HomeMy WebLinkAboutDoc 263 - Partial Release of Improv Agrmt Bond - TetherowDeschutes County Board of Commissioners
l300 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 7/2/12
DATE: 6/25/12
FROM: Will Groves. CDD 388-6518
TITLE OF AGENDA ITEM:
Consideration and Signature of Document No. 2012-263 Authorizing Partial Release of Improvement
Agreement Bond For Tetherow Triple Knot Townhomes Improvement Agreement (lA-II-I) in the
amount of $3 5 6,104.1 O.
PUBLIC HEARING ON THIS DATE? No
BACKGROUND AND POLICY IMPLICATIONS:
Weston Investment Co. LLC, bonded for infrastructure improvements required as conditions of
approval in prior land use decision TP-09-1 0 1 O. The developer has completed most of the required
infrastructure improvements for Phase I of Triple Knot Townhomes within the Tetherow Destination
Resort, with the exception of sidewalks. Sidewalks will be completed at the time of home construction.
The letter of credit is currently for completion bonding in the amount of$I,092,075.00 covering
infrastructure for the four phases of the subdivision. Since the developer has completed the required
infrastructure improvements for Phase I, with the exception of sidewalks, the bonding for this phase
may be reduced to I-year warranty bonding for completed infrastructure in the amount of $32,737.10
and completion bonding for the sidewalk in the amount of $17,4 70.80.
Accordingly, the total bonding for the development may be reduced to warranty bonding in the amount
of $32,737.10 and a completion bonding in the amount of$703,597.80 for the remaining infrastructure
to be completed in the subsequent phases, for a total bonding amount of$735,970.90.
This agenda item also includes consideration and signature of an earlier version of the Amendment to
an Irrevocable Letter of Credit for ofImprovement Agreement Bond (lA-II-I) issued by Wells Fargo,
but with incorrect amounts for the performance and warranty bonding. This version must be signed by
the Board as rejected prior to approval of the revised version included with Document No. 2012-263.
FISCAL IMPLICATIONS:
Motion I: Move approval of Chair signature of the rejection of the Amendment No. I to ILOC #
NOS689980.
Motion 2: Move approval ofILOC Amendment No.2 to ILOC # NOS689980.
Motion 3: Move approval of Document 2012-263.
RECOMMENDATION & ACTION REQUESTED:
Staff recommends that the Board approve and sign Document No. 2012-263.
ATTENDANCE: Will Groves, Legal
DISTRIBUTION OF DOCUMENTS:
Originals to Will Groves. Will Groves will then coordinate with the developer to record the partial
release in both the deed records and in the Cornrnssioners' Journals and place the ILOC amendment in
the Clerk's safe.
Road
61150 SE 27th St. • Bend. Oregon 97702
(541) 388-6581 • FAX (541) 38&2719
MEMORANDUM
=
TO: WII,L GROVES, SENTOR 1)l.ANNER
FROM: GEORGE KOLB, COUNTY ENGINEER
SUBJECT: TETHEROW RESORT-GOLF HOMP,s AT TETHEROW·CONSTRUC'I10N PI-lASE J PARTIAL BOND
RELEASE AND WARRANTY BOND.
DATE: 1/30/2012
cc: LAUR1E CRAGHEAD, COUNTY LEGAL COUNSEL
KE1TH DAGOSTINO, D'AGOSTlNO PARKER, LLC
The Road Department received a memorandum from D'Agostino Parker, LLC requesting a reduction in
the bonding amount based on the improvements already constructed as part of Tetherow Resort -Golf
Homes at Tethel'Ow, Phase I. A site visit coufirmed that all improvements have been completed except for
the instaUation oftlIe sidewalks. Based on this, the bond amount listed in IA-2011-14777 ($1,092.075) can
be reduced by the amount of $388,477.20 to a new amount of $703,597.80. The amount for the wan'anty
bond for the improvements already constructed wiH be $16,079.10. This warranty bond will only cover the
street, power, drainage, subgrade and clearing as called out in the cost estimate for the phase I improvements.
It will not cover the water/sewer installation as that will be covered by the City of Bend. 11 will also not
cover the sidewalks as they have not been installed yet. I have attached a memorandum from D'Agostino
Parker, LLC indicating the improvements have been installed per the plans approved by the Road
Department and requesting the reduction in-the-am01:lHt-of-the·beftd.-Alse-attaeheEl-is-the-eest-eslimate-f~l'-the
Phase r improvements with a summary of the amounts. Let me know if you have any questions or need
additional information.
Quality Services Perfonned with Pride
MEMORANDUM
To: George Kolb PE, Interim Road Dept. Director Date: January 25, 2011
-..---~---.----------
From: Keith Dagostino PE
-
Project Number: AWD016
CC: Thys Heyneker, Triple Knot Associates LlC
Keith Vernon, Weston investment Co. LlC
..._..._----_._----
cc:
Project Reference: Tetherow Resort-Golf
Homes at Tetherow -Construction Phase 1
JTractAE)
RE: Phase1 Warranlyand associated fA Security
reduction
Hi George:
This memorandum is provided to state that construction of Phase 1 of the Golf Homes at
Tetherow, as specified in Improvement Agreement. recorded as document 2011-14777.
Deschutes County O.R., has been completed in substantial conformance with the associated
Road and Utility Improvement Plans approved by the Deschutes County Road Dept; with the
exception of sidewalks. Sidewalk construction remains, and the developer intends to construct
sidewalks in conjunction with the homes.
Triple Knot Associates LLC, successor to Weston Investment Co. LLC, has posted a warranty
bond for the Phase 1 water and sewer Improvements with the City of Bend as required.
Please advise on the warranty bond to provide to the County for the other Phase 1
improvements, and advise on the appropriate reduction in the !A security, to acknowledge the
completed phase1 improvements.
If you need additional information please contact me at your convenience.
Thanks,
Keith Dagostino PE
231 &.t1ehouse Loop, Suile 203 P: (541) 322-8807
Bend, ott 97702
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William Groves
From: Zimmerman, Susan <szimmerman@balljanik.com>
Sent: Friday, April 20, 2012 10:28 AM
To: William Groves
Cc: Laurie Craghead; Alexander, Dina
Subject: Triple Knot Tonwhomes -Improvement Agreement
Attachments: PORTLAND-#823151-v1-PartiaLRelease_ModiUmprovement_Agr_Security.DOC;
PORTLAND-#834148-v1-Draft_Wells_Fargo_LettecoCCredit_Amendment.PDF;
PORTLAND-#834157-v1-RECCDJmprovemenLAgreemenURoads_and_Utilities}.PDF;
PORTLAND-#834154-v1-George _Kolb _Memo _-_Phase_1 J mprovements.PDF
Will,
We represent Weston Investment Co. LLC in connection with Its ownership of the Triple Knot Townhomes
project. As you may recall, we had some discussions and email communications awhile back regarding
the Improvement Agreement and related security for this project. The obligation to complete the roads
and utilities Improvements for this project in accordance with the Improvement Agreement is secured by a
letter of credit. The Phase 1 improvements for the project are completed and we would like to reduce the
amount of the letter of credit to reflect the completion of the Phase 1 Improvements. We would also like
to confirm that the letter of credit will serve as the security for the Phase I improvement warranty
obligations (excluding the warranty obligations for the water line and sewer improvements which are
secured by separate bonds posted in favor of the city).
Attached for your review and consideration are the following documents:
1. Improvement Agreement.
2. Memo from George Kolb (confirming the completion of the Phase I improvements and the
corresponding adjustments to the security under the Improvement Agreement).
3. Draft Partial Release and Modification of Improvement Agreement Security.
4. Draft Amendment to Letter of Credit.
Please review the documents and let us know if you have any questions or comments or require any
additional information. Also, please confirm next steps as far as the county review and approval
process. Thanks for your help.
Susan Zimmerman
Paralegal
t 503.944.6075
f 503.295.1058
!Jball
szimmerman@ballianik.CQmjanil<
1
AMENDMENT NO.1 TO IRREVOCABLE STANDBY LETTER OF CREDIT
NUMBER NOS679980
Original Issue Date: April 18, 2011
BENEFICIARY:
Deschutes County, Oregon
117 NW Lafayette Avenue
Bend, Oregon 97701
Attention: Deschutes County Planning Director
The Irrevocable Standby Letter of Credit captioned above (the "Letter of Credit") is
hereby amended as follows:
1. The maximum aggregate funds available under the Letter of Credit shall be
Seven Hundred Thirty Five Thousand Nine Hundred Seventy and 90/100 United States
Dollars ($735,970.90).
2. Exhibit A-l to the Letter of Credit is deleted in its entirety and replaced with
the Exhibit A-l attached to this Amendment No.1 to Irrevocable Standby Letter of Credit.
Except as otherwise modified herein, the Letter of Credit remains in full force and
effect. This Amendment No.1 to Irrevocable Standby Letter of Credit is to be considered
part of the Letter of Credit and must be attached thereto.
ISSUING BANK:
WELLS FARGO BANK, N.A.
By:_____________________________
Name:________________________
Title:__________________________
ACCEPTED:
DESCHUTES COUNTY, OREGON, a
political subdivision of the State of Oregon
Name:________________________
Title:__________________________
{00013626i 2} 1
Exhibit A-1 to Wells Fargo Bank, N.A.
Letter of Credit Number NOS679980
STATEMENT OF DESCHUTES COUNTY, OREGON
DRAFT DRAWN UNDER WELLS FARGO BANK, N.A.
LETrER OF CREDIT NO. NOS679980
Re: Triple Knot Townhomes (Golf Homes at Tetherow)
Deschutes Cou nty, Oregon
The undersigned, an authorized representative of Deschutes County, Oregon (the
"Beneficiary") hereby certifies that (check only one of the following two (2) statements):
D Weston Investment Co. LLC (including its successors and assigns, the
"Applicant") has failed to complete the Roads and Utilities Required Improvements to
Beneficiary's satisfaction by the applicable Completion Date, and the Beneficiary has or will
complete the Roads and Utilities Required Improvements in accordance with the terms and
conditions of the Improvement Agreement (Roads and Utilities), Deschutes County
Document No. 2011-14777 (as the agreement may be amended, restated or replaced, the
"Improvement Agreement"), signed by and between the Applicant and the Beneficiary.
Beneficiary has notified the Applicant in writing of the requirement to complete the Roads
and Utilities Required Improvements and the Applicant has not remedied such failure within
the applicable time period set forth in the Improvement Agreement. The amount of this
accompanying draft drawn under Wells Fargo Bank, N.A. Letter of Credit No. NOS679980
represents the amount the BenefiCiary is entitled to draw on the Letter of Credit to pay
costs and expenses to complete the Roads and Utilities Required Improvements in
accordance with the Improvement Agreement.
D Applicant has failed to fulfill its contractual warranty obligations under the
Improvement Agreement with respect to the completed Roads and Utilities Required
Improvements. Beneficiary has notified the Applicant in writing within the applicable
Warranty Period of certain defects in the materials or workmanship of the Roads and
Utilities Required Improvements and the Applicant has failed to take action to remedy such
defects. The amount of this accompanying draft drawn under Wells Fargo Bank, N.A. Letter
of Credit No. NOS679980 represents the amount the Beneficiary is entitled to draw on the
Letter of Credit to satisfy the warranty obligations of Applicant with respect to the
completed Roads and Utilities Required Improvements in accordance with the Improvement
Agreement.
Capitalized terms used, but not defined in this Statement, have the meanings set
forth in the Improvement Agreement.
Dated this ___ day of _________, 20_.
DESCHUTES COUNTY, OREGON, a
political subdivision of the State of Oregon
By:_____________
Name:______________
Title:______________
{00013626;2} 2
The original of the Letter of Credit contains
Wells Fargo Bank, N.A.
U. S. Trade Services
Standby Letters of Credit
MAC A019S'212
One Front Street, 21st Floor
San Francisco, California 94111
Phone; 1(800) 798-281.5 Option 1
E-Mail: sftrade@Wellsfargo.com
Amendment To
Irrevocable Standby Letter Of Credit
Number: NOS679980
Amendment Number: 1
Amend Date: April 20, 2012
APPUCANT
DESJ1UTESCOLNIY,OR8?DN
AnN: DESCHUTES COUNTY Pl..ANNI\IG DIRECTOR
117 NW LAFAYETTE
BEND, OREGON 97701
WESTON INVESTMENTOO., LLC
2154NE BPON:JNAY
SUITE 200
PORTlAND, OREGON 97232
ATTrEREQJEST JlHJFalllEA(XXUIJTCF'THEN!!I:NEAEFEREl\C8)APAJC'ANT,WE HEREBY AM8\000R I~
STMDBYLETTERCF'CREDIT(THE'WELlSOlBJtTjINYOJRFAVORASF<ll..ONS:
THE LEflER OF alEDIT IS DECREASED 8Y$37'2,3;lt10.
THE N8N AWOl.Jf\IT OF THE LErTER OF CREDrr 15$719676.00.
EXHIBIT Jlr.1 IS t-ONTO READ PS PER ATTAa-ED.
ALL OlHERTERMS ANDcx::HlITIONS REMAIN UNCHANGED.
l'HSAMENJIVENTISTOBEATTACHEDTOTrEOAIGINAL W8l.S CREDIT AN) IS AN MEGRALPARTlHEAEOF.
embossed seal over the Authorized Signature.
5166 Page 1 of3
Each page of this document is an integral part
olthis Irrevocable Slandby Letter of Credit Number NOS679980 , Amendment Number 1
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 One Front Street or 401 Linden Street
MAC A0195-212, MAC 04004-017,
San Francisco. CA 94111 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 am. PT to 5:00 p.m. Pl) (Hours of Operation: 8:00 a.m. EST to 5:30 p.m. ESl)
Consent to Amendment 1 on Standby Letter of Credit No. N0S679980 is required to become effective.
Please date and sign below and return a copy to us at our office located:
at either One Front Street or 401 Linden Street
MAC A0195-212, MAC D4()()4.()17,
San Francisco, calnomia 94111 Winston-Salem. NC. 27101
or Fax to 415-296-8905. or Fax to 336-735-0950.
I Amendment accepted in its entirety I Amendment rejected in its entirety
/
Date
/
Authorized Signature -CFS:HJTESCXXNTY,CFiEOOI/
( )
Telephone Number Printed Name of Authorized Signer
Page20f3
Each page of this multipage document is an integral part
of this Irrevocable S1andby Letter of Credit Number NOS679980 • Amendment Number 1
5166
TOWBl.S FARGO BA.NK, NA LETTER OF CREDrrl\UMBER ~
STATEMENTOF DESCHUTES COUNTY, OREGON
DRAFT DRAWN UNDER WElLS FARGO BANK. NA
LETTER OF CREDrrNO. N0S679980
RE: lRlA...E KN)TTOWNI-OIVES (GO..F I-OvESATTETHEROW)
DESCl-UTESCOl..N1Y, O1EGON
TI-EUNDERSK3NED,ANAlJ1l-mIZEDREPRESENTATlVEOFDEOCHJTESCOl..N1Y,a=«:GON(THE
''8ENEFIClARYj H:REBY CER1lRESlHAT (Q-IECK ON..YO\IE OFTJ-E Fal..OJ\IN3 TVVO (2) STATEMENTS):
_\IVES1tl'J NVESlMENTCO. Ll.C (INCllJDING ns SUCCES9JRSN£)ASSIGNS, THE "APPL.JCANrj HAS
FAILED TOCOI\J1PLETETHE ROADS AND UllUTIES REOJIRED IrvPROVEMENTSTO 88'-JEFJCIARY'S SAT1SFACTK:lN
BYTHEAPPlJCA8lE CO\IFI..ETION DATE, NV THE BENEFICIARY HAS 011 wu.COVPlETETHE ROADS AND
UTUIlESREQURED I'v1PROVEtoJENT INACCORDANCEWITHTHETERMSANDCONDrOONSOFTHE
M'ROvev1ENT AGREEtvENT (ROADSANO UllUTlES), DESCHUTES COUNTY DOCUMENT NO.2011-14m (AS
THEAGREEtvENTMWBE NJENDED. RESTATEDOI1 REPI..AC8J,THE''INPROVEMENT AGREEtvENTj,SIGH> BY
AN BETWEEN TI-EAPPIJCANT ANDTHE BENEFICIARY. BENEFICIARY HAS NOlFlED THEAPFtJC:.lWr INVVRmNG
OFTJ-E RE<lJIRElVENTTO GOrvRErETHE ROADS AND UTILITIES RE<lJ1RED IMPROVEMENTSNV TJ-E
APA....I("A.JTHAS NOTREWEDIED su::::H FAl.JJ=EWlTHNTHE APPUCA8lElll\IE PERK)[)SET FORTH NTHE ... ~, IMPROVBIIENT AGREEIVENT. THE MikJUNTOF THIS Ar::t:X:JVPANYING DRAFT DRAWN l.NJERWBl.S FARGO
BAN<. NA I..ETlER OF CREDIT NO ~REPRESENTSTHEMO...NTTHEBENEFICIARY ISENllTLED TO
DRAWOOTHE LETTER OF O:a:XTTO PAY COSTS AND EXP8\JSESTOGOrvRErETHE ROADSNVUllLITES
.. ~;. REOJIRED IMPROVEMENTS NAGO::)RDAl'UWITHTHE IVIPRO\IEM3'.IT AGREEVENT.
OR
APPLJCANT HAS FAILED TOFU.FI.L nsCONTRACTUAL WARfW.ITY OBUGAllONS U\IDER THE
IVPFlO\IeJE'>JT AGREEJIIIENTWITH RESPECT TO THE <XlVP\..E.lID ROADS AND LITUTES RECURED
IMPROVEMENTS. BENERCLARY HAS NOllRED THE APRJCANT IN VVRmNG WlTHN THEAPPI....K:'.ABL
WARRANTY PERK)[)OF CERTAIN DEFECTS IN THEM6.TERIAlSORWJRKMANSHPOFTHEOOADSHJDUTUTES
REQUIRED IMPROVEMENTSHJD THEAPFtJC:.lWrHAS FAILED TO TAKEAC11Cl\ITO RBtEDY Sl..O-I DEFECTS.
ll-IEAMJl.Nf OF THIS ACCOMPANYING DRAFT DRAWN UNDER WEllS FARGO BAM<, NA!..ETTER OF CREDIT
NO~RB-'AESENTSTHEMikJUNTTHE se..EFJCIARYISENTrrLEDTODRAWOOTHElETTEROFCREDfT
TO SATISFY THEWARfW.ITY 0BLIGA1lONSOF APPI.JCANTWITH RESPECTTOTHE c::av1PI..ETETHE ROADS AND
UTUTES REOJIRB) r.JPRC>VeJIENTS NACCORDAl'aWITHTHE IMPROVBv1ENT AGREEJI/B\IT.
CAPrrALIZEDTERMSUSED. BUTNOTDEFNED N THE STATEMENT, HAVE THE MEANING STFORTH NTHE
IMPROVBv1ENTAGREENIENT.
DATEDTHIS ____,DAY OF ___---'.20_.
DEOCH.JTES(X)UNTY, OREGON, A
PCllTlCAlSUBDMSIONOFTHESTATEOFOREGON
TITIE:__________
5166 Page 3 of 3
Each page of this multipage document is an integral part
of this Irrevocable Standby Letter of Credit Number NOS679980 • Amendment Number 1
REVIEWED
=;?(
LEGAL COUNSEL
After recording, return to:
Deschutes County
Community Development Department
117 NW Lafayette Street For Recording Stamp Only
Bend, Oregon 97701
PARTIAL RELEASE AND MODIFICATION OF
IMPROVEMENT AGREEMENT SECURITY FOR
TRIPLE KNOT TOWNHOMES
(also known as Golf Homes at Tetherow)
Whereas, Deschutes County, Oregon, a political subdivision of the State of Oregon (the
"County"), with an address of 1300 NW Wall Street, Bend, Oregon 97701, and Weston Investment Co.
LLC, an Oregon limited liability company ("Owner"), with an address of 2154 NE Broadway, Suite
200, Portland, Oregon 97232, previously entered into that certain Improvement Agreement (Roads and
Utilities) (Deschutes County Document No. 2011-068), which was recorded in the official records of
Deschutes County, Oregon on April 21, 2011 as Document No. 2011-14777 (the "Improvement
Agreement"); and
Whereas, pursuant to the Improvement Agreement, Owner provided security for the
construction of the Roads and Utilities Required Improvements in the form of an Irrevocable Standby
Letter of Credit issued on April 18, 2011 under Number NOS679980 in the amount of One Million
Ninety Two Thousand Seventy Five and NollOO Dollars ($1,092,075.00) by Wells Fargo Bank, N.A.
for the benefit of the County (the "Letter of Credit"), a copy of which is attached as Exhibit D to the
Improvement Agreement; and
Whereas, pursuant to Section 5.3.1 of the Improvement Agreement, Owner completed, or
caused to be completed, on January 30,2012 (the "Phase 1 Completion Date"), the Roads and Utilities
Required Improvements for Phase 1 of the Subdivision, with the exception of the sidewalks (the
"Phase 1 Roads and Utilities Required Improvements"), in substantial conformance with the road and
utility improvement plans approved by the County Road Department. The sidewalks for Phase 1 of the
Subdivision will be constructed in conjunction with the construction of the individual homes within
Phase 1 of the Subdivision, and the warranty obligations of Owner under the Improvement Agreement
with respect to the sidewalks will commence upon completion of construction of the sidewalks, at
which time Owner will be required to provide security for the warranty obligations relating to the
sidewalks in accordance with the Improvement Agreement; and
Whereas, pursuant to Section 16.2 of the Improvement Agreement, the amount of the Letter of
Credit may be reduced upon Owner's satisfactory completion of the Phase 1 Roads and Utilities
Required Improvements in accordance with the construction schedule and phase cost estimates set
forth in the Improvement Agreement; and
Page 1 of5 -PARTIAL RELEASE AND MODIFICATION OF IMPROVEMENT AGREEMENT
SECURITY FOR TRIPLE KNOT TOWNHOMES, Document No. 2012-263
DC 201 2263
Whereas, pursuant to Section 6.1 of the Agreement, Owner shall: (a) warrant that the Phase 1
Roads and Utilities Required Improvements will remain free from defects in materials or workmanship
and that the Phase 1 Roads and Utilities Required Improvements will continue to meet County and
State of Oregon standards for twelve (12) months following the Phase 1 Completion Date (the "Phase
1 Warranty Obligations"); and (b) obtain a bond or other security in favor of, and reasonably
acceptable to, the County in the amount of ten percent (10%) of the construction costs of the Phase 1
Roads and Utilities Required Improvements to secure the Phase 1 Warranty Obligations; and I
Whereas, Owner seeks to reduce the amount of the Letter of Credit to reflect the completion of
the Phase 1 Roads and Utilities Required Improvements and to designate a portion of the remaining !funds available under the Letter of Credit as security for certain Phase 1 Warranty Obligations, and the
County desires to confirm its agreement with the foregoing, all as more fully provided in this
instrument and subject to the terms and conditions set forth in this instrument. I
Now, therefore, Owner and the County hereby agree as follows: ~
J
1. Recitals. The foregoing recitals are ratified as true and correct and are incorporated Iherein and made a part hereof by this reference.
2. Defined Terms. Any capitalized terms utilized in this instrument, and not othel"W'ise
defined, shall have the definitions given to such terms in the Improvement Agreement. r i
3. Reduction of Letter of Credit. The Letter of Credit shall be reduced in the amount of
Three Hundred Fifty Six Thousand One Hundred Four and 101100 Dollars ($356,104.10) from One
Million Ninety Two Thousand Seventy Five and Nol100 Dollars ($1,092,075.00) to Seven Hundred I
I
iThirty Five Thousand Nine Hundred Seventy and 90/100 Dollars ($735,970.90). The foregoing
reduction represents: (a) the release of the security for the completion of the Phase 1 Roads and
Utilities Required Improvements, except for the sidewalks, in the amount of Three Hundred Eighty
Eight Thousand Four Hundred Seventy Seven and 201100 Dollars ($388,477.20) as reduced by (b) the
required security for the Phase 1 Warranty Obligations in the amount of Thirty Two Thousand Three
Hundred Seventy Three and 101100 Dollars ($32,373.10), which amount constitutes ten percent (10%)
of the construction costs for the Phase 1 Roads and Utilities Required Improvements (exclusive of the
sidewalks). Owner's Phase 1 Warranty Obligations with respect to the sidewalks shall not commence
until construction of the sidewalks are completed, at which time the required security for the warranty
period must be provided in accordance with the Improvement Agreement. The construction of the
sidewalks for Phase 1 of the Subdivision shall be completed in conjunction with the construction of the
individual homes within Phase 1 of the Subdivision.
4. Designation of Security and Allocation of Available Credit. The Letter of Credit, as
reduced in accordance with Section 3 above, shall secure the following obligations under the
Improvement Agreement up to the following maximum amounts:
(a) Seven Hundred Three Thousand Five Hundred Ninety Seven and 80/100 Dollars
($703,597.80) of the available funds under the Letter of Credit shall secure Owner's obligations to
complete the sidewalk improvements for Phase 1 of the Subdivision and the Roads and Utilities
Required Improvements for Phases 2, 3 and 4 of the Subdivision in accordance with the Improvement
Agreement, which amount constitutes one hundred twenty percent (120%) of the estimated costs for
completion of the sidewalk improvements for Phase 1 of the Subdivision and the Roads and Utilities
Required Improvements for Phases 2, 3 and 4 ofthe Subdivision; and
Page 2 of 5 -PARTIAL RELEASE AND MODIFICATION OF IMPROVEMENT AGREEMENT
SECURITY FOR TRIPLE KNOT TOWNHOMES, Document No. 2012-263
(b) Thirty Two Thousand Three Hundred Seventy Three and 10/100 Dollars
($32,373.10) of the available funds under the Letter of Credit shall secure the Phase 1 Warranty
Obligations with respect to the Phase 1 Roads and Utilities Required Improvements, which amount
constitutes ten percent (10%) of the construction costs of the Phase 1 Roads and Utilities Required
Improvements.
5. Letter of Credit Amendment. Amendment No.1 to the Letter of Credit in the form
attached hereto as Exhibit A is hereby approved and incorporated herein by this reference.
6. Ratification. Except as modified by this instrument, the Improvement Agreement
remains in full force and effect.
COUNTY: BOARD OF COUNTY COMMISSIONERS
OF DESCHUTES COUNTY,OREGON
ANTHONY DEBONE, Chair I
r
ALAN UNGER, Vice-Chair
ATTEST:
Recording Secretary TAMMY BANEY, Commissioner
STATE OF OREGON )
)ss.
County of Deschutes )
On , 2012, before me, a Notary Public, personally appeared
ANTHONY DEBONE, ALAN UNGER and TAMMY BANEY, the above-named Board of County
Commissioners of Deschutes County, Oregon, and acknowledged the foregoing instrument on behalf
of Deschutes County, Oregon.
Notary Public, State of Oregon
My Commission Expires: _____
(Signatures Continued on Following Page)
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SECURITY FOR TRIPLE KNOT TOWNHOMES, Document No. 2012-263
OWNER: WESTON INVESTMENT CO. LLC, an
I
Oregon limited liability company
By: Weston Trust Corp., an
Oregon corporation
Its: Manager
By: ___________
Joseph E. Weston, President
STATE OF OREGON )
)ss.
County of,______--') I
The foregoing instrument was acknowledged before me this day of , 2012,
by Joseph E. Weston, President of Weston Trust Corp., Manager of Weston Investment Co. LLC, an
Oregon limited liability company, on its behalf.
Notary Public for Oregon
My commission expires: _______
Page 4 of 5 -PARTIAL RELEASE AND MODIFICATION OF IMPROVEMENT AGREEMENT
SECURITY FOR TRIPLE KNOT TOWNHOMES, Document No. 2012-263
EXHIBIT A
Letter of Credit Amendment
(See Attached)
Page 5 of 5 -PARTIAL RELEASE AND MODIFICATION OF IMPROVEMENT
AGREEMENT SECURITY FOR TRIPLE KNOT TOWNHOMES, Document No. 2012-263
