WINFIELD | The Town Council has accepted the extension of more than $1.5 million in maintenance and performance bonds for the Stonegate Commons subdivision.
The subdivision’s developer, Peter Manhard of Providence Real Estate Development LLC, supplied his own one-time letter of credit to Winfield Clerk-Treasurer Rick Anderson required to extend those bonds.
According to Manhard’s letter, First Midwest Bank extended existing loans to the company until March 2014 to continue development of the townhome subdivision at 112th Avenue. However, the bank’s policy prohibits issuing letters of credit beyond the loan’s original expiration date, the letter stated.
The bonds cover Stonegate Commons, Stonegate phase one and Stonegate Offsite.
Providence Real Estate Development LLC is required to post a $899,705 performance bond for Stonegate Commons. A maintenance bond of $289,209 is needed by Stonegate Offsite and a $353,773 maintenance bond is required for Stonegate phase one.
Bonds help protect the town if a subdivision developer doesn’t complete specific tasks that are required by town ordinances, Anderson said.
In the past few months, the Winfield Town Council has approved “calling” or collecting the amount of bonds posted by developers of other subdivisions for work left unfinished.
Bonds were called for DoubleTree Estates West phases seven and eight and for portions of Wyndance and Deer Creek Estates.