HomeMy WebLinkAbout1840 Spear Street - Infrastructure - 3/4/2008December 30, 2008
City of South Burlington
Ray Belair, Administrative Officer
575 Dorset Street
South Burlington, VT 05403
Re: Irrevocable Standby Letter of Credit #1442899
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 $533,022.00 to
$105,350.00
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-08-050
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 $533,000 to $105,350.
Please provide the City with a new Letter of Credit for the reduced amount. If you need
additional information, please let me know.
Sinc
Raymond J. Belair
Administrative Officer
575 Dorset Street South Burlington, VT 05403 tel 802.846.4106 fax 802.846.4101 www.sburi.com
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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-08-050 Letter of Credit Reduction Cost Estimate
Dear Mr. Szymanski:
South Village Communities posted a Letter of Credit in the amount of $533,000 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 streets and underlying utilities:
Allen Road East from Spear Street to East Fisher Lane; Aiken Street and Slade Street from Allen Road
East to West Fisher Lane; and all of Dewey Lane.
The total estimated value of this work is $533,000 and generally includes:
• Installation of storm drains, under drains and associated catch basins and manholes under these
streets that connect to DMH#5 and eventually drain into the northeast storm water detention
pond;
• Construction of the roadways including the final course of pavement;
• Sidewalks and curbs adjacent to the roadways; and
• Associated erosion control measures.
The uncompleted work as of December 1, 2008 includes:
• Roadway borrow, subbase, curbs and paving from Allen Road East between Stations 108+00 to
109+67 and 225+80 to 227+50;
• Sidewalks as follows: Aiken Street west side from 604+00 to 607+50; Allen Road East north side
from 105+25 to 109+67; Allen Road south side from 108+00 to 109+67; and Allen Road East
both sides from 225+80 to 227+50; and
0 The final course of pavement for the all public streets included in the zoning permit.
Mr. William Szymanski, City Engineer
Re: Value of Uncompleted Work ZP-08-050
December 4, 2008
Page 2
The cost estimate is presented in the table below. A plan highlighting these areas is attached for your
use.
Table 1. Cost Estimate for Uncompleted Work ZP-06-050
Item
Qty
Unit
Unit Price
Totals
Filter Fabric
974
SY
$ 1.00
$ 974
Borrow
43
CY
$ 13.00
$ 559
Road Subbase
567
CY
$ 21.00
$ 11,907
Road Base
163
CY
$ 21.00
$ 3,423
Base Course Paving
131
Tons
$ 62.00
$ 8,122
Finish Course Paving
467
Tons
$ 60.00
$ 28,020
5" Concrete Sidewalk
723
SY
$ 45.00
$ 32,535
Detectable Warning Plates per Location
9
EA
$ 300.00
$ 2,700
Concrete Curbing
674
LF
$ 15.00
$ 10,110
All Remaining Road Work
0.1 ILS
$ 70,000.00
$ 7,000
total $ 1U5,350
Please feel free to contact me at 802-863-8323 with any questions.
Sincerely;
41Z—
(?e.Segale,. P.E., Project Manager
Attachments
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February 21, 2008
City of South Burlington, VT _
Ray Belair, Administrative Officer
575 Dorset Street
South Burlington, VT 05403
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Re: Irrevocable Standby Letter of Credit # 1442899
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:
Ray Belair and his title is "Administrative Officer"
Amendment to Paragraph 4:
A written statement that South Village Communities, LLC has defaulted
under the terms of a subdivision letter of credit agreement of January (or
February) 2008.
All other terms and conditions remain unchanged.
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
November 19, 2007
City of South Burlington, VT
Ray Belaire, Zoning Manager
575 Dorset Street
South Burlington, VT 05403
Re: Irrevocable Standby Letter of Credit #1442899
South Village Communities, LLC
70 South Winooski Avenue
Burlington, VT 05401-3830
Dear Beneficiary:
We hereby establish our Irrevocable Standby Letter of
Credit #1442899 in favor of City of South Burlington, VT for the
account of South Village Communities, LLC up to an aggregate
amount of $533,022.00 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, VT that these funds are due you
under the terms of your agreement with South Village
Communities, LLC, accompanied by
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.
4.) South Village Communities, LLC has defaulted under the
terms of a subdivision Letter of Credit agreement of
approximate even date.
Two Burlington Square P.O. Box 820 Burlington, Vermont 05402 802-658-4000 www.chittenden.com
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 41442899.
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.
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.chittenden.com
SUBDIVISION
LETTER OF CREDIT AGREEMENT
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 sheet S1.3 on the
phase 1 final plat entitled "South Village Phase 1 Plans", last revised August 10, 2007, prepared
by Civil Engineering Associates, as recorded in Slide 503, page 3 of the Land Records of the
City of South Burlington;
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 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:
• Construction of Allen Road East from Spear Street to East Fisher Lane
including sidewalks, curbs and the final course of pavement;
• Construction of Aiken Street from Allen Road East to West Fisher Lane
including sidewalks, curbs and the final course of pavement;
• Construction of Slade Street from Allen Road East to West Fisher Lane
including sidewalks, curbs and the final course of pavement;
• Construction of all of Dewey Lane including sidewalks, curbs and the
final course of pavement;
• Installation of storm drains, under drains and associated catch basins and
manholes under these streets that connect to DMH #6; and
• Associated erosion control measures.
2. Developer shall complete the improvements set forth in Paragraph 1 no later than
October 31, 2008.
3. 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. 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 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 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
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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 Five Hundred
Thirty -Three Thousand and Twenty -Two Dollars ($533,022) 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.
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.
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.
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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.
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 ;911RL1A167-0A/ , Vermont, this day o
IN THE PRESENCE OF:
By: ,
Duly Authorized Agent
South Village Communities, LLC
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Dated at
�L I .�NG=r� p) , Vermont, this day off y 2008.
IN THE PRESENCE OF:
Duly Authorized Agent
(BANK)
Dated at �/ ` , Vermont, this day of &45,.2008.
By: ,
Duly Authorized Agent
(CITY OF SOUTH BURLINGTON)
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