AVON —While time is tight, a two-week delay may still leave some room for the town of Avon and the developers of the Village at Avon to finish a settlement of their legal dispute.
Council members voted unanimously Tuesday to take another two weeks to hammer out the details of a complex settlement deal before taking a first vote on the measure. The ordinance that paves the way for the settlement requires two votes.
Those votes now will come Sept. 25 and Oct. 9 at the earliest, which pushes hard against an Oct. 15 deadline set by international bank BNP Paribas. That bank holds the letter of credit used by the Traer Creek Metropolitan District to make payments on the bonds that paid for roads and other improvements at the Village at Avon. The developers then make payments on the letter of credit as funds are drawn from it.
Completing the settlement means the bank will extend its letter of credit. If the letter of credit is revoked, the bonds go into default, and it may be impossible to complete the complex financial formulas that are part of the settlement.
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