Village Releases $2.8 Million Letter of Credit for Completed Stonegate Subdivision

The Manhattan Village Board approved the release of a nearly $2.9 million letter of credit for the Stonegate subdivision after village engineers confirmed all required public improvements have been completed.

The board unanimously approved releasing the $2,885,900.45 letter of credit for FGAC-1825 during Tuesday’s meeting, accepting the public improvements including streets, sidewalks, and other infrastructure within the development.

Village subdivision regulations require developers to post letters of credit to guarantee completion of public improvements. The village engineer inspected all work in Stonegate and recommended releasing the financial guarantee.

Mayor Mike Adrieansen confirmed that the developer completed all required improvements, including park area grading, seeding, and fertilization work completed earlier this spring. The developer has also agreed to continue park maintenance throughout the season as a courtesy while working to transfer the park deed to the Manhattan Park District.

The Stonegate project represents a significant residential development for Manhattan, and the completion of all public improvements marks an important milestone in the subdivision’s development. The letter of credit release indicates that streets, utilities, and other infrastructure meet village standards and have been accepted for ongoing municipal maintenance.

The approval allows the developer to recover the substantial financial guarantee that had been held to ensure project completion. Such letters of credit protect the village from having to complete unfinished work if developers encounter financial difficulties during construction.

The successful completion of Stonegate’s infrastructure requirements also demonstrates the effectiveness of Manhattan’s development oversight process, ensuring that new subdivisions meet community standards before financial guarantees are released.