2018 SIA/Kalispell Nat'l Investment Co/Bloomstone Ph 2o
Return to:
Aimee Brunckhorst
Kalispell City Clerk
201 1" Avenue East
Kalispell, MT 59901
1111111111111111111 IN2 0.18 Page?. g01874
IDof913
Debbie Pierson, Flathead County MT by DD 8/23/2018 12 04 PM
APPENDIX E
SUBDIVISION Ill OROVEMENT AGREEMENT
THIS AGREEMENT, made and entered into this Ce "!- day of 20_ff, by and
between the CITY COUNCIL, CITY OF KALISPELL, MONTANA, P of the First Part and
hereinafter referred to as the CITY, and
Kalispell National Investment Company, LLC (Name of
Developer)
a Montana limited liability company
(Individual, Company or Corporation)
located at 124 Swan Ridge Court, Kalispell, MT 69901
(Street Address/P. O. Box) (City, County, State, Zip)
Party of the Second Part and hereinafter referred to as DEVELOPER.
t�
c-s
WITNESSETH:
THAT WHEREAS, the Developer is the owner and developer of a new subdivision known as
1n
Bloomstone, Phase 2 (Name of
l
Subdivision)
located at Assessors Tract 5C ( Assessor's No. 0011734). SW 114 of Section 36, T29N, R22W. P.M.M., Flathead County, Montana
(Location of Subdivision)
and,
WHEREAS, the City has conditioned it's approval of the final plat of
Bloomstone, Phase 2 , upon the conditions as set forth (Name
of Subdivision) in the Preliminary Plat of the Subdivision being completed and all improvements, as
cited in "Exhibit A" have not been completed at this time, and the Developer wishes to bond for the
completion of those improvements set forth in "Exhibit A'; and
WHEREAS, the City's Subdivision Regulations require that a subdivider shall provide a financial
security of 125% of the estimated total cost of construction of said improvements as evidenced by an
estimate prepared by a licensed public engineer included herewith as "Exhibit B'; and
WHEREAS, the estimated total cost of construction of said improvements is the sum of
$ 343,9W.70
NOW THEREFORE, in consideration of the approval of the final plat of said Subdivision by the City,
the Developer hereby agrees as follows:
1. The Developer shall deposit as collateral with the City a Letter of Credit, or other acceptable collateral
as determined by the City Council, in the amount of $429.945.88 . Said Letter of
Credit or other collateral shall have an expiration date of at least sixty (60) days following the
date set for completion of the improvements, certifying the following:
a. That the creditor guarantees funds in the sum of $. 429.945.88 the estimated cost of
completing the required improvements in ebm. Phase 2
(Name of Subdivision)
b. That if the Developer fails to complete the specified improvements within the required period,
the creditor will pay to the City immediately, and without further action, such funds as are
necessary to finance the completion of those improvements up to the limited of credit stated in the
letter;
2. That said required improvements shall be fully completed by September 1 , 2018
3. That upon completion of the required improvements, the Developer shall cause to be filed with the
City a statement certifying that:
a. All required improvements are complete,
b. That the improvements are in compliance with the minimum standards specified by the City for
their construction and that the Developer warrants said improvements against any and all defects
for a period of two (2) years from the date of acceptance of the completion of those improvements
by the City;
c. That the Developer knows of no defects in those improvements;
d. That these improvements are free and clear of any encumbrances or liens;
e. That a schedule of actual construction costs has been filed with the City; and,
f. All applicable fees and surcharges have been paid.
4. The Developer shall cause to be filed with the City copies of final plans, profiles, grades and
specifications of said improvements, with the certification of the registered professional engineer
responsible for their preparation that all required improvements have been installed in
conformance with said specifications.
IT IS ALSO AGREED BY AND BETWEEN THE PARTIES HERETO AS FOLLOWS, TO -WIT:
That the Developer shall provide for inspection of all required improvements by a registered professional
engineer before the Developer shall be released from the Subdivision Improvement Agreement.
That if the City determines that any improvements are not constructed in compliance with the
specifications, it shall furnish the Developer with a list of specific deficiencies and may withhold collateral
sufficient to insure such compliance. If the City determines that the Developer will not construct any or all
of the improvements in accordance with the specifications, or within the required time limits, it may
withdraw the collateral and employ such funds as may be necessary to construct the improvement or
improvements in accordance with the specifications. The unused portions of the collateral shall be returned
to the Developer or the crediting institution, as is appropriate.
IN WITNESS WHEREOF, the Parties have hereunto set their hands and seals the day and year herein
before written.
Bloomstone, Phase 2, Kalispell National Investment Company, LLC
(Name of Subdivision/Deve /Fir )
q
by tjet Manager
(Name) (Title)
STATE OF MONTANA
COUNTY OF Flathead
On this 2g day of 'SuyNe- , 20 1$ ,before me, a Notary Public for the State
of Montana, personally appeared Jim Davis known to me to be the
Manager of Kalispell National Investment Company, LLc , whose name is subscribed to
the foregoing instrument and acknowledged to me that he/she executed the same.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my Notarial Seal this day and year
first above written.
Notary Public r the to f Montana
Printed Name -.gfiak
Residing at
My Commission Expires il- i- 7-02-C'
MAYOR, CITY OF KALISPELL
MAYOR
HAILEY MAGSTADT
tasGsl
��(ARIq{4p�
NOTARY PUBLIC for the
State of Montana
* SEA.'- *
Residing at Kalispell, Montana
rFOF 1'
My Commission Expires
November 01, 2020
ATTEST:
f
CLERK
i►-d�'`�s
SEAL
1892
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EXHIBIT A
Conditions of approval as fixed to the preliminary plat by the City Council, Kalispell, Montana.
EXHIBIT B
This agreement specifically includes the following improvements, their projected construction completion date and
estimated construction costs.
CHECK CONSTRUCTION ESTIMATED PERCENTAGE
APPROPRIATE COMPLETION CONSTRUCTION COMPLETE
IMPROVEMENTS DATE COSTS
Street Grading/Paving
Street Base
Sidewalks
Curbs and Gutters
Sanitary Sewers
Mains
Other ( )
On -Site Sewage
Facilities
Water Systems
Mains
Other ( )
On -Site Water Supply
Water Storage Tanks
Fire Hydrants
Storm Sewer or
Drainage Facilities
Street Signs
Street Lighting
Street Monuments
Survey Monument Boxes
Landscaping/Boulevard trees
Other ( )
SUBTOTAL
FEES
TOTALS COSTS
TOTAL COLLATERAL (TOTALS COSTS X 125%)
RESOLUTION NO.5840
A RESOLUTION CONDITIONALLY APPROVING THE PRELIMINARY PLAT OF
BLOOMSTONE SUBDIVISION PHASES 2-6, DESCRIBED AS A PORTION OF TRACT 5C
IN THE SOUTHWEST QUARTER OF SECTION 36, TOWNSHIP 29 NORTH, RANGE 22
WEST, P.M.M., FLATHEAD COUNTY, MONTANA AND AS MORE PARTICULARLY
DESCRIBED ON EXHIBIT "A".
WHEREAS, Kalispell National Investment Company, LLC, the owners of the certain real property
described above, have petitioned for approval of the Subdivision Plat of said
property; and
WHEREAS, the Kalispell City Planning Board and Zoning Commission held a public hearing on
September 12, 2017, on the proposal and reviewed Subdivision Report #KPP-17-03
issued by the Kalispell Planning Department; and
WHEREAS, the Kalispell City Planning Board and Zoning Commission has recommended
approval of the Preliminary Plat of Bloomstone Subdivision, Phases 2-6, subject to
certain conditions and recommendations; and
WHEREAS, the City Council of the City of Kalispell at its regular Council Meeting of October 2,
2017, reviewed the Kalispell Planning Department Report #KPP-17-03, reviewed the
recommendations of the Kalispell City Planning Board and Zoning Commission, and
found from the Preliminary Plat, and evidence, that the subdivision is in the public
interest.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
KALISPELL, MONTANA AS FOLLOWS:
SECTION 1. That the Findings of Fact contained in Kalispell Planning Department Report
#KPP-17-03 are hereby adopted as the Findings of Fact of the City Council.
SECTION 2. That the application of Kalispell National Investment Company, LLC for
approval of the Preliminary Plat of Bloomstone Subdivision, Phases 2-6,
Kalispell, Flathead County, Montana is hereby approved subject to the
following conditions:
Conditions:
1. The development of the site shall be in substantial compliance with the application
submitted, the site plan, materials and other specifications as well as any additional
conditions associated with the preliminary plat as approved by the city council.
2. All applicable conditions within Ordinance 1635 (Bloomstone PUD) shall apply.
EXHIBIT
3. The preliminary plat approval shall be valid for a period of three years from the date of
approval.
4. The developer shall submit to the Kalispell Public Works Department for review and
approval a storm water report and an engineered drainage plan that meets the requirements of
the current city standards for design and construction. Prior to final plat, a certification shall
be submitted to the public works department stating that the drainage plan for the subdivision
has been installed as designed and approved.
5. The developer shall submit to the Kalispell Public Works Department prior to construction
an erosion/sediment control plan for review and approval and a copy of all documents
submitted to Montana Department of Environmental Quality for the General Permit for
Storm Water Discharge Associated with Construction Activities.
6. The developer shall submit water and sanitary sewer plans, applicable specifications, and
design reports to the Kalispell Public Works Department and the Montana Department of
Environmental Quality for concurrent review, with approval of both required prior to
construction.
7. The developer shall submit the street design to the Kalispell Public Works Department for
review and approval prior to construction.
8. A letter from the Kalispell Public Works Department shall be submitted stating that all new
infrastructure has been accepted by the City of Kalispell or a proper bond has been accepted
for unfinished work.
9. All existing and proposed easements shall be indicated on the face of the final plat. Utility
easements for city water and sewer shall be provided to allow for the logical extension of
utilities from this subdivision to adjoining properties. A letter from the Kalispell Public
Works Department shall be obtained stating that the required easements are being shown on
the final plat.
10. Treeline Road shall be extended to Four Mile Drive with an all weather surface prior to final
plat of Phase 2.
11, Treeline Road shall be fully improved to city standards prior to final plat of Phase 3.
12. The path along Four Mile Drive shall be extended to the eastern property boundary prior to
final plat of Phase 4.
13. Four Mile Drive improvements that meet the requirements of the City of Kalispell
Construction and Design Standards shall be completed prior to final plat of Phase 4. This
includes a left turn lane at Treeline Road and Foxglove Drive.
14. Treeline Road and Foxglove Drive shall have 3 lanes at the intersection with Four Mile
Drive.
15. No additional public or private accesses are permitted onto Four Mile Drive other than
Treeline Road and Foxglove Drive.
16. The water line shall be looped through the remainder parcel between Treeline Road and
Foxglove Drive prior to final plat of Phase 4. The water line shall be located within a city
street.
17. A 12" water line shall be extended to the northwest corner of Lot 55 prior to final plat of
Phase 3. The City of Kalispell is responsible for the upsizing of the water line from an 8" line
to a 12" line.
18. The following requirements shall be met per the Kalispell Fire Department and so certified in
writing by the Fire Department:
a. Water mains designed to provide required fire flows shall be installed per city
specifications at approved locations. Fire flows shall be in accordance with
International Fire Code.
b. Fire hydrants shall be provided per city specifications at locations approved by this
department, prior to combustible construction.
C. Fire Department access shall be provided in accordance with International Fire Code.
d. Street naming shall be approved by the Fire Department.
e. Addressing shall comply with the International Fire Code and Kalispell Fire
Department Standard Operating Guidelines.
f. Required fire flows shall be verified and approved by the Kalispell Fire Department
prior to combustible construction.
19. The following statement shall appear on the final plat: "The undersigned hereby grants unto
each and every person, firm or corporation, whether public or private, providing or offering
to provide telephone, telegraph, electric power, gas, cable television, water or sewer service
to the public, the right to the joint use of an easement for the construction, maintenance,
repair, and removal of their lines and other facilities, in, over, under, and across each area
designated on this plat as "Utility Easement" to have and to hold forever."
Developer's Signature
20. Prior to filing the final plat, a letter from the US Postal Service shall be included stating the
Service has reviewed and approved of the design and location of the mail delivery site. The
mail delivery site shall be installed or bonded for prior to final plat. In addition, the mail
delivery site and improvements shall also be included in the preliminary and final
engineering plans to be reviewed by the Public Works Department. The mail delivery site
shall not impact a sidewalk or proposed boulevard area.
21. A letter shall be obtained from the Kalispell Parks and Recreation Director approving a
landscape plan for the placement of trees and landscaping materials within the landscape
boulevards of the streets serving the subdivision. The approved landscape plan shall be
implemented or a cash in lieu payment for installation of the street trees and groundcover be
provided to the Kalispell Parks and Recreation Department.
22. A parks plan for the areas designated as "park and walking trail" shall be approved by the
Parks and Recreation Director.
23. A park maintenance district shall be formed incorporating all the lots within the subdivision.
The park maintenance district shall not be effective until such time as any open space or
parks are accepted by the city. In this case an assessment would be levied within the
maintenance district to be determined by the Parks and Recreation Department with
approvals by the Kalispell City Council.
24. A homeowner's association (HOA) shall be formed and established for the common areas
prior to final plat.
25. A minimum of two-thirds of the necessary infrastructure for the subdivision shall be
completed prior to final plat submittal.
26. All utilities shall be installed underground.
27. All areas disturbed during development shall be re -vegetated with a weed -free mix
immediately after development.
SECTION 3. Upon proper review and filing of the Final Plat of said subdivision in the
office of the Flathead County Clerk and Recorder, said premises shall be a
subdivision of the City of Kalispell.
PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE
CITY OF KALISPELL, THIS 2ND DAY OF OCTOBER, 2017.
Mark Johnson
Mayor
ATTEST:
iQF�t..z
Ai ee Brunckhorst, CMC z °
City Clerk = SEAL
EXHIBIT "A"
Bloomstone Phases 2, 3, 4, 5, 6 & Remainder Legal Description:
That portion of the SW 1/4 of Section 36, Township 29 North, Range 22 West, P.M.M., Flathead
County, Montana, described as follows:
Commencing at the Center 1/4 Corner of Section 36; Thence along the North line of the SW 1/4 of
Section 36, N 89°58'06" W 426.50 feet to a point lying on a 420.00 foot radius curve, concave
Southeasterly, having a radial bearing of S 06° 13'22" E; Thence Southwesterly along said curve
through a central angle of 83°50'46" along an arc length of 614.62 feet; Thence S 00004'08" E 152.23
feet to the POINT OF BEGINNING, said point being the beginning of a 280.00 foot radius curve to
the right; Thence Southwesterly along the curve through a central angle of 58000'30" along an arc
length of 283.48 feet; Thence S 57°56'22" W 128.37 feet to the beginning of a 220.00 foot radius
curve to the left; Thence Southwesterly along the curve through a central angle of 57°56'22" along an
arc length of 222.47 feet; Thence South 204.22 feet;
Thence West 516.15 feet to the Easterly right of way of the Kalispell Bypass North as described in
Document No. 20100009740; Thence S 03035'40" E 812.31 feet; Thence S 15° 13' 16" E 524.16 feet;
Thence S 89°44'07" E 634.71 feet to the beginning of a 8,264.44 foot radius curve to the right;
Thence Southeasterly along the curve through a central angle of 02°02'38" along an arc length of
292.62 feet to the beginning of a 8,264.44 foot radius curve to the left; Thence Northeasterly along
the curve through a central angle of 03°31'56" along an arc length of 506.56 feet; Thence
N 88046'00" E 16.33 feet; Thence N 00°04'05" W 1,656.65 feet; Thence S 89°48'52" E 24.85 feet;
Thence N 00°04'05" W 277.14 feet; Thence N 89°54'46" W 801.47 feet; Thence N 00°04'08" W
91.72 feet to the POINT OF BEGINNING, containing 62.25 acres of land, all as shown hereon.
Subject to and together with easements as shown. Subject to and together with easements of record.
June 20, 2018
City of Kalispell Public Works
PO Box 1997
Kalispell, MT 59903
406.758.7720
Re: Bloomstone Phase II
Engineer's Estimate of Remaining Infrastructure
Attached to this letter is an engineer's estimate of the costs to construct the remaining
improvements for the Bloomstone Phase 2 Subdivision. The grand total is $343,956.70.
Robert Smith, PE
Project Engineer
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EXHIBIT
BLOOMSTONE PHASE 2 - REMAINING IMPROVEMENTS
# IDESCRIPTION
Q!.'ANTITY JUNIT I UNIT COST TOTAL COST
STREET & SIDEWALKS
I
V ASPHALT
64,000
SF
$ 1.73
$ 110,720.00
2
CURB & GUTTER
1,500
LF
$ 13.81
$ 20,715.00
3
4" SIDEWALK
15,000
SF
$ 3.53
$ 52,950.00
4
ADA RAMP
14
EA
$ 474.47
$ 6,642,58
5
MH COLLARS
22
EA
$ 476.53
$ 10,483.66
6
CB APRONS
6
EA
$ 476.53
$ 2,859.18
7
VALVE COLLAR
9
EA
$ 326.63
$ 2,939.67
8
MAILBOX CONCRETE
48
SF
$ 4.88
$ 234.24
ELECTRICAL/COMM/GAS
9 ISINGLE
PRASE VAULTS
5
EA
$ 750.00
$ 3,750.00
10
LIGHT BASES VAULTS
8
EA
$ 650.00
$ 5,200.00
11
3" CONDUIT
5,500
LF
$ 1.90
$ 10,450M
12
2" CONDUIT
2,800
LF
$ 1.12
$ 3,136.00
13
CONDUIT 2 X 1.25 REDUCER
11
EA
$ 2.98
$ 32.78
14
ICONDUIT ROPE
10,000
LF
$ 0.06
$ 6CO.00
15
CONDUIT 3" SWEEPS
70
EA
$ 15.50
$ 1,085.00
16
CONDUIT 2" SWEEPS
40
EA
$ 11.75
$ 470.00
17
CONDUIT WARNING TAPE
3
EA
1 $ 24.50
$ 73.50
PARK/GREEN SPACE
18
IRRIGATION CITY FEES
2.00
EA
$ 10,000.00
$ 20,000,00
19
IRRIGATION SYSTEM
1.00
EA
$ 11,250.00
$ 11,250.00
20
PARK AREA - SIDEWALK 5FT
3,373.00
SF
$ 3.53
$ 11,906.69
21
PARK AREA - SIDEWALK BASE 6'
65.00
CY
$ 59.36
$ 3,858.40
22
PARK AREA - TREES
56.00
EA
$ 425.00
$ 23,800.00
23
PARK AREA - BBALL CT CONCRETE
2,500.00
SF
$ 4.88
1 $ 12,200.00
24
PARK AREA - BBALL CT BASKETS
1.00
EA
$ 2,000.00
$ 2,000.00
25
PARK AREA - SOD
70,000.00
SF
$ 0.38
1 $ 26,600.00
GRAND TOTAL COSTS TO COMPLETE = $ 343,956.70
ASSIGNMENT
This Assignment is made by and between Kalispell National Investment Company, LLC
currently of 124 Swan Ridge Court, Kalispell, MT 59901 ("Assignor") and The City of
Kalispell, Montana, P.O. Box 1997, Kalispell, Montana 59903, ("Assignee").
THE PARTIES AGREE AS FOLLOWS:
RECITALS
WHEREAS, Assignor is the owner of certain securities set forth in the attached and
incorporated Exhibit "A" ("Securities"); and
WHEREAS, Assignor and Assignee have entered into a Subdivision Improvement
Agreement dated A-1., , 2018 ("SIA") regarding the development of a subdivision
known as Bloomstone, ftase 2, located at Assessor's Tract 5C (Assessor's No. 001734), SW '/4
of Section 36, T29N, R22 W, P.M.M., Flathead County, Montana; and
WHEREAS, one of the obligations of Assignor in the SIA is to provide a financial
security of One Hundred Twenty Five percent (125%) of the estimated total cost of constructing
certain improvements set forth in Exhibit A to the SIA ("Improvements"). In addition, the SIA
further requires Assignor to deposit as collateral with the Assignee a Letter of Credit, or other
acceptable collateral as determined by the Assignee, in the amount of Four Hundred Twenty
Nine Thousand Nine Hundred Fourty Five Dollars and Eighty Eight Cents
($429,945.88), and that such Letter of Credit or other collateral shall have an expiration date
of at least sixty (60) days following the date set for completion of the improvements, certifying
the following:
i. That the Creditor guarantees funds in the sum of $429,945.88, the
estimated cost of completing the required improvements in Bloomstone,
Phase 2.
ii. That if Assignor fails to complete the specified improvements within the
required period, the creditor will pay to the Assignee immediately, and
without further action, such funds as are necessary to finance the
completion of those improvements up to the limit of credit stated in the
letter; and
WHEREAS, the date set for completion of the Improvements is September 1, 2018; and
WHEREAS, in lieu of a Letter of Credit, Assignor and the Assignee agreed that
Assignor, shall, on behalf of KNIC, execute an assignment document related to the Securities,
which shall be held in escrow with Insured Titles, 1724 Fairview Avenue Suite C, Missoula,
Montana, 59801 ("Escrow Agent"), pending completion of the Improvements or the expiration
date set for completion of the Improvements; and
EXHIBIT
Is __2,
t
WHEREAS, Assignor and Assignee have agreed that upon Assignor's timely completion
of the Improvements, and upon Assignor submitting to Escrow Agent an affidavit of completion
executed by the Assignee, the Escrow Agent shall release the assignment document to Assignor.
Assignor and Assignee have also agreed that if Assignor fails to timely complete the
Improvements as required by the SIA, and upon the Assignee submitting to Escrow Agent an
affidavit of non -completion, the Escrow Agent shall release the assignment document to the
Assignee, and the Assignee shall be able to liquidate the Securities to the extent necessary to
finance the completion of the Improvements up to the amount of $429,945.88, provided that the
unused portion of any of the Securities, and any unused portion of funds obtained from
liquidating any of the Securities, shall be transferred and assigned back to Assignee; and
WHEREAS, Assignee, in the event that Assignor does not complete the Improvements
by the expiration date set for completion of the Improvements, desires to assign the Securities to
Assignee so that Assignee may liquidate the Securities to the extent necessary to finance the
completion of the Improvements up to the amount of $429,945.88.
NOW THEREFORE, in consideration of the mutual covenants contained in this
agreement to assign, it is further agreed as follows:
1. Assignor, upon Assignee submitting to Escrow Agent an affidavit of non -
completion after the date set for the completion of the Improvements has expired, and by these
presents, assigns all of Assignor's right, title and interest in the Securities to Assignee. Assignee
shall also be entitled to liquidate the Securities to the extent necessary to finance the completion
of the Improvements up to the amount of $429,945.88, and any unused portion of any of the
Securities, and any unused portion of funds obtained from liquidating any of the Securities, shall
be transferred and assigned back to Assignor.
2. Assignor further agrees that this Assignment shall apply not only to the Securities
as currently held, but also to any securities or cash for which they are traded as part of the
management by Charles Schwab, and with the exception of trades and exchanges made as part of
the management of the Securities, Assignor shall not liquidate any of the Securities.
Assignor:
Kalispell National Inves ent Company, LLC
By: Dated: 92018
Its: AA dA d
Assignee:
Cit of Kalispell
Dated: 7 2018
oug R , City Manager