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HomeMy WebLinkAbout0725 Hinesburg Road - Landscaping - 11/29/2011Alto south h, . PLANNING & ZONING MEMORANDUM TO: Donna Kinville, City Treasurer FROM: Raymond J. Belair, Administrative Officer DATE: November 29, 2011 0 SUBJECT: Establishment of Escrow Account for Project # SD-11-26 Pursuant to the above -listed approval by the city's Development Review Board (DRB), the applicant has established an Escrow Account. The documents have been prepared using legal documents prepared by the City Attorney. The amount included in this Escrow Account has been verified and meet the requirements of the DRB decision. The amount of the surety is: $ 500. The surety is required to be maintained until: 11-29-14 Please complete and sign the enclosed three -party agreement authorizing the establishment of this Escrow Account. 575 Dorset Street South Burlington, VT 05403 tel 802.846.4106 fax 802.846.4101 www.sburi.com SITE PLAN LANDSCAPING ESCROW AGREEMENT THIS AGREEMENT, executed in triplicate,; Land Company, hereinafter referred to as AD�- United Bank, hereinafter referred to as AB South Burlington, herein after referred to l WITNESSETH: WHEREAS, DEVELOPER has received final plat approval No. SD 11-26 dated October 19, 2011, from the MUNICIPALITY=s Development Review Board for the development of a subdivision consisting of 31 unit PUD lots with related improvements, in a development to be known as "Fay Drive", as depicted on and in accordance with the specifications as set forth on the final plat entitled "725 Hinesburg Road", dated 11/30/06, last revised 9/21/2011, prepared by O'Leary Burke Civil Assocaites, and recorded at Map Slide (slide # if known, otherwise leave blank] 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 Allen Road Land Company, 725 Hinesburg Road, South Burlington", dated 11/30/06, last revised. 9/21/2011, prepared by O'Leary Burke Civil Associates (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 escrow agent. 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 as per plan titled 725 Hinesburg Road, last revised date 10/5/2011. 2. DEVELOPER shall 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. 3. Upon "completion," the CITY shall provide DEVELOPER and BANK written notice of completion. 4. For the guaranty of DEVELOPER=s performance of all requirements hereinabove set forth, DEVELOPER and BANK agree that cash in the amount of $500.00 (five hundred dollars) shall be held in escrow by the BANK and shall be available for payment to the MUNICIPALITY in accordance with the terms herein set forth. The funds in the escrow account shall not be diverted, applied, set off or disbursed except in accord with the terms hereof. The MUNICIPALITY shall be the sole beneficiary of the escrow account and shall have sole power to draw funds from the account, in accordance with the terms of this agreement. Nothing herein shall relieve the 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 retained in escrow, after the time of completion. 5. If the MUNICIPALITY files with the BANK a statement that the DEVELOPER is, in the judgment of MUNICIPALITY, in default under the terms of this Agreement, the BANK shall pay monies from said escrow fund to the MUNICIPALITY, in the amount(s) requisitioned by the MUNICIPALITY to complete the Improvements and satisfy the requirements in this Agreement. 6. The MUNICIPALITY will promptly submit to the DEVELOPER a copy of such statement as it files with the BANK. The consent of the DEVELOPER to payments by the BANK to the MUNICIPALITY shall not be required or solicited. The BANK shall incur no liability to the DEVELOPER on account of making such payment to the MUNICIPALITY, nor shall the BANK be required to inquire into the propriety of any claim by the MUNICIPALITY of default on the part of the DEVELOPER or into the use of such funds by the MUNICIPALITY in completing such Improvements. 7. 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. 8. All monies released by the BANK to the MUNICIPALITY pursuant to Paragraph 4 shall be used by the MUNICIPALITY solely for the purpose of performing obligations imposed upon the DEVELOPER by that portion of this Agreement upon which the DEVELOPER is then in default. Any work to be performed 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 with its own work force and equipment or shall be accomplished in such a manner as in the judgment of the MUNICIPALITY shall accomplish the work most expeditiously and economically. 9. If monies are released by the BANK to the MUNICIPALITY pursuant to Paragraph 4 and it shall later develop that a portion of the released monies are surplus to the MUNICIPALITY=s needs, any such surplus shall be returned by the MUNICIPALITY to the BANK to be held and distributed by the BANK pursuant to the terms of this Agreement. 10. The BANK shall not refuse or delay to make such payments to the MUNICIPALITY when requested by the MUNICIPALITY by an appropriate statement, and DEVELOPER will not interfere with or hinder such payments by the BANK to the MUNICIPALITY. 11. This Agreement shall terminate and shall be of no force or effect upon performance of all requirements contemplated hereby, and the completion of the Warranty Period set forth in Paragraph 2. 12. This Agreement shall not only be binding upon the parties hereto, but also their respective heirs, executers, administrators, successors, and assigns. 13. In the event that DEVELOPER furnishes MUNICIPALITY with an Irrevocable Letter of Credit, in form and substance satisfactory to MUNICIPALITY, as replacement security for the funds escrowed hereunder, and the MUNICIPALITY concludes that it is beneficial to the MUNICIPALITY to do so, the MUNICIPALITY may release the funds escrowed by this agreement and accept the Letter of Credit, provided the BANK reconfirms, in writing its commitment to the terms and conditions contained herein. 14. BANK as Escrow Agent. (a) As escrow agent hereunder, BANK, acting in such capacity, shall have no duties or responsibilities except for those expressly set forth herein. (b) DEVELOPER shall indemnify and hold harmless BANK against any loss, damage or liability, including, without limitation, attorney=s fees which may be incurred by the BANK in connection with this Agreement, except any such loss, damage or liabilityincurred by reason of the gross negligence or willful misconduct of BANK. It is further understood by DEVELOPER that if, as the result of any disagreement between it and any other party or adverse demands and claims being made by it or anyone else upon BANK, or if BANK otherwise shall become involved in litigation with respect to this Agreement, DEVELOPER agrees that it shall reimburse BANK on demand for all costs and expenses, including, without limitation, attorney=s fees, it shall incur or be compelled to pay by reason of such dispute or litigation, including reasonable compensation for time expended in connection with any such dispute or litigation. (c) DEVELOPER shall indemnify and hold harmless MUNICIPALITY against any claim, loss, damage or liability, including, without limitation, attorney=s fees which may be incurred by or brought against MUNICIPALITY in connection with this Agreement, except any such loss, damage or liability incurred by reason of the gross negligence or willful misconduct of MUNICIPALITY. (d) BANK, acting as such, shall not be liable to anyone by reason of an error or judgment, a mistake of law or fact, or for any act done or step taken or omitted in good faith, and this provision shall survive the termination of this Agreement. (e) At the time the last of the escrowed funds are released and disbursed by BANK in accordance with this Agreement, BANK shall be discharged from any obligation under this Agreement. (f) In accordance with the provisions above, BANK may rely upon and shall be protected in acting upon any statement, instrument, opinion, notice, request, order, approval or document believed by it to be genuine and to have been signed or presented by the proper party or parties. 15. Substitution or Resignation of BANK. BANK reserves the right to withdraw from this Agreement and cease serving as escrow agent hereunder at any time by giving ten (1D) days written notice thereof to the DEVELOPER and MUNICIPALITY. Upon notice of resignation by BANK, DEVELOPER agrees to find within ten (10) days of such notice a replacement escrow agent acceptable to MUNICIPALITY. BANK agrees to deliver the escrowed funds then held by BANK to such replacement escrow holder and notify all parties hereto. BANK shall thereupon be released from any and all responsibility or liability to the parties hereto. If the DEVELOPER fails to appoint a replacement escrow agent within such ten (10) day period, BANK shall petition any court having jurisdiction for the appointment of a successor escrow agent or for instructions as to the disposition of the documents and moneys held by it under this Agreement. In any event such court appoints a successor escrow agent, BANK shall deliver the escrowed funds then held pursuant to this Agreement, and all records and other documents held by it under this Agreement, upon payment of all fees and expense reimbursements due to BANK, to such successor escrow agent and BANK shall thereby be released from any and all responsibility or liability to the parties hereto. Pending such appointment or instructions, BANK shall continue to be bound by the terms of this Agreement. 16. IN WITNESS WHEREOF, and intending the parties have set their hands the dates or dates written below. DATED at Burlington to be legally bound, and seals hereto as of , Vermont, this 11/28 day of 2011 IN THE PRESENCE OF: Witness l By: � �-�. 4te, - Dulylkluthorized Agent IN THE PRESENCE OF: By Witness IN T E PRESE E F: By: unless SON10-021 5-14•-10 FORM LANDSCAPING ESCROW AGR 5/14/10 [BANK]C�CSf� j my AuthorizeVAgent CITY OF SOUTH BURLINGTON Du y ,uthorizect Agent Peopleited Bank July 19, 2010 Allen Road Land Company 410 Shelburne Road Burlington, VT 05401 Re: Irrevocable Standby Letter of Credit # 1964909 City of South Burlington 575 Dorset Street South Burlington, VT 05403 Dear Beneficiary: People's United Bank hereby establish our Irrevocable Standby Letter of Credit #1964909 in favor of City of South Burlington for the account of Allen Road Land Company up to an aggregate amount of $19,500.00 available by your draft or drafts on us at sight accompanied by: 1.) the original Letter of Credit and all amendments, if any, 2.) a written statement signed by an authorized officer of City of South Burlington that these funds are due you under the terms of your agreement with Allen Road Land Company, accompanied by 3.) a current secretary certificate or resolution from City of South Burlington that the officer is authorized to sign on behalf of City of South Burlington. If your demand represents a partial drawing hereunder, we will endorse the original credit and return same to you for possible future claims. If, however, your demand represents a full drawing, or if such drawing is presented on the day of the relevant expiration date hereof, we will hold the original for our files and remove same from circulation. Peoples United Bank All drafts must be marked under Letter of Credit #1964909. We engage with you that all drafts drawn under and in compliance with the terms and conditions of this credit will be duly honored on delivery of documents as specified if presented at this office on or before March 15, 2012. Except so far as otherwise expressly stated, this credit is subject to the "International Standby Practices ISP 98 (1998 Revision), International Chamber of Commerce Publication #590" Very truly yours, Brian D. Messier Director of Loan Operations SITE PLAN LETTER OF CREDIT AGREEMENT THIS AGREEMENT, executed in triplicate between, t60 &Ap J&D CB�nAPv'( of 6UgkVU6` 0,Aj hereafter referred to as "DEVELOPER", PCoPtZ 4S '(—Of nEl ) of —6VrU u6U AJ , hereafter referred to as "BANK", and C+"y o1^ 50.60'Rct 06TO/J , hereafter referred to as "MUNICIPALITY". WITNES SETH: WHEREAS, DEVELOPER has received site plan approval from the MUNICIPALITY'S Planning Commission for the development of property located at 725 tiwe5sugi-) 2p , as depicted on a site plan entitled " , dated I li3alD . 61 V 413I09 , and prepared by 01 tEmw 6vaCC LWIL A660CfATC5 PLC - WHEREAS, DEVELOPER is required by said approval, at its own expense, to complete the construction of the development site in accordance with the plan approved by the Planning Commission; and WHEREAS, the parties to this Agreement wish to establish a mechanism to secure the obligations of the DEVELOPER for the work as set forth above; 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 construction as depicted and in accordance with the specifications set forth in said site plan and related documents: (/AND6CAeI0 2. The DEVELOPER shall complete the improvements set forth in Paragraph 1 no later than 6Lia 8 ty2 d o 11 -1- 3. DEVELOPER shall replace or repair any defective or improper work or materials which may be recognized within three years after completion of the improve- ments set forth in Paragraph 1. For the purpose of this Agreement "completion" shall be deemed to have occurred when the MUNICIPALITY has inspected and approved the construction of all the improvements required by this Agreement and issued written notice to the DEVELOPER that the construction is complete. 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 dated thereof. Failure of 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 default of the terms of this Agreement. 5. Said Irrevocable Letter of Credit provides that the drafts drawn under said credit, must be accompanied by a written statement signed by a duly authorized agent of the MUNICIPALITY, that in the judgment of the MUNICIPALITY, the DEVELOPER is in default under the terms of this Agreement, and the funds drawn by the draft are in payment for, or in anticipation of payment for the materials, labor and services required for completion of the improvements identified in Paragraph 1. 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 the Agreement for seven (7) days because of its failure to provide evidence of renewal of the Letter of Credit, required in Paragraph 4 above, the MUNICIPALITY shall notify DEVELOPER by certified mail of said default. DEVELOPER shall then within three (3) business days provide MUNICIPALITY with evidence of said renewal of Letter of Credit or MUNICIPALITY may notify BANK of such default and request payment under said Letter of Credit. 6. The DEVELOPER and MUNICIPALITY hereby agree that the sum of ()JINEWL 29Qu5WD hL� fii1j� -bD °U ) 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 -state cost. 7. The MUNICIPALITY will promptly submit to the DEVELOPER a copy of any draft it submits 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. -2- 8. The MUNICIPALITY shall not file with the BANK a Statement of Default until ten (10) days after notice has been sent to the DEVELOPER, by certified mail, setting forth its intention to do so. 9. All funds drawn on the BANK by the MUNICIPALITY pursuant to the Letter of Credit shall be used solely by the MUNCIPALITY for the purpose of completing construction of the improvements identified in Paragraph 1. 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 MUNCIPALITY shall accomplish the work more expeditiously and economically. 10. If payments are drawn on the BANK by the MUNICIPALITY pursuant to said Letter of Credit, and it shall later develop that a portion of the monies drawn are in excess of the MUNCIPALITY's needs, any such excess amount shall be refunded by the MUNCIPALITY to the BANK, to be credited by said BANK to the DEVELOPER. 11. This Agreement and said Letter of Credit shall terminate and shall be of no force and effect upon completion of the three year warranty period as described in the above Paragraph 3. If the MUNICIPALITY has not delivered any written notice to the DEVELOPER of any defective or improper work or materials in the construction of the improvements within the thirty six (36) month period, or if notice has been given and defective work or materials have been corrected by the DEVELOPER, 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 both the DEVELOPER and the BANK shall be released from all obligations hereunder and under said Letter of Credit. 12. Upon request of DEVELOPER, but only at the sole discretion of the MUNICIPALITY, the MUNICIPALITY may agree to reduce the amount of said Letter of Credit required hereunder if the MUNCIPALITY believes that the full amount of said Letter of Credit is no longer necessary to protect its interest, and shall notify the BANK in writing of such reduction in the amount of the Letter of Credit. 13. The BANK may not modify the Letter of Credit without first receiving written consent of 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. -3- Dated at Qt)Ql IA► 106 �J , Vermont, this day of ou L 120_La_. IN THE PRESENCE OF: .e By: Du uthorized Agent (DEVELOPER) Dated at —&-v- \�o&0� , Vermont, this day of 2's� \,o , 20 to . IN TEPRESENCE . `L L71 V 11J Dated at o.bqml 6 d -., Vermont this day of _,3k cy 23 , 2010. IN T E PRESENCE OF: By: Duly Authorized Agent (MUNICIPALITY) -4-