HomeMy WebLinkAboutDoc 510 - Amend Improv Agrmt - Tetherow01`Esc
❑ -C
Deschutes County Board of Commissioner
1300 NW Wall St., Suite 200, Bend, OR 97701 -1960
(541) 388 -6570 - Fax (541) 385 -3202 - www.deschutes.ort;
AGENDA REQUEST & STAFF REPORT
For Board Business Meeting of September 9, 2009
Please see directions for completing this document on the next page.
DATE: August 13, 2009
FROM: Anthony Raguine Community Development Department
617 -4739
TITLE OF AGENDA ITEM:
Consideration of Board Signature of Document No. 2009 -510, an amendment to Improvement
Agreement no. IA -07 -6, for overnight accommodations at the Tetherow Destination Resort.
PUBLIC HEARING ON THIS DATE? No.
BACKGROUND AND POLICY IMPLICATIONS:
On May 14, 2008, the Board of County Commissioners (Board) signed an Improvement Agreement
(Agreement) File No. IA -07 -6, Document No. 2007 -380, related to the required overnight
accommodations for the Tetherow Destination Resort. Per that original Agreement, the overnight
accommodations were to be inspected and receive final written construction approval from the County
no later than two (2) years from the date the Tetherow Phase 1 Plat was recorded with the County Cl erk
(Completion Date). The Agreement was subsequently amended two times and the current Completion
Date for the overnight accommodations is September 24, 2009.
Per Section 5.4 of the original Agreement, the developer may submit a written request to the County for
up to three (3) one -year extensions of the Agreement for the completion of the overnight
accommodations. On July 24, 2009, the applicant, Arrowood Development, LLC, submitted an
application to amend the Agreement. This Amendment No. 3 would extend the Completion Date foi
the required overnight accommodations for one (1) year to September 24, 2010. This is the applicant's
first on -year extension request.
Section 5.4.6 of the Agreement allows the County to grant an extension if the County deems it to be n
the public interest to do so. The applicant's burden of proof argues that the current economic conditions
coupled with the national credit situation make the applicant's extension request reasonable and in the
public interest.
FISCAL IMPLICATIONS:
The fiscal choice the Board must make is whether it is in the public interest to keep the bond in place
but not have the overnight lodging in place, or whether it is in the public interest to use the bond to
complete the overnight lodging and leave the lodging vacant given the current economic situation.
Although the bond is suppose to be sufficient to cover the construction costs of the units, until
construction begins, it is unknown if the amount is sufficient. Thus, the Board will face either return ng
to the developer any excess in the bond or building only as much as the bond will cover while the res art
continues to lack sufficient overnight lodging units.
Note that the resort is limited in the number of individual dwelling lots it may plat, regardless of who
owns the land or who the developer is, unless the resort's land use approvals are modified and
additional overnight lodging units are either bonded or built.
RECOMMENDATION & ACTION REQUESTED:
Staff believes the Board should determine if granting the extension is in the public interest. If the
Board determines that granting the extension is appropriate, the Board should sign Document No. 2009-
510.
ATTENDANCE: Anthony Raguine
DISTRIBUTION OF DOCUMENTS:
Original to Anthony Raguine to give to the applicant for recording in the Deschutes County Officia
Records with instructions to the Clerk to also record it in the Commissioners Journals.
REVIEWED
LEGAL OUNSEL
For Recording Stamp Only
AMENDMENT NO. 3 TO IMPROVEMENT AGREEMENT NO. 2007 -380
Overnight Lodging
That certain Improvement Agreement, Deschutes County Document No. 2007 -380 ( "Agreement "), by
and between DESCHUTES COUNTY, OREGON, a political subdivision of the State of Oregon
( "County ") and ARROWOOD DEVELOPMENT, LLC, ( "Developer "), dated August 29, 2007, together
with the Amendments in Deschutes County, Document Nos. 2007 -493 and 2008 -576 (Clerk recording
Nos. 2007 -53416 and 2008 - 43806), is amended as set forth below, effective upon signature of all
parties. All other provisions of the Agreement remain the same and in full force.
3. Exhibits. The Exhibits listed below and attached to this Amendment No. 3 are hereby
incorporated herein by reference as a part of the Agreement and supplement that Exhibit D
attached to Amendment No. 2 to Improvement Agreement — Overnight Lodging, 2008 -576.
3.4. Exhibit E — Verification Certificate for Indefinite Term Security Bond (Subdivision Bond
No. K07461057).
5. Construction of Overnight Lodging Required Improvements.
5.3 Developer 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 two
(2) years from the date the Tetherow Phase 1 Final Plat is recorded with County Cler<
( "Completion Date "). This date is hereby extended by one year resulting in a new
Completion Date of September 24, 2010.
SIGNATURES ON FOLLOWING PAGES
1 — Amendment No. 3 to Improvement Agreement — BOCC Document No. 2009 -510
PDX/1 13 803/1 44 541 /TML/4934545.1
Dated this of , 2009 BOARD OF COUNTY COMMISSIONERS
ATTEST:
Recording Secretary
STATE OF OREGON )
ss.
County of Deschutes )
TAMMY BANEY, CHAIR
DENNIS R. LUKE, VICE -CHAIR
ALAN UNGER, COMMISSIONER
Before me, a Notary Public, personally appeared TAMMY BANEY, DENNIS R. LUKE, and ALAN
UNGER and the above -named Board of County Commissioners of Deschutes County, Oregon and
acknowledged the foregoing instrument on behalf of Deschutes County, Oregon.
DATED this day of , 2009.
Notary Public for Oregon
My Commission Expires:
DEVELOPER:
Dated this of , 2009.
ARROWOOD DEVELOPMENT, LLC
By:
Its:
STATE OF OREGON )
ss
County of Deschutes )
Before me, a Notary Public, personally appeared the foregoing instrument as
of Arrowood Development, LLC. And acknowledged
DATED THIS day of , 2009.
Notary Public for Oregon
My Commission Expires:
2 — Amendment No. 3 to Improvement Agreement — BOCC Document No. 2009 -510
PDX/ 113803/ 144541 /TML/4934545. l
VERIFICATION CERTIFICATE FOR
INDEFINITE TERM SURETY BOND
THIS IS TO CERTIFY that Bond No. K07461057 issued by Westchester Fire Insurance Company
dated this 28 day of September , 2007, in the amount of Sixteen Million and 00/100 Dollars
($16,000,000.00) and subsequently reduced on October 27, 2008 to Eight Million Six Hundred Ninety
Thousand and 00 /100 Dollars (8,690,000.00), on behalf of Arrowood Development, LLC (as
Principal), and in favor of Deschutes County, Oregon (as Obligee) , covers a term which began on the
28 day of September, 2007, and ends only with the cancellation of said bond or other legal
termination thereof; and that the said bond remains in effect, subject to all its agreements, conditions
and limitations.
Signed, sealed and dated (enter below) Westchester Fire Insurance Company
BY: �✓ ..... °.
William Ju
Attorney -ih ' : ct
August 13, 2009
EXHIBIT E PAGE ..f 3
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• THAT WILL PROTECT AGAINST COPY COUNTERFEIT AND. ALTERATION, I�
EXHIBIT •PAGE 2
Uoc. # 2-001 — 510
WESTCHESTER FIRE INSURANCE COMPANY
FINANCIAL STATEMENT
ADMITTED ASSETS
DECEMBER 31, 2008
BONDS $ 1,937,961,302
SHORT- TERM INVESTMENTS 25,152,122
STOCKS 119,791,289
REAL ESTATE
CASH ON HAND AND )N BANK 124,390,944
PREMIUM IN COURSE OF COLLECTION* 85,054,200
INTEREST ACCRUED 18,288,962
OTHER ASSETS 232,251 068
TOTAL ASSETS $2,542,880,887
LIABILITIES
RESERVE FOR UNEARNED PREMIUMS $ 287,073,174
RESERVE FOR LOSSES 736,344,728
RESERVE FOR TAXES 6,120,207
FUNDS HELD UNDER REINSURANCE TREATIES
OTHER LIABILITIES 772,244,096
TOTAL LIABILITIES 1,801,782,205
CAPITAL: SPECIAL SURPLUS 89,536,923
CAPITAL: 928,592 SHARES, $4.85 PAR VALUE 4,503,671
CAPITAL: PAID IN 185,200,474
SURPLUS (UNASSIGNED) 480,293 890
SURPLUS TO POLICYHOLDERS 759,534,958
TOTAL
('EXCLUDES PREMIUM MORE THAN 90 DAYS DUE.)
STATE OF PENNSYLVANIA
COUNTY OF PHILADELPHIA '
$2,561,317,163
John P. Taylor, being duly sworn, says that he Is Vice President of "
Westchester Fire Insurance Company and that to the best of his knowledge and belief the
foregoing Is a true and correct statement of the said Company's financial condition as of the
31 st day of December, 2008
firs -� 3 20C1J
Swom before me
sldent
Notary Public
COMMONWEALTH bF PENNSYLVANIA
Noted & Seal
Irene T. Verrett4 NoIy Publio
City OfPiade *PrrlaoelprraCan*
My Commfaalon Expires Nay. 15, 2011
Mamba, Penn$NV+ete Aosootetien Of Notarla6
My commission expires
EXHIBIT E PAGE 23
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