Public Improvement Completion AgreementWHEREAS, Spring Creek Development, L.L.C., a Washington limited liability company,
(hereinafter Spring Creek) 608 East Holland Avenue, Spokane, Washington, is a
general contractor responsible for constructing the Hampton Inn on Tract # 1,
Certificate of Survey # 12841 (1140 Highway #2 West), Kalispell, Montana, and
WHEREAS, the City of Kalispell, a municipal corporation, (hereinafter City) by and through its
Public Works Department and Building Division, is responsible to inspect said
Hampton Inn for purposes of assuring compliance with the City of Kalispell Zoning
Ordinance, Flood Plain Ordinance and Standards for Design and Construction, and
WHEREAS, Spring Creek has requested that the City issue a Final Certificate of Occupancy for
the Hampton Inn, and
WHEREAS, certain items contemplated in the construction, and required by the City for
Ordinance or Regulation compliance, remain to be completed, but because of weather
and other considerations the completion of said items cannot be accomplished in a
timely fashion prior to issuance of the Certificate of Occupancy, and
WHEREAS, the City and Spring Creek desire to enter into this agreement wherein Spring
Creek guarantees the completion of said items in exchange for the City's issuance
of Final Certificate of Occupancy.
NOW, THEREFORE IN CONSIDERATION OF THE COVENANTS, AND SUBJECT TO THE
CONDITIONS, CONTAINED HEREIN, THE CITY AND SPRING CREED AGREE AS
FOLLOWS:
1) City shall, upon execution of this Agreement and presentation of a Performance
Bond in the amount of $135,000 to be delivered by Durall, Rapp and Wolf, Inc,
Spokane, Washington, written by a surety licensed to do business in the State of
Montana, issue a Final Certificate of Occupancy to Spring Creek for the Hampton
Inn.
2) Spring Creek in considering the Final Certificate of Occupancy by the City shall
construct the improvements described herein in accordance with the permit
documents, State of Montana Driveway Approach Permit, and Flood Plain
Development Permit on file with the City, copies of which have been furnished to the
City heretofore, and which are, by this reference, incorporated herein.
is\wp\spgcrek.wpd 1
3) Spring Creek and the City agree that the improvements to be constructed and their
anticipated costs are limited to the following items:
a. Landscape and Irrigation Installation $ 20,000.00
b. Asphalt Paving $ 15,000.00
C. Highway #2 Approach Permit $ 25,000.00
d. Flood Plain Development Permit $ 30,000.00
$ 90,000.00
4) Spring Creek shall complete the above referenced improvements on or before July
1, 1997.
5) Spring Creek shall guarantee completion of said improvements by causing Dural,
Rapp and Wolf, Inc., Spokane, Washington to deliver a Performance Bond, issued
by a surety licensed to do business in the State of Montana, in the amount of One
Hundred and Thirty Five Thousand Dollars ($135,000.00) securing performance of
this Agreement within the time specified in § 4.
6) The City will be afforded a reasonable opportunity to inspect all work connected
with construction of the improvements before said work is covered or concealed by
other work, as the City may request notice and opportunity to inspect. In instances
where the City requests opportunity to inspect a particular item of work, or testing
procedures for any work, notice of time of when said work will be available for
inspection will be given to the requesting official by telephone at least 24 hours in
advance of such time. It shall be the responsibility of the representative of the City
to be present at the noticed time or to waive the right to inspect the work.
7) In the event Spring Creek does not complete the improvements on or before the
completion date, as specified in § 4, plus any extensions granted in writing by the
City, the City shall have the right to file a claim against the surety and completing
the improvements in accordance with the permit documents, State of Montana
Approach Permit or Flood Plain Development Permit.
8) Spring Creek agrees to indemnify and hold harmless the City from any and all
claims for any injury or damages of any kind or nature to any person or property
occasioned by Spring Creek's failure to complete the improvements within the time
allotted. This obligation to indemnify shall include reasonable attorneys fees and
investigation expense costs and all other reasonable costs and expenses, and
liabilities from the first notice that any claim or demand to be made or may be made
by either parry.
is\wp\spgcrek.wpd 2
9) Inasmuch as the provisions of this Agreement are for the purpose of allowing Spring
Creek to complete construction of improvements in accordance within the allotted
time, all stated time limits are of the essence in the Agreement.
10) This Agreement shall be deemed to have been made in and construed in accordance
with the laws of the State of Montana.
11) Any change or modification to this Agreement, in order to be effective, must be in
writing and signed by the parties hereto.
12) In the event either part to this Agreement shall be required to bring an action against
the other party to enforce this Agreement, or any portion thereof, the prevailing parry
shall be entitled to reasonable attorney fees and costs therefore in addition to any
damages that may be awarded.
13) This Agreement shall be binding upon and insure to the benefit of the respective
parties, heirs, successors and assigns.
IN WITNESS WHEREOF, said City has caused this Agreement to be signed on its behalf
by the Manager of said City and said Spring Creek has executed this Agreement this'Vof
January, 1997.
THE CITY OF KALISPELL
By:
Clarence Krepps- anager
Attest:
SPRING CREEK DEVELOPMENT, L.L.C.
By:
Its:`.
Att
is\wp\spgcrek.wpd
HOME OFFICE, PHILADELPHIA, PENNSYLVANIA
Bond No. _U2734315
KNOW ALL MEN BY THESE PRESENTS, that we Spring _Creek Development, L.L.C.
as Principal, and UNITED PACIFIC INSURANCE COMPANY of Philadelphia, Pennsylvania, a Pennsylvania
Corporation, authorized to do business In the State of Montana , as Surety, are held and
firmly bound unto City of Kalispell _ as Obligee, In
the penal sum of --One Hundred Thirty Five Thousand and No/100-- (S-135,000.00-
DOLLARS, lawful money of the United States of America, for the payment of which well and truly to be made,
we bind ourselves, our heirs, executors, administrators, successors and assigns, jointly and severally,
firmly by these presents.
WHEREAS, Spring Creek Development, L.L.C.
has agreed to construct In Certificate of Survey #12841, Improvements in
Accordance with Permit Documents for Hampton Inn on Tract #1
, Subdivision, in
Kalispell, Montana , the following Improvements:
_.. ..- ... F113F.11111WR •1 ._... .
Highway #2 Approach Permit, Flood Plain Development Permit
NOW, THEREFORE, THE CONDITION OF THIS OBLIGATION IS SUCH, that If the said Principal shall
construct, or have constructed, the Improvements herein described and shall save the Obligee harmless
from any loss, cost or damage by reason of Its failure to complete said work, then this obligation shall be
null and void; otherwise to remain In full force and effect.
Signed, sealed and dated this
BDU-2320 ED. 2/93
29th
day of January 19 97
SPRING CREEK DEVELOPMENT, L.L.C.
Princlp-)
By:
UNITED PACIFIC INSURANCE COMPANY
By: t A ) �x �:U � ---
Walter W. Wolf, Atiorn®y-In-raco
FAX TO: Tim Stulc
COMPANY: Vandervert Construction
FROM: JD--Ann--
INSURANCE
BONDS
E' C•. C.I � ♦ice �%
DATE: 1-30-97
SUBJECT: Spring Creek Dev Subdiv. Bond
NUMBER OF PAGES (including cover sheet) 1
MESSAGE:
i
Hi Tim:
i
We talked last on Tuesday regarding the referenced bond. I talked with
i
Keith McNally yesterday and the Subdivision Bond is the bond required
when the work to be done is in accordance with covenants of the City in
relation to a construction project for another entity.
I ran out of time yesterday but did get the new bond in the mail to
you, just no time for a cover efter to explain e bond and invoice
sent to you yesterday in the mail need to replace the performance payment
T can cancel t_hem._ f lat .___.
Sorry for the inconvenience, and thanks so much for your help.
� � V
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r� L NO, e-
P.O. BOX 2984 SPOKANE, WA 99220 - 4005 E. BROADWAY - SPOKANE. WA 99202
PHONE: (509) 535-9178 • FAX (509) 534-8134