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MOU/Developer and Juniper BendUN 2 4 1999 .IU IPER BEND II01 EtJTV ERS A.S VOCIq TI+!3t!% P.O. BOX 8673 KALISPELL, MT 59904 June 24, 1999 TO: City of Kalispell P.O. Box 1997 Kalispell. MT 59903-1997 A'i "1;`v: FRDO- Narda Wilson City Manager- Chris Kukulski City Attorney- Glenn Fleier Director of Public Works- Jinn Hansz Dear Madanv Sirs, t am writing this letter as the President of the Juniper Bend Homeowners Association (JBHOA) which was incorporated in September of 1995. The JBHOA Board represents the homeo«7zers of the Juniper Bend subdivision and all members of the Board are also homeowners at Juniper Bend. In the past several years numerous problems have arisen with the developers, Dan Mitchell - General Partner. The Association has repeatedly attempted to work with the developer to address these problems through a variety of calls, letters, and discussions. To that end a meeting was meld on January 25th, 1999 between the JBHOA and the developers to move the resolution process forward. The meeting was attended by the JBHOA Board of Directors -Bev Braig, Toni Laux, Toni Stufft, our secretary -Fran Korpela, homeowners- John McMillan and Wayne Jensen, attorney -Steve Berg, our engineer -Andy Hyde of Carver Engineering, developers -Dan Mitchell and Jim Swoish, developer's engineer- Michael Fraser of TD&H, and developer's attontev- Randy Snyder. The purpose of the meeting was to address the problems and promote better communication with the developer. 'The outcome of the meeting was a mutual agreement between the JBHOA and the developers to have the JBHOA prepare a Memorandum of Understanding (MOU). The MOU would be sent to the developers for their changes and comments with the final goal being to create a signed MOU between the JBHOA and the developers. The MOU was prepared and sent to the developers in Febi99. A copy is attached for your information. To this date we have had no response whatsoever from the developers regarding the MOU. The .1BHOA Board of Directors has carefully prepared the MOU to be a thorough description of the problems which exist within the Juniper Bend subdivision. As you can see a number of the problems relate to unkept promises made to the City of Kalispell, FRDO, and homeowners regarding the tinting and the manner to which certain improvements were to be performed. Mr. Mitchell's only response to the problems presented is that he intends to complete the subdivision on his timetable and that at a later date these issues will be addressed. This disregard for the original timetable of the subdivision agreements and for promises made to homeowners irho purchased homes at Juniper Bend is unacceptable. Recently, on June 16th,/99, the developer met with a homeowner, Mr. Jensen, and the to briefly explain his plans for the new unit,-,, slated for immediate construction. While the JBHOA supports Mr. Mitchell's desire to complete construction at.funiper Rend, the JBHOA does not agree that new construction should commence before full resolution is reached on the issues as set forth by the MOU. The issues described in the MOU will affect both the new units as well as the existing 22 units presently occupied. For example, one issue that has been brought to our attention is the incomplete curb and Putter on Grandview Lane. The position of the 110A is that we feel The original storm drainage system plan, as approved by the City of"Kalispell, should be completed by the developer, which does includes the installation of curb and gutters. If the developer wishes to make a change to that approved plan, then another complete plan would need to be submitted to be reviewed and approved by the City Engineers which would clearly show how that change would affect and be compatible with the total storm drainage system of the development. If the developer were not so delinquent in his completion of the project the JBHOA would request that the City of Kalispell take no action on the new plans submitted by the developer until the issues presented by the MOU are resolved, however, the JUHOA respectfully requests that the approval of any new plans or the issuance of any building permits be expressly conditioned on the Developer providing the City of Kalispell a bond to complete the items enumerated on the attached MOU. We thank you for your assistance in. bringing this development to completion. If you require any further information or involvement from the JBHOA please contact me at the number below. Sincerely, Beverly J. Braig President, Board of Directors of JBHOA 752-8265 A FRDO, 723 5th Ave E, Kalispell, NIT 59901 2 Feb/99 BETWEEN JUN IER BEND HOMEOINNERS ASSOCIATION AND JUNIPER BEND, INC. I WIIEREAS Juniper Bend; Inc. and JBHA (the parties to this agreement) desire to cooperate in order to complete the Juniper Bend Development in accordance with design plans and commitments made to homeowners. H WHEREAS the parties desire to avoid future risk exposures and liability through such completion and wish to be released from such liability. The following is a MOU of issues discussed at a meeting between JBHA and Juniper Bend, Inc. on January 25th, 1999: A. TIME SCHEDULE: Juniper Bend; Inc. agrees that it will complete the landscaping of all common areas by Sept 30, 1999. This would include north end, south end, bank side of Grandview Lane, area by automatic gate, lower park area, and common area surrounding all undeveloped lots. ( Lower park area. may be exempted according to H-2) R. WALK THROUGH : Juniper Bend, Inc. , JBHA, and Engineers for both parties, will conduct a detailed walk through: of development to specifically observe bank stability, erosion, drainage problems, retaining wall, cart path erosion, driveway and sidewalk settling, park area, fence area; curb and g?utters on, Grandview Lane, and landscaping on bank side of Grandvie« Lane. This walk-through is to be completed no later than March 10th, 1999. Coordination of schedules for walk through will be done by Fran Korpela, Secretary for JB11k C. DRALNTAGI SYS T ENI: The comcziete drainage system of the development will be readdressed by Juniper Bend. Inc., and iViike Fraser of TD & H to the satisfaction of JBHA. A written report from Juniper Bend, Inc. will be given to JBHA no later than March 3.1, 1999, and final construction must be agreeable io .BHA and JBHA Engineer. All the following areas are to be addressed, and others may be added to list: I. Drainage off of Golf Coarse south of unit 9258 (McMillan). 2. Runoff on the southwest side of Grandview Lane due to no curb and gutter 3. Drainage between the r� 123i 129 (Semitool) and 133 (Nau) units. 4. Drainage causing erosions of golf canpaths and disturbed embankment. 5. Drainage off garages and eavestroughs causing driveways and sidewalk settling and cracking. G. Verify resolution of Depression: on the loop roadway (NE) and surrounding the rnan bole, and "depressed" soil adjacent to curb. 7. Any other area observed. D. ROOF S T O DRAIN SYSTEM : Juniper Bend, Inc. will determine that all roof drains are operable per system design, and if necessary take steps to repair any roof drains. To be completed by Sept 30, 1999. E. EMBANKL MIENT: Juniper Bend, Inc. will restore and revegetate embankment/bluff with prior approval and to the satisfaction of JBHA. Specific areas to be addressed are: - embankinnent from unit #218, 212, 208, 202, 198, and 192. - settling by unit #232 (Sargent) - Stor i drainage area to park- - N-W property embankment (unit # 154/154 and unit# 164/166) - Certificate fro.: TD & H that the entire embankment on east and west side of development meets the applicable City and County standards. E. CART PATH: JBHA requests the Developer completely finish the cart path to golf course and path to lower park area, including construction and restoration and revegetation of disturbed areas. Cart path is to be completed by Sept 30, 1999. G. l-AINLNv'-VASE: Juniper Bend, Inc. will submit Engineer's plan documents and will. construct a new retaining wall to the satisfaction of JBHA and Engineers f9r both parties (with repar, footing, ete ), without farther disturbance to embankment, and existing retaining wail, the length of the disturbed area from units #208 to # 192. This is to be completed by Sept. 30, 1999. H. LANDSCAPE COMMON AREA: I. IIESIGTIN: All landscaping plans for Common Area must be approved by JBHA aind not be inconsistent. with the original landscape plans presented to the City. 2. PARK/ PAVILION/ TENNIS COUWrS: In consideration of the inability to construct tennis courts and t,uviiio.n ule developer will. pay S M J131 IA,, and t e oe --1.0per will then be released from performing any further work on the lower area property. 3. RESPOI SIBILITY: .-BHA will accept control and maintenance for all Common Areas landscaped by Juniper Bend, Inc. after completion of all items noted in this MOU. I. FENCE: Juniper Bend, Inc. will build a split rail_ fence, or similar strtletu_re, by Sept 30, 1999, on the East side along the entire length of the embankment. The design must be to the satisfaction: of BBHA. J. TREE THINNING: Juniper Bend, Inc. will complete thinning, removal and/or limbing of trees to east of unnits #2 i 8, 2 i 2 208, and 202, but all work must be approved in advance by each homeowner.. 2 K. ENGINEER CEIRaIEICATION: Juniper Bend, Inc. will provide MHA with documentation of existing road completion and construction according to city standards for Juniper Bend Drive. `I'D & H will also provide a certificate of compliance to standards on items C, D, E, F, and Gr as set forth above in this MCiJ. L. NEW CONSTRUCTION POLICY: 1. Juniper Bend, Inc. will enforce thatt all future constriction activity be limited to the impacted lot or adjacent road area only. No driving, parking, or construction materials would be on Common Area. Juniper Bend, Inc. and JBHA will meet together to determine other policies governing the impact of new construction on existing homeowners, (eg. construction hours.) 2. As noted in Article X! of the Juniper Bend Covenants, any and all designs for any future units must he approved by the JBI-Ln. Architectural Committee prior to the start of construction and/or any presale arrangements. M. ASSESSMENT PERIOD: Juniper Bend, Inc. will inform JBHA when a unit is completed to begin the period of no assessinent. N. MODIFICATIONS TO 1f. OU: Any subsequent modifications to this MOU between the parties will be made by written addendum. Dated on the day of 1999 4 i BV Pros -Id nE iiCtC'St Vice Presideiit Attest Secretary .JUNIPER BEND, FNLC BV Developer Attest Developer I, G. Daniel Mitchell, President of Juniper Bend, Inc., a Montana corporation, hereby certify that said corporation adopted the following resolution at a regularly called meeting, for the purposes of discussing said resolution, on May 7, 1998. The resolution adopted is as follows: RESOLVED, that the corporation executed a subdivision improvement agreement with the City of Kalispell for the installation of an auxiliary generator, automatic transfer switch, and alarm system; FURTHER RESOLVED, that the corporation secure and execute a performance bond with the City of Kalispell as contractor in the sum of $17,290.00 U.S. to guarantee performance of the above -described construction and installation; AND FURTHER RESOLVED, that G. Daniel Mitchell as president of the corporation be authorized to execute all required documents for the foregoing purposes. DATED May 7, 1998. 4G.araf(eIMWitch5ll.,President Juniper Bend, Inc. 27 First Interstate Bank Kalispell Office 2 Main Street P.O. Box 7130 Kalispell, MT 59904-0130 406-756-5200 Fax:406-756-5260 Internet Website: www.firstinterstatebank.com Internet E-Mail: fib@firstinterstatebank.com IRREVOCABLE STANDBY LETTER OF CREDIT DATE OF ISSUE: 5/15/98 BENEFICIARY: City of Kalispell Kalispell Montana UP TO AN AGGREGATE OF CREDIT NUMBER: 2309600060 DATE AND PLACE OF EXPIRY: September 15, 1998 First Interstate Bank APPLICANT: Juniper Bend Development #1 PO Box 7233 Kalispell MT 59904 USD ********** $17,290.00 Seventeen Thousand Two Hundred Ninety and No/100 Dollars Dear Sirs: We hereby issue in your favor this Standby Letter of Credit. Funds under this Letter of Credit are available to you upon presentation of the following: Your signed draft indicating that the funds are "drawn under First Interstate Bank Letter of Credit No. 2309600060, dated May 15, 1998. This Letter of Credit No. 2309600060 may be automatically extended without amendment for 120 days from the present or any future expiration date hereof, unless 30 days prior to such expiration Bank shall notify the beneficiary, by registered mail, that it elects not to extend the Letter of Credit for such additional period, in which case, this Letter of Credit #2309600060 will expire on September 15, 1998. Partial drawings permitted. All bank charges other than those of First Interstate Bank are for account of Beneficiary. We hereby engage with drawers, endorsers and bona fide holders that drafts and/or documents drawn in conformity with the terms of this credit will be duly honored on presentation to: First Interstate Bank at the above address. Except so far as otherwise expressly stated, this Documentary Credit is subject to the Uniform Customs and Practice for documentary credits (1993 revision) International Chamber of Commerce Publication No. 500. ("UCP"). Very Truly Yours, First Inter to a1JkA BY �- Authokiztd Signature orized Signature First Interstate Bank Kalispell Office 2 Main Street First P.O. Box 7130 Kalispell, MT 59904-0130 Fwj.1n&vsfaft 406-756-5200 Fax:406-756-5260 /� 8c�%)1'\ Internet Website: www.firstinterstatebank.com Internet E-Mail: fib@firstinterstatebank.com AMENDMENT U ; LT T Z T T i E W,i 1 WX #2309600060 DATE: September 14, 1998 APPLICANT: Juniper Bend Development #1 PO Box 7233 Kalispell MT 59904 BENEFICIARY: City of Kalispell Kalispell MT 59901 AMENDMENT: The date of expiration is hereby extended to September 30, 1998. All other terms and conditions as outlined in the original Standby Letter of Credit, dated May 15, 1998, remain unchanged. Yours very truly, FIRST WTERSTATE BANK Bv. Xulgorize8 Signer I By: Authorized Signer