Commissioners Court Meeting

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Meeting Date:	11/27/2023
Drawing of funds from LOC
Submitted for:	Jorge Calderon	Submitted By:	Jorge Calderon
Department:	Planning & Physical Development

Subject:

Discussion and possible action to authorize County staff to draw the necessary funds in an amount up to $5,605,547.44 from the standby Letter of Credit No. SBP702794 (International Bank of Commerce) as required to complete pending public road improvements required by the final plat of the Gateway Unit 1 Subdivision in the event that, on or before December 6, 2023, the developer fails to either: 1) complete the final improvements as required by the final plat approval of the Gateway Unit 1 Subdivision plat; or 2) provide a reasonable time extension to the financial guarantee.

Issue: Item is a regulatory compliance matter of the Subdivision Regulations and State law. In lieu of completion of public improvements triggered by plat requirements at the time of the Court’s final approval, a developer may submit a financial guarantee to ensure the completion of those pending improvements. Time extensions to financial guarantees are available by the Subdivision Regulations. The current financial guarantee expires December 6, 2023. The Planning Department began coordinating with the project engineer on September 6, 2023 on a public improvement construction status. It was determined with the assistance of the Webb County Engineering Department that approximately 30% of the work had been completed. On October 26, 2023, the Planning and Civil Legal Departments met with a developer representative to advise him of the intent to draw the funds if an extension was not submitted by 9 a.m. on November 27, 2023. The representative stated that he would talk to the developer. On November 7, 2023, a formal notice was submitted to the developer and project engineer, that the financial guarantee was soon to expire and an extension should be submitted no later than 9 a.m. on November 27, 2023. Since an extension was not filed in time, this item has been placed for the court’s authorization to draw the funds.

Solution: Drawing the funds will allow the County to ensure completion of public improvements and compliance with Subdivision Regulations and State law.

Result: Subdivision Regulations and State law requirements will be met.

Background:

Item is a regulatory compliance matter of the Subdivision Regulations and State law. In lieu of completion of public improvements triggered by plat requirements at the time of the Court’s final approval, a developer may submit a financial guarantee to ensure the completion of those pending improvements. Time extensions to financial guarantees are available by the Subdivision Regulations. The current financial guarantee expires December 6, 2023.

Previous Court Action:

Webb County Commissioners Court authorized preliminary and final plat approval on December 12, 2022. Plat was subsequently recorded in Vol. 40, Pgs. 70-71 of the Webb County Plat Records.

Fiscal Impact

Budget Account Number:	To be determined
Funding Source:	Letter of Credit
Balance:	To be determined
Financial Impact:
No local financial impact as funds are from Letter of Credit Amount requested not to exceed $5,605,547.44

Attachments
Letter of Credit
Expiration Notice