Letter of Credit CorrespondenceCity of Kalispell
Post Office Box 1997 - Kalispell, Montana 59903-1997 - Telephone (406)758-7700 Fax (406)758-7758
September 25, 2009
Glacier Bank
Dave McNutt
PO Box 27
Kalispell, MT 59903
Re: Irrevocable Letter of Credit No. 1-04-229 $ 194,142.50
Dear Mr. McNutt,
I am returning the above mentioned letter of credit per Mark Crowley of the Public
Works Department.
If you have any questions, please call me at 758-7750.
Sincerely,
Deb Deist
City Treasurer
cc Tim Birk
2239 Lower Valley Road
Kalispell, MT 59901
GLACIER
� BANK
City of Kalispell Letter of Credit No. 1-04-229
PO Box 1997 Date: August 9, 2004
Kalispell, MT 59901 Expiration Date: August 9, 2005
Amount: $194,142.50
We hereby establish in your favor an irrevocable letter of credit up to the
aggregate amount of One Hundred Ninety Four Thousand One Hundred Forty
Two and 50/100 U.S. Dollars ($194,142.50) at the request of Tim Birk for his
project on Three Mile Drive.
If Tim Birk fails to complete the specified improvements in the subdivision off
Three Mile Drive within the time period set forth in the attached Improvements
Agreement, we will pay on demand your draft or drafts for such funds, to the limit
of credit set forth herein, as are required to complete said improvements. All
drafts must indicate the number and date of this letter of credit and be
accompanied by a d statement of an authorized official that the amount is
drawn to install rimm ents not installed in conformance with the
- Improvements Agreerent and ifying the default or defect in question.
All drafts must be presented -"prior t6 the expiration date stated above, and this
letter of credit must accompany thefinal draft for payment.
This letter may not be withdrawn or reduced in any amount prior to its expiration
date except by your draft or written release.
Unless otherwise stated, this Letter of Credit is subject to the Uniform Customs
and Practices for Commercial Documentary Credit (1983 Revision) Internationai
Chamber of Commerce.
GLACIER BANK
4, G
Dave McNutt
Vice President
DM/sks
Ume 1te3- w.glacierbank.com ® email: glacier@glacierbank.com
MEMBER FDIC AN EQUAL OPPORTUNITY LENDER
To: Deb Deist, Treasurer
From: Mark Crowley, Construction Manage`
Re: Three Mile subdivision
Date: September 24, 2009
Dear Deb,
Please return the letter of credit for the subdivision improvements agreement for Three
Mile subdivision to: Tim Birk
2239 Lower Valley Road
Kalispell, MT 59901.
Please note that this is unrelated to Three Mile Views subdivision, which has an active
subdivision improvements agreement.
201 1" Avenue East, P.O. Box 1997, Kalispell, MT 59903 —Phone (406)758-7720 — Fax (406)758-7831
www.kalispell.com
City of Kalispell Public Works Department
Post Office Box 1997, Kalispell, Montana 59903-1997 - Telephone (406)758-7720, Fax (406)758-7831
Mr. Jim Hansz, PE
City Engineer
Kalispell, Montana 59901
March 19, 2007
Re: Three Mile Subdivision
Dear Jim,
At your request, please find a timeline of the events related to the Subdivision Improvements
Agreement for Three Mile Subdivision. The Public Works Department has been working with
the developer for nearly two years to bring the project to completion.
One of the problematic aspects of this project is that the developer sold the lots with the
understanding that the lot buyers would be responsible for constructing the required sidewalks as
the home was completed. This did not relieve the developer of his responsibilities to build the
sidewalks to City standards. Sidewalk cores taken by the city established that the quality and
quantity of the materials used to construct the sidewalks was inconsistent. The developer was
then responsible for taking cores of sidewalks on each lot and either paying a replacement fee in
accordance with Resolution 5085B, or removing and replacing the substandard work.
Final plat was granted August 14, 2004, subject to a SIA that guaranteed the remaining
improvements would be completed by June 9, 2005. This agreement was secured with an
irrevocable standby letter of credit from Glacier Bank for $194,142.50.
July 1, 2005 Frank Castles sent a letter to Glacier Bank advising them that their client has
not yet completed the required improvements and that the City is prepared to seize the
funds.
The letter of credit was extended to November 9, 2005 and again to June 1, 2006.
May 3, 2006 I sent a letter to the developer itemizing the remaining repairs to be made
and suggested a final extension be submitted. It was stated that this "is a very generous
accommodation, as this is beyond 18 months from the final platting date. This extension
and security must be received by this office by May 17, 2006."
May 18, 2006 I drafted a seizure letter for the City Manager to sign. This letter was
signed and delivered to the bank.
At this point, the developer met with the City Manager, the City Attorney and Frank
Castles. A verbal agreement was reached that the City would not seize the security based
on statements from the developer that he would correct the deficiencies. The developer
was still responsible to core each lot in the project to demonstrate the proper materials
and amounts were used in the sidewalks.
October 13, 2006 this office (FC) sent a letter to the developer reminding him of his
responsibilities and lack of responsiveness. Minor repairs were made over the following
weeks before winter set in.
In mid -November I reminded the developer that we had not received any of his testing
results for the remaining lots. He said they were done months ago. On November 29,
2006 we were provided a copy of the cores taken August 23, 2006.
I prepared a spreadsheet that tracked the individual lots and the available information
(length of walk; depth of materials; source of data, etc.).
January 3, 2007 I met with the developer and his foreman in our office. I provided them
with a copy of the spreadsheet and sent a follow-up letter that same day.
January 19, 2007 I sent another letter to the developer stating that there are lots that:
® meet the standards and no further action is required (25 lots)
® need to have a replacement fee paid to the City of Kalispell in accordance
with Resolution 5085B (15 lots).
® need to be removed and replaced (12 lots)
® need testing results provided to the City of Kalispell (5 lots)
In addition to the sidewalk repairs, street trees need planted.
I hope this provides some insight to the events thus far. As always, feel free to contact me if you
have any questions.
Sincerely,
Mark Crowley
Construction Manager
CC: F. Castles
Planning Dept.
GLACIER
\BANK
PO Box 27, Kalispell, MT 59903
(406) 756-4278 fax (406) 756-4204
November 1, 2005
City of Kalispell
PO Box 1997
Kalispell, MT 59903
RE: Tim Birk
Modification of Irrevocable Letter of Credit No. 1-04-229
Current Amount: $194,142.50
Current Expiration Date: November 9, 2005
Modified Expiration date: June 1, 2006
The above Letter of Credit was established in your favor for the account of Tim Birk,
2239 Lower Valley Rd., Kalispell, MT 59901.
Effective November 1, 2005, the expiration date of the Letter of Credit is extended to
June 1, 2006. All other terms and conditions of the original Letter of Credit dated August
9, 2004 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,
Dave McNutt
Vice President
DM/djb
MEMBER FDIC AN EQUAL OPPORTUNITY
City of Kalispell Public Works Department
Post Office Box 1997, Kalispell, Montana 59903-1997 - Telephone (406)758-7720, Fax (406)758-7831
MEMORANDUM
November 1, 2005
To: Carol Kostman, Treasurer
From: Frank Castles, P.E., Assistant City Engineer
RE: Three Mile Subdivision
Tim Birk, Owner
Glacier Letter of Credit No. 1-04-229
Attached is an extended letter of credit for the subject project. The Public Works
Department approves the extension of the letter of credit with an expiration date of
June 1, 2006.
4 - City of Kalispell Public Works Department
- = Y p p
Post Office Box 1997, Kalispell, Montana 59903-1997 - Telephone (406)758-7720, Fax (406)758-7831
MEMORANDUM
August 12, 2005
To: Carol Kostman, Treasurer
From: Frank Castles, P.E., Assistant City Engineer
RE: Three Mile Subdivision
Tim Birk, Owner
Glacier Letter of Credit No. 1-04-229
Attached is an extended letter of credit for the subject project. The Public Works
Department approves the extension of the letter of credit with an expiration date of
November 9, 2005.
� GLACIER
� BANK
PO Box 27, Kalispell, MT 59903
(406) 756-4278 fax (406) 756-4204
August 2, 2005
City of Kalispell
PO Box 1997
Kalispell, MT 59903
RE: Tim Birk
Modification of Irrevocable Letter of Credit No. 1-04-229
Current Amount: $194,142.50
Current Expiration Date: August 9, 2005
Modified Expiration date: November 9, 2005
The above Letter of Credit was established in your favor for the account of Tim Birk,
2239 Lower Valley Rd., Kalispell, MT 59901.
Effective August 2, 2005, the expiration date of the Letter of Credit is extended to
November 9, 2005. All other terms and conditions of the original Letter of Credit dated
August 9, 2004 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,
t �
Dave McNutt
Vice President
DM/djb