HomeMy WebLinkAbout1840 Spear Street - Infrastructure - 7/30/2008December 30, 2008
City of South Burlington
Ray Belair, Administrative Officer
575 Dorset Street
South Burlington, VT 05403
Re: Irrevocable Standby Letter of Credit #1516892
Expiration Date: October 31, 2009
South Village Communities, LLC
70 South Winooski Avenue
Burlington, VT 05401-3830
Dear Beneficiary:
The above -mentioned Letter of Credit is amended as follows:
Decrease value of credit by: Reduce from $1,218,799.00 to
$131,745.00
All other terms and conditions remain the same.
Very truly yours,
Brian D. Messier
Assistant Vice President
Two Burlington Square P.O. Box 820 Burlington, Vermont 05402 802-658-4000 www.chittenden.com
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PLANNING & ZONING
December 15, 2008
Joe Segale, PE
South Village Communities, LLC
70 South Winooski Avenue
Burlington, VT 05401
Re: Letter of Credit Reduction for Zoning Permit #ZP-08-264
Dear Mr. Segale:
This is in response to your letter of December 4, 2008 addressed to William Szymanski,
City Engineer in reference to the reduction in a Letter of Credit. Based on Mr.
Szymanski's approval of the cost of the uncompleted work, the City authorizes the
reduction in the Letter of Credit from $1,218,799 to $131,745
Please provide the City with a new Letter of Credit for the reduced amount. If you need
additional information, please let me know.
Sincer , —a
Raymond J. Belair
Administrative Officer
575 Dorset*Street South Burlington, VT 05403 tel 802.846.4106 fax 802.846.4101 www.sburl.com
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RECONNECT
December 4, 2008
Mr. William Szymanski, City Engineer
South Burlington Department of Public Works
c/o Planning and Zoning Department
575 Dorset Street
South Burlington, VT 05403
Re: Zoning Permit ZP-08-264 Letter of Credit Reduction Cost Estimate
Dear Mr. Szymanski:
South Village Communities posted a Letter of Credit in the amount of $1,218,799 to cover the public
infrastructure for the above referenced zoning permit. We are requesting approval to reduce the
amount of the letter of credit. Before the letter of credit can be reduced, we need your approval on the
value of uncompleted work. This letter describes the work included in the zoning permit, describes the
uncompleted work, and presents a cost estimate for your review and approval.
The above referenced zoning permit allows construction of the following utilities and roadway work:
• Water mains, hydrants, lot connections and related appurtenances on: Aiken Street from Dewey
Lane to Chipman; on Slade Street from West Fisher Lane to Chipman; Chipman from Lot 5A to
the Allen Road East roundabout; and Frost Street from Chipman to the southern boundary of
Lot 31;
• The sewer force main from the air release structure at station 106+78 on Allen Road East to the
waste water pump station near the Allen Road East Roundabout;
• The waste water pump station;
• Gravity sewer mains, associated sewer man holes, lot connections and related appurtenances
from: SMH #12 on Aiken Street to SMH #19 on Chipman Street; SMH #19 to the waste water
pump station; the connection to Lot 13 on Slade Street to SMH #17 on Chipman Street; SMH #5
to SMH #16 on Allen Road East; and SMH #7 on North Jefferson to a cap just north of the cul-de-
sac;
• Construction of the storm water detention pond #3;
• Drainage collection system, catch basins, drop inlets and related appurtenances on: Chipman
Street; Slade Street from West Fisher to Chipman; and Allen Road East from the Allen Road East
Roundabout to DMH #5;
• Construction of turn lanes, bike lanes and installation of a traffic signal at the Spear Street/Allen
Road intersection; and
Mr. William Szymanski, City Engineer
Re: Value of Uncompleted Work ZP-08-264
December 4, 2008
Page 2
Foundations for the traffic signal at the intersection of Spear Street and Allen Road will be complete this
week. The traffic signal will be installed next week. The only uncompleted item covered by this zoning
permit is Storm Facility #3 to be located along Spear Street at the future south entrance to the project.
The cost estimate is presented in the table below. A plan of the storm water pond is attached for your
use.
Table 1. Cost Estimate of Uncompleted Work ZP-08-264 Storm Facility #3
Item
Qty
Unit
Unit Price
Totals
18" HDPE Storm Line
100
LF
$ 34
$ 3,400
15" HDPE Storm Line
180
LF
$ 29
$ 5,220
12" HDPE Foundation Line
25
LF
$ 35
$ 875
Flared End Sections
1
LS
$ 3,250
$ 3,250
Detention Basin (SW)
1
LS
$ 110,000
$ 110,000
All Remaining Drainage Work
0.3
LS
$ 30,000
$ 91000
Total $ 131,745
Please feel free to contact me at 802-863-8323 with any questions.
Sincerely;
qwv� ---
Joe Segale, P.E., Project Manager
Attachments
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July 9, 2008
City of South Burlington, VT
Ray Belair, Administrative Officer
575 Dorset Street
South Burlington, VT 05403
Re: Irrevocable Standby Letter of Credit #1516892
South Village Communities, LLC
70 South Winooski Avenue
Burlington, VT 05401-3830
Dear Beneficiary:
We hereby establish our Irrevocable Standby Letter of Credit #1516892 in
favor of the City of South Burlington, VT for the account of South Village
Communities, LLC up to an aggregate amount of $1,218,799.00 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 the City
of South Burlington, VT that these funds are due you under the terms
of an agreement entitled "Subdivision Letter of Credit Agreement,
South Village Phase lA Infrastructure, Zoning Permit #4" and dated
July, 2008 between South Village Communities, LLC, the City of South.
Burlington and Chittenden Bank; and
3.) a current secretary certificate or resolution from City of South
Burlington, VT that the officer is authorized to sign on behalf of
City of South Burlington, VT.
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.
All drafts must be marked under Letter. of Credit #1516892.
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 October 31,
2009.
Two Burlington Square P.O. Box 820 Burlington, Vermont 05402 802-658-4000 www.chittenden.com
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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
Assistant
Vice President
Two Burlington Square P.O. Box 820 Burlington, Vermont 05402 802-658-4000 www.chifenden.com
SUBDIVISION
LETTER OF CREDIT AGREEMENT
South Village Phase 1A Infrastructure
Zoning Permit #4
THIS AGREEMENT, executed in triplicate between South Village Communities, LLC
hereinafter referred to as "DEVELOPER", Chittenden Bank, hereinafter referred to as "BANK"
and the City of South Burlington, VT, herein after referred to as "MUNICIPALITY".
WITNESSETH:
WHEREAS, Developer has received final subdivision approval from the
MUNICIPALITY'S Development Review Board and the Vermont Environmental Court for the
development of a subdivision consisting of 157 lots with related improvements, in a development
to be known as "South Village Communities", as depicted on and in accordance with the
specifications as set forth on sheets S 1.1, S 1.2, S 1.3, and S 1.4 on the final master plat plan
entitled "South Village Master Plan", last revised August 7, 2007, prepared by Civil Engineering
Associates, as recorded in Slide 503, pages 4-6 and Slide 504 pages 1-2; and sheets C.4.8-C4.10,
C5.1, C5.2, C5.9, C6.1, C6.2, S1.3 on the phase 1 final plat entitled "South Village Phase 1
Plans", last revised August 10, 2007, prepared by Civil Engineering Associates;
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 and the Environmental Court;
WHEREAS the parties to the 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 "South Village Phase 1 Plans", last revised
August 10, 2007, prepared by Civil Engineering Associates and related documents:
• Water mains, hydrants, and related appurtenances shown on Sheets C6
and C6.2 of the South Village Phase 1 Plans from:
- Station 606+50 on Aiken Street (approximately Dewey Lane)
southerly to Station 405+60 on Chipman Street;
Subdivision Letter of Credit Agreement — South Village Phase 1A Infrastructure Zoning Permit #4
- Station 404+00 on Chipman Street (approximately adjacent to Lot
5A) easterly to Station 409+75 on Chipman Street (adjacent to the
Allen Road East/Chipman Street roundabout), -
Station 704+65 on Slade Street (approximately W. Fisher Lane) to
southerly Station 408+55 on Chipman Street (Chipman Street/Slade
Street intersection),-
- The 12 x 12 Tee at the Allen Road East/North Jefferson Road
intersection northerly to the 12 inch cap at Station 230+20 on North
Jefferson Road;
• Miscellaneous water and sewer service line connections to serve lots 2A,
3, 4, 5, 5A, 16, 17, 18, 19, 21, 22, 23, 24, 25, 26, 27, 28, 51, 52, 53, 58,
59, 60, 61, and 62 as shown on Sheets C6.1 and C6.2 of the South
Village Phase 1 Plans;
• Sewer force main from the Force Main Air Release Structure at Station
107+15 on Allen Road East (located easterly of the Allen Road
East/Slade Street intersection) to Pump Station #1 and SMH #16 (both
adjacent to the Allen Road East/Chipman Street roundabout) as shown
on Sheets C6.1 and C6.2 of the South Village Phase 1 Plans;
• Pump Station #1 (adjacent to the Allen Road East/Chipman Street
roundabout) as shown on Sheets C6.1 and C6.2 of the South Village
Phase 1 Plans;
• Gravity sewer mains, associated sanitary man holes, and related
appurtenances as shown on Sheets C6.1 and C6.2 of the South Village
Phase 1 Plans from:
- SMH #12 on Aiken Street (Aiken Street/W. Fisher Lane intersection)
southerly to SMH #19 on Chipman Street (Chipman Street/Aiken
Road intersection),-
- SMH #19 on Chipman Street easterly to Pump Station #1 (adjacent
to the Allen Road East/Chipman Street roundabout);
- SMH #1 IA on Slade Street (north of the Slade Street/E. Fisher Lane
intersection) southerly to SMH #17 on Chipman Street (Slade
Street/Chipman Street intersection)., -
Page 2 of 6
Subdivision Letter of Credit Agreement — South Village Phase 1A Infrastructure Zoning Permit #4
SMH 916 on Allen Road East (adjacent to the Allen Road
East/Chipman Street roundabout) northerly along Allen Road East
and North Jefferson Road to the edge of Phase 1;
Storm Water Facility #4 (located north and south of South Jefferson Road
easterly of Spear Street) with related catch basins, and drainage lines as
shown on Sheet C5.9 of the South Village Phase 1 Plans (also shown as
Storm Water Ponds # 1 and #2 on Sheet S 1.3 of the South Village Phase
1 Plans);
Drainage collection system, catch basins, drop inlets and related
appurtenances as shown on Sheets C5.1 and C5.2 of the South Village
Phase 1 Plans from:
- CB #41 on Aiken Street (located between Flanders Lane and
Chipman Street) southerly to DMH #4 on Chipman Street (Chipman
Street/Aiken Street intersection);
- DMH #4 on Chipman Street (Chipman Street/Aiken Street
intersection) easterly to CB #43 on Chipman Street (adjacent to the
Allen Road East/Chipman Street roundabout);
- A drop inlet at Station 703+62 on Slade Street (between W. Fisher
Lane and Flanders Lane) northerly to DMH #9 on Slade Street (W.
Fisher Lane/Slade Street intersection),-
- CB #37 on Slade Street (north of the Flanders Lane/Slade Street
intersection) southerly to DMH #3 on Chipman Street (Chipman
Street/Slade Street intersection);
- CB #43 on Allen Road East (adjacent to the Allen Road
East/Chipman Street roundabout) to DMH #6 on Allen Road East
(adjacent to Lot 15);
• Traffic signal, turning lanes, bike lanes at the Allen Road/Spear
Street/Allen Road East intersection as shown on Sheets C4.8 — C4.10 of
the South Village Phase 1 Plans; and
• Associated erosion control measures.
2. Developer shall complete the improvements set forth in Paragraph I no later than
October 31, 2008.
Page 3 of 6
Subdivision Letter of Credit Agreement —South Village Phase 1 A Infrastructure Zoning Permit #4
DEVELOPER shall replace or repair any defective or improper work or materials
which may be identified as such by the Municipality within two years after
completion of the improvements set forth in Paragraph 1 (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 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 date thereof. Failure of the DEVELOPER to deliver
evidence of such renewal to MUNICIPALITY thirty (30) days prior to the daie of
expiration of said Letter of Credit shall constitute a default of the terms of this
Agreement.
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 identified
in Paragraph 1, 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 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, MUNICIPALITY may notify BANK of
such default and request payment of the remaining balance available on said Letter of
Credit.
6. The DEVELOPER and MUNICIPALITY hereby agree that the sum of One Million
Two -hundred -eighteen thousand Seven -hundred ninety-nine Dollars ($1,218,799)
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.
Page 4 of 6
Subdivision Letter of Credit Agreement — South Village Phase 1A Infrastructure Zoning Permit #4
7. 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.
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 MUNICIPALITY for the purpose of completing
construction of the improvements identified in Paragraph 1 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.
10. 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.
11. This Agreement and said Letter of Credit shall terminate and shall be of no force and
effect upon completion of the two year warranty period described in Paragraph 3,
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 twenty-four (24) month 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.
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 MUNICIPALITY 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.
Page 5 of 6
Subdivision Letter of Credit Agreement — South Village Phase 1A Infrastructure Zoning Permit #4
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 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 3.
16. This agreement shall be binding on all parties hereto and their respective heirs,
executers, administrators, successors, and assigns.
Dated at !� L �(� �� Vermont, this day of 5�'<Y2008. / '
IN T PRESENCE OF- S ,
6urliKaJ�-oy
BY: oVV
yam_
Arvness rfulykuthorized Agent
Dated at , Vermont, this day of I " I 1- 2008.
IN THE PRESENCE OF:
A
[BANK] L t4 i nlc p
By. i
Duly Authorized Agent
Dated at South Burlington, Vermont, this day of 3 o ltj 2008,
IN THE PRESENCE OF:
By:
itnes
Page 6of6
Joe Segale
From: Will Flender [WFiender@firmspf.com]
Sent: Wednesday, July 16, 2008 9:08 AM
To: Joe Segale
Cc: ray
Subject: RE: So Village Letter of Credit with SV and Bank Signitures
Hi Joe,
These documents look fine, with one exception. In the Bank's letter, it references the three party agreement as being
dated March of 2008. This should be updated with the correct date.
Thanks
Will
William E. Flender, Esq.
Stitzel, Page & Fletcher, P.C.
171 Battery Street S
P.O. Box 1507
Burlington, VT 05402
Telephone: 802-660-2555C�•-
Fax: 802-660-2552
Website: www.firmspf.com
From: Joe Segale [mailto:js@retrovest.com]
Sent: Tuesday, July 15, 2008 4:01 PM
To: Will Flender
Cc: 'ray'
Subject: So Village Letter of Credit with SV and Bank Signitures
Hi Will -
Here is the final subdivision letter of credit agreement along with the Bank's standby letter of credit. You said that you
wanted to take one last look before the City adds its signature. I will be dropping off three paper copies to Ray this
afternoon or first thing tomorrow morning. Let me know if you have any comments.
Thanks
Joe Segale, P.E.
The Retrovest Companies
70 South Winooski Avenue
Burlington, VT 05401-3830
Cell: 802-881-3069
Phone: 802-863-8323
is@retrovest.com
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