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Irrevocable Standby Letters of Credit{City of Kalispell Post Office Box 1997 - Kalispell, Montana 59903-1997 - Telephone (406)758-7700 Fax (406)758-7758 July 22, 2009 First Interstate Bank Scott P. Mizner PO Box 7130 Kalispell, MT 59904-0130 Re: Irrevocable Standby Letter of Credit No. 2309600425 $ 3,325.00 Irrevocable Standby Letter of Credit No. 2309600340 $ 3,068.75 Dear Mr. Mizner, I am returning the above mentioned letters of credit per Mark Crowley, Construction Manager of the Public Works Department. The Public Works Department agrees that the work has been completed as required. If you have any questions, please call me at 758-7750. Sincerely, C-i09- �`. Deb Deist City Treasurer cc Lone Pine Development 144 2°d St. E, Suite 102 Whitefish, MT 59937 MEMORANDUM July 22, 2009 To: Deb Deist, City Treasurer From: Mark Crowley, Construction Manago��/, Re: Lone Pine Trials subdivision The developer's engineer has requested a release of financial security for the Warranty`and Maintenance security, as well as the SIA security. Our department has reviewed the request and approves the release of the following: • Letter of Credit #2309600340 for $3,068.75. Expired August 11, 2008 • Letter of Credit #2309600425 for $3,325.00. Expired October 31, 2008 This letter is not an authorization to return the other letter of credit (First Interstate Bank #2309600385: $33,430.00) for the street trees. This is a separate bonding issue that will be addressed through the Parks Department. Cc: Planning Department 201 1' Avenue East, P.O. Box 1997, Kalispell, MT 59903 —Phone (406) 758- 7720 — Fax (406) 758- 7831 www.kalispell.com First Interstate Bank 2 Main St. P.O. Box 7130 First Kalispell, MT 59904-0130 G.Interstate406-756-5200 Bali t Fax: 406-756-5260 www.firstinterstatebank.com DATE: AMENDMENT STANDBY LETTER OF CREDIT #2309600340 August 11, 2008 APPLICANT: Lone Pine Development LLC 144 2nd St E, Suite 102 Whitefish MT 59937 BENEFICIARY: City of Kalispell PO Box 1997 Kalispell MT 59901 C(OPY AMENDMENT: Per a request, by the City of Kalispell for a decrease in the Letter of Credit #2309600340, the amount of this Letter of Credit is hereby decreased to an amount of $3,068.75. In addition, the expiration date is extended to December 31, 2008. All other terms and conditions as outlined in the original Letter of Credit dated August 11, 2006, remain unchanged. See copy of original letter of credit, attached hereto. Very Truly Yours, FIRST INTERSTATE BANK ByC A oo�d Signe ' By'. Authorized Signer DATE: First Interstate Bank 2 Main St. /. P.O. Box 7130irs Kalispell, MT 59904-0130 ®1nferstaf 406-756-5200 Bank Fax:406-756-5260 www.firstinterstatebank.com AMENDMENT STANDBY LETTER OF CREDIT #2309600340 August 11, 2008 APPLICANT: Lone Pine Development LLC 144 2nd St E, Suite 102 Whitefish MT 59937 BENEFICIARY: City of Kalispell PO Box 1997 Kalispell MT 59901 AMENDMENT: Per a request, by the City of Kalispell for a decrease in the Letter of Credit #2309600340, the amount of this Letter of Credit is hereby decreased to an amount of $3,068.75. In addition, the expiration date is extended to December 31, 2008. All other terms and conditions as outlined in the original Letter of Credit dated August 11, 2006, remain unchanged. See copy of original letter of credit, attached hereto. Very Truly Yours, FIRST INTERSTATE BANK By f- A thooedSigne ' By_;_-- y �- Authorized Signer r ' City of Kalispell Public Works Department M Post Office Box 1997, Kalispell, Montana 59903-1997 -Telephone (406)758-7720, Fax (406)758-7831 v MEMORANDUM August 11, 2008 To: Deb Deist, City Treasurer From: Mark Crowley, Construction Manag 01 Re: Lone Pine Trials subdivision The developer has requested a reduction of the amount of financial security for the Warranty and Maintenance security. The project engineer has submitted an Exhibit B to reduce the amount from $166,585.20 to $3,068.75. An examination of the referenced project was performed with the developer, Tom Watters, the project engineer, Marc Pitman, and Frank Castles, Charlie Johnson and myself. With the exception of the completion date, the City of Kalispell Public Works Department concurs that the items remaining to be repaired are as they appear in Exhibit B, as prepared and signed by Marc E. Pitman, PE (attached). It was agreed by all parties in attendance, that the completion date is October 1, 2008. The developer is providing financial security in the form of a letter of credit (#2309600340) in the amount of $3,068.75 (attached). The letter is to be stored in our vault in accordance with our city policy. Please return the existing security to the Developer. Do not return the other letter of credit (First Interstate Bank #2309600385: $33,430.00) for the street trees. This is a separate bonding issue that will be addressed through the Parks Department. Cc: without attachments Planning Department APEC, Inc.; 100 Financial Drive, Suite 120; Kalispell, MT 59901 First Interstate Bank; PO Box 7130; Kalispell, MT 59904-0130 Timberlake Development, 144 East Second Street, Whitefish, MT 59937 First Interstate Bank First Interstate Bank 2 Main St. P.O. Box 7130 Kalispell, MT 59904-0130 406-756-5200 Fax:406-756-5260 www.firstinterstatebank.com IRREVOCABLE LETTER OF CREDIT Letter of Credit No.: 2309600340 Date: August 11, 2006 Amount: $166,585.20 Expiration Date: August 11, 2008 TO: City of Kalispell PO Box 1997 Kalispell, MT 59903 RE: Two Year Warranty Bond Applicant: Lone Pine Development, LLC We hereby establish in your favor an Irrevocable Letter of Credit up to the aggregate amount of One Hundred Sixty Six Thousand Five Hundred Eighty Five Dollars and 20 cents ($166,58520) at the request of Lone Pine Development, LLC_ If Lone Pine Development, LLC fails to maintain the city infrastructure improvements in the time period listed above, 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 signed statement of an authorized official that the amount is drawn to repair improvements and specifying the default or defect in question. All drafts must be presented prior to the expiration date stated above, and this letter of credit must accompany the final 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 expressly stated, this Letter of Credit is subject to the Montana Uniform Commercial Code and the Uniform Custom and Practice for the Documentary Credits (1993 Rev) International Chamber of Commerce Document No. 500. First Interstate Bank PO Box 7130 Kalispell, MT 59904 l! ' Tammy Grilley%'j Its: (� 11 (Title) BY:GiL "lo Marj 4Zot Its: I / L_ tJ (Titl' EXHIBIT B This agreement specifically includes the following improvements, their projected construction completion date and estimated construction costs. CONSTRUCTION ESTIMATED PERCENTAGE COMPLETION CONSTRUCTION COMPLETE IMPROVEMENTS DATE COSTS Sewage Lift Station 8/31/2008 $4,000.00 96% 160.00 Fire hydrant Completed $1,500.00 100% 0.00 Storm drainage facilities 8/31/2008 $4,500.00 50% 2,250.00 Street lighting meter 8/31/2008 $5,000.00 95% 250.00 Generator Testing Completed $500.00 100% 0.00 Subtotal TOTAL COST TOTAL COLLATERAL (TOTAL COST x 125%) $ 2,660.00 $ 2,660.00 $ 3,325.00 \\Skywalker\Projects\Project Files (Documents)\Timberlake Builders\Lone Pine Trails Subdivision\Final Plat\EXHIBIT B 7-30-2008.doc Exhibit B 7-31-2008 Lone Pine Trails, Kalispell, Montana Page 1 of 1 „,.,. City of Kalispell Public Works Department r Post Office Box 1997, Kalispell, Montana 59903-1997 -Telephone (406)758-7720, Fax (406)758-7831 MEMORANDUM July 31, 2008 To: Deb Deist, City Treasurer From: Mark Crowley, Construction Manager's Re: Lone Pine Trials subdivision_, The developer has requested a reduction of the amount of financial security to $3,325.00 for the referenced project. A recent examination of the referenced project was performed. Public Works City of Kalispell concurs that the items remaining to be constructed are as they appear in Exhibit B, as prepared and signed by Marc E. Pitman, PE (attached). The completion date is August 31, 2008. The developer is providing financial security in the form of a letter of credit in the amount of $3,325.00 (attached). The letter is to be stored in our vault in accordance with our city policy. Please return the existing security to the Developer. Do not return the other letter of credit (First Interstate Bank #2309600385: $33,430.00) for the street trees. This is a separate bonding issue that will be addressed through the Parks Department. Cc: without attachments Planning Department APEC, Inc.; 100 Financial Drive, Suite 120; Kalispell, MT 59901 First Interstate Bank; PO Box 7130; Kalispell, MT 59904-0130 Timberlake Development First Interstate Bank 2 Main St. P.O. Box 7130 First Kalispell, MT 59904-0130 19.lnberState 406-756-5200 Bank Fax:406-756-5260 www.firstinterstatebank.com IRREVOCABLE STANDBY LETTER OF CREDIT DATE OF ISSUE: July 31, 2008 BENEFICIARY City of Kalispell P.O. Box 1997 Kalispell, MT 59901 LETTER OF CREDIT NO.: 2309600425 DATE OF EXPIRY: October 31, 2008 APPLICANT Lone Pine Development, LLC 144 East 2nd St, Ste 102 Kalispell, MT 59901 UP TO AN AGGREGATE OF**************************USD************$3,325.00 Three Thousand Three Hundred Twenty -Five & 00/100 Dollars We hereby issue, effective July 31, 2008, our Irrevocable Standby Letter of Credit in favor of Beneficiary, above, for a sum not to exceed the aggregate amount listed, available by Beneficiary's one or more clean drafts drawn at sight on First Interstate Bank, Kalispell Office when accompanied by: Beneficiary's signed statement indicating Letter of Credit Number 2309600425 and stating: "The undersigned hereby certifies that Lone Pine Development, LLC has failed to perform under the terms and conditions set forth in an agreement with the City of Kalispell in regards to the Sewer Lift Station, Fire Hydrants, Storm Drainage Facility, Street Lighting Meter or Generator Testing in the Lone Pine Trails Subdivision." We hereby agree that all drafts drawn under and in compliance with the terms of this Letter of Credit will be duly honored upon presentation to First Interstate Bank, Commercial Loan Department, 2 Main Street, Kalispell MT 59901 on or -before 5:00 p.m. on the date of expiry. Partial drawings are permitted. This Letter of Credit is subject, so far as applicable, to the Uniform Customs and Practice for Documentary Credits (1993 Revision) International Chamber of Commerce Publication No. 500 ("UCP"). FIRST INTERSTATE BANK By: " Scott P. Mizner, Vice Pr'sident -1�2 By: L 60 Brad Kelsey, Co.inmeylal Loan Officer First Interstate Bank 2 Main St. First P.O. Box 7130 Kalispell, MT 59904-0130 F.Ml.lnberState 406-756-5200 Bank Fax: 406-756-5260 www.firstinterstatebank.com (C(OF)r IRREVOCABLE STANDBY LETTER OF CREDIT DATE OF ISSUE: July 31, 2008 BENEFICIARY City of Kalispell P.O. Box 1997 Kalispell, MT 59901 LETTER OF CREDIT NO.: 2309600425 DATE OF EXPIRY: October 31, 2008 APPLICANT Lone Pine Development, LLC 144 East 2nd St, Ste 102 Kalispell, MT 59901 UP TO AN AGGREGATE OF**************************USD************$3,325.00 Three Thousand Three Hundred Twenty -Five & 00/100 Dollars We hereby issue, effective July 31, 2008, our Irrevocable Standby Letter of Credit in favor of Beneficiary, above, for a sum not to exceed the aggregate amount listed, available by Beneficiary's one or more clean drafts drawn at sight on First Interstate Bank, Kalispell Office when accompanied by: Beneficiary's signed statement indicating Letter of Credit Number 2309600425 and stating: "The undersigned hereby certifies that Lone Pine Development, LLC has failed to perform under the terms and conditions set forth in an agreement with the City of Kalispell in regards to the Sewer Lift Station, Fire Hydrants, Storm Drainage Facility, Street Lighting Meter or Generator Testing in the Lone Pine Trails Subdivision." We hereby agree that all drafts drawn under and in compliance with the terms of this Letter of Credit will be duly honored upon presentation to First Interstate Bank, Commercial Loan Department, 2 Main Street, Kalispell MT 59901 on ors before 5:00 p.m. on the date of expiry. Partial drawings are permitted. This Letter of Credit is subject, so far as applicable, to the Uniform Customs and Practice for Documentary Credits (1993 Revision) International Chamber of Commerce Publication No. 500 ("UCP"). FIRST INTERSTATE BANK By: __ Sc_ott P. Mizner, Vice Pr'sident By: Le_0 Brad Kelsey, CAnineXial Loan Officer i is i s t Post Office Box 1997, Kalispell, Montana 59903-1997 - Telephone (406)758-7720, Fax (406)758-7831 *]� August 17, 2006 To: Deb Deist, Treasurer From: Frank Castles, P.E., Deputy Public Works Director/Assistant City Engineer RE: Lonepine Subdivision Attached is an Irrevocable Letter of Credit in the amount of $166,585.20, for thetvuo year maintenance- bond for the city owned infrastructure within the referenced subdivision. r� (j 1 may, First Interstate Bank 2 Main St. P.O. Box 7130 Kalispell, MT 59904-0130 406-756-5200 Fax:406-756-5260 www.firstinterstatebank.com IRREVOCABLE STANDBY LETTER OF CREDIT DATE/PLACE OF ISSUE: December 27, 2007 Kalispell MT BENEFICIARY: City of Kalispell PO Box 1997 Kalispell MT 59901 CREDIT NUMBER: 2309600425 DATE OF EXPIRY: July 31, 2008 APPLICANT: Lone Pine Development, LLC 144 East 2nd St, Suite 102 Whitefish MT 59937 UP TO AN AGGREGATE OF USD ********** $19,375.00 Nineteen Thousand Three Hundred Seventy -Five and no/100---------------------dollars Dear Sirs: We hereby establish, in your favor, this Irrevocable Letter of Credit up to the aggregate amount of $19,375.00 at the request of Lone Pine Development, LLC. If Lone Pine Development, LLC fails to complete the agreement with the City of Kalispell in regards to the following: Sewer Lift Station, Fire Hydrant, Storm Drainage Facility, Street Lighting Meter and Generator Testing, in the new Lone Pine Trails Subdivision, in the time period listed above, 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 signed statement of an authorized official for the City of Kalispell, that the amount is drawn to complete the agreed upon improvements and specifying the default in question. All drafts must be presented prior to the expiration date stated above, and this letter of credit must accompany the final 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. Partial drawings permitted. We hereby engage with drawers, endorsers and bona fide holders that drafts and/or documents drawn in conformity with the terms of this Letter of Credit will be duly honored upon presentation to First Interstate Bank, at the address shown above, on or before the expiry. 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" ). Sincerely Yours, First Interstate Bank Po Box 7130, Kalispell MT 59904 BY Mar' De oro Its /-t" (Title) BY t/ iarles Werk Its V, A (Title) ACKNOWLEDGEMENT State of �� Ii&& ')) County of VtAfl' ) On this a� day of 06UW1t, bi v'" , in the year �� , before me, a Notary Public for the State of personally appeared Marj DeZort and Tammy Grilley, known to me to be the person (s) who executed this letter of credit on behalf of the corporation therein named, and acknowledged to me that such corporation executed the same. , I ql� a tiONtttIII III rrttrgp��///�. �dN % Print Name: n i i-i-ri t r-Li Notary Public for the State ofy" IUvLJGt vui �Ne, Residing at )�U s pC-( �rA My Commission Expires Gl • 2 t F'A FI1 I3 IT 1.3 This agreement specifically HICILIdcS the: i-ollo\Ving llllpt'0VCII1eIItS, their projected construction completion date and estimated construction costs. CONSTRUCTION E'S"T'IMATED PEIRCE'XI-AGE COMPLE,TION CONSTRUCTION COMPLETTi [IMPROVEMENTS DAJ-L COSTS Sewage Lift Station 5/31/08 $4,000.00 0% 4,000,00 Dire hydrant 5/31/08 $1,500.00 0% 1,500,00 Storm drainage facilities 1/1/08 $4,500.00 0% 4,500.00 Street lighting meter 5/31/08 $5,000.00 0% 5,000.00 Generator Testing 5/31/08 $500.00 0% 500.00 Subtotal I O I AL COST I-OT-AL COLLATERAL ("TOTAL COST x 125%) QATimberlake Builders\Lone Pine Trails Subdivision\Final Plat\EXHIBIT B 12-24-2007 doc $ 15,500.00 $ 15,500.00 $ 19,375.00 L'Vhibii 13 I2-29-2007 Lone Pius Trails, Kalispell, rUlonlana Page 1 of 1 of z 2 \ §\ \ \ \( \ \ j}\\ /\ } _ 3 /6/2 m u ARCHITECTURE August 17, 2006 Frank Castles, P.E. City of Kalispell Public Works Department P.O. Box 1997 Kalispell, MT 59901-1997 Re: Lonepine Trails Subdivision Dear Frank: We hereby certify that we have inspected the improvements to Lonepine trails subdivision. To the best of our knowledge and belief, we have found those improvements not included in the Subdivision Improvement Agreement to be in substantial conformance with the approved plans and specifications. A two Year Letter of Credit in the amount of ($166,585.20) 20% of the cost of the infrastructure improvements is enclosed. Sincerely, SCHWARZ ARCHITECTURE & ENGINEERING, Inc. Marc Pitman, P.E. ............. TA e.§rIA. I fI At'I C ;`� t:'• � a �..%i�:'ti?' as `:ram`, 6r SCHWARZ SCHWARZ ARCH ITECTU RE AN D EN6INEERIN6, INC. 100 Financial Dr., Suite 120 - Kalispell, MT 59901 - Tel: 406.755.1333 - Fax: 406.755.1310 - www.schwarzae.com City of Kalispell Public Works Department Post Office Box 1997, Kalispell, Montana 59903-1997 - Telephone (406)758-7720, Fax (406)758-7831 w�. MEMORANDUM December 27, 2007 To: Deb Deist, City Treasurer From: Mark Crowley, Construction Manager Re: Lone Pine Trials subdivision The developer has requested a reduction of the amount of financial security to $19,375.00 for the referenced project. A recent examination of the referenced project was performed. Public Works City of Kalispell concurs that the item remaining to be constructed is as they appear in Exhibit B, as prepared and signed by Marc E. Pitman, PE (attached). The completion date is May 31, 2008 (based on discussions with the development team and the City Manager). The developer is providing financial security in the form of a letter of credit in the amount of $19,375.00 (attached). The letter is to be stored in our vault in accordance with our city policy. Please return the existing security (First Interstate Bank #2309600335: $131,327.20) to the Developer. Do not return the other letter of credit (First Interstate Bank #2309600385: $33,430.00) for the street trees. This is a separate bonding issue that will be addressed through the Parks Department. Cc: without attachments Planning Department APEC, Inc.; 100 Financial Drive, Suite 120; Kalispell, MT 59901 First Interstate Bank; PO Box 7130; Kalispell, MT 59904-0130 IL architecture. planning= engineering- consulting December 24, 2007 Frank Castles, P.E., City Engineer City of Kalispell Public Works Department P.O. Box 1997 Kalispell, MT 59901 Re: Lone Pine Trails, Subdivision City of Kalispell, Flathead County Dear Frank: We have completed the requested as built survey and have prepared a revised Exhibit B to the previous filed subdivision improvement agreement. Thank you in advance for your help in this matter. Should questions arise regarding the information contained above or the referenced project, please do not hesitate to call our office. Sincerely, Encl.: Cc: Project File # 1179.04 Q:\Tiotberlake Builders\Lone Pine Trails Subdivision\Final Plat\Frank Castles Bond Reduction 12.24.07.doc Kalispell & APEC, Inc. & Polson 100 Financial Drive, Suite 120 Kalispell, Montana 59901 Tel 406.755,1333 Fax 406.755.1310 www.APEC-MT.coni EXHIBIT B This agreement specifically includes the following improvements, their projected construction completion date and estimated construction costs. CONSTRUCTION ESTIMATED PERCENTAGE COMPLETION CONSTRUCTION COMPLETE IMPROVEMENTS DATE COSTS Sewage Lift Station 5/31/08 $4,000.00 0% 4,000.00 Fire hydrant 5/31/08 $1,500.00 0% 1,500.00 Storm drainage facilities 1/l/08 $4,500.00 0% 4,500.00 Street lighting meter 5/31/08 $5,000.00 0% 5,000.00 Generator Testing 5/31/08 $500.00 0% 500.00 Subtotal TOTAL COST "TOTAL COLLATERAL (TOTAL COST a 125%) Q1Timberlake Builders\Lone Pine Trails Subdivision\Final Plat\EXHIBIT B 12-24-2007.doc $ 15,500.00 $ 15,500.00 $ 19,375.00 ARC E. PITNIq�{ -� 12563PE y `�� fC�Ns�O • \��e4 Exhibit B Lone Pine Trails, Kalispell, Montana 12-24-2007 Page I of I 0 First Interstate Bank�j f _Way fj; \'� C 2 Main St. P.O. Box 7130 irst Kalispell, MT 59904-0130 l .� 406-756-5200 L ? f�t Fax:406-756-5260 Bank www.firstinterstatebank.com AMENDED IRREVOCABLE LETTER OF CREDI��-�' Letter of Credit No.: 2309600335 Date: August 30, 2006 Amount: $131,327.20 Expiration Date: December 30, 2007 TO: City of Kalispell Public Works Dept. PO Box 1997 Kalispell, MT 59903 RE: Lone Pine Development, LLC Project # 1179.04 We hereby establish in your favor an Amended Irrevocable Letter of Credit up to the aggregate amount One Hundred Thirty One Thousand Three Hundred Twenty Seven Dollars and 20 cents ($131,327.20) at the request of Lone Pine Development, LLC. If Lone Pine Development, LLC fails to complete the specified improvements as outlined in the Subdivision Improvement Agreement (Exhibit B) within the required period, 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 signed statement of an authorized official that the amount is drawn to repair improvements and specifying the default or defect in question. All drafts must be presented prior to the expiration date stated above, and this letter of credit must accompany the final 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 expressly stated, this Letter of Credit is subject to the Montana Uniform Commercial Code and the Uniform Custom and Practice for the Documentary Credits (1993 Rev) International Chamber of Commerce Document No. 500. First Interstate Bank PO Box 7130 Kalispell, MT 59904 f BY:If%�i, M j DeZort/- { Its: ;. f.-'uJ ,� ✓ (Title , BY:�— Scott Mizne Its: (,11 r?'�� t��-�..1 f�c=`�..; �d (Title) ACKNOWLEDGEMENT State of County of Q' ; On this � . G day of KU.ct in the year ? G0 .. before me, a Notary Public for the State of 4�Lc)vt� A,Gc _,personally a geared Mar DeZort and Scott Mizner; known tome to be the person who executed this letter of credit on behalf of the corporation therein named and acknowledged to me that such corporation executed the same. G//7 IOTARvPUBLIC- aT Print Name: ! *'no raxsAL e ;� at , �sont ,s Notary Public for he State of ZUw " fJr- SEAL Residing at / �� My Crxw. ExpkwMy Commission Expires ooc t111Y11tt\`�`- s i isPublic Post Office Box 1997, Kalispell, Montana 59903-1997 - Telephone (406)758-7720, Fax (406)758-7831 MEMORANDUM January %, 2007 To: Deb Deist, Treasurer From: Frank Castles, P.E., Deputy Public Works Director/Assistant City Engineer RE: Lone Pine Trails Subdivision Attached is a copy of the request by the developer to reduce the amount of the subdivision improvement financial security to $131,327.20. A recent examination of the referenced project was performed recently. We concur that the items remaining to be constructed are as they appear in EXHIBIT B (dated 1-4-2007). Please do not release the original Letter of Credit until you receive the Letter of Credit in the amount of $131,327.20 as mentioned in the letter dated January 4, 2007. Cc w/o attachments: Marc Liechti APEC 100 Financial Drive, Suite 12o Kalispell, Montana 59901 January 4, 2007 Frank Castles, P.E., City Engineer City of Kalispell Public Works Department P.O. Box 1997 Kalispell, MT 59901 Re: Lone Pine Trails, Subdivision City of Kalispell, Flathead County Dear Frank: The owner of Lone Pine Trails has proceeded with completing the final items as part of the Subdivision Improvement Agreement (SIA) filed with the City of Kalispell. The Road Construction (100%) has been constructed per plans. The only items remaining are the landscaping (owners paid the Parks Department), mailboxes, sewage lift station testing, and 95% of the sidewalks. A revised Exhibit B for the SIA is attached. At this time, we request a reduction of the previous submitted security amount of $411,062.50 to $131,327.20. A Letter of Credit in the amount $131,327.20 is enclosed. Please return the original Letter of Credit to Mr. Watter's office at the following address: Tom Wafters Timberlake Builders, Inc. 144 East Second Street Whitefish, MT 59937 Thank you in advance for your help in this matter. Should questions arise regarding the information contained above or the referenced project, please do not hesitate to call our office. Sincerely, APEC nc. arc Liechti Encl.: Revised Exhibit B Cc: Project File #1179.04 \\Skywalker\Project Files (Documents)\Timberlake Builders\Lone Pine Trails Subdivision\Final Plat\Frank Castles Bond Reduction 1.4.07.doc Kalispell APEC, Inc. - Poison 100 Financial Drive, Suite 120, Kalispell, Montana 59901 Tel: 406.755.1333 Fax: 406.755.1310 www.APEC-M'I'.com 111..1 : 1111:3 This agreement specifically includes the following improvements, their projected construction completion date and estimated construction costs. CONSTRUCTION ESTIMATED PERCENTAGE COMPLETION CONSTRUCTION COMPLETE IMPROVEMENTS DATE COSTS Street grading Street base Sidewalks/Curb LS Testing Water mains Fire hydrants Storm drainage facilities Street Signs (17) Street lighting Mail Boxes, Barrier Paving Landscaping/boulevard trees Subtotal TOTAL COST 8/23/2006 10/30/2007 8/30/06 9/15/06 8/25/06 8/18/06 8/18/06 10/30/2007 8/23/06 10/30/2007 10/30/2007 8/30/07 TOTAL COLLATERAL (TOTAL COST x 125%) $52,076.00 $23,755.00 $13 6,628.23 $342,269.33 $293,309.94 in water cost in sidewalk/curb est $4,250.00 $49,618.00 $ 6,000.00 $114,000.00 $49,658.00 100% 100% 30 % 95,639.76 99% 3,422.00 100% 100% 100% 100% 100% 0% 6,000.00 100% paid to city parks dept $ 105,061.76 $ 105,061.76 $ 131,327.20 Exhibit B 1-4-2007 Lone Pine Trails, Kalispell, Montana Page I of 1 l .. Rrst Bank First Interstate Bank 2 Main St. P.O. Box 7130 Kalispell, MT 59904-0130 406-756-5200 Fax:406-756-5260 www.firstinterstatebank.com IRREVOCABLE LETTER OF CREDIT Letter of Credit No.: 2309600335 Date: August 30, 2006 Amount: $409,062.50 Expiration Date: December 30, 2007 TO: City of Kalispell PO Box 1997 Kalispell, MT 59903 RE: Lone Pine Development, LLC We hereby establish in your favor an Irrevocable Letter of Credit up to the aggregate amount Four Hundred Nine Thousand Sixty Two Dollars and 50 cents ($409,062.50) at the request of Lone Pine Development, LLC. If Lone Pine Development, LLC fails to complete the specified improvements as outlined in the Subdivision Improvement Agreement (Exhibit B) within the required period, 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 signed statement of an authorized official that the amount is drawn to repair improvements and specifying the default or defect in question. All drafts must be presented prior to the expiration date stated above, and this letter of credit must accompany the final 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 expressly stated, this Letter of Credit is subject to the Montana Uniform Commercial Code and the Uniform Custom and Practice for the Documentary Credits (1993 Rev) International Chamber of Commerce Document No. 500. First Interstate Bank PO BoxISialispell, MT 5,9904 17 TammyH tit17y !— r Its: r (Title) v c' BY: r cott 'zner rr�� Its: 17, Ce 09--kl — (Title) ACKNOWLEDGEMENT State of 0t6 VLV cW (l ) County of Q lc-� k cc C i ) On this 3V� day of �� , m the year T o before me, a Notary Public for the State of person lly appeared Tammy Grilley and Scott Mimer; known to me to be the person who executed this letter of credit on behalf of the corporation therein named acknowledged to me that such corporation executed the same. �� ,/V� 7-;1_ (SEAL) NOTARY PUBLIGMONTANA Residing at Kalispell, Montana My Comm. Expires Y ! 1/�C `j Tint Name: KK Lv -c e l' Notary Public f r the State Residing at My Commission Expires ity ®f Kalispell Post Office Box 1997 - Kalispell, Montana 59903-1997 - Telephone (406)758-7700 Fax (406)758-7758 February 1, 2007 Schwarz Architecture & Engineering 100 Financial Drive, Ste 120 Kalispell, MT 59901 Re: Cashier's Check 01 4489346966 $5,000.00 Lone Pine Trails Subdivision Dear Sir, I am returning the cashier's check for Lone Pine Trails Subdivision. This was a portion of the original security for the SIA agreement amount of $411,062.50. The amount was reduced to $131,327.20 and I have a new letter of credit (2309600335) for that amount. The original letter of credit in the amount of $409,062.50 was released 1/23/07. Since this cashier's check was part of the same original security, I am releasing it. If you have any questions, please call me at 758-7750. Sincerely, Deb Deist City Treasurer THIS DOCUMENT HAS AN ARTIFICIAL WATERMARK PRINTED ON THE BACK, THE FRONT OF THE DOCUMENT HAS A MICRO -PRINT SIGNATURE LINE. ABSENCE OF THESE FEATURES WILL INDICATE A COPY. 14489346966 22-1676 960 8/29/06 PAY TOTHE CITY OF KALISPELL ORDER OF 1$ 5, 0 0 0. 0 0 EXACTLY ** 5 0 0 0 AND 0 0/ 10 0 DOLLARS DOLLARS PAYABLE THROUGH US BANK, ST. PAUL, MN 2929 i Sho GLACIER P.O. BOX 27 ® KALISPELL, MT 59903 REMITTER SCHWARZ ARCHITECTURE & ENGINEERING PAY TO THE ORDER OF CITY OF KALISPELL EXACTLY **5,000 AND 00/100 SIGNATURE OF REMITTER I DOLLARS of Ka lispol Parks and Recreation August 16, 2006 351 St Ave E — P.O. Box 1997 — Kalispell, MT 59903 — PH 758-7717 — Fax 758-7719 — E-Mail jyoung@ Kalispell.com Johna Morrison 100 Financial Dr. Suite 120 Kalispell, MT 59901 Re: Lone Pine Trails Dear Johna Morrison, This letter is to serve as approval on the landscaping plans submitted for Lone Pine Trails. The developer has deposited a check in the amount of $49,650 with the City of Kalispell to cover the cost of planting 124 boulevard trees, boulevard preparation, boulevard seeding and topsoil within Lone Pine Trails. The City Parks and Recreation Department will be replacing Green Ash with another tree selection that was selected on your boulevard tree list. It is understood that any and all landscaping and amenities are required to meet the city standards. We will work with you at a later date (when the majority of home construction is finished and people are living in the subdivision) in regards to specifics on boulevard tree planting locations. It has been enjoyable working with you, if you have any concerns or questions please give me a call. Sincerely, -6 �--- Jennifer Young, 4 Kalispell Parks and Recreation cc: Tom Jentz, Kalispell Planning Deb Deist, Finance Mark Crowley, Construction Manager % 09/19/06 p12:52:54 CITY OF KALISPELL Page gb620-iq ACCOUNT HISTORY trs G/L#: 2600-000-346080-000 Descr: DEVELOPER'S PAYMENT/TREES From: 08/16/2006 Output: Printer To: 08/16/2006 DATE AMOUNT BTCH DESCRIPTION / NAME / INV# / PO 08/16/06 49,658.00- C/R 17456 B146133 LONE PINE DEV:LONE PINE DEV C/R DB: .00 CR: 49,658.00- of Kalisp., 74 Parks and Recreation August 25, 2006 35 1 st Ave E — P.O. Box 1997 — Kalispell, MT 59903 — PH 758-7717 — Fax 758-7719 — E-Mail jyoung@ Kalispell.com Johna Morrison 100 Financial Dr. Suite 120 Kalispell, MT 59901 Re: Lone Pine Trails Dear Johna Morrison, This letter is to serve as approval on the landscaping plans submitted for the Lone Pine Trails Subdivision. The Parks and Recreation department approves the buffers on the northern part of the property and the southwest part of the property. As mentioned make sure the buffer areas have irrigation systems in place. The department approves the Parks and all the amenities. Again, as mentioned in the phone conversation the park areas will need irrigation and the trail system needs to consist of a hard surface approved by the Parks and Recreation Department. Final approval will be given upon completion, inspection and approval of the landscaping, at which time bonding and/or letter of credit would be released if it is in place. It should be noted that the landscaping and amenities are under a warranty period and the developer will be responsible fro replacement if necessary. If has been enjoyable working with you, if you have any concerns or questions please give me a call. Sincerel , Jennifer oung, Kalispell Parks and Recreation cc. Tom Jentz, Kalispell Planning Deb Deist, Frnance.a' Mark Crowley, Construction Manager