HomeMy WebLinkAbout0000 Catkin Drive - Infrastructure - 11/19/1997VNB
Vermont National Bank
February 5, 1998
AMENDMENT FOR IRREVOCABLE
LETTER OF CREDIT NO. 97: 2000
City of South Burlington
575 Dorset St.
South Burlington, Vt. 05403
Dear Sir or Madam:
We hereby amend our original letter of Credit #97-2000 in your, favor as follows:
1: Reduce the Letter of Credit amount from $307,509.00 to $211, 448.00 with an
expiration date of November 25, 1998.
All other terms and conditions remain the same as in the original Letter of Credit dated
November 25, 1997.
Sincerely yours,
VERMONT NATIONAL BANK
BY4u �ti _
Monica inn, Assis t Vice President
P.O. Box 804, Brattleboro, VT 05302 802.257.7151 �P—t,d—.encI,deap,.
Vermont National Bank
December 23, 1997
AMENDMENT FOR IRREVOCABLE
LETTER OF CREDIT
Letter of Credit No. 97-2000
MBL Associates
City of South Burlington
575 Dorset St.
So. Burlington, VT 05403
Dear Sir or Madam:
We hereby amend our original Letter of Credit #97-2000 in your favor
as follows:
1. Reduce the Letter of Credit amount from $641,613.00 to
$307,509.00 with an expiration date of November 25, 1998.
All other terms and conditions remain the same as in the original
Letter of Credit dated November 25, 1997.
Sincerely yours,
VERMONT NATIONAL BANK
BY: n r
oni a Zinn, A st. Vice Pres.
P
P.O. Box 804, Brattleboro, VT 05302 802.257.7151 O� P—I'd — ... d'd P'P"
Vermont National Bank
November 25, 1997
Irrevocable Letter of Credit #97-2000
City of South Burlington
Attn: Dick Ward
575 Dorset Street
So. Burlington, VT 05403
Dear Sir:
We hereby establish in your favor an Irrevocable Letter of Credit for the account of MBL
Associates of Burlington, Vermont up to an aggregate amount of Six Hundred Forty -One Thousand
Six Hundred Thirteen Dollars and no cents ($641,613.00), effective immediately. This Letter of Credit
will expire November 25, 1998.
Payment under this Letter of Credit will be made to you upon presentation of the following
documents:
1. Sight Draft drawn on the Vermont National Bank for the amount of payment claimed,
bearing the clause "Drawn under Vermont National Bank Letter of Credit #97-2000".
2. Evidence that The City of South Burlington has given MBL Associates 30 days notice
via Certified Mail of their intent to draw on the Letter of Credit because MBL Associates
has defaulted on the Subdivision Letter of Credit Agreement dated November 19, 1997.
Unless otherwise expressly stated, this Letter of Credit is subject to the Uniform Customs &
Practices for Commercial Documentary credits fixed by the International Chamber of Commerce (1993
Revision), ICC Publication No. 500 and is governed by the Uniform Commercial Code of Vermont, as
from time to time amended.
We hereby agree with the drawers, endorsers and bona fide holders of drafts, in compliance with
the terms of this Letter of Credit that such drafts will be honored upon due presentation at Vermont
National Bank. ,_�
/dmj
Sincerely,
Michael A. Gv
Vice President
P.O. Box 1308, 150 Bank Street, Burlington, VT 05402-1308 802-863-89M 802-863-8933 fax 4 Printed on recycled paper
SUBDIVISION
LETTER OF CREDIT AGREEMENT
THIS AGREEMENT,, executed in triplicate between Gerald Milot
, of MBL Associates hereinafter
referred to as "DEVELOPER", Michael Gingras
of Vermont National Bank hereinafter referred to as 'Bank", and
City of So. Burlington hereinafter referred to as "MUNICIPALITY".
W I T N E S S E T H:
WHEREAS, Developer has received final subdivision approval from the
MUNLCIPALITY'S Planning Commission for the development of a subdivision
consisting of 161 lots and 60 condominium units with related improvements, in a
development to be known as "Dorset Farms", as depicted on and in accordance with
the specifications as set forth on Sheet of on the final plat plan
entitled Dorset Farms dated 8/29/97 prepared by Lamoureux Stone and O'Leary
as recorded in Book pages of
the Land Records of the City of South Burlington,
WHEREAS, DEVELOPER in 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 an not 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 final plat and related documents:
All site improvements - phase 1 (See Attached)
2. The Developer shall complete the improvements set forth in Paragraph
1 no later than, 10/31/98
NOV 18 '97 15:48 CITY OF S BURLINGTON
P. 2/4
3. DEVELOPER shall replace or repair any defective or
improper work or materials which may be recognized within one year
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 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 KJNICIPALITY, that in the
judgement of the MUNICIPALITY, the DEVELOPER .is in default under
the terms of this Agreement, and that the funds to be drawn by 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. 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 MUNI IPALITY hereby agree that the sum
of (S Ul , 6r3_ } 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.
NOV 18 '97 15:50 CITY OF 5 BURLINGTON
P.3/4
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. 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 judgement of the
MUNICIPALITY 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 MUNICIPALITY'S
needs, any such excess amount shall be refunded by the MUNICIPALITY
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 one 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 twelve (12) month period, or if
notice has been given and the 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 canceled, 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 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 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
SUBDIVISION
LETTER OF CREDIT AGREEMENT
THIS AGREEMENT,, executed in triplicate between Gerald Milot
, of MBL Associates hereinafter
referred to as "DEVELOPER", Michael Gingras
of Vermont National Bank hereinafter referred to as 'Bank", and
City of So. Burlington hereinafter referred to as "MUNICIPALITY".
W I T N E S S E T H:
WHEREAS, Developer has received final subdivision approval from the
MUNLCIPALITY'S Planning Commission for the development of a subdivision
consisting of 161 lots and 60 condominium units with related improvements, in a
development to be known as "Dorset Farms", as depicted on and in accordance with
the specifications as set forth on Sheet of on the final plat plan
entitled Dorset Farms dated 8/29/97 prepared by Lamoureux Stone and O'Leary
as recorded in Book pages of
the Land Records of the City of South Burlington,
WHEREAS, DEVELOPER in 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 an not 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 final plat and related documents:
Phase 1 Landscaping and street trees
2. The Developer shall complete the improvements set forth in Paragraph
1 no later than, 10/31/98
T-
-- -.1 '-11I Qr ':) 6URLINGTQN
R.414
- This
shall be
theirsre�spectiverheirst execu oralnding on ad�ainl tratlor� rt3es hereto and
assigns. , successors and
Dated at m
'{� l✓``'� 499. Vermont, this 1/9 day of
IN T79 PRES NCE OF:
J OILf`
By: L
Duly Authorized Agent
(DEVELOPER)
Date at
�a f� "�
Y
Vermont, this a of
1
IN PRESENCE OF:
Dated at �, /,�'�(c/��j�/�
fit. 1991_,
By:
Vermont, this day of
IN P'ESEN E OF-
By:
4
Yl
Duly Authorized Agent
(MUNICIPALITY)
PHASE ONE IMPROVEMENTS
Midland Avenue STA 0+00 to STA 11+10
Catkin Drive STA 0+00 to STA 10+35
Floral Drive(Street F) STA 0+00 to STA 3+00
Floral Drive(Street D) STA 0+00 to STA 25+08
Includes: Dorset Street Improvements/turn lane and bike path.
Provides service to: Lots 59, 95-148, and 158
Condo Units A-H (16 units)