The clock is ticking for developer Rick Bjorkman of PKR Enterprises to deliver to Mahoning Township supervisors an extended letter of credit for the Sunny Hills Farm Land Development project or Friday afternoon June 1st when the $125,000 letter expires, Chairperson John Wieczorek and Solicitor Tom Nanovic will be collecting the note due from Mauch Chunk Trust Company.
"I was notified that Mauch Chunk Trust Company is working on the letter of credit but I told them that if the letter is not received by us on or before Friday, June 1 we will be arriving to cash in the letter so we can finish the improvements bonded by it for Sunny Hill Farms," said Nanovic.
He indicated this was only the second time he would have done such a thing with a municipality. The letter of credit is a guarantee that PKR Enterprises would complete the plans for the development project. If the board does not call the letter when it expires on Friday it would become worthless after that leaving the township to deal with the project infrastructure without funding.
"It's possible we will receive the letter before the deadline," said Nanovic who added that would be the ideal situation since the bank probably will not want to have to pay the amount if they can avoid it.
Just in case the letter reaches the board prior to the deadline, supervisors passed a motion to extend the development agreement until March 31, 2013 provided the extended letter of credit is received on or before June first. The new extended letter would be adjusted for increased costs to $136,950.