Title/Name/Summary
Stone Church - Bond vs. Letter of Credit
History
On May 18, 2009, the Village Board approved the proposed Stone Church on 183rd St. and Orland Parkway. Stone Church is currently undergoing final engineering review and is nearing approval. Prior to commencement of full construction, they are required to establish a Letter of Security/Credit for the necessary public improvements.
BACKGROUND
Orland Park Land Development Code (“LDC”) Article 5-112, Subdivision and Plan Review Procedures, requires an irrevocable Letter of Credit for the public improvements and landscaping for all proposed projects. However, the LDC does allow for an alternate form of financial security, subject to Village Board approval. Given the nature of how Stone Church manages its financials, a Letter of Credit is apparently difficult for the church to obtain. In the church’s case, a site improvement bond is more easily obtainable. The Hartford organization Bond Department has submitted a letter of support/approval to the church’s insurance company which supports the provision of a site improvement bond in the amount of $1,011,299.85 on behalf of Stone Church. A copy of this letter is provided for your reference.
Staff has consulted with the Village Attorney and the Finance Department on this matter and all parties find the use of this site improvement bond for Stone Church to be an acceptable substitute for the normally required Letter of Credit.
This is now before the Village Board for consideration.
Recommended Action/Motion
I move to approve for Stone Church the use of a site improvement bond in lieu of a letter of credit, in the amount of $1,011,299.85 from The Hartford financial organization.