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Home My WebLink AboutDoc 606 - Irrevocable Letter of Credit - Arrowood DevelopmentDeschutes County Board of Commissioners 1300 NW Wall St., Suite 200, Bend, OR 97701-1960 (541) 388-6570 - Fax (541) 385-3202 - www.deschutes.org AGENDA REQUEST & STAFF REPORT For Board Business Meeting of 10/21/13 Please see directions for completing this document on the next page. DATE: 10/14/13 FROM: Will Groves. CDD 388-6518 TITLE OF AGENDA ITEM: Consideration and Signature of Document No. 2013-606, Amending an Irrevocable Letter of Credit for a Development Agreement By and Among Deschutes County and Arrowood Development, LLC. PUBLIC HEARING ON THIS DATE? No BACKGROUND AND POLICY IMPLICATIONS: On July 23, 2007, the Deschutes County Board of County Commissioners ("Board") approved an Improvement Agreement (recorded at Vol. 200, Page 380) for the financial assurance of the required 150 units of Overnight Lodging for the Tetherow Destination Resort ("Resort") on Tract AB of the Resort property. The County and Developer subsequently amended the Agreement six times. Amendment Nos. 1 through 6 referenced above allowed flexibility regarding the surety, increased the number of units of Overnight Lodging subject to the Agreement from 150 to 198 units, revised the site plans, costs estimates and financial assurance amount, revised the type of financial assurance to substitute an Irrevocable Letter of Credit (the "ILOC") for the original surety bond, changed the location of the 198 units of Overnight Lodging, and extended the date(s) of expiration of the Agreement several times. The present amendment updates the ILOC to change the applicant's name from "Arrowood Development, LLC" to "Weston Investment CO., LLC". FISCAL IMPLICATIONS: None. RECOMMENDATION & ACTION REQUESTED: Motion: Approve signature of Document 2013-606. ATTENDANCE: Will Groves, Legal DISTRIBUTION OF DOCUMENTS: Original to Will Groves. DESCHUTES COUNTY DOCUMENT SUMMARY (NOTE: This form is required to be submitted with ALL contracts and other agreements, regardless of whether the document is to be on a Board agenda or can be signed by the County Administrator or Department Director If the document is to be on a Board agenda, the Agenda Request Form is also required. If this form is not included with the document, the document will be returned to the Department. Please submit documents to the Board Secretary for tracking purposes, and not directly to Legal Counsel, the County Administrator or the Commissioners. In addition to submitting this form with your documents, please submit this form electronically to the Board Secretary.) Please complete all sections above the Official Review line. Date: 10/15/131 Department: CDD Contractor/Supplier/Consultant Name: [Weston Investment CO., LLC Contractor Contact: Steve Hultber [ Contractor Phone #: [541.585.3697 Type of Document: Amendment to ILOC Goods and/or Services: none Background & History: Document No. 2013-606, Amending an Irrevocable Letter of Credit for a Development Agreement By and Among Deschutes County and Arrowood Development, LLC. On July 23, 2007, the Deschutes County Board of County Commissioners ("Board") approved an Improvement Agreement (recorded at Vol. 200, Page 380) for the financial assurance of the required 150 units of Overnight Lodging for the Tetherow Destination Resort ("Resort") on Tract AB of the Resort property. The County and Developer subsequently amended the Agreement six times. Amendment Nos. 1 through 6 referenced above allowed flexibility regarding the surety, increased the number of units of Overnight Lodging subject to the Agreement from 150 to 198 units, revised the site plans, costs estimates and financial assurance amount, revised the type of financial assurance to substitute an Irrevocable Letter of Credit (the "ILOC") for the original surety bond, changed the location of the 198 units of Overnight Lodging, and extended the date(s) of expiration of the Agreement several times. The present amendment updates the ILOC to change the applicant's name from "Arrowood Development, LLC" to "Weston Investment CO., LLC". Agreement Starting Date: 10/25/121 Ending Date: 5J,) Annual Value or Total Payment: 0,690,0001 I-1 Insurance Certificate Received (check box) Insurance Expiration Date: Check all that apply: ❑ RFP, Solicitation or Bid Process ❑ Informal quotes (<$150K) ❑ Exempt from RFP, Solicitation or Bid Process (specify — see DCC §2.37) 10/15/2013 Funding Source: (Included in current budget? ❑ Yes No If No, has budget amendment been submitted? ❑ Yes ❑ No Is this a Grant Agreement providing revenue to the County? ❑ Yes ® No Special conditions attached to this grant: Deadlines for reporting to the grantor: If a new FTE will be hired with grant funds, confirm that Personnel has been notified that it is a grant -funded position so that this will be noted in the offer letter: ❑ Yes ❑ No Contact information for the person responsible for grant compliance: Name: Phone #: Departmental Contact and Title: Will Groves, Senior Planner Phone #: x6518 i l Department Director Approval: kj/2114 , Signature Da e Distribution of Document: Signed Original to Clerk Safe. Copies to Will Groves, Legal. Official Review: County Signature Required (check one),I246CC ❑ Department Director (if <$25K) ❑ Administrator (if >$25K but <$150K; if >$150K, :OCC Order N•. Date / 3 Legal Review Document Number (9-6/ 3 - 10/15/2013 WELLS FARGO Wells Fargo Bank, N.A. U.S. Trade Services Standby Letters of Credit MAC A0283 -o23 794 Davis Street, 2nd Floor San Leandro, C?, 94577-6922 Phone: 1(800) 798-2815 Option 1 E-mail: sftrade(t wellsra go.com BENEFICIARY Amendment To Irrevocable Standby Letter Of Credit Number : NZS648008 Amendment Number : 002 Amend Date : October 25, 2012 APPLICANT DESCHUTES COUNTY, OREGON ATTN:DESCHUTES COUNTY PLANNING DIR. 117 NW LAFAYETTE BEND , OREGON 97701 LADIES AND GENTLEMEN: ARROWOOD DEVELOPMENT LLC 250 NW FRANKLIN AVENUE SUITE 203 BEND, OREGON 97701 AT THE REQUEST AND FOR THE ACCOUNT OF THE ABOVE REFERENCED APPLICANT, WE HEREBY AMEND OUR IRREVOCABLE STANDBY LETTER OF CREDIT (THE "WELLS CREDIT") IN YOUR FAVOR AS FOLLOWS: APPLICANT'S NAME HAS BEEN AMENDED TO READ AS: WESTON INVESTMENT CO., LLC 2154 NE BROADWAY, SUITE 200 PORTLAND, OR 97212 WHEREVER THE NAME "ARROWOOD DEVELOPMENT, LLC" APPEARS ON THE LETTER OF CREDIT SHOULD NOW READ TO "WESTON INVESTMENT CO.,LLC". THE FOLLOWING STATEMENT IS ADDED IN OUR STANDBY LETTER OF CREDIT QUOTE THIS LETTER OF CREDIT REMAINS AS VALID SECURITY FOR THE IMPROVEMENT AGREEMENT AND ALL TERMS EXPRESSED IN AMENDMENT NO. 6. UNQUOTE ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED. THIS AMENDMENT IS TO BE ATTACHED TO THE ORIGINAL WELLS CREDIT AND IS AN INTEGRAL PART THEREOF. 5606 Page 1 of 2 Each page of this document is an integral part of this Irrevocable Standby Letter of Credit Number NZ5648008 , Amendment Number 002 Together we'll go far OC -2013-606 WELLS FARGO ery ru y ours, WELLS FARGO BANK, N.A. By: Authorized Signature iii n ANT VICE PRESIDENT The original of the Letter of Credit contains an embossed seal over the Authorized Signature. Please direct any written correspondence or inquiries regarding this Letter of Credit, always quoting our reference number, to Wells Fargo Bank,, National Association, Attn: U.S. Standby Trade Services at either 794 Davis Street MAC A0283-023, San Leandro, CA 94577-6922 or 401 Linden Street MAC D4004-017, Winston-Salem, NC 27101 Phone inquiries regarding this credit should be directed to our Standby Customer Connection Professionals 1-800-798-2815 Option 1 1-800-776-3862 Option 2 (Hours of Operation: 8:00 a.m. PT to 5:00 p.m. PT) (Hours of Operation: 8:00 a.m. EST to 5:30 p.m. EST) Consent to Amendment 002 on Standby Letter of Credit No. NZS648008 is required to become effective. Please date and sign below and return an originally signed copy to us at our office located: at either 794 Davis Street MAC A0283-023, San Leandro, CA 94577-6922 or Fax to 415-296-8905. or 401 Linden Street MAC D4004-017, Winston-Salem, NC. 27101 or Fax to 336-735-0950. # Amendment accepted in its entirety Amendment rejected in its entirety / / Date Authorized Signature - DESCHUTES COUNTY, OREGON Telephone Number Printed Name of Authorized Signer 5606 Page 2of2 Each page of this multipage document is an integral part of this Irrevocable Standby Letter of Credit Number NZS648008 , Amendment Number 002 Together we'll go far