase service to
the VILLAGE's satisfaction, the VILLAGE shall accept dedication of said sanitary sewer and
lift stations within thirty (30) business days of VILLAGE inspection and approval of said
corrections." These utilities have been inspected by the Village Engineer, Bruce A. Hill,
following Hartz request on October 12, 2023, and provided his concurrence.
In the Unified Development Ordinance, Financial Assurances for Site Development (Section
17.23.090.F.3) requires that prior to formal acceptance by the Village Board of the
improvements and the release of the letter of credit or other financial guarantee held by the
Village, a maintenance bond (in the form of a letter -of -credit or other approved security) must
be posted with the Village in an amount equal to 10% of the approved engineer's estimate of
original construction costs. The maintenance bond shall remain in effect for a minimum of two
years after the date of formal Village Board acceptance of the said improvements. Within the
two-year period the developer shall fix and repair immediately all deficient work as noted by
the Village.
Consistency with Village Policy
STAFF RECOMMENDATION
Approve the Resolution.
BOARD ACTION REQUESTED
Motion to Approve the Resolution.
ATTACHMENTS
A Resolution Authorizing the Release of the Letter of Credit for Marble Landing Subdivision
(Hartz Homes)
VILLAGE OF LEMONT
RESOLUTION
NUMBER R- -23
A RESOLUTION AUTHORIZING THE RELEASE OF THE
LETTER OF CREDIT FOR MARBLE LANDING
SUBDIVISION
JOHN EGOFSKE, Village President
CHARLENE M. SMOLLEN, Clerk
JANELLE KITTRIDGE
DA VE MAHER
KEN MCCLAFFERTY
KEVIN SHA UGHNESS Y
RICK SNIEGOWSKI
RON STAPLETON
Trustees
Published in pamphlet form by authority of the Village President and Board of Trustees of the Village of Lemont on 10 -2-2023
RESOLUTION NO. R- P-0 23
A RESOLUTION AUTHORIZING THE RELEASE OF THE LETTER OF CREDIT FOR
MARBLE LANDING SUBDIVISION
WHEREAS, pursuant to the Lemont Unified Development Ordinance of 2008 ("UDO")�,
an owner or developer of a subdivision is required to deposit certain security or evidence thereof
with the Village of Lemont to guarantee the installation of public improvements; and
WHEREAS, a public utility and drainage easement has been granted to the Village, as
depicted on the Plat of Easement (attached hereto as Exhibit A), for the purpose of public
infrastructure maintenance; and
WHEREAS, in the matter of the Marble Landing Subdivision, owned and developed by
the Hartz Construction Co. Inc., located generally between Archer Avenue and 127`" Street and
east of Krystyna Place, two Irrevocable Letters of Credit issued by First Midwest Bank, No.
184033015-203, in the amount of $324,797.00 and No. 184033015-204, in the amount of
$2,290,426.25, to guarantee completion of public improvements in said subdivision; and
WHEREAS, Hartz Construction Co. Inc, developer of the Marble Landing subdivision,
requested acceptance of public improvements in Marble Landing Subdivision and provided a
Bill of Sale in connection with same, and said public improvements were accepted by the
Village, adopted October 23, 2023; and
WHEREAS, Section 17.23.020.F.3 of the Unified Development Ordinance (Site
Development Permits, Financial Assurances for Site Development) allows for a letter of credit
or other financial guarantee to be held by the Village, including a maintenance bond (in the
form of a letter -of -credit or other approved security);
WHEREAS, Teton Development LLC has delivered to the Village a maintenance bond
for $154,114.00 for the portions of the development the Village will accept and an Irrevocable
Letter of Credit No. 2023-1673 issued by Marquette Bank in the amount of $516,062.00 for the
portions of the development that Hartz Construction Co. Inc., is transferring to Teton
Development LLC to complete.
NOW, THEREFORE BE IT RESOLVED by the Village President and Board of
Trustees of the Village of Lemont, Cook, Will, and DuPage Counties, Illinois, as follows:
SECTION l: RECITALS
That the above recitals and legislative findings are found to be true and correct and are
hereby incorporated herein and made a part hereof, as if fully set forth in their entirety.
SECTION 2:
Irrevocable Letters of Credit No. 184033015-203 in the current amount of $51,354.60, and
No. 184033015-204 in the current amount of $840,175.20 issued by First Midwest Bank shall be
reduced to the amount of $0.00 (Zero) and released.
ADOPTED this day of 06f O , 2023.
PASSED AND APPROVED BY THE VILLAGE PRESIDENT AND BOARD OF
TRUSTEES OF THE VILLAGE OF LEMONT, COUNTIES OF COOK, WILL, AND
DUPAGE, ILLINOIS, ON THIS 23rd DAY OF OCTOBER, 2023,
VILLAGE PRESIDENT AND VILLAGE BOARD MEMBERS:
AYES: NAYS
Janelle Kittridge
Dave Maher
Ken McClafferty
Kevin Shaughnessy
Rick Sniegowski
Ron Stapleton
Attest. -
Charlene M. Smollen, Village Clerk
ABSENT: ABSTAIN:
Approved. -
John Egofske, Village President
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