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HomeMy WebLinkAboutDoc 287 - Extend Tetherow AgrmtDeschutes 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 6/18/12 Please see directions for completing this document on the next page. DATE: 6/5112 FROM: Will Groves. CDD 388-6518 TITLE OF AGENDA ITEM: Consideration and Signature of Document No. 2012-287, Amending Deschutes County Contract No. 2008-237 to Extend the Tetherow Phase V Improvement Agreement for Six Months. PUBLIC HEARING ON THIS DATE? No BACKGROUND AND POLICY IMPLICATIONS: The time in the original Improvement Agreement has expired for constructing the roads and utilities for the Tetherow Phase V subdivision within the Tetherow destination resort. TD Cascade Highlands, LLC. then submitted an Improvement Agreement (IA-08-2) related to the Phase V plat of the Tetherow Destination Resort (CU-04-94, M-05-2, TP-06-973). This Improvement Agreement ensures that the infrastructure, such as roads and utilities, for this phase are completed to county standards. The financial assurance (bond) is for $2,222,744.40. The applicant, JT Smith Companies, has applied on behalf ofTD Cascade Highlands, LLC to extend this Improvement Agreement for six months. This provides time for the lender to foreclose on the subject property, become the new owner and then apply for a further extension and change in the form ofthe security, which is staff's understanding is the intention of the lender. Attached to this agenda request is the draft amendment with the changes shown in a redline version as is required by county procedures for amendments. Attached to that draft amendment is a proposed form of the bond rider for the 6 months. Before the Board approves the amendment, the applicant will provide a completed and signed rider in order for a copy to be attached to the amendment and the original placed in the County Clerk's safe. FISCAL IMPLICATIONS: With this amendment, the County is choosing not to exercise its right to call on the bond and begin building the roads and utilities in a subdivision in which no lots have been sold. RECOMMENDATION & ACTION REQUESTED: , Staff recommends that the Board approve and sign Document No. 2012-287 ATTENDANCE: Will Groves, Legal DISTRIBUTION OF DOCUMENTS: Original to Will Groves who will work with the applicant for recording in the Clerk's records and placing the original bond rider in the Clerk's safe i REVIEWED LEGAL COUNSEL DOCUMENT NO. 2012-287 AMENDING DESCHUTES COUNTY CONTRACT NO. 2008-237 (Amendment No.1) THAT CERTAIN AGREEMENT, Deschutes County Contract No. 2008-237 dated May 14,2008, and recorded in the Deschutes County Official Records at 2008-23841 by and between DESCHUTES COUNTY, a political subdivision of the State of Oregon ("Countt) and TD Cascades Highlands, LLC, an Oregon Limited Liability Corporation ("Owner"), is amended, effective upon signing of all parties, as set forth below. Except as provided herein, all other provisions of the contract remain the same and in full force . Owner certifies that the representations, warranties and certifications contained in the original Contract are true and correct as of the effective date of this Amendment and with the same effect as though made at the time of this Amendment. The above listed contract is amended as follows: 3. Exhibits. The exhibits listed below and attached to the Agreement together with the new Exhibit F listed below and attached hereto are hereby incorporated herein by reference : 3.1 . Exhibit A -Legal description of Real Property. 3.2. Exhibit B --List of Roads and Utilities Required Improvements and cost estimates -submitted by the Owner. 3.3. Exhibit C -Deschutes County Tentative Plat approval, File No. TP-06-973. 3.4 . Exhibit D -Security -Bond No 786032S 3.5. Exhibit E -Contractor List per DCC 17.24.120(A)( 1 ) 3.6 . Exhibit F -Secur ity -Bond Rider No. 786032S 5. Construction of Roads and Utilities Required Improvements. 5.1. The Roads and Utilities Required Improvements shall be installed and completed in accordance with the plans and construction specifications related thereto and to any additional County andlor State of Oregon specifications . 5 .2 . Owner shall promptly repair any damage to existing and new facilities, within and without the Real Property, which occurs during installation of the Roads and Utilities Required Improvements. PAGE 1 OF 2 -DOCUMENT NO. 2012-287, AMENDING DESCHUTES COUNTY CONTRACT NO . 2008-237 /II 5.3 . Owner shall cause the Required Improvement to be inspected by and receive final written construction approval from County and/or the State of Oregon not later than lhree (3) years six (6) months from the recording of the Tetherow Phase 5 Improvement Agreement Amendment. Deschutes County Document No. 2012-287 Final Pial in File No . FPA 08 .1 ("Completion Daten). OWNER: [TD Cascades Highlands, LLC] Dated this ___of ____-'' 20_. Authorized Signature LENDER: [SFI Cascade Highlands, LLC, A Delaware Limited Liability CompanY] Lender is signing in its capacity as lender to evidence its consent to this agreement. Dated this of , 20 Authorized Signature COUNTY: Dated this ___of ____~, 2012 BOARD OF COUNTY COMMISSIONERS ANTHONY DEBONE, CHAIR ALAN UNGER, VICE CHAIR ATIEST: Recording Secretary TAMMY BANEY, COMMISSIONER PAGE 2 OF 2 -DOCUMENT NO . 2012-287, AMENDING DESCHUTES COUNTY CONTRACT NO. 2008-237 INSCO INSURANCE SERVICES, INC. Underwriting Manager for: Developers Surety and Indemnity Company Indemnity Company of Califomia 17780 Fitch. Suite 200 • Irvine, California 92614 • (949) 263-3300 www.lnscoDico.com BOND RIDER AlTACHED TO AND FORMING A PART OF: Bond No.: 786032S Principal: m CASCADE HIGHLANDS, LLC Obligee: DESCHUTES COUNTY. OREGON Surety: Developers Surety and Indemnity Company Effective , 20 12 , it is agreed that: (list changes here) BOND TERM IS TO BE EXTENDED FROM: BOND TERM TO BE EXTENDED UNTIL: Nothing herein contained shall be held to vary, waive, alter, or extend any of the terms, conditions, agreements or warranties of the above mentioned bond, other than stated as above. Provided, however, that the liability of the company under the attached bond as changed by this order shall not be cumulative. Signed this day of .20 12 Surety: DEVELOPERS SURETY AND INDEMNITY COMPANY ANGELA PUTNAM, Attorney-in-Fact (Producer on behalf of surety or surety representative) Producer: Please attach POA PRODUCER NUMBER: 320214 AGENCY: KPD INSURANCE. INC. ADDRESS: PO BOX 784 CITY: SPRINGFIELD STATE: OR ZIP: 97477 ID-1183 (Service) (11/02)