SIA Phase 1 dated 01/22/02SUBDIVISION IMPROVEMENT AGREEMENT
THIS AGREEMENT, made and entered into this day of _ _ __ __ _
200 by and between the CITY COUNCIL, CITY OF KALISPELL, ONTAN
Party of the First Part and hereinafter referred to as the CITY, and N RMAN
SANDERSON, of APEX 1, LLC, located at 10 E. Roanoke Street #8, Seattle,
Washington 98102, Party of the Second Part and hereinafter referred to as
DEVELOPER:
WITNESSETH:
THAT WHEREAS, the Developer is the owner of a new subdivision known as
"STRATFORD VILLAGE, PHASE 1", located in the West Half of Section 19, T28N,
R21 W, PM,M, Flathead County and,
WHEREAS, the City has conditioned it's approval of the final plat of
"STRATFORD VILLAGE, PHASE 1", upon the conditions as set forth 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 or
the contractor included herewith as "Exhibit A", and
WHEREAS, the estimated total cost of construction of said improvements is the
sum of $369,011.00.
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
$91,701.25. 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 $91,701.25, the estimated cost
of completing the required improvements in "STRATFORD VILLAGE, PHASE 1".
b. That if the Developer fails to complete the specified improvements within the
required period, the creditor will pay 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 OCTOBER 1,
2002.
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 anv and all defects for a period of one (1) year 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 have 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 WHER F, the Parties have hereunto set their hands and seals the
day and yea herein b e written.
——--------------------
STRATFORD VILLAGE, PHASE 1
NORMAN SANDERSON
APEX 1, LLC
STATE OF MONTANA )
SS
COUNTY OF Flathead )
On this _ day of _uf^[2001, before me, a Notary Public for the
State of Montana, personally appeared NORMAN SANDERSON and known to me to
be the Administrator for APEX 1, LLC and whose name is subscribed to the foregoing
instrument and acknowledged to me that he executed the same f r said APEX 1, LLC..
F
IN WITNESS WHEREOF, I have hereunto set my UU.'�'
Notarial
Seal the day and year first above written. N tary Public for the State of Montana
esiding at Kalispell, Montana My Commission Expires 6/18/2003
M , CITY OF KALISPELL
B'
or
ATTEST:
By:
Finanee Director
�s`i N
THE CITY OF KALISPELL, MONTANA
312 First Avenue East — P.O. Box 1997, Kalispell, MT 59903-1997
Telephone (406) 758-7750, Fax No. (406) 758-7847,
E-Mail ckostman@kalispell.com
January 13, 2003
Mr. Norm Sanderson,
Apex 1, LLC
10 Roanoke St. 48
Seattle, Washington 98102
RE: Irrevocable Letter of Credit- $91,701.25
Stratford Village Subdivision, Phase 1
Attached is the original letter to Banner Bank releasing the above Letter of Credit which expired
December 1, 2002. I am also enclosing the original Letter of Credit in the amount of $91,701.25.
I tried on several occasions to fax the above letter, but "send failed".
If you have any questions, please contact me.
Sincerely,
Carol L. Kostman
Assistant Finance Director
Enclosure: 2
THE CITY OF KALISPELL, MONTANA
312 First Avenue East — P.O. Box 1997, Kalispell, MT 59903-1997
Telephone (406) 758-7750, Fax No. (406) 758-7847,
E-Mail ckostman@kalispell.com
December 31, 2002
Banner Bank
Attention: Jeanne Varnier
Loan Officer
10125 Main Street
Bothell, WA 98011
RE: Stratford Subdivision
Credit Number 49101
Applicant: Apex 1, LLC
Irrevocable Letter of Credit
Dear Ms. Varnier,
The City of Kalispell is releasing the letter of credit dated December 12, 2001 in the amount of
Ninety One Thousand Seven Hundred One Dollars and 25/100' ( $91,701.25), which expired
December 1, 2002.
We have a received a new Letter of Credit in the amount of Eighteen Thousand Six Hundred
Seventy Five and no/100 ( $18,675.00), which will expire on November 18, 2003 and has now
been extended to December 31, 2004.
Sincerely,
0a A " � 11 e / " e Ild ��_ �
Carol L. Kostman
Assistant Finance Director
JER
INK
IRREVOCABLE LETTER OF CREDIT
DATE: 12-12-01
CREDIT NUMBER: 490101
BENEFICIARY:
APPLICANT:
City of Kalispell
Apex 1, LLC
P.O. Box 1997
10 E Roanoke St. #8
Kalispell, Montana 59903-1997
Seattle, Washington 98102
PHONE:
PHONE: 206 322-5977
FAX:
FAX:
DATE OF EXPIRY: 12-01-02
EXPIRY PLACE:
Counters of Banner Bank
We hereby authorize CITY OF KALISPELL to draw on Banner Bank for the account of APEX 1,
LLC up to an aggregate amount of Ninety One Thousand Seven Hundred One Dollars and
25/100, US (US$91,701.25) available by draft(s) drawn AT SIGHT when accompanied by the
following documents:
1. The original of this letter of credit and any subsequent amendments.
2. A signed statement by an authorized official of the City of Kalispell stating as follows:
"Claims have been submitted to Apex 1, LLC for payment and which remain unpaid by
same, and the funds represented by the attached drafts are required in full by "City of
Kalispell"
Each draft under this letter of credit must bear upon its face the words "Drawn under letter of
credit No. 490101".
This letter of credit shall expire on the 1st day of December, 2002 and all drafts must be
presented and negotiated on or before the date of expiration.
This letter of credit is subject to the Uniform Customs and Practices for documentary credits
(1993 Revision), International Chamber of Commerce Publication No. 500.
Your acceptance of this credit will constitute your agreement to repay Banner Bank, within three
(3) weeks after your receipt of the funds paid to you hereunder, any funds which exceed the total
amount of funds due you.
Banner Bank will honor all drafts drawn under and in compliance with terms of this credit, it duly
presented (together with all documents specified) at our counters on or before the close of
business on the expiration date shown above.
Banner Bank
BY: ✓�_
AU HORIZED SIGNER
CLF-102 Letter of Credit Rev. 05/00
APEX 1, L
B. �---
Jeanne Varnier
Loan Officer
10125 Main Street
Bothell, WA 98011
425-398-0559
Fax: 425-398-8549
ivarnier@banrbank.com
:R
JK