TC Res. No. 2001-11TOWN OF AVON
RESOLUTION NO. 01-11
Series of 2001 .
A RESOLUTION APPROVING A REDUCED AND MODIFIED SECURITY DEPOSIT
FOR PUBLIC IMPROVEMENTS TO BE INSTALLED AND CONSTRUCTED IN
ACCORDANCE WITH SUBDIVISION IMPROVEMENTS AGREEMENT FOR
AMENDED PLAT OF CHAPEL SQUARE SUBDIVISION, TOWN OF AVON, EAGLE
COUNTY, COLORADO
WHEREAS, the Town of Avon and Chapel Square, LLC; a Colorado Limited Liability Company
entered. into a SUBDIVISION IMPROVEMENTS AGREEMENT in connection with the approval
of the Amended Plat of Chapel Square Subdivision; and
WHEREAS, said Agreement established certain public and private improvements to be constructed
in conjunction with said subdivision; and
WHEREAS, said Agreement established requirements for the provision of security deposits to
assure completion of the improvements and provide for warranty work in accordance with the
Agreement and the subsequent partial release of the security deposits upon satisfactory completion
of portions of the improvements in conformance with all standards, drawings and specifications as
.submitted to and previously approved by the Town; and
WHEREAS, portions of the required work have been satisfactorily completed in accordance with
the approved plans and specifications, as certified by a professional engineer; and
WHEREAS, a payment of $50,000 by the Town of Avon to Chapel Square LLC is due upon
satisfactory completion of said improvements; and
WHEREAS, effective February 28, 2001, the security deposit was reduced to $215,000.00 which is
equal to at least 110 percent of the cost of the remaining improvements to be completed in
conformance with the approved plans and specifications; and
WHEREAS, Chapel Square LLC, has requested-a reduction in the security deposit and a change in
the form of security deposit provided; and
WHEREAS, the security deposit provided by Chapel Square LLC is in the form of a letter of credit
in the amount of $215,000.00 with an expiration date of May 31, 2001.
I:\Engineering\Subdivision\Benchmark At BC\Chapel Square\Sec Dep Resol-2.Doc
NOW, THEREFORE BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF
AVON, that:
The Town of Avon will release the current security deposit in the form of the letter of credit in the
amount of $215,000.00 subject only to full compliance with the following conditions by May 29,
2001:
Chapel Square LLC has executed a contract for the reconstruction of the entrance to
Building C and the 'applicable portions of Chapel Place as depicted on preliminary
Grading Plan, Building C Driveway, Chapel Square Subdivision, Town of Avon,
Colorado prepared by Inter-Mountain Engineering, Ltd. and dated 04-09-01.
2. As a minimum, demolition work has progressed to the extent that reconstruction must
be completed in order to maintain access to Building C.
3. Chapel Square LLC or other appropriate entity has executed a legally binding agreement
with the Town of Avon guaranteeing that all easements'and releases related to Tract A,
Community Shopping Center, Town of Avon, Eagle County, Colorado and Tract B,
Chapel Square Subdivision, Town of Avon, Eagle County, Colorado required for
construction of anticipated East Avon Access and Streetscape Improvements will be
provided to the Town of Avon at the appraised value less $50,000.00.
4. A deed of trust or other legally binding document for Unit BR403, Final Plat and
Condominium Map of Chapel Square "Building B", Lot 22, Chapel Square Subdivision,
Town of Avon, Eagle County, Colorado will be provided to the Town of Avon
guaranteeing rights to the Town with a value of at least $82,500.00 as established by the
difference between appraised value and the total of all outstanding mortgages, liens and
other encumbrances.
5. Failure to meet these conditions will require extension of the current security or failure
to provide such extension will result in the Town exercising its options regarding the
current letter of credit.
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ADOPTED THIS 2 2 DAY OF May , 2001.
TOWN COUNCIL
TOWN OF AVON, COLORADO
J Yoder, ayo
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3
Town Clerk
MAY-IS=2001 TUE 07:02 ID:
Memorandum
To: Norman Wood
From: Terry Palmos
Re: Chapel Square, LLC Letter of. Credit
Date: 5-15-01
TEL:303449eea9 P:02
Sent Via Fax: 970-749-1958
Background:
"Building C Entrance" Currently the Town of Avon ("TOA') is not satisfied with the
slope of the entrance to the Building C garage (G2 level) at the Chapel Square
Development. The TOA is requiring Chapel Square, LLC ("Developer") to adjust, at
Developer's cost and expense, the entrance from where it is today to a certain point as per
the revised and approved plans ("Developer's Portion of the Building C Entrance'). The
TOA will then further adjust, at its sole cost and expense, the entrance from Developer's
obligated point to a higher point in order to make the road related to the Building C
Entrance connect to the new Village at Avon. As we have discussed, it seems logical to
have the same contractor do the work for both Developer and the TOA. We have received
two bids for Developer's Portion of the Building C Entrance. The best bid ranged from
$35,000 to $50,000 (sec attached bid). We plan on moving forward. with this bid,
operating under the assumption that the cost of Developer's Portion of the Building C
Entrance will be somewhere in the middle ($42,500).
61%n ty for Chapel Alley and Chapel Place" Further, there is an outstanding warranty
from Developer to the TOA in the amount of approximately $40,000 for work done to
Chapel Alley and Chapel Place.
"Benchmark Road Contribution" Also, we will owe the.TOA a $50,000 contribution for
the Benchmark Road improvements when such improvements are completed. Please note
that the Benchmark road improvements will likely require a condemnation of
Developer's property which will require the TOA to pay Developer a condemnation
award. At this point, it -is premature to discuss any -such amounts but certainly it is
reasonable to assume that any such condemnation award could be offset (in whole or in
part) against the $50,000 amount owed by Developer to the TOA.
"Letter of Credit" Currently the TOA is the holder of a letter of credit from Developer in
the amount of $215,000 in order to insure that Developer's Portion of the Building C
Entrance, the Warranty for Chapel Alley and Chapel Place and the Benchmark Road
Contribution are completed and/or paid for respectively.
MAY-15-2001 TUE 07:02 ID: TEL:303449BS39
In summary, the total cost for the aforementioned items is:
- Developer's Portion of the Building C Entrance $42,500
- Warranty for Chapel Alley and Chapel Place $40,000
- Benchmark Road Contribution (which will hkety he S50,000
offset to some degree by a condemnation award)
Total: $132,500
Additional Securi
"Chanel Place Dedication Amount" The TOA currently owes Developer a final payment
of$50,000 for the dedication of Chapel Place.
"Unit.4403" Leonidas*Palmos owns Chapel Square Residential Unit #403: The appraised
value of Unit #403 is approximately $298,000 (as per Jim Trudea of valuation
Consultants 970-949-4898) and the mortgage against Unit is approximately $215,000
Waving equity in the Unit of $83,000 .
Developer's Request
To that extent, we respectfully request that the letter of credit be extinguished and be
replaced with, 1. The $50,000 Chapel Place Dedication Amount currently owed to
Developer. by the TOA (i.e. the TOA does not issue the funds to Developer, but instead,
uses such fluids to_ pay for Developer's Portion of the Building C Entrance), and 2: A
security interest in the amount of $82,500 ($132,500 total potential cost of remaining
items less $50,000 TOA will hold) in Unit #403.
Summary:
- Total costs to complete the work (or warranty items)
currently secured by the Letter of Credit: $132,500
Less Chapel Place Dedication Amount:
to be held by the TOA: $50,()00
Remaining Security needed by the TOA: $82,500
- Additional Security from Unit #403: $82,500
- Exposure to TOA $0
P:09
(please note that $40, 000 is a warranty fur Chapel Alley and Chapel Place that will not
likely he needed and the $50, 000 amount owed 'to the TOA for Benchmark Road will
likely be off rset to some degree by a condemnation award)
MAY-IS-2201 TUE 07:03 ID:
Mnll-24-e1 11:e6 PM
l~
Yl~
MEN 1411 MI
PAAWJW
0
May 14, 2001
Owner and General Coatraetor
Palmos Development
2795 Yris Ave.
Boulder, Colut-Wo 80304
Off= Phone * 303-449-0951
Office FX # 303-449-8839
Nofeet Ref"PAr
240 Chapel Place
Chapel Square
Avon, Colorado 81620
OVII RpBiheering Date: April 4. 2001
Iateinwurnain rn8inccrialg
Phone it 970 949-5072
Stamped not for construction
Sofas Eng&eertag
Not Shown
F9ffk Description (Building C Driveway)
Ab described in the blueprint listed above, The Reynolds i~orporWon will do the
following;
Remove existing asphalt and jack: hammer out concrete as needed.
Regrade per plans
Replace-heating ill concrete
Replace concrete
Replace Asphalt
The scope of work is not complete bemuse of lack of information, asbuRd inll`mructure
infointatian and plans not being completed working drawing. The estimate that we
developed with the Information available is betwcco JU,@QO,.QQ and 1%M W for the
work on the blueprints listed above,
The Itcyrwlds Corpratinn will be regmnsibte for emd will supply all huurance, Materials,
'fools, Machinccy and labor fbr the specific work listed. below.. All olfi r work v4II be
cnardinated by the owners reftMX4d above. All Pctnlits,, Survays aced fees will be
TEL:3034499839 P:04
P.01
MAY=1S-2001 TUC 07:03 ID:
MAY-14-01 11:07 PM
TE3-:30344-ctBe39 P:05
P. 02
suppliod and.paid.for by the Owners. The Reynolds Corporation (or dedgnated
represcntative) must be present fot ad ulilily locations before exG yWon will commence.
If bedroc* is in tM excavaclon arms the price will increase at a mutually agreed upon cs~t
in writing as a chw*e order by both the (knera) Contmetor and The Reyuulds
Cd W 6n betbre the work commences. There will be a change order incurred if sot?
conditions and encountered in wvas of needed structural subgrades that must to be
overexcavated ad replaced with smxaimal mstertals approved by the soils engintzr
approval.
7wese are tbo pth4o fiat am equipment and laher on it hourly bins #1nevds4
Trackheve John Deere 11993 790E (SISU.UO/hr.)
(Sl t 3. B~h~:)
Tra&hoe John Deere 1995 4947,
John Deere Loader 1944 624G ($[M.oWkr.)
John Deere Backbee 1991 3100 ($#U.01Nkr.)
Jokn Deere Slddstrerer 1995 (MOOPbr.)
Makasa W. Behind Compactor (Sirs Mr.)
Maples Coritpactot' (S50.t16Y/tr. wsth upo wr)
Wacker Compactor ($35. MAP. wJtb operator)
Spectra FhPIc I..asers (lnclumo
Laborrrv S2&7ftr.
71FUC EMg Coinpanl4f Used;
Meeaach, Kudel, Yonkers. Martial':, W& Trucking, B+g Dog, Advance Excavation.
0 have nuascroas outer tracking company that 1 are)
*This proposed is mthootc until jartker iNforwadva Is gwft le.
TMAL
AccelArd
Sincerely,
The Reynolds Corporation
Terry Falmos
Albert D. Reyttolclg ls_ctent t
Memo
TO: Honorable Mayor and Town Council
Thru: Bill Efting, Town Manager
From: Norm Wood, Town Engineers 11,V
Date: May 18, 2001
Re: Chapel Square Subdivision Improvements Agreement
Resolution No. 01-11, Series of 2001, Approving Reduced and Modified
Security Deposit
$u11'1y'f'fal n Chapel Square has satisfactorily completed a significant
portion of the public improvements identified in the Subdivision Improvements
Agreement. The satisfactory completion of these portions has been adequately
documented by field inspections and the submittal of As-Built Plans and Certifications by
registered professional engineers as stipulated in the Subdivision Improvements
Agreement. The Town currently holds a letter of credit with an expiration date of May 31,
2001, in the amount of $215,000 to assure satisfactory completion and correction of
remaining obligations. These generally consist of removing and reconstructing a portion
Chapel Place and the underground parking entrance to Building C to conform to approved
plans, provide a $50,000 security deposit to the Town to guarantee their obligation toward
the cost of East Benchmark Road Improvements and a security deposit of $40,268 to
assure successful completion of the one year warranty period following final completion
and acceptance of all improvements identified in the Subdivision Improvements
Agreement.
Terry Palmos has submitted the attached Memorandum requesting: release of the current
letter of credit and offering to provide alternate security in lieu thereof. We have reviewed
the request and we are recommending an alternate solution in the form of attached
Resolution No: 01-11. We believe that compliance with the conditions stipulated in the
Resolution will provide adequate protection for the Town and provide the flexibility
needed by Chapel Square, LLC to complete the remaining obligations under existing
agreements.
I:\Engineering\Subdivision\Benchmark At BOChapel Square\Sec Dep Memo-2.Doc
Generally the issues are expected to be resolved as follows:
1. An executed construction agreement and minimum demolition progress should be
adequate to assure that the reconstruction of Building C parking entrance and the
related portion of Chapel Place will be completed to conform to approved plans.
Upon completion and acceptance of the work the Town will make the final
$50,000 payment to Chapel Square LLC per previous agreement.
2. Agreement to accept payment of $50,000 less than appraised value for applicable
.easements and releases required for construction of the anticipated East Avon
Access and Circulation Streetscape improvements should satisfactorily address
their obligation to post a $50,000 letter of credit to be used by the Town for
construction of these improvements.
3. The provision of a deed of trust or other legally binding, document for an
unencumbered interest of at least $82,500 in Chapel Square Condominium Unit
BR-403 should be adequate to provide sufficient surety for the one year warranty
period obligation of $40,268.
If these conditions are met by 1VIay 18, 2001 the existing letter of credit will'be released. If
they are not met, the letter of credit will be called unless it is extended.
Approval of attached Resolution No. 01-11, Series of 2001 is recommended to allow this
corresponding modification and reduction subject to conformance with the stipulated
conditions.
Recommendations: Approve Resolution No. 01-11, Series of 2001, a
Resolution Approving a Reduced and.Modified Security Deposit for Public Improvements
to be Installed and Constructed in Accordance with Subdivision Improvements Agreement
for Amended Plat of Chapel Square Subdivision, Town of Avon, Eagle County, Colorado.
Proposed Motion: I move to approve Resolution No. 01-11, Series of 2001, A
Resolution -Approving a Reduced and Modified Security Deposit for Public Improvements
to be Installed and Constructed in Accordance with Subdivision Improvements Agreement
for Amended Plat of Chapel Square Subdivision, Town of Avon, Eagle County, Colorado.
Town Manager Comments:
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