SIA/Creekside CommonsReturn to:
Aimee Brunckhorst
Kalispell City Clerk
201 1"Avenue East
Kalispell, MT 59901
IIIIIIII II II IIIIIIIII IIIIIIIIII IIIII IIIII IIIII IIIII IIIII IIIII IIIII IIIIIIIII II I III IIII IN Page: I2022000257
6 79
Debbie Pierson, Flathead County MT by )S 9/29/2022 11407 AM
APPENDIX E
SUBDIVISION IMPROVEMENT AGREEMENT
THIS AGREEMENT, made and entered into this 6 day of September 20 22 , by and
between the CITY COUNCIL, CITY OF KALISPELL, MONTANA, Party of the First Part and
hereinafter referred to as the CITY, and
Housing Solutions, LLC (Name of
Developer)
a Company
(Individual, Company or Corporation)
located at PO Box 2099 Missoula, MT 59806
(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 developer of a new subdivision known as
Creekside Commons (Name of
Subdivision)
located at 1.014 acres of Lot 1 A of Gatewav Communitv Center
(Location of Subdivision)
and,
WHEREAS, the City has conditioned it's approval of the final plat of
Creekside Commons , 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
$ 6,500
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 $ 8,125 . 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 $ 8125
completing the required improvements in Creekside Commons
(Name of Subdivision)
the estimated cost of
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 July 6, , 2023
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
befor
Housing Solut ns, LLC.
by Alex Burkhalter Manager
(Name) (Title)
STATE OF MONTANA
COUNTY OF 6( 55ou(o-
On this `j' day of av 5 v s l , 20 2 Z , before me, a Notary Public for the State
of Montana, personally appeared Alex Burkhalter , known to me to be the
Manager of Housing Solutions, 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.
2;_�_4k
Notary Public for the State of Montana
Printed Name
Residingat
My Commission Expires y /Zo /-z.
MAYOR, CITY OF KALISPELL
MAYOR
TYLER CURRENCE
NOTARY PUBLIC for the
State of Montana
OEA�L
Residing at
Missoula, Montana
My Commission Expires
September 20, 2025
I
-Mir
Y CLERK
O' RPpOf
U � � GSEA�
1892 M y
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 X September 2023 $6,500.00 0%
Other (
SUBTOTAL $6,500.00
FEES
TOTALS COSTS$6,500.00
TOTAL COLLATERAL (TOTALS COSTS X 125%) 8 125.00
'003508221561054%1470%08182022%#;y#####HCC3671 %05`
IRREVOCABLE LETTER OF CREDIT
Borrower: HOUSING SOLUTIONS, LLC Lender: First Security Bank of Missoula, Division of Glacier
PO BOX 2099 Bank
MISSOULA, MT 59806-2099 Mullan Branch
3660 Mullan Rd
Missoula, MT 59808
Beneficiary: CITY OF KALISPELL
201 1 ST AVE E
KALISPELL, MT 59901
NO.: 3508221561054P
EXPIRATION DATE. This letter of credit shall expire upon the earlier of the close of business on 08-18-2024 and all drafts and accompanying
statements or documents must be presented to Lender on or before that time, or the day that Lender honors a draw under which the full amount
of this Letter of Credit has been drawn (the "Expiration Date").
AMOUNT OF CREDIT. Lender hereby establishes at the request and for the account of Borrower, an Irrevocable Letter of Credit in favor of
Beneficiary for a sum of Eight Thousand One Hundred Twenty-five & 00/100 Dollars ($8,125.00) (the "Letter of Credit"). These funds shall be
made available to Beneficiary upon Lender's receipt from Beneficiary of sight drafts drawn on Lender at Lender's address indicated above (or
other such address that Lender may provide Beneficiary in writing) during regular business hours and accompanied by the signed written
statements or documents indicated below.
WARNING TO BENEFICIARY: PLEASE EXAMINE THIS LETTER OF CREDIT AT ONCE. IF YOU FEEL UNABLE TO MEET ANY OF ITS
REQUIREMENTS, EITHER SINGLY OR TOGETHER, YOU SHOULD CONTACT BORROWER IMMEDIATELY TO SEE IF THE LETTER OF CREDIT
CAN BE AMENDED. OTHERWISE, YOU WILL RISK LOSING PAYMENT UNDER THIS LETTER OF CREDIT FOR FAILURE TO COMPLY STRICTLY
WITH ITS TERMS AS WRITTEN.
DRAFT TERMS AND CONDITIONS. Lender shall honor drafts submitted by Beneficiary under the following terms and conditions:
Upon Lender's honor of such drafts, Lender shall be fully discharged of Lender's obligations under this Letter of Credit and shall not be obligated
to make any further payments under this Letter of Credit once the full amount of credit available under this Letter of Credit has been drawn.
Beneficiary shall have no recourse against Lender for any amount paid under this Letter of Credit once Lender has honored any draft or other
document which complies strictly with this Letter of Credit, and which on its face appears otherwise in order but which is signed, issued, or
presented by a party or under the name of a party purporting to act for Beneficiary, purporting to claim through Beneficiary, or posing as
Beneficiary without Beneficiary's authorization. By paying an amount demanded in accordance with this Letter of Credit, Lender makes no
representation as to the correctness of the amount demanded and Lender shall not be liable to Beneficiary, or any other person, for any amount
paid or disbursed for any reason whatsoever, including, without limitation, any nonapplication or misapplication by Beneficiary of the proceeds of
such payment. By presenting upon Lender or a confirming bank, Beneficiary certifies that Beneficiary has not and will not present upon the
other, unless and until Beneficiary meets with dishonor. Beneficiary promises to return to Lender any funds received by Beneficiary in excess of
the Letter of Credit's maximum drawing amount.
USE RESTRICTIONS. All drafts must be marked "DRAWN UNDER First Security Bank of Missoula, Division of Glacier Bank IRREVOCABLE
LETTER OF CREDIT NO. 3508221561054P DATED 08-18-2022," and the amount of each draft shall be marked on the draft. Only Beneficiary
or Beneficiary's transferee may complete a draft and accompanying statements or documents required by this Letter of Credit and make a draw
under this Letter of Credit. This original Letter of Credit must accompany any draft drawn hereunder.
Partial draws are permitted under this Letter of Credit. Lender's honor of a partial draw shall correspondingly reduce the amount of credit
available under this Letter of Credit. Following a partial draw, Lender shall return this original Letter of Credit to Beneficiary with the partial
draw noted hereon; in the alternative, and in its sole discretion, Lender may issue a substitute Letter of Credit to Beneficiary in the amount
shown above, less any partial draw(s).
PERMITTED TRANSFEREES. This Letter of Credit may be transferred by Beneficiary upon prior written notice to Lender of the transfer. The
transferee shall be deemed the new Beneficiary of this Letter of Credit and the documents of the transferee, including drafts required under this
Letter of Credit, will be processed by Lender (or any intermediary) without the original Beneficiary's intervention and without any further
obligation of Lender to the original Beneficiary.
TRANSFEREES REQUIRED DOCUMENTS. When the presenter is a permitted transferee under the "Permitted Transferees" paragraph above (the
"Permitted Transferee"), the documents required for a draw shall include all documents required elsewhere in this Letter of Credit, except that
such documents may be in the name of and executed by either the original Beneficiary or the presenter permitted by the "Permitted Transferees"
paragraph above.
COMPLIANCE BURDEN. Lender is not responsible for any impossibility or other difficulty in achieving strict compliance with the requirements of
this Letter of Credit precisely as written. Beneficiary understands and acknowledges: (i) that unless and until the present wording of this Letter
of Credit is amended with Lender's prior written consent, the burden of complying strictly with such wording remains solely upon Beneficiary,
and (ii) that Lender is relying upon the lack of such amendment as constituting Beneficiary's initial and continued approval of such wording.
NONSEVERABILITY. If any aspect of this Letter of Credit is ever declared unenforceable for any reason by any court or governmental body
having jurisdiction, Lender's entire engagement under this Letter of Credit shall be deemed null and void ab initio, and both Lender and
Beneficiary shall be restored to the position each would have occupied with all rights available as though this Letter of Credit had never
occurred. This non-severability provision shall override all other provisions in this Letter of Credit, no matter where such provision appears
within this Letter of Credit.
GOVERNING LAW. This Agreement will be governed by federal law applicable to Lender and, to the extent not preempted by federal law, the
laws of the State of Montana without regard to its conflicts of law provisions, and except to the extent such laws are inconsistent with the
2007 Revision of the Uniform Customs and Practice for Documentary Credits of the International Chamber of Commerce, ICC Publication No.
600. This Agreement has been accepted by Lender in the State of Montana.
EXPIRATION. Lender hereby agrees with Beneficiary that drafts drawn under and in compliance with the terms of this Letter of Credit will be
duly honored if presented to Lender on or before the Expiration Date unless otherwise provided for above.
IRREVOCABLE LETTER OF CREDIT
Loan No: 3508221561054 (Continued) Page 2
Dated: August 18, 2022
LENDER:
FIRST SECURITY BANK OF MISSOULA, DIVISION OF GLACIER BANK
By:
T.J. John Vice President
ENDORSEMENT OF DRAFTS DRAWN:
Amount Amount
Date Negotiated By In Words In Figures
Lswtft. Vv 21.1 0.222 Cop. Fb USA ColPWa 1997 2022. N PJ" R—ad . MT CIPLOCALICFNPLCOLOC.FC TR.176401 PR-7