Phase III SIASUBDIVISION IMPROVEMENT AGREEMENT
CQ 00 0
THIS AGREEMENT, made and entered into this _ day of Imo; by and
between CITY COUNCIL, CITY OF KALISPELL, MONT kNNL arty of t e First Part and
hereinafter referred to as the CITY, and SON ERS LAND COMPANY, a corporation located at 1995
Third Avenue East, Kalispell, Montana 59901, Party of the Second Part and hereinafter referred to as
DEVELOPER.
■ _"
THAT WHEREAS, the Developer is the owner and developer of a new subdivision known as
Ashley Park, Phase III, located in Kalispell, Montana in the N 1 /2, SE 1 /4 of Section 19, Township
28N, Range 21 W, Flathead County, Montana; and,
WHEREAS, the City has conditioned it's approval of the final plat of Ashley Park, Phase M,
upon the conditions as set forth in the Preliminwy 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 professional engineer included herewith as "Exhibit B"; and,
WHEREAS, the estimated total cost of construction of said remaining improvements is the sure
of $ 1543335.28 .
NOW THEREFORE, in consideration of the approval of the final plat of said Subdivision by the
City, the Developer hereby agrees as follows:
I . 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 $ 192,919.10 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 follm ing:
a. That the creditor guarantees funds in the sum of $_ 192, 919.10 , which represents
125% of the estimated cost of completing the required improvements in Ashley Park, Phase
III.
b. That if the Developer fails to complete the specified improvements within the required
period, the creditor will pay to the City immediately, and without further action, such funds
as are necessary to finance the completion of those improvements up to the limit of credit
stated in the Letter of Credit;
2. That said required improvements shall be fully completed by _ _August_ 1512000 .
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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 any
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 has 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 plans and 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 deternunes that any improvements are not constructed in compliance with the
plans and 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 plans and specifications, or within
the required time limit(s), it may withdraw the collateral and employ such funds as may be necessary to
construct the improvement(s) in accordance with the plans and specifications. The unused portions of
the collateral shall be returned to the Developer or the crediting 'institution, as is appropriate.
That as improvements are completed, the Developer may apply to the City for a release of part of
the collateral deposited with the City. The proportion of the collateral released may not exceed the
proportion which the improvements completed represent of all originally required improvements;
otherwise, said Letter of Credit may not be withdrawn until released by the City.
That this agreement shall inure to the benefit of and be binding upon any successors in interest,
heirs, or assignees.
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IN WITNESS WHEREOF, the Parties to this agreement have hereunder set their hands and seals
the day and year herein before written.
ASHLEY PARK, PHASE III
BONERS LAND COMPANY
(Title)
STATE of MONTANA, COUNTY OF FLAAD
On this ' day of } .ce r �Q _ 1999, before me, a Notary Public for the State of
y
Montana, personally appearedv - mown to me to be the person whose
name is subscribed to the foregoing instrument and acknowledged to me that he executed the same.
IN 'FITNESS WREOF, I have hereunto set my hand and affixed my Notary Seal this day and
year first above written.
e +�raRr weucMWMy►
oraareL
SEAL* Reid"'g at Ke�SPe� AloeCF
Notary Public for the State of Montana
Residing atj<ltX,C,daQ��
My Commission Expires l b 003
This agreement is hereby approved and accepted by the City of Kalispell this
MAYOR, CITY OF KALISPELL
By- IjV f 1
I -
Mayor I
day*"'!���r1t�t�!�����#�r�rrrfri�l. ,.
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SEAL
By'-:4�
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ATTEST:
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