HomeMy WebLinkAboutResolution 2001-024 standby letter of credit for public improvement in canyon pass at dove mountain F. ~ RODRIGUEZ, RECORDER
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D~PU~ RECORDER
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TOWN 0F
~TTN: TOWN CLERK
13251 N L0N ~DZUMS RD
~ /~- 85653
DocKET: 11502
PAGE: 2206
NO. OF PAGES: 5
SEQUENCE: 20010470711
03/09/2001
RES 16:23
M~IL
/~IOUNT pAID $ 8.00
MARANA RESOLUTION NO. 2001-24
A RESOLUTION OF TIIE MAYOR AND COUNCIL OF THE TOWN OF MARANA, ARIZONA,
AUTHORIZING THE SUBSTITUTION OF AN IRREVOCABLE STANDBY LETTER OF
CREDIT NO. S24878Z AS ASSURANCE FOR THE COMPLETION OF PUBLIC
IMPROVEMENTS IN CANYON PASS AT DOVE MOUNTAIN PHASE m-A, LOTS 111-150
& 178-181 AND AUTHORIZING THE RELEASE OF THE SUBSTITUTE ASSURANCE
AGREEMENT ORIGINALLY SUBMITTED BY COTTONWOOD PROPERTIES, INC., UNDER
TRUST NO. 7825-T, AND LAWYERS TITLE OF ARIZONA, INC., FOR THE COMPLETION
OF SUBDIVISION IMPROVEMENTS.
WHEREAS, the Town has previously entered into a Substitute Assurance Agreement with
Cottonwood Properties, Inc., (beneficiary) under Trust No. 7825-T and Lawyers Title of Arizona,
Inc. (trustee), recorded at the Pima County Recorder's Office at Docket 11468, Page 1768 assuring
the completion of public improvements; and
WHEREAS, Cottonwood Properties, Inc., is requesting release from the Third Party Trust
Substitute Assurance Agreement, and desires to provide an Irrevocable Standby Letter of Credit as
a Substitute Assurance for completion of the remaining subdivision improvements; and
WHEREAS, the date and place of expiry for the Irrevocable Standby Letter of Credit No.
S24878Z is January 2, 2002, Houston, Texas; Cottonwood Properties agreed to submit a revised
construction cost estimate, certified by the Engineer of Record, sixty (60) days prior to expiration
of the Irrevocable Standby Letter of Credit; and
WHEREAS, those improvements guaranteed by the Irrevocable Standby Letter of Credit are
incomplete and in non-conformance with the plans and specifications approved by Town of Marana,
Cottonwood Properties, Inc. agreed to provide the Town of Marana an amendment extending the
expiration date for a period not less than an additional three hundred sixty-five (365) days as set forth
in Exhibit B; and
WHEREAS, Upon completion of those improvements guaranteed by the Irrevocable Standby
Letter of Credit, Cottonwood Properties, Inc. shall provide to the Town of Marana those documents
required by Ordinance 92.03 for release of performance guarantees.
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Marana, Arizona Resolution No. 2001-24
NOW, THEREFORE, BE IT RESOLVED by the Mayor and Council of the Town of
Marana, Lots 111-150 & 178-181 are released from the Third-Party Trust Substitute Assurance
Agreement for Completion of Subdivision Improvements, and the Irrevocable Standby Letter of
Credit No. S24878Z in the amount of $808,842.02, posted by Cottonwood Properties, Inc., as a
substitute assurance, attached hereto as Exkibit A and incorporated herein by this reference, is hereby
accepted, and Town staff is directed to take any necessary and proper action to effectuate this
Resolution.
PASSED AND ADOPTED by the Mayor and Council of the Town of Marana, Arizona, this
6th day of March, 2001.
Mayol~B~y SUTTON, JR.
ATTEST:
As Town Attorney and not personally
Page 2 of 2
Marana, Arizona Resolution No. 2001-24
International Trade Services
Compass Bank Compass Bank
P.0, Box 4444
Houston, TX 77210-4444
Phone 713-867-2717 Fax 713-867-2700
Telex 6737349
IRREVOCABLE STANDBY LETTER OF CREDIT NO. S24878Z
PLACE AND DATE OF ISSUE:
HOUSTON, TEXAS JANUARY 8, 2001
APPLICANT:
COTTONWOOD PROPERTIES, INC.
3567 E. SUNRISE DR.
TUCSON, ARIZONA 85718
BENEFICIARY:
TOWN OF MARANA
3696 W. ORANGE GROVE ROAD
TUCSON, ARIZONA 85741
DATE AND PLACE OF EXPIRY:
JANUARY 2, 2002 HOUSTON, TEXAS
ADVISING BANK:
NOT APPLICABLE
AMOUNT: USD808,842.02
(EIGHT HUNDRED EIGHT THOUSAND EIGHT
HUNDRED FORTY TWO AND 02/100
U.S. DOLLARS)
GENTLEMEN,
WE HEREBY ESTABLISH OUR IRREVOCABLE STANDBY LETTER OF CREDIT IN YOUR FAVOR AVAILABLE
BY BENEFICIARY'S SIGHT DRAFTS DRAWN ON COMPASS BANK ACCOMPANIED BY THE ORIGINAL OF
THIS LETTER OF CREDIT AND THE FOLLOWING DOCUMENT(S):
ORIGINAL OF BENEFICIARY'S MANUALLY SIGNED STATEMENT STATING THAT:
QUOTE
WE HEREBY CERTIFY THAT THE REQUIRED COMPLETION OF SUBDIVISION IMPROVEMENTS
HAVE NOT BEEN COMPLETED FOR CANYON PASS AT DOVE MOUNTAIN SUBDiVISION, LOTS 111-
150 & 178-181 ONLY, WHICH ARE IN NON-CONFORMANCE WITH THE PLANS AND
SPECIFICATIONS APPROVED BY THE TOWN OF MARANA.
UNQUOTE
SPECIAL CONDITIONS:
PARTIAL DRAWINGS ARE NOT PERMITTED.
DRAFT MUST BE MARKED: "DRAWN UNDER COMPASS BANK LETTER OF CREDIT NO. S24878Z."
WE HEREBY ENGAGE WITH YOU THAT ALL DRAFT(S) DRAWN UNDER AND IN COMPLIANCE WITH ALL
THE TERMS AND CONDITIONS OF THIS CREDIT WILL BE DULY HONORED IF DRAWN AND PRESENTED
FOR PAYMENT BETWEEN THE HOURS OF 8:00 A.M. AND 4:00 P.M. MONDAY THROUGH FRIDAY ON A DAY
V~-IEN THE INTERNATIONAL TRADE SERVICES OFFICE IS OPEN FOR BUSINESS AT 204 W. 19TH STREET,
3RD FLOOR, HOUSTON, TEXAS 77008 ON OR BEFORE THE EXPIRATION OF THIS LETTER OF CREDIT.
THIS LETTER OF CREDIT IS SUBJECT TO THE UNIFORM CUSTOMS AND PRACTICE FOR DOCUMENTARY
CREDITS (1993 REVISION) INTERNATIONAL CHAMBER OF COMMERCE pUBLICATION NO. 500.
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Exhibit A
Hand Delivered
January 3, 2001
Ms. Deana Hubele
Public Works Department
Town of Marana
Development Services Center
3696 W. Orange Grove Rd.
Tucson, Arizona 85741
Re: Canyon Pass at Dove Mountain, Phase
Lots No. 111-150 & 178-181 only
Dear Deana:
Pursuant to our conversation of last week, we intend to
provide the Town of Marana with an Irrevocable Letter of
Credit from Compass Bank to guarantee the completion of
subdivision improvements for the lots referenced above in
Canyon Pass at Dove Mountain, Phase 3.
We have enclosed a copy of the Construction Cost Estimate
prepared by OPW & Associates for the completion of these
improvements. Please note that this engineer's estimate
does include a 10% contingency.
We have ordered the Irrevocable Letter of Credit from
Compass Bank and we expect to deliver it to your office by
next Tuesday, January 9. We understand that this letter of
credit form of substitute assurance needs to be approved by
the Mayor and Council. Mr. William Hallinan of Cottonwood
Properties had a conversation with Mr. Thomas Benavidez of
Daniel J. Hochuli's office last Friday, Dece~er 29.
During that conversation, Mr. Benavidez told Mr. Hallinan
that he would ask you to please release the assurances for
a maximum of ten (10) lots in Canyon Pass, Phase 3, after
you received the original letter of credit from Compass
Bank. Of course, please verify our understanding of that
conversation with Mr. Benavidez.
If you have any questions, or require any additional
information, please do not hesitate to call me at 299-8424.
Thank you for your assistance!
Exhibit B
3567 East Sunrise Drtve, Suite Z19, Tucson, Arizona 85718 (SZ0) Z99-84Z4 FAX (570) 577-Z39!
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Page Two
Ms. Deana Hubele
Town of Marana
January 3, 2001
Sincerely,
Rand R. Gawthorpe
Project Manager
Enclosure (2 pages)
cc: Mr. Thomas Benavidez, Daniel J- Hochuli & Associates,
via fax: 293-2793, w/enclosure
Mr. John Siath, P.E., R.L.S., c/o Town of Marana, w/encl.
Mr. william M. Hallinan, Cottonwood Properties, w/o encl.
Ms. Joyce Rodda, Lawyers Title, via fax: 748-3535,
w/o encl.
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