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HomeMy WebLinkAboutRESOLUTION - 42-86 - 6/10/1986 - LOC/SHENANDOAH PHASE II CRESOLUTION NO. 42-86 A RESOLUTION ACCEPTING AN IRREVOCABLE LETTER OF CREDIT NO. 1054 FROM ITASCA BANK & TRUST COMPANY EXPIRING MAY 5, 1987 IN THE AMOUNT OF $139,978.85 TO GUARANTEE THE CONSTRUCTION OF PUBLIC IMPROVEMENTS IN THE SHENANDOAH SUBDIVISION PHASE IIC NOW, THEREFORE, BE IT RESOLVED by the President and Board of Trustees of the Village of Elk Grove Village, Counties of Cook and DuPage, State of Illinois: Section 1. That the President and Board of Trustees do hereby authorize the acceptance of an Irrevocable Letter of Credit from the Itasca Bank & Trust Company in the amount of $139,978.85 to guarantee construction of public im- provements as listed on Exhibit "A" attached hereto and made a part hereof which are to be constructed within the Shenandoah Subdivision Phase IIC, the legal description as fully described in Exhibit "B" attached hereto and made a part hereof, and in accordance with engineering drawings and specifications within revisions dated April 16, 1986, prepared by Elk Grove Engineering, 860 Lively Boulevard, Elk Grove Village, Illinois 60007. Said Letter of credit expiring May 5, 1987. Section 2. That this Resolution shall be in full force and effect from and after its passage and approval according to law. PASSED this APPROVED this 10th ATTEST Patricia S. Smith Village Clerk day of Timo 1986. day of June 1986. Charles J. Zettek Village President E. Itasca Bank & Trust Co. 308 West Irving Park Road • Itasca, Illinois 60143 " (312) 773-0350 IRREVOCABLE LETTER OF CREDIT NO. 1054 May 5, 1986 Village of Elk Grove Village 901 Wellington Avenue Elk Grove Village, Illinois 60007 RE: Shenandoah -Elk Grove Subdivision -Phase IIC Elk Grove Village, Illinois Gentlemen: We hereby establish an Irrevocable Credit in favor of the Village of Elk Grove Village, Illinois, an Illinois municipal corporation (herein called "Municipality") for the account of Itasca Bank & Trust Co. as Trustee under Trust #1264, dated April 11, 1978 (herein called "Owner"), 308 W. Irving Park Rd., Itasca, Illinois 60143, in the aggregate amount of $139,978.85. This Irrevocable Credit will be used exclusively to secure the construction of certain public improvements (herein called "Improvements") as listed on Exhibit A attached hereto, which are to be constructed within the development known as Shenandoah -Elk Grove - Phase II C (herein called "Development") pursuant to the following plans and specifications, (herein called "Plans and Specifications"). The municipality approved site development engineering drawings and specifications dated June 16, 1978 for Shenandoah -Elk Grove with revisions dated April 16, 1986, prepared by Elk Grove Engineering, 860 Lively Boulevard, Elk Grove Village, Illinois 60007, which have been previously submitted to, and approved by the Engineering Department of the Village of Elk Grove. The Development, which is owned by Itasca Bank & Trust Co. as Trustee under Trust #1264, dated April 11, 1978, 308 W. Irving Park Rd., Itasca, Illinois 60143, is legally described on Exhibit B attached to this letter. A Subsidiary of ITASCA BANCORP INC This Irrevocable Credit shall remain in effect for a period of twelve (12) months from the date hereof, without regard to any default in payment of money owed to us by the Owner and/or Developer and without regard to other claims which we may have against the Owner and/or Developer. If within said twelve (12) months from the date hereof we received written notice of a Resolution from the Municipality, reciting that the installation and construction of the Improvements has not been completed on or before May 1, 1987 as agreed by the Municipality and the Developer, you are then authorized to demand payment from the Itasca Bank & Trust Co., 308 W. Irving Park Rd., Itasca, Illinois 60143, by drawing drafts at sight when accompanied by the certificate of the Municipality stating that the Owner and/or Developer has defaulted in its obligation to complete the Improvements, and further certifying that the Municipality has notified the owner of its intention to draw under this Irrevocable Credit at least five (5) days prior to the date of drawing, we shall make payments for materials and labor to contractors, subcontractors or the Municipality who have completed the Improvements in accordance with the Plans and Specifications. Partial drawings are permitted under this Irrevocable Credit. All drafts must be marked% "Drawn under the Irrevocable Credit No. 1053 of Itasca Bank & Trust Co, 308 W. Irving Park Rd., Itasca, Illinois 601430 dated May 5, 1986 to secure the construction of Improvements within the Shenandoah -Elk Grove Subdivision". The principal amount of this Irrevocable Credit shall be reduced for any public improvements installed or completed as approved by the Village Engineer in writing with supporting waivers, liens and affidavits from contractors or subcontractors furnishing material or performing work to complete these Improvements. If within thirty (30) days of the date of any demand (made in conformity with this Irrevocable Credit) presented, we fail to honor same, we agree to pay all attorney fees, court costs and other reasonable expenses incurred by the Municipality in enforcing the terms of this Irrevocable Credit. Ninety (90) days prior to the expiration of this Irrevocable Credit, we shall notify the Municipality, attention Village Manager, certified mail, return receipt requested, of the impending expiration date. This Irrevocable Credit shall not terminate without such written notice. If the Improvements covered by this Irrevocable Credit have not been completed within the time set forth herein, the Municipality may draw upon these funds in the manner recited above for an additional period of six (6) months next following the expiration of the term of this Irrevocable Credit. The sum of this Irrevocable Credit shall be reduced in the amount of disbursements made, from time to time, in accordance with the terms of this Irrevocable Credit, as recited above. In addition, prior to expiration, this Irrevocable Credit shall be reduced by the value of all Improvements constructed and certified by the Village Engineer or the Municipality that said Improvements have been property completed. We hereby certify and agree that all drafts drawn under, and in compliance with, the terms of this credit will be duly honored by us on delivery of documents as specified if presented at the specified office within the time limits recited herein. ITASCA BANK & TRUST CO. ATTEST: 0 EXHIBIT "A" PUBLIC IMPROVEMENT TO BE INSTALLED WITHIN THE DEVELOPMENT KNOWN AS SHENANDOAH-ELK GROVE II C Watermain and Appurtenances Sanitary Sewer and Appurtenances Storm Sewer and Appurtenances Roadway, Curb, Gutter and Pavement Sidewalk Street Lights Parkway, Tress, etc. EXHIBIT B LOTS 6, 7, 8, 9, 10 and II in Block 1, LOTS 8, 9, 10, 11, 12, 13, 14, 15, 16, 17 and 18 in Block 4, in Shenandoah Subdivision being a Subdivision in the South East 1/4 of the South West 1/4 of Section 36, Township 41 North, Range 10 East of the Third Principal Meridian, according to the Plat thereof recorded in the Recorder's Office of Cook County, Illinois on August 31, 1978 as Document No. 24608335, in Cook County, Illinois.