Castles to Deist/Reduce Financial SecurityCity of Kalispell Public Works Department
Post Office Box 1997, Kalispell, Montana 59903-1997 - Telephone (406)758-7720, Fax (406)758-7831
MEMORANDUM
August 16, 2006
To: Deb Deist, Treasurer
From: Frank Castles, P.E., Deputy Public Works Director/Assistant City Engineer
RE: Hutton Ranch Plaza, Phase I
Attached is a request by the developer to reduce the amount of the subdivision
improvement financial security to $614,482.50. A recent examination of the referenced
project was performed recently. Public Works concurs that the items remaining to be
constructed are as they appear in the attached EXHIBIT (dated 08/14/06).
Cc: Sean Conrad, Senior Planner
Kalispell Planning Office
HUTTON RANCH PLAZA ASSOCIATES, LLC
4 SUNSET PLAZA, SUITE 201
KALISPELL, MT 59901
August 15, 2006
Mr. James Patrick, City Manager,
City of Kalispell City Hall
PO Box 1997
Kalispell, MT 59903
Re: Hutton Ranch Plaza, Bond Reduction
Dear Mr. Patrick:
As you may know, Hutton Ranch Plaza Associates, LLC has completed the vast majority
of public improvements required to be constructed pursuant to the Conditions for Final
Plat for Phase T. Of the original public improvement cost of $2,303,875, there remains to
be constructed slightly less than $500,000 in additional improvements. Attached to this
letter is a revised Exhibit "A", certified by Terry Richmond of Morrison Maierle Inc. to
the effect that the remaining improvements, including associated fees, are $491,586.
In accordance with City requirements, Hutton Ranch Plaza posted with the City a Letter
of Credit Bond in the full amount of public improvements, to wit; $3,303,875. It is
respectfully requested that the City allow Hutton Ranch Plaza to reduce its continuing
Bond liability to $614,482.50, representing 125% of the remaining public improvements
to be constructed.
Thanks you for your time and consideration.
Inc., Manager
406.756.2771 (phone) 406 7562777 (fax)
EXHIBIT A (Revised August 14, 2006)
This agreement specifically
includes the following improvements, their projected construction completion date and
estimated construction costs.
CHECK
CONSTRUCTION
ESTIMATED
PERCENTAGE
APPROPRIATE
COMPLETION
CONSTRUCTION
COMPLETE
IMPORVEMENTS
DATE
COSTS
Street Grading/Paving'
X
Street Base'
X
1-Oct-2006
$207,750.00
25°0
Sidewalks
X
Curbs and Gutters'
X
Sanitary Sewers
Mains
X
I -Sep-2006
$9,280.00
97%
Other( )
On -Site Sewage
Facilities
Water Systems
Mains
Fire hydrants
On -Site Water Supply
Water Storage Tanks
Storm Sewer or
Drainage Facilities
Street Signs
Street Lighting
Street Monuments
Survey Monument Boxes
Landscaping/ Boulevard
trees
Other( )
X I-Sep-2006 $6,750.00 97%
X
X I-Sep-2006 $67,960.00 92%
X I-Oct-2006 $10,000.00 0%
X 15-Sep-2006 $48,500.00 50%
X 30-Oct-2006 $71,200.00 20%
SUBTOTAL $421,440.00
FEES $70,146.00
TOTAL COSTS $491,586.00
TOTAL COLLATERAL (TOTALS COSTS X 1 25%) $614,482.50
Includes Hutton Ranch Road and Highway 93 Access Improvements
GwtiEe
ABANK
202 Main Street
PO Box 27, Kalispell, MT 59903
September 13, 2006
Kalispell City Council
City of Kalispell
PO Box 1997
Kalispell, MT 59903
RE: Hutton Ranch Plaza Associates, LLC
Modification of Letter of Credit No. 1-06-284
Current Amount: $2,303,875.00
Current Expiration Date: July 31, 2007
Modified Amount: $614,482.50
(406) 756-4256
The above Letter of Credit was established in your favor for the account of Hutton Ranch Plaza
Associates, LLC, 4 Sunset Plaza, Suite 201, Kalispell, MT 59901.
Effective September 13, 2006, the amount of the Letter of Credit is reduced to $614,482.50. All
other terms and conditions of the original Letter of Credit dated April 25, 2006 remain
unchanged.
Please attach this modification to the original Letter of Credit. To the extent applicable, the
original Letter of Credit and this Modification are subject to the Montana Uniform Commercial
Code and the Uniform Custom and Practice for the Documentary Credits (1993 Revision)
International Chamber of Commerce Document No. 500.
Sincerely,
Dennis S. Beams
Executive Vice President
DSB/djb
EQUALMEMBER FDIC AN OPPORTUNITY