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Board approves revised bond language for Nell Road improvements; language limits village recovery and gives surety first right to complete work
Summary
Trustees approved revisions to the performance security for Nell Road improvements at Montgomery Business Center Unit 3 that cap the village’s recoverable costs to completion costs and give the surety a 30-day right to assume the project; the change follows approval of a TIF incentive that reduced required bond to 55% of the engineer’s estimate.
The Village of Montgomery board approved changes to the performance security language for public improvements on Nell Road within the Montgomery Business Center Unit 3 subdivision, action staff characterized as technically substantive and requested be considered by the full board.
Director (staff member) explained the developer’s proposed revisions would (1) limit the village’s recoverable costs to the cost to complete the improvements rather than all costs the village might incur in taking over the project, and (2) give the surety company the first right to take over and complete the work, with a 30‑day window to exercise that right before the village could step in. The board heard staff and the village attorney consider both changes substantive and appropriate for board approval.
Trustee Geier said his initial reaction was to oppose the change but, after reviewing the language and the explicit list of recoverable costs such as attorneys’ fees, accounting fees and testing, he was comfortable approving it. He also noted the 30‑day limit on the surety’s right to assume the project reduced the risk that the village would be left managing a prolonged completion effort.
The board previously approved a PUD amendment and final plat in September and, last month, adopted a TIF incentive agreement that reduced the required bond amount to 55 percent of the engineer’s estimate. Staff said approval of the revised bond language is the next step needed before issuing site development and public improvement permits.
A motion to approve the revised bond language passed with a 6–0 roll-call vote (Trustees Geier, Sperling, Bauman, Youngerman, Maraszek and Berzasca voting yes). Staff indicated the developer’s representative was available remotely to answer questions and that the village attorney reviewed the change.
The approval allows staff to accept the revised performance security and proceed toward issuance of permits for the subdivision and public improvements, subject to the terms the board approved tonight.
