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PLANNING & ZONING
MEMORANDUM
TO: Tom Hubbard, City Treasurer
FROM: Raymond J. Belair, Administrative Officer
DATE: August 28, 2014
SUBJECT: Establishment of Letter of Credit Account for Project # SD-13-27
Pursuant to the above -listed approval by the city's Development Review Board (DRB), the
applicant has established a Letter of Credit account. The documents have been prepared
using legal documents prepared by the City Attorney.
The amount included in this Letter of Credit account has been verified and meet the
requirements of the DRB decision.
The amount of the surety is: $ 12,406.00
The surety is required to be maintained until released by the City.
Please complete and sign the enclosed three -party agreement authorizing the
establishment of this Letter of Credit account.
S75 Dorset Street South Burlington, VT 05403 tel 802.846.4106 fax 802.846.4101 www.sburl.com
Peoples United
Bank
LETTER OF CREDIT NO.
SB-1993
City of South Burlington
575 Dorset Street
South Burlington, VT 05403
Attn: Ray Belair
Sir/Madam,
International Trade Finance Operations / Letters of Credit
T:203-338-3223 F:203-338-5417
ISSUE DATE EXPIRY DATE
8/22/2014 8/22/2017
On the instructions and for account of LNP, Inc. we hereby establish our Clean, Irrevocable,
Standby Letter of Credit No. SB-1993, in your favor, available by your draft drawn on us at
sight, for a sum not exceeding the total amount Twelve Thousand Four Hundred Six and 00/100
United States Dollars ($12,406.00)
Partial Drawings are not permitted. All bank charges and commissions incurred in this
transaction are for account of the applicant. Any funds drawn hereunder and not eventually
applied by you in reimbursement of loss incurred by you will be repaid to us by you.
Draft drawn under this Letter of Credit must bear on their face the clause "Drawn under People's
United Bank Credit No. SB-1993 dated August 22, 2014".
We engage with you that draft drawn under and in compliance with the terms and conditions of
this credit will be duly honored upon presentation and delivery of documents, as specified, to
People's United Bank, 850 Main Street, Bridgeport, CT 06604, ATTN: International Trade
Finance Operations RC 5-287, on or before August 22, 2017.
Please Note: In the event this Letter of Credit is no longer required, or is to be cancelled prior to
the present or future expiration date, it must be returned along with any amendments thereto, to
this office for cancellation.
Except so far as otherwise expressly stated, this documentary credit is subject to the "Uniform
Customs and Practice for Documentary Credits (2007 Revision), ICC Publication No. 600."
Very truly yours,
People's United Bank
By: IA1� W111r,
Authorized Signature
850 Main Street Bridgeport, Connecticut 06604
Peoples.com
Pepoes United
dank
LETTER OF CREDIT NO.
SB-1993
City of South Burlington
575 Dorset Street
South Burlington, VT 05403
Attn: Ray Belair
Sir/Madam,
International Trade Finance Operations / Letters of Credit
T:203-338-3223 F:203-338-5417
ISSUE DATE EXPIRY DATE
8/22/2014 8/22/2017
On the instructions and for account of LNP, Inc. we hereby establish our Clean, Irrevocable,
Standby Letter of Credit No. SB-1993, in your favor, available by your draft drawn on us at
sight, for a sum not exceeding the total amount Twelve Thousand Four Hundred Six and 00/100
United States Dollars ($12,406.00)
Partial Drawings are not permitted. All bank charges and commissions incurred in this
transaction are for account of the applicant. Any funds drawn hereunder and not eventually
applied by you in reimbursement of loss incurred by you will be repaid to us by you.
Draft drawn under this Letter of Credit must bear on their face the clause "Drawn under People's
United Bank Credit No. SB-1993 dated August 22, 2014".
We engage with you that draft drawn under and in compliance with the terms and conditions of
this credit will be duly honored upon presentation and delivery of documents, as specified, to
People's United Bank, 850 Main Street, Bridgeport, CT 06604, ATTN: International Trade
Finance Operations RC 5-287, on or before August 22, 2017.
Please Note: In the event. this Letter of Credit is no longer required, or is to be cancelled prior to
the present or future expiration date, it must be returned along with any amendments thereto, to
this office for cancellation.
Except so far as otherwise expressly stated, this documentary credit is subject to the "Uniform
Customs and Practice for Docu ntar edits (2007 Revision), ICC Publication No. 600."
DATE
Accepted ar '
Acknowledged b j v
d Sitsn?ture
ery truly yours,
United Bank
y: r
Authorized Signature
850 Main Street Bridgeport, Connecticut 06604
Peoples.com
Pepl es United
Bank
August 26, 2014
City of South Burlington
Attn: Ray Belair
575 Dorset Street
South Burlington, VT 05403
Dear Mr. Belair:
International Trade Finance Operations / Letters of Credit
T:203-338-3223 F:203-338-5417
At the request of our customer, LNP, Inc., we enclose our original Irrevocable Standby
Letter of Credit No SB-1993 in your favor, available by draft for an amount not
exceeding USD $12,406.00 in accordance with the terms of the letter of credit.
We would greatly appreciate if you would acknowledge receipt by signing where
indicated on the copy of the letter of credit, and returning this signed copy in the enclosed
envelope.
Your prompt attention will be greatly appreciated
Sincerely,
Wendy Mejia
International Trade Finance Operations
850 Main Street, RC5-287
Bridgeport, CT 06604
(P) 203-338-3223
Encl.
850 Main Street Bridgeport, Connecticut 06604
Peoples.com
SITE PLAN
LANDSCAPING LETTER OF CREDIT AGREEMENT
THIS AGREEMENT, executed in triplicate between LNP Incorporated , hereinafter
referred to as "DEVELOPER", People's United Bank , hereinafter referred to as "BANK", and
the City of South Burlington, herein after referred to as "MUNICIPALITY
,S�r.lti
WITNESSETH:
5-�
WHEREAS, DEVELOPER has received final plat approval No. �-13-27 dated 11/6/13
from the MUNICIPALITY's Development Review Board for the development of a subdivision consisting of
1 lots with related improvements, in a development to be known as- 27 Commerce Ave
as depicted on and in accordance with the specifications as set forth on the final plat entitled
Proposed Office/Wrhs Site Plan dated 4/16/14 last revised 10/4/13
prepared by O'Leary -Bur e and recorded at Map Slide 575 pg4 of the Land
Records of the City of South Burlington (the "Final Plat" herein) and as depicted on and in accordance with
the specifications as set forth on a site plan entitled , Proposed Office/Warehouse ", dated
8/5/13 last revised 10/4/13 prepared by O'Leary -Burke (the "Site
Plan" herein);
WHEREAS DEVELOPER is required by said approvals, at its own expense, to complete the construction
of the development site in accordance with the plans approved by the Development Review Board;
WHEREAS the parties to the Agreement wish to establish a mechanism to secure the obligations of the
DEVELOPER for the work as set forth below; and
WHEREAS the BANK executes this Agreement solely in the capacity of issuer of a Letter of Credit
hereinafter specified.
NOW, THEREFORE, the parties hereby covenant and agree as follows
1. DEVELOPER will, at its own expense, complete the following installation as depicted and
in accordance with the specifications set forth in the Site Plan and related documents:
a Landscaping
b.
2. DEVELOPER sha II replace or repair any defective or improper work or materials which
may be identified as such by the MUNICIPALITY within three (3) years after completion of
the improvements set forth in Paragraph 1 by the MUNICIPALITY (hereinafter the
"Warranty Period"). For the purpose of this Agreement "completion" shall be deemed to
have occurred when the Municipality has inspected and approved the installation of the
Improvements and issued written notice to the Developer that the installation thereof is
complete.
Upon "completion," the CITY shall provide DEVELOPER and BANK written notice of
completion.
4. For the guarantee of DEVELOPER's performance of all requirements hereunder set forth,
DEVELOPER has caused the BANK to issue its Irrevocable Letter of Credit in favor of the
MUNICIPALITY, the original of which is attached to the MUNICIPALITY's copy of this
Agreement, and a copy of which is attached to the DEVELOPER's copy of this
Agreement. During the term of this Agreement, DEVELOPER shall cause the attached
Letter of Credit to be renewed at least thirty (30) days before the maturity date thereof.
Failure of the DEVELOPER to deliver evidence of such renewal to MUNICIPALITY thirty
(30) days prior to the date of expiration of said Letter of Credit shall constitute a defau It of
the terms of this Agreement..
5. Said Irrevocable Letter of Credit provides that the drafts drawn under said Letter of Credit
must be accompanied by a written statement signed by a duly authorized agent of the
MUNICIPALITY, stating that in the judgment of the MUNICIPALITY, the DEVELOPER is
in default under the terms of this Agreement, and that the funds to be drawn pursuant to
the draft are in payment for, or in anticipation of payment for materials, labor and services
required for completion of the Improvements, or the repair or replacement thereof.
Payment of each draft will be made at sight when presented to the BANK by the
MUNICIPALITY, the payment limited only by the aggregate amounts presented in
relationship to the maximum amount of the Letter of Credit.
If DEVELOPER shall be in default of this Agreement for seven (7) days because of its
failure to provide evidence of renewal of the Letter of Credit, required in paragraph 4
above, MUNICIPALITY may notify BANK of such default and request payment of the
remaining balance available on said Letter of Credit. Such notice shall be provided in
accordance with Paragraph 5, above, with the exception that the MUNICIPALITY shall be
under no obligation to provide a statement that the funds to be drawn are in payment for,
or in anticipation of payment for materials, labor and services required for completion of
the Improvements, or the repair or replacement thereof. All funds drawn pursuant to this
paragraph shall be held in escrow by the MUNICIPALITY for the remaining duration of this
agreement. At the termination of this Agreement, the MUNICIPALITY shall refund all
remaining amounts held in escrow, less any funds retained in payment for, or in
anticipation of payment for materials, labor and services required for completion of the
Improvements, or the repair or replacement thereof. In the event any funds are withheld
by MUNICIPALITY, it shall provide DEVELOPER with a written statement stating that the
retained funds were retained in payment for, or in anticipation of payment for materials,
labor and services required for completion of the Improvements, or the repair or
replacement thereof.
The DEVELOPER and MUNICIPALITY hereby agree that the sum of
Twelve Thousand Four Hundred Six ($ 12,406.00 ) shall be
sufficient to secure DEVELOPER'S obligations under this Agreement but shall not relieve
DEVELOPER from the obligation to pay any additional costs, if actual costs exceed the
above -stated cost. Nothing herein shall relieve the DEVELOPER from the obligation to
pay any additional costs, if actual costs exceed the amount secured by the Irrevocable
Letter of Credit, after the time of completion.
8. The MUNICIPALITY will promptly submit to the DEVELOPER a copy of any draft it
submits to the BANK. The consent of the DEVELOPER to payment of said draft by BANK
to the MUNICIPALITY under said Letter of Credit shall not be required.
9. The MUNICIPALITY shall not file with the BANK a statement of default until ten (10) days
after notice has been sent by it to the DEVELOPER by certified mail, return receipt
requested, setting forth its intention to do so.
10. All funds drawn on the BANK by the MUNICIPALITY pursuant to the Letter of Credit shall
be used solely by the MUNICIPALITY for the purpose of completing construction of the
Improvements or the repair or replacement thereof. Any work contracted for by the
MUNICIPALITY pursuant hereto shall be let on a contractual basis, or on a time and
material basis, or shall be performed by the MUNICIPALITY's own work force and
equipment, or shall be accomplished in such other manner as in the judgment of the
MUNICIPALITY shall accomplish the work more expeditiously and economically,
consistent with good construction practices.
11. If payments are made by the BANK to the MUNICIPALITY pursuant to said Letter of
Credit, and it later develops that a portion of the monies drawn are in excess of the
MUNICIPALITY's needs, any such excess amount shall be refunded by the
MUNICIPALITY to the BANK, to be credited by said BANK to the Letter of Credit.
12. This Agreement and said Letter of Credit shall terminate and shall be of no force and
effect upon completion of the Warranty Period described in Paragraph 2, above. If the
MUNICIPALITY has not delivered any written notice to the DEVELOPER of any defective
or improper work or materials related to the Improvements within the Warranty Period, or
if notice has been given and the defective work or materials have been corrected by the
DEVELOPER to the reasonable satisfaction of the MUNICIPALITY, the MUNICIPALITY
shall forthwith notify the BANK in writing that the Letter of Credit may be cancelled, and
shall return the original Letter of Credit to the BANK, and the DEVELOPER shall be
released from all obligations hereunder.
13, The BANK may not modify the Letter of Credit without first receiving written consent to the
modification by the MUNICIPALITY.
14. DEVELOPER hereby agrees to indemnify and hold BANK harmless from all claims,
causes of action or liability of any kind arising out of this Agreement or the issuance by
BANK of this Letter of Credit, including attorney's fees, as long as BANK follows the terms
and conditions outlined in said Letter of Credit.
15. This agreement shall be binding on all parties hereto and their respective heirs, executers,
administrators, successors, and assigns.
DATED at South Burlington Vermont, this 27 day of 20 14
IN THE PRESENCE OF:
W/ifhess
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THE PRESENCE OF:
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itnes
INJ ENC OF:
it ess
LNP Incorporated
Dulj Authorized Agent
People's United Bank
By: '
Duly ut on tl ent
CITY OF SOUTH BURLINGTON
B�
Duly Au orized Agent
SON10-022 5-14-10 FORM LANDSCAPING LOC AG 5/14/10