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Deschutes 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 December 7, 2009
Please see directions for completing this document on the next page.
DATE: 12/2/09
FROM: Will Groves
CDD x6518
TITLE OF AGENDA ITEM:
Consideration and Signature of Document No. 2009 -687 Amending Document No. 2009 -660 and
Authorizing Partial Release of Improvement Agreement Bonds (IA -05 -7, IA- 05 -08, IA -06 -1, IA -06 -2)
in the amount of $2,349,189.
PUBLIC HEARING ON THIS DATE? No.
BACKGROUND AND POLICY IMPLICATIONS:
Deschutes County Document No. 2009 -660 authorized a partial release of improvement agreement; for
Caldera Springs Destination Resort. Unfortunately, it incorrectly stated the construction cost for
twenty -six completed overnight units as $1,141,583 and the required warranty bond for these units as
$114,158. The correct amount for the construction cost for these units is $1,415,830 and the correct
amount for the warranty bond for these units is $141,583. Document number 2009 -687 corrects this
error and authorizes the correct partial release.
FISCAL IMPLICATIONS:
None.
RECOMMENDATION & ACTION REQUESTED:
Staff recommends that the Board approve and sign Document No. 2009 -687.
ATTENDANCE: Will Groves, Legal
DISTRIBUTION OF DOCUMENTS:
BOCC, Legal, Will Groves
Community Development Department
Planning Division Building Safety Division Environmental Health Division
December 2, 2009
INAtIMENRit
117 NW Lafayette Avenue Bend Oregon 97701 -1925
(541)388 -6575 FAX (541)385-1764
http : / /www.co.deschutes.or.us /cdd/
MEMORANDUM
To: Deschutes Board of County Commissioners
From: Will Groves, Senior Planner
Subject: Partial Release - Improvement Agreements for Caldera Springs (Doc.
Nos. 2009 -687).
BACKGROUND
Deschutes County Document No. 2009 -660 authorized a partial release of improvement
agreements for Caldera Springs Destination Resort. Unfortunately, it incorrectly stated
the construction cost for twenty -six completed overnight units as $1,141,583 and the
required warranty bond for these units as $114,158. The correct amount for the
construction cost for these units is $1,415,830 and the correct amount for the warranty
bond for these units is $141,583. Document number 2009 -687 corrects this error and
authorizes the correct partial release.
SCHEDULE
This item is scheduled for the Board's regular meeting on December 7, 2009. Please
feel free to contact me with any questions or concerns.
Quality Services Performed with Pride
REVIEWED
LEGAL COUNSEL
For Recording Stamp Only
AMENDMENT TO DESCHUTES COUNTY DOCUMENT NO. 2009 -660
CALDERA SPRINGS RESORT
PARTIAL RELEASE OF
IMPROVEMENT AGREEMENT BONDS
Whereas, Deschutes County (the "County ") and Caldera Springs Real Estate LLC ( "CSRE ")
previously entered into that certain Improvement Agreement recorded February 17, 2006 at
2006 - 11382, that certain Improvement Agreement recorded February 17, 2006 at 2006 - 11381,
that certain Partial Release of Improvement Agreement Bonds recorded February 26, 2008 at
2008 - 08452, and that certain Caldera Springs Resort Partial Release of Improvement
Agreement Bonds recorded February 17, 2009 at 2009 -74 (as amended, the "Agreements ");
and
Whereas, pursuant to the Agreements, CSRE provided security for the construction of the
Required Improvements (as defined in the Agreements) in the form of a bond; and
Whereas, Deschutes County Document No. 2009 -660 incorrectly stated the construction cost
for twenty -six completed overnight units as $1,141,583 and the required warranty bond for these
units as $114,158; and
Whereas, the correct amount for the construction cost for these units is $1,415,830 and the
correct amount for the warranty bond for these units is $141,583; now, therefore;
1. Partial Release of Bonds. The County hereby approves an amended release
and /or reduction of the bonds provided pursuant to the Agreements as follows:
A. Bond No. 8835804. Bond No. 8835804 guarantees construction of overnight
accommodations. Presently, this bond is a warranty bond in the amount of
$114,213 and a completion bond in the amount of $8,726,011, for a total
bond amount of $8,840,225.
Twenty -four overnight units presently under warranty bond have been
completed and the required one -year warranty period expired on May 9,
2009. The required improvements have been inspected and accepted by the
County. Accordingly, this bond may be reduced in the amount of $114,213.
Twenty -six additional overnight units have been completed. The required
improvements have been inspected and accepted by the County. The
construction cost for these seven buildings was $1,415,830. The warranty
bond should be ten percent (10 %) of this amount or $141,583. The cost to
complete the remaining buildings is estimated to be $5,772,230. The
completion bond should be one hundred and ten percent (110 %) of this
estimate or $6,349,453.
/1/
PAGE 1 OF 2 — AMENDMENT TO DESCHUTES COUNTY DOCUMENT NO. 2009 -660
CALDERA SPRINGS RESORTPARTIAL RELEASE OFIMPROVEMENT AGREEMENT
BONDS — Deschutes County Document No. 2009 -687
Accordingly, this bond may be reduced to a warranty bond in the amount of $141,583
and a completion bond in the amount of $6,349,453, for a total bond amount of $6,491,036.
The bond riders, copies of which are attached and incorporated by reference herein, reflect
those approved amounts.
Dated this
ATTEST:
of , 2009 BOARD OF COUNTY COMMISSIONERS
OF DESCHUTES COUNTY, OREGON
TAMMY BANEY, Chair
DENNIS R. LUKE, Vice Chair
Recording Secretary ALAN UNGER, Commissioner
PAGE 2 OF 2 — AMENDMENT TO DESCHUTES COUNTY DOCUMENT NO. 2009 -660
CALDERA SPRINGS RESORTPARTIAL RELEASE OFIMPROVEMENT AGREEMENT
BONDS — Deschutes County Document No. 2009 -687