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Plan Commission recommends Town Council accept $609,400 performance letter of credit for Shops at the Gates Lot 1
Summary
The commission recommended the Town Council accept a $609,400 performance letter of credit for Shops at the Gates Lot 1 as the second-year guarantee tied to a prior conditional approval; the recommendation passed 6-0.
The Saint John Plan Commission voted unanimously (6-0) on May 21 to recommend that the Town Council accept a performance letter of credit of $609,400 for Lot 1 of the Shops at the Gates subdivision, fulfilling a second-year financial guarantee required under the subdivision’s prior conditional approval.
Staff said the amount matches the figure on the engineering letter from John Dykstra’s site plan review. “As the planning commission can remember, earlier this year, we had the subdivision for the shops at the gates and a letter credit required for the second year for Lot 1,” staff said. A motion was made to recommend the Town Council accept the $609,400 letter of credit; the motion carried 6-0.
Why it matters: A performance letter of credit is a financial assurance that required public improvements will be completed or funded if the developer fails to complete them. Acceptance by the Town Council would place the guarantee on the town’s record and allow the developer to proceed under the subdivision’s schedule and conditions.
What remains: Town Council action to accept the letter of credit is required; staff and engineering letters are the basis for the recommendation.
