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HomeMy Public PortalAboutResolution 2021-36, A Resolution Approving the Plat for Phase 3 of the Woods Estates of Riverdale SubdivisionTip RESOLUTION 2021-36 A RESOLUTION APPROVING THE PLAT FOR PHASE 3 OF THE WOODS ESTATES OF RIVERDALE SUBDIVISION WHEREAS, The City of Riverdale, Iowa ("City") is a Municipal Corporation, organized and operating under the laws of the State of Iowa, and; WHEREAS, the City's Planning & Zoning Commission has recommended the conditional approval of the plat for Phase 3 of the Woods Estates of Riverdale Subdivision, and; WHEREAS, Chris Cooper, MSA-PS, has presented a letter certifying the construction drawings and drainage calculations submitted by the Developer and his engineer, and; WHEREAS, the Developer's financial institution, BankORION, has confirmed their intention of issuing an Irrevocable Letter of Credit in the amount of $2.3 million to serve as a financial guarantee the public improvements will be completed, and; WHEREAS, the Developer has agreed to not proceed with any construction activity until that final letter of credit has been delivered and accepted by the City. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF RIVERDALE, IOWA. Section 1. The City Council of Riverdale hereby approves the plat for the third phase of the Woods Estates of Riverdale Subdivision with the following condition; Section 2. The Mayor is not authorized to sign the plat document officially accepting the plat until executed copies of the revised Irrevocable Letter of Credit (EXHIBIT A) and the Hold Harmless Agreement (EXHIBIT B) have been received and reviewed (as required by the municipal code of the City of Riverdale, Chapter 27 (EXHIBIT C)); and Passed and approved this 10th day of August, 2021. APPROVED ATTEST chael Bawden, Mayor l\W atie Enloe, eputy Clerk City of Riverdale, Iowa 110 Manor Drive, Riverdale, Iowa 52722 • (563) 355-2511 • www.riverdaleiowa.com 5301 - 44th Avenue Drive Moline, Illinois 61265 Telephone (309)764-8811 FAX (309) 764-1863 www.bankorion.com FORM OF IRREVOCABLE LETTER OF CREDIT NUMBER 50006385 Date of Issuance: 07/20/2021 City of Riverdale 110 Manor Drive Riverdale, Iowa 52722 Dear City Administrator/City Clerk Kent Royster: We hereby establish in favor of the City of Riverdale (hereinafter "City"), upon application of and for the account of Woods Construction and Development, Inc., 309 Madison Dr, Bettendorf, IA 52722, Attention: Seth Woods, President (hereinafter "Woods") this irrevocable letter of credit (hereinafter "Letter of Credit") in the amount of $2,371,000.00 (which is the "Maximum Available Credit"), subject to reduction as hereinafter set forth. This letter of credit is issued with respect to. guaranteeing the completion of public improvements within and related to a subdivision of land in the City of Riverdale, Scott County, Iowa, known as "Woods Estates of Riverdale Third Addition", dated August 13, 2021 and stamped by Dan J. Kuehl, Iowa Professional Land Surveyor, License No. 19959 (hereinafter "Third Addition Plat"). Specifically, the improvements subject to this Letter of Credit are for the completion of the public improvements to Phase 3. The public improvements are those improvements which will be dedicated to and become the property of the City upon their acceptance by the City Council including the road and infrastructure associated with Phase 3. This Letter of Credit is submitted in lieu of a performance or surety bond, which is so stipulated in Article IV, "Bonding and Assessment Waivers", Section 40 of the Subdivision Ordinance of the City, as a requirement for approval of the recording of a subdivision plat, and shall be submitted and maintained in an amount equal to the cost of the public improvements required for completion of Phase 3. With the intention of reducing the Maximum Available Credit as the public improvements are completed by Woods, all advances will be reported to city along with an accounting of remaining work to be completed, and with the approval of the City Engineer, and the approval of the City Council by 1iPage Member FDIC Resolution, we may reduce the Maximum Available Credit by that amount, in the manner set forth herein. The Letter of Credit will be maintained at 125% of the remaining work to be completed. In the event Woods does not complete the public improvements so as to allow building permits or occupancy permits to be issued to houses to be constructed or constructed in Phase 3, or he fails to complete grading, erosion control, or the public improvements as required, upon recommendation by the City Engineer, the City Council shall cause Woods to be sent notice of the deficiency by mail at his address of notification. If Woods does not respond to remedy the deficiency within the time established by the Council in its notice, the City Council may request a draw upon the Maximum Available Credit. The Maximum Available Credit or a portion thereof shall be paid upon presentation of the following documents: 1. A signed certificate, dated not more than ten days prior to its presentation to us, signed by the Mayor and attested by the City Clerk. 2. The description of the deficiency or deficiencies of the grading, erosion control or the Public Improvements which have not been completed or are not to specification, according to the Construction Plans. 3. The estimated cost to complete or correct the Public Improvements as set forth in the Construction Plans. No draft will be paid if the amount thereof is in excess of the Maximum Available Credit hereunder as of the date such draft is to be paid. Multiple drawings of funds may be presented under this Letter of Credit, which, in the aggregate, shall not exceed the Maximum Available Credit then in effect and each such drawing honored by us hereunder shall reduce the Maximum Available Credit by the amount of such drawing. The draft(s) drawn under this Letter of Credit must be drawn and presented to our offices at 5301 44`h Avenue Drive Moline, IL 61265 Attention: Kevin Schoonmaker (or such other officer, department or address designated in writing by us to you at your address above or other address as you shall advise us in writing) by hand delivery or by delivery by courier between 8:30 a.m. and 4:00 p.m. (Bank business hours, Central Time). We hereby agree that all drafts drawn under and in compliance with the terms of this Letter of Credit will be duly honored by us upon delivery of any of the certificate(s) specified above and if presented at our aforesaid office. If demand for payment is made before 11:00 a.m. on any business day, payment of the amount demanded shall be made in immediately available funds not later than 1:00 p.m. on the next succeeding Business Day. Payment under this Letter of Credit shall be made of immediately available funds by certified bank check, wire transfer or as agreed by the City of Riverdale City Clerk / Treasurer. Only the City of Riverdale, by its City Clerk / Treasurer or their designee may make drawings under this Letter of Credit. Upon payment as provided above of the amount specified hereunder, the Maximum Available Credit of the Letter of Credit shall be reduced by the amount of the payment. Wage Kevin T. Schoonmaker Sr. Vice President If demand for payment does not conform to the terms and conditions of this Letter of Credit, we will promptly notify you thereof and of the reasons thereof, such notice to be promptly confirmed in writing to you, and we shall hold all documents at your disposal or return the same to you, if directed by you. This Letter of Credit is effective immediately and shall not expire (i) until the completion of the public improvements and the dedication of the public rights -of -way related to Phase 3 of Woods Estates of Riverdale and their acceptance by Resolution of the City Council of the City of Riverdale; or, (ii) when you have drawn and we have paid to you the Maximum Available Credit to the City of Riverdale; or (iii) when all public improvements to Phase 3 are complete as specified, the City's Engineer agrees and upon their recommendation, the City Council has approved and accepted all public improvements by Council Resolution, and all requirements of the City's Subdivision Ordinance have been fulfilled, and the Mayor so attests; or, (iiii) after 12 months of the date of issuance but will be automatically extended for additional consecutive one year terms if you have not received by certified mail notification of our intention not to renew 30 days prior to the original expiry date and each subsequent expiry date. At such time as (i), (ii) or (iii) above have been fulfilled, any funds remaining of the Maximum Available Credit shall be released by the City Council and this Letter of Credit shall expire. This Letter of Credit is governed by the Uniform Customer and Practice for Documentary Credits, 2007 Revision, International Chamber of Commerce Publication No. 600 (UCP), of any later version or amendment. Sincerely, 3 1 P ;, g e @MSA August 19, 2021 Mr. Kent Royster City Administrator City of Riverdale 110 Manor Drive Riverdale, Iowa 52722 Re Woods Estates - Addition 3 City of Riverdale Dear Mr. Royster: 2117 State Street Suite 200 Bettendorf, IA 52722 (563) 445-3501 (866) 732-6321 (563) 445-3503 www msa-ps com It is our understanding that, at the August 10, 2021 City Council Meeting, the City Council requested three changes to the project plans and plat for the aforementioned project. These changes were to be as follows: 1. On Plan Sheet Number C-6, change the heading of the curb transition from a standard curb to a sloped curb to reflect that the change is from a 6" standard curb to a 4" sloped curb. 2. On the Plat and on Plan Sheet Number C-21 and C-9, change the width of the easement between Lots 22 and 23 from 20' wide to 30 wide. 3. On the Plat and the Plans, somewhere in the vicinity of Lots 19 through 23 add an access easement in accordance to the approved preliminary plat. RTM Engineering has submitted a revised plat and revised plan sheets to address these comments. MSA has reviewed the revised plans sheets and finds that the changes address these comments. Therefore, MSA recommends the Mayor sign the project plat. Please let me know if there are any questions. Respectfully Yours, MS Professional Services: Inc f z Christian R. Cooper, Project Engineer cc: Ms. Bryce Johnson, RTM Engineering G\10\10876110876083\Correspondence \10876C83 21C819 MSA Recommendation docx