Performance Bond InformationSeptember 21, 2005
MEMO
TO: Carol Kostman
FROM: Mike Baker
Carol,
Regarding the Sub -division agreements -letters of credit the following projects for the
Parks and Recreation Department can be taken off.
1. Wind River Development, Leisure Heights — phase I
The projects that can be taken off the Performance Bonds are:
1. Distillery Square Landscaping on 45 6t' Ave W
2. Coldwell Banker of Wacholz and Company
Thank you and if you have any questions please call me, 758-7716.
Mike Baker
PERFORMANCE BOND IMPROVEMENT AGREEMENT
THIS AGREEMENT, made and entered into this 1. 7 day of D e c e m h e i200 4 by
and between the CITY OF KALISPELL, MONTANA, Party of the First Part and hereinafter referred to as
the CITY, and
Colwell Ranker Wa^hhn'z and Cnmpany
(Name of Developer)
a Cornorat�or
(Individual, Company or Corporation)
located at 1 201; G, Ma; n StrPet j Kal - spel l f MT 59901_
(Street Address/P. O. Box) (City, County, State, Zip)
Party of the Second Part and hereinafter referred to as DEVELOPER.
WITNESSETH:
THAT WHEREAS, the Developer is the owner and / or developer of
1147 S. Ma4n Qi Pat Kalispells MT 59901
(Name of Project)
located at
(Address or Location of Project)
and,
WHEREAS, the City has conditioned it's final approval of the aforementioned project upon the
completion of improvements as cited in "Exhibit A" which have not been completed at this time. The
Developer wishes to bond for the completion of those improvements set forth in "Exhibit A"; and
WHEREAS, the City will allow bonding for those improvement but will require that the Developer
shall provide a financial security of 125% of the estimated total cost of construction of said improvements as
evidenced by an estimate prepared by contractor, subcontractor or engineer included herewith as "Exhibit B";
and
WHEREAS, the estimated total cost of construction of said improvements is the sum of
$ 101.000
NOW THEREFORE, in consideration of the final approval of the aforementioned project by the
City, the Developer hereby agrees as follows:
The Developer shall deposit as collateral with the City a Letter of Credit, or other acceptable collateral in the
amount of $ 1 8) 0 0 0
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 $ j 0E90 the estimated cost of
completing the required improvements in 1 T. 47 S, Maiii S t r e e t
(Name of Project)
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;
That said required improvements shall be fully completed by J u t y 1. , 200
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.
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.
ALSO AGREED BY AND BETWEEN THE PARTIES BERETO AS FOLLOWS, TO -WIT:
That the Developer shall provide for inspection of all required improvements prior to release from this
Agreement and 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.
This agreement specifically includes the following improvements, their projected construction completion
date and estimated construction costs.
Check appropriate improvement and estimated remaining costs:
f Grading/Paving S 11 100 = 00
Sidewalks
Curbs and Gutters
Sanitary Sewers
Mains
Other ( )
On -Site Sewage
Facilities
Water Systems
Mains
Other ( )
Fire Hydrants
Storm Sewer or
Drainage Facilities
Street Signs
Street Lighting
Street Monuments
Survey Monument Boxes
a/ Landscaping $ 3 3 0 0, 0 0
Other ( )
SUBTOTAL
TOTALS COSTS 514)400
TOTAL COLLATERAL (TOTALS COSTS X 125%) $18) 000
t
First Interstate Bank
2 Main St.
P.O. Box 7130
Kalispell, MT 59904-0130
406-756-5200
Fax:406-756-5260
www.firstinterstatebank.com
IRREVOCABLE STANDBY LETTER OF CREDIT
DATE/PLACE OF ISSUE: December 20, 2004
Kalispell MT
BENEFICIARY:
City of Kalispell
Kalispell MT 59901
UP TO AN AGGREGATE OF
Eighteen thousand and no/00---------------------dollars
Dear Sirs:
CREDIT NUMBER: 2309600280
DATE OF EXPIRY: July 1, 2005
APPLICANT:
Coldwell Banker Wachholz and Company
1205 South Main Street
Kalispell MT 59903
USD ********** $18,000.00
We hereby establish this Irrevocable Letter of Credit in favor of Beneficiary, above, and is available by
Beneficiary's drafts at sight drawn on First Interstate Bank, Kalispell MT and bearing the clause
"Drawn under First hterstate Bank, Letter of Credit 42309600280" and accompanied by the following
documents:
Beneficiary's signed statement indicating the Letter of Credit number and stating:
"The undersigned hereby certifies that Coldwell Banker Wachholz and Company has failed to perform
under the terms and conditions set forth in the PERFORMANCE BOND IMPROVEMENT AGREEMENT
dated December 17, 2004, for improvements (outlined in Exhibit A) to property at 1147 S. Main Street,
Kalispell MT"
Partial drawings permitted. We hereby engage with drawers, endorsers and bona fide holders that drafts
and/or documents drawn in conformity with the terms of this Letter of Credit will be duly honored upon
presentation to First Interstate Bank, at the address shown above, on or before the expiry.
Except so far as otherwise expressly stated, this Documentary Credit is subject to the Uniform Customs
and Practice for documentary credits (1993 revision) hiternational Chamber of Commerce Publication
No.500. ("UCP").
Sincerely Yours,
First Interstate Bank
BY
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