Loading...
HomeMy WebLinkAbout20091717.tiffRESOLUTION RE: APPROVE IMPROVEMENTS AGREEMENT ACCORDING TO POLICY REGARDING COLLATERAL FOR IMPROVEMENTS (PRIVATE ROAD MAINTENANCE), AUTHORIZE CHAIR TO SIGN, AND ACCEPT COLLATERAL FOR AMENDED USE BY SPECIAL REVIEW PERMIT #686 - MILE HIGH DAIRY, LLC, AND MARTIN BANGMA AND JOHANNA BANGMA 1989 TRUST WHEREAS, the Board of County Commissioners of Weld County, Colorado, pursuant to Colorado statute and the Weld County Home Rule Charter, is vested with the authority of administering the affairs of Weld County, Colorado, and WHEREAS, on May 21, 2008, the Weld County Board of Commissioners approved Amended Use by Special Review Permit #686, for Martin and Johanna Bangma 1989 Trust, 8847 Schaefer Avenue, Ontario, California 91761, and Wesley and Kelly Bangma, 15333 County Road 5, Longmont, Colorado 80504, for a Livestock Confinement Operation (1,940 -head dairy, including milking cows, dry cows, heifers, and calves), and one single-family dwelling unit per lot, other than those permitted under Section 23-3-20.A of the Weld County Code (two single-family employee homes), in the a (Agricultural) Zone District, on the following described real estate, being more particularly described as follows:: A parcel being part of the E1/2 of Section 17, and part of Lot B of Recorded Exemption #525, also being part of the E1/2 of Section 17; all within Township 3 North, Range 68 West of 6th P.M., Weld County, Colorado WHEREAS, pursuant to certain Conditions of Approval, the Board has been presented with an Improvements Agreement According to Policy Regarding Collateral for Improvements ( Private Road Maintenance) between the County of Weld, State of Colorado, by and through the Board of County Commissioners of Weld County, and Mile High Dairy, LLC, and Martin Bang ma and Johanna Bang ma 1989 Trust, with terms and conditions being as stated in said agreement, and WHEREAS, the Board has been presented with Irrevocable Letter of Credit and Amended and Restated Letter of Credit #NZS642139 from Wells Fargo, Trade Services Division, Northern California, One Front Street, 21st Floor, San Francisco, California 94111, in the amount of $20,000.00, and WHEREAS, after review, the Board deems it advisable to approve said agreement and accept said Irrevocable Letter of Credit and Amended and Restated Letter of Credit as stated above, copies of which are attached hereto and incorporated herein by reference. NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld County, Colorado, that the Improvements Agreement According to Policy Regarding Collateral for 2009-1717 4C A- f 9 L oa//l (0? PL0016 IMPROVEMENTS AGREEMENT - MILE HIGH DAIRY, LLC PAGE 2 Improvements (Private Road Maintenance) between the County of Weld, State of Colorado, by and through the Board of County Commissioners of Weld County, and Mile High Dairy, LLC, and Martin Bangma and Johanna Bangma 1989 Trust, be, and hereby is, approved. BE IT FURTHER RESOLVED that Irrevocable Letter of Credit and Amended and Restated Letter of Credit #NZS642139 from Wells Fargo, Trade Services Division, Northern California, One Front Street, 21st Floor, San Francisco, California 94111, in the amount of $20,000.00, be and hereby is, accepted. The above and foregoing Resolution was, on motion duly made and seconded, adopted by the following vote on the 27th day of July, A.D., 2009. BOARD OF COUNTY COMMISSIONERS WELD COUN OLORADO ATTEST: F. Garcia, Chair Weld County Clerk to the Board David E. Long Date of signature 2009-1717 PL0016 9j IMPROVEMENTS AGREEMENT ACCORDING TO POLICY REGARDING COLLATERAL FOR IMPROVEMENTS (PRIVATE) Z� 7 THIS AGREEMENT, made and entered into this ;X/ —day of .July' , 20O?, by and between the County of Weld, State of Colorado, acting through its Board oY County Commissioners, hereinafter called "County", and Mile High Dairy, LLC and Martin Bangma and Johanna Bangma 1989 Trust hereinafter called "Applicant." WITNESSETH: WHEREAS, Applicant is the owner of, or has a controlling interest in the following described property in the County of Weld, Colorado: Legal Description: A Parcel of land being part of the E '// Section 17, Township 3 North, Range 68 West, BEG N0D08'E 1025.88' OF SE COR SEC N0D0S'E 1629.53' TO E4 COR SEC N0D53'W 1213.17' TO S BANK OF HIGHLAND DITCH AS EXISTING S77D53'W 290.45' S81D22'W 725.22' S73D03'W 338.19' S60D26'W 4.54' S01D11'E 2572.59' E1289.75' TO BEG, and Lot B of RE -525 being part of the E %2 of Section 17, Township 3 North Range 68 West of the 6th P.M. Weld County Colorado. WHEREAS, a Use By Special Review plat of said property, to be known as AMUSR — 686 Mile High Dairy, LLC has been submitted to the County for approval, and WHEREAS, relevant Sections of the Weld County Code provide that no Use By Special Review shall be approved by the County until the Applicant has submitted an Improvement Agreement guaranteeing the construction of the public improvements shown on plans, plats and supporting documents of the Use By Special Review Final Plat or Site Plan, which improvements, along with a time schedule for completion, are listed in Exhibits "A" and "B" of this Agreement. NOW, THEREFORE, IN CONSIDERATION OF the foregoing and of the acceptance and approval of said Final Plat, the parties hereto promise, covenant and agree as follows: 1.0 Engineering Services: Applicant shall furnish, at its own expense, all engineering services in connection with the design and construction of the Use By Special Review improvements listed on Exhibit "A," which is attached hereto and incorporated herein by reference. 1.1 The required engineering services shall be performed by a Professional Engineer and Land Surveyor registered in the State of Colorado, and shall conform to the standards and criteria established by the County for public improvements. 1.2 The required engineering services shall consist of, but not be limited to, surveys, designs, plans and profiles, estimates, construction supervision, and the submission of necessary documents to the County. HBO VIIIHIE IIIIIIIIIIEll DIE III VIIIIIII IIII 3641925 08/11/2009 12:55P Weld County, CO 1 of 14 R 0.00 0 0.00 Steve Moreno Clerk & Recorder 1 2009-1717 1.3 Applicant shall furnish drawings and cost estimates for roads within the Use By Special Review Plan to the County for approval prior to the letting of any construction contract. Applicant shall furnish one set of reproducible "as -built" drawings and a final statement of construction cost to the County. 2.0 Rights -of -Way and Easements: Before commencing the construction of any improvements herein agreed upon, Applicant shall acquire, at its own expense, good and sufficient rights -of - way and easements on all lands and facilities traversed by the proposed improvements. 3.0 Construction: Applicant shall furnish and install, at its own expense, the improvements listed on Exhibit "A," which is attached hereto and incorporated herein by reference, according to the construction schedule set out in Exhibit "B" which is also attached hereto and incorporated herein by reference. 3.1 Said construction shall be in strict conformance to the plans and drawings approved by the County and the specifications adopted by the County for such public improvements. Whenever a Subdivision or Planned Unit Development is proposed within three miles of an incorporated community located in Weld County or located in any adjacent county, the Applicant shall be required to install improvements in accordance with the requirements and standards that would exist if the plat were developed within the corporate limits of that community. If the incorporated community has not adopted such requirements and standards at the time the Subdivision or Planned Unit Development is proposed, the requirements and standards of the County shall be adhered to. If both the incorporated community and the County have requirements and standards, those requirements and standards that are more restrictive shall apply. 3.2 Applicant shall employ, at its own expense, a qualified testing company previously approved by the County to perform all testing of materials or construction that is required by the County; and shall furnish copies of test results to the County. 3.3 At all times during said construction, the County shall have the right to test and inspect, or to require testing and inspection of material and work at Applicant's expense. Any material or work not conforming to the approved plans and specifications shall be removed and replaced to the satisfaction of the County at Applicant's expense. 3.4 Applicant shall furnish proof that proper arrangements have been made for the installation of sanitary sewer or septic systems, water, gas, electric and telephone services. 3.5 Said improvements shall be completed, according to the terms of this Agreement, within the construction schedule appearing in Exhibit "B." The Board of County Commissioners, at its option, may grant an extension of the time of completion shown on Exhibit "B" upon application by the Applicant subject to the terms of Section 6 herein. 4.0 Release of Liability: Applicant shall indemnify and hold harmless the County from any and all liability loss and damage County may suffer as a result of all suits, actions or claims of every nature and description caused by, arising from, or on account of said design and construction of improvements, and pay any and all judgments rendered against the County on account of any such su t action or claim, together with all reasonable expenses and attorney HID 11111 IOU IIII 111111 Ell IIIIIII III 11111 IIII IIII 3641925 08/11/2009 12:55P Weld County, CO 2 2 of 14 R 0.00 I) 0.00 Steve Moreno Clerk & Recorder fees incurred by County in defending such suit, action or claim whether the liability, loss or damage is caused by, or arises out of the negligence of the County or its officers, agents, employees, or otherwise except for the liability, loss, or damage arising from the intentional torts or the gross negligence of the County or its employees while acting within the scope of their employment. All contractors and other employees engaged in construction of the improvements shall maintain adequate worker's compensation insurance and public liability insurance coverage, and shall operate in strict accordance with the laws and regulations of the State of Colorado governing occupational safety and health. (THERE IS NO SECTION 5) (THERE IS NO SECTION 6) 7.0 General Requirements for Collateral: 7.1 The value of all collateral submitted to Weld County must be equivalent to One - Hundred percent (100%) of the value of the improvements as shown in this Agreement. Prior to Final Plat approval, the applicant shall indicate which of the five types of collateral preferred to be utilized to secure the improvements subject to final approval by the Board of County Commissioners and the execution of this Agreement. Acceptable collateral shall be submitted and the plat recorded within six (6) months of the Final Plat approval. If acceptable collateral has not been submitted within six (6) months then the Final Plat approval and all preliminary approvals shall automatically expire. Applicant may request that the County extend the Final Plat approval provided the cost estimates are updated and the development plans are revised to comply with all current County standards, policies and regulations. The improvements shall he completed within one (1) year after the Final Plat approval (not one year after acceptable collateral is submitted) unless the applicant(s) requests that this Agreement be renewed at least thirty (30) days prior to its expiration and further provides that cost estimates for the remaining improvements are updated and collateral is provided in the amount of One -Hundred percent (100%) of the value of the improvements remaining to be completed. If improvements are not completed and the agreement not renewed within these time frames, the County, at its discretion, may make demand on all or a portion of the collateral and take steps to see that the improvements are made. 7.2 The applicant may choose to provide for a phased development by means of designating filings of a Use By Special Review Final Plat. The applicant would need only to provide collateral for the improvements in each filing as approved. The County will place restrictions on those portions of the property that are not covered by collateral which will prohibit the conveyance of the property or the issuance of building permits until collateral is provided or until improvements are in place and approved pursuant to the requirements for a Request for Release of Collateral. 7.3 The applicant intends to develop in accordance with Exhibits "A" and "B." 8.0 Improvements Guarantee: The five types of collateral listed below are acceptable to Weld County subject to final approval by the Board of County Commissioners. 111111111111111111111111111 III 1111111 IM 11111 IIII 1111 3641925 08/11/2009 12:55P Weld County, CO 3 of 14 R 0.00 0 0.00 Steve Moreno Clerk & Recorder 8.1 An irrevocable Letter of Credit from a Federal or State licensed financial institution on a form approved by Weld County. The Letter of Credit shall state at least the following: 8.1.1 The Letter of Credit shall be in an amount equivalent of One -Hundred percent (100%) of the total value of the improvements as set forth in Section 6.0 and Exhibits "A" and "B." 8.1.2 The Letter of Credit shall provide for payment upon demand to Weld County if the developer has not performed the obligations specified in the Improvements Agreement and the issuer has been notified of such default. 8.1.3 The applicant may draw from the Letter of Credit in accordance with the provisions of this policy. 8.1.4 The issuer of the Letter of Credit shall guarantee that, at all times the unreleased portion of the Letter of Credit shall be equal to a minimum of One -Hundred percent (100%) of the estimated costs of completing the uncompleted portions of the required improvements, based on inspections of the development by the issuer. In no case shall disbursement for a general improvement item exceed the cost estimate in the Improvements Agreement (i.e., streets, sewers, water mains and landscaping, etc.). The issuer of the Letter of Credit will sign the Improvements Agreement acknowledging the agreement and its cost estimates. 8.1.5 The Letter of Credit shall specify that fifteen percent (15%) of the total Letter of Credit amount cannot be drawn upon and will remain available to Weld County until released by Weld County. 8.1.6 The Letter of Credit shall specify that the date of proposed expiration of the Letter of Credit shall be either the date of release by Weld County of the final fifteen percent (15%), or one year from the date of Final Plat approval, whichever occurs first. Said letter shall stipulate that, in any event, the Letter of Credit shall remain in full force and effect until after the Board has received sixty (60) days written notice from the issuer of the Letter of Credit of the pending expiration. Said notice shall be sent by certified mail to the Clerk to the Board of County Commissioners. 8.2 Trust Deed upon all or some of the proposed development or other property acceptable to the Board of County Commissioners provided that the following are submitted: 8.2.1 In the event property within the proposed development is used as collateral, an appraisal is required of the property in the proposed development by a disinterested Member of the American Institute of Real Estate Appraisers (M.A.I.) indicating that the value of the property encumbered in its current degree of development is sufficient to cover One -Hundred percent (100%) of the cost of the improvements as set forth in the Improvements Agreement plus all costs of sale of the property. 1111111 11111 111111 1111 111111 IIII 1111111 III 11111 1111 1111 3641925 08/11/2009 12:55P Weld County, CO 4 of 14 R 0.00 I0 0.00 Steve Moreno Clerk & Recorder 4 8.2.2 In the event property other than the property to be developed has been accepted as collateral by Weld County, then an appraisal is required of the property by a Member of the Institute of Real Estate Appraisers (M.A.I.) indicating that the value of the property encumbered in its current state of development is sufficient to cover One -Hundred percent (100%) of the cost of the improvements as set forth in the Improvements Agreement plus all costs of sale of the property. 8.2.3 A title insurance policy insuring that the Trust Deed creates a valid encumbrance which is senior to all other liens and encumbrances. 8.2.4 A building permit hold shall be placed on the encumbered property. 8.3 Escrow Agreement that provides at least the following: 8.3.1 The cash in escrow is at least equal to One -Hundred percent (100%) of the amount specified in the Improvements Agreement. 8.3.2 The escrow agent guarantees that the escrowed funds will be used for improvements as specified in the agreement and for no other purpose and will not release any portion of such funds without prior approval of the Weld County Board of Commissioners. 8.3.3 The escrow agent will be a Federal or state -licensed bank or financial institution. 8.3.4 If Weld County determines there is a default of the Improvements Agreement, the escrow agent, upon request by the County, shall release any remaining escrowed funds to the County. 8.4 A surety bond given by a corporate surety authorized to do business in the State of Colorado in an amount equivalent to One -Hundred percent (100%) of the value of the improvements as specified in the Improvements Agreement. 8.5 A cash deposit made with the County equivalent to One -Hundred percent (100%) of the value of the improvements. 9.0 Request for Release of Collateral: Prior to release of collateral for the entire project or for a portion of the project by Weld County, the Applicant must present a Statement of Substantial Compliance from an Engineer registered in Colorado that the project or a portion of the project has been completed in substantial compliance with approved plans and specifications documenting the following: 9.1 The Engineer or his representative has made regular on -site inspections during the course of construction and the construction plans utilized are the same as those approved by Weld County. 9.2 Test results must be submitted for all phases of this project as per Colorado Department of Transportation Schedule for minimum materials sampling, testing and inspections found in the Colorado Department of Transportation (CDOT) Materials Manual. 111111 11111 DIE IIII 111111 IIII 1111111 III (IIII IIII IIII 3641925 08/11/2009 12:55P Weld County, CO 5 5 of 14 R 0.00 ID 0.00 Steve Moreno Clerk & Recorder 9.3 "As built" plans shall be submitted at the time the letter requesting release of collateral is submitted. The Engineer shall certify that the project "as -built" is in substantial compliance with the plans and specifications as approved, or that any material deviations have received prior approval from the County Engineer. 9.4 The Statements of Substantial Compliance must be accompanied, if appropriate, by a letter of acceptance of maintenance and responsibility by the appropriate utility company, special district or town for any utilities. 9.5 A letter must be submitted from the appropriate Fire Authority indicating the fire hydrants are in place in accordance with the approved plans. The letter shall indicate if the fire hydrants are operational and state the results of fire flow tests. 9.6 The requirements in paragraphs 9.0 thru 9.5 shall be noted on the final construction plans. 9.7 Following the submittal of the Statement of Substantial Compliance and recommendation of approval of the streets by the County, the applicant(s) may request release of the collateral for the project or portion of the project by the Board. This action will be taken at a regularly scheduled public meeting of the Board. 9.8 The request for release of collateral shall be accompanied by "Warranty Collateral" in the amount of fifteen percent (15%) of the value of the improvements as shown in this Agreement excluding improvements fully accepted for maintenance by the responsible governmental entity, special district or utility company. 9.9 The warranty collateral shall be released to the applicant upon fmal approval by the Board of County Commissioners. 10.0 Public Sites and Open Spaces: When the Board of County Commissioners, pursuant to a rezoning, Use By Special Review, requires the dedication, development and/or reservation of areas or sites other than streets and utility easements of a character, extent and location suitable for public use for parks, greenbelts or schools, said actions shall be secured in accordance with one of the following alternatives, or as specified in the Use By Special Review, if any: 10.1 The required acreage as may be determined according to the Weld County Use By Special Review Regulations shall be dedicated to the County or the appropriate school district, for one of the above purposes. Any area so dedicated shall be maintained by the County or school district. 10.2 The required acreage as determined according to Chapter 24 of the Weld County Code, may be reserved through deed restrictions as open area, the maintenance of which shall be a specific obligation in the deed of each lot within the Use by Special Review area. 10.3 In lieu of land, the County may require a payment to the County in an amount equal to the market value at the time of Final Plat submission of the required acreage as determined according to Chapter 24 of the Weld County Code. Such value shall be determined by a competent land appraiser chosen jointly by the Board and the Applicant. The cash collected shall be deposited in an escrow account to be expended for parks at a later date. AEI 11111111111IIM U 3641925 08/11/2009 12:55P Weld County, CO 6 6 of 14 R 0.00 D 0.00 Steve Moreno Clerk & Recorder 11.0 Successors and Assigns: This Agreement shall be binding upon the heirs, executors, personal representatives, successors and assigns of the Applicant, and upon recording by the County, shall be deemed a covenant running with the land herein described, and shall be binding upon the successors in ownership of said land. 111111111111111111 IIII 1111111111 IFI1II1 III 1111111 IIII 3641925 08/11/2009 12:55P Weld County, CO 7 of 14 R 0.00 ID 0.00 Steve Moreno Clerk & Recorder IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed on the day and year first above written. APPLICANT: APPLICANT: TITLE: oer- Subscribed and sworn to before me this cfilO6 day of �C! %� , 201)9. My Commission expires: J�Z2 /2O1O ATTEST: t%6t Weld County Clerk to the c ar BY: Deputy Clerk . the board APPROVED AS TO FORM: La County Attorney 1 111111 11111 111111 1111 111111 II111111111 III 11111 IIII IIII 3641925 08/11/2009 12:55P Weld County, CO 8 of 14 R 0.00 ID 0.00 Steve Moreno Clerk & Recorder / / -:...--L. �/-vim �-.. ,.... GL+�� �� ,OTARp `: Notary Publi = N'•. PUBL\ ' f O zri '"9TF.'............' "9.3' o ,,,, OFI COQ\\\�\" 4' 'iiiiii!on iv Bees \\\\\\\111111111/fool/ •\AACq 6. BOARD OF COUNTY COMMISSIONERS WELD COUNTY COLORADO William F. Garcia , Chair JUL 27 2009 8 a Cy -/7/; EXHIBIT "A" Name of Use By Special Review: Mile High Dairy, LLC and Martin Bangma and Johanna Bangma 1989 Trust Filing: AMUSR #686 Location: 15333 WCR 5 Longmont, CO 80504 Intending to be legally bound, the undersigned Applicant hereby agrees to provide throughout this Use By Special Review the following improvements. (Leave spaces blank where they do not apply) Improvements Quantity Units Unit Costs Estimated Construction Cost Site grading Street grading N/A Street base N/A Street paving N/A Curbs, gutters, and culverts N/A Sidewalk N/A Storm sewer facilities N/A Retention ponds N/A Ditch Improvements N/A Subsurface drainage N/A Sanitary sewers N/A Trunk and forced lines N/A Mains N/A Laterals (house connected) N/A On -site sewage facilities N/A On -site water supply and storage N/A Water Mains (includes bore) N/A Fire hydrants N/A Survey and street monuments and boxes N/A Street lighting N/A Street Names N/A Fencing requirements 6' solid privacy fence 1255 Linear foot $11.50 $ 14,432.50 Landscaping 5'-6' spruce trees 72 each $65.00 $ 4,680 Park improvements N/A Road culvert N/A Grass lined swale N/A Telephone N/A Gas N/A Electric N/A Water transfer N/A SUB -TOTAL: $ 19,112.50 Engineering and Supervision Costs $ 0 (Testing, inspection, as -built plans and work in addition to preliminary and final plat; supervision of actual construction by contractors) TOTAL ESTIMATED COST OF IMPROVEMENTS AND SUPERVISION: $ 19,112.50 1111111 11111 111111 I'll 111111 1II11111111111111111111 1111 3641925 08/11/2009 12:55P Weld County, Co 9 of 14 R 0.00 ID 0.00 Steve Moreno Clerk & Recorder 9 The above improvements shall be constructed in accordance with all County requirements and specifications, and conformance with this provision shall be determined solely by Weld County, or its duly authorized agent. Said improvements shall be completed according to the construction schedule set out in Exhibit "B". By: Appli py tL-. ^ A ir them Oer- Title Date: G --aq_ , 20 fq . (If corporation, to be signed by President and attested to by Secretary, together with corporate seal.) IIIIII 11111 IIIIII IIII 111111 IIII 1111111 III IIIIII III IIII 3641925 08/11/2009 12:55P Weld County, CO 10 of 14 R 0.00 D 0.00 Steve Moreno Clerk & Recorder 10 Said improvements shall be completed according to the construction schedule set out in Exhibit "B". By: Applicant Title Date: \ii\i\ex] Z\ , 20O . (If corporation, to be signed by President and attested to by Secretary, together with corporate seal.) IIIN11111111111III' III!!! 1111 1111111IIIIIIIIIIIIJill 3641925 08/11/2009 12:55P Weld County, CO 11 of 14 R 0.00 D 0.00 Steve Moreno Clerk & Recorder 10 EXHIBIT "B" Name of Use by Special Review: Mile High Dairy, LLC and Martin Bangma and Johanna Bangma 1989 Trust Filing: AMUSR #686 Location: 15333 WCR 5 Longmont, CO 800504 Intending to be legally bound, the undersigned Applicant hereby agrees to provide throughout this Subdivision or Planned Unit Development the following improvements. All improvements shall be completed within 0.5 years from the date of approval of the final plat. Construction of the improvements listed in Exhibit "A" shall be completed as follows: (Leave spaces blank where they do not apply.) Improvements Time for Completion Site grading N/A Street base N/A Street paving N/A Curbs, gutters, and culverts N/A Sidewalk N/A Storm sewer facilities N/A Retention ponds N/A Ditch improvements N/A Subsurface drainage N/A Sanitary sewers N/A Trunk and forced lines N/A Mains N/A Laterals (house connected) N/A On -site sewage facilities N/A On -site water supply and storage N/A Water mains N/A Fire hydrants N/A Survey and street monuments and boxes N/A Site lighting N/A Street name signs N/A Fencing requirements 12/31/2009 Landscaping 12/31/2009 Park improvements N/A Road culvert N/A Grass lined swale N/A Telephone N/A Gas N/A Electric N/A Water Transfer N/A SUB -TOTAL: IIIIII IIIII 111111 IIII 111111 IIII 1111111 III 111111 III IIII 3641925 08/11/2009 12:55P Weld County, CO 12 of 14 R 0.00 D 0.00 Steve Moreno Clerk & Recorder 11 The County, at its option, and upon the request of the Applicant, may grant an extension of time for completion for any particular improvements shown above, upon a showing by the Applicant that the above schedule cannot be met. By: Appli OL Applicant r ev komi- Date: 6 -at ,20Oe, Title (If corporation, to be signed by President and attested to by Secretary, together with corporate seal.) 111111111111111111111111111111111111111III 111111 111 1111 3641925 08/11/2009 12:55P Weld County, CO 13 of 14 R 0.00 D 0.00 Steve Moreno Clerk & Recorder 12 • The County, at its option, and upon the request of the Applicant, may grant an extension of time for completion for any particular improvements shown above, upon a showing by the Applicant that the above schedule cannot be met. By: (ti Appli Applicant Title Date: MpN4 Z4 , 20 . (If corporation, to be signed by President and attested to by Secretary, together with corporate seal.) 1 111111 11111 111111 IIII 111111 1111 1111111 III 111111 III IIII 3641925 08/11/2009 12:55P Weld County, CO 14 of 14 R 0.00 D 0.00 Steve Moreno Clerk & Recorder 12 WELLS FARGO County of Weld, State of Colorado, Board of County Commissioners 915 10th Street Greeley, CO 80631 Attention: Clerk to the Board Ladies and Gentlemen: eV "L IU 6I L L TRADE SERVICES DIVISION, NORTHERN CALIFORNIA ONE FRONT STREET, 215' FLOOR SAN FRANCISCO, CALIFORNIA 94111 Contact Phone: 1(800) 798-2815 Email: sftrade@wellsfargo.com IRREVOCABLE LETTER OF CREDIT Letter of Credit No.NZS642139 Date: June 12, 2009 At the request and for the account of Mile High Dairy, L.L.C., 15333 WCR 5, Longmont, Co 80504, we hereby establish our Irrevocable Letter of Credit in your favor in the amount of Twenty Thousand United States Dollars (US$20,000.00) available with us at our above office by payment of your signed and dated demand(s) worded as follows with the instruction in brackets therein complied with: "The undersigned, an authorized official of the County of Weld, State of Colorado, Board of County Commissioners ("Beneficiary"), hereby demands US$ [insert amount of drawing] and certifies that Mile High Dairy, L.L.C. ("Applicant") has not performed its obligations specified in the Improvements Agreement by and between the Beneficiary and Applicant ." This Letter of Credit expires at our above office on June 1, 2010. Partial and multiple drawings are permitted under this Letter of Credit. If any instructions accompanying a drawing under this Letter of Credit request that payment is to be made by transfer to an account with us or at another bank, we and/or such other bank may rely on an account number specified in such instructions even if the number identifies a person or entity different from the intended payee. We hereby engage with you that all drawings presented under and in compliance with the terms of this credit will be duly honored for payment. This Letter of Credit is subject to the Uniform Customs and Practice for Documentary Credits (2007 Revision), International Chamber of Commerce Publication No. 600, and engages us in accordance therewith. Q7 co m tai _C Q o- _ I r <J w I, C., BY: Very truly yo WELLS RG• g,ANK, '.A. (AU •'I. SIGNATURE) •. 'RESIDENT EISA WELLS FARGO TRADE SERVICES DIVISION, NORTHERN CALIFORNIA ONE FRONT STREET, 21sT FLOOR SAN FRANCISCO, CALIFORNIA 94111 Contact Phone: 1(800) 798-2815 Email : sftrade(atwellsfaroo.com AMENDED AND RESTATED LETTER OF CREDIT BOARD OF COUNTY COMMISSIONER OF WELD COUTY, COLORADO 915 Tenth Street Greeley, Colorado 80631 Attn: Clerk to the Board Letter of Credit No.NZS642139 Date: July 15, 2009 Applicant: Mile High Dairy, L.L.C., Amendment No. 1 Ladies and Gentlemen: This Amendment is to be considered as part of the above Letter of Credit and must be attached thereto. The text of the above mentioned Letter of Credit is deleted in its entirety and replaced by the following: Quote IRREVOCABLE STANDBY LETTER OF CREDIT FOR BOARD OF COUNTY COMMISSIONERS OF WELD COUNTY, COLORADO Date: June 12, 2009 Beneficiary: BOARD OF COUNTY COMMISSIONERS OF WELD COUNTY, COLORADO 915 Tenth Street Greeley, Colorado 80631 Attn: Clerk to the Board Applicant: Mile High Dairy, L.L.C. 15333 WCR 5 Longmont, CO 80504 Ladies and Gentlemen: Effective immediately, at the request of and on behalf of Mile High Dairy, L.L.C, we hereby issue this Letter of Credit #NZS642139 for Twenty Thousand U.S. Dollars (US$20,000.00) in favor of the Board of County Commissioners of Weld County, Colorado, (Board of County Commissioners of Weld County, Colorado and its transferee, if any hereinafter "Beneficiary"). We have been informed that this Letter of Credit is issued to permit Mile High Dairy, L.L.C. to meet the requirements of the Improvements Agreement According to Policy Regarding Collateral for Improvements (Private) (hereinafter "Improvements Agreement"). This amount may be drawn on at our office located at Wells Fargo Bank, N.A., Trade Services Division, Northern California, One Front Street, 21st Floor, San Francisco, CA 94111. We hereby undertake to honor your sight draft drawn on us bearing upon its face the clause: "Drawn under the Wells Fargo Bank, N.A. Letter of Credit Number NZS642139, dated June 12, 2009", when accompanied by the following: 1. The original of this Letter of Credit and any subsequent amendments, if any; and Page 1 of 4 2. Original of Beneficiary's statement purportedly manually signed by a member of the Board of County Commissioners of Weld County, Colorado or if this Letter of Credit is transferred, an authorized representative of the transfer beneficiary stating one or both of the following: a. "The beneficiary ("Beneficiary") of Wells Fargo Bank, N.A. Letter of Credit No. NZS642139 (the "Letter of Credit") hereby certifies that it is entitled to draw US Dollars (Written Amount of Withdrawal) ($_) under the Letter of Credit because Mile High Dairy, L.L.C. has defaulted on its obligations under the Improvements Agreement According to Policy Regarding Collateral for Improvements (Private)." b. "The beneficiary ("Beneficiary") of Wells Fargo Bank, N.A.No.NZS642139 (the "Letter of Credit") hereby certifies that it is entitled to draw US Dollars (Written Amount of Withdrawal) ($_) under the Letter of Credit Number because Mile High Dairy, L.L.C. has not, to the satisfaction of the Beneficiary, within sixty (60) days of the expiration date of this Letter of Credit replaced or renewed this Letter of Credit." Unless this Letter of Credit has been transferred, the above statements are acceptable if presented in the form of a purported formally adopted Resolution of the Board of Commissioners of Weld County, Colorado as long as the wording includes the quoted wording of one or both of the above statements. It is a condition of this Irrevocable Letter of Credit that it be considered automatically extended without amendment for additional periods of one year from the present or any future expiration date unless we notify you, the Beneficiary, in writing, not less than ninety (90) days before such date that we elect not to extend this Letter of Credit for such additional term. This notice will be set to the address herein sent by certified mail, return receipt requested or receipted express courier. Upon your receipt of said notice, you may draw on us at sight for the balance remaining under this Letter of Credit within the then applicable expiration date by presentation to us of your sight draft drawn on us bearing upon its face the clause: "Drawn under Wells Fargo Bank, N.A. Letter of Credit Number NZS642139, dated June 12, 2009", when accompanied by "1." And "2" above . Partial and multiple drawings under this Letter of Credit are permitted. Drawings may be submitted to us at our above office by hand delivery or delivered to us by U.S. Postal Service mail, registered mail or certified mail or by express courier or overnight courier. Drawings may also be presented to us via facsimile to facsimile number 415-296-8905 (each such drawing by facsimile, a "Fax Drawing") provided however that a Fax Drawing will not be effectively presented until you confirm by telephone our receipt of such Fax Drawing by calling us at telephone number 1-800-798-2815. Drawings may also be presented by electronic mail presentation via portable document format ('PDF") attachment to electronic mail address sftrade@wellsfaroo.co,(each such drawing by electronic mail an "E -Mail Drawing") provided however that an E -Mail drawing will not be effectively presented until you confirm by telephone our receipt of such E -Mail Drawing by calling us at telephone number 1-800-798-2815. A copy of document 1 above is acceptable in the event of a Fax Drawing or E -Mail Drawing. We have been further informed that for purposes of the Letter of Credit, Mile High Dairy, L.L.C. shall be deemed in default if one or more of its obligations under the Improvements Agreement According to Policy Regarding Collateral for Improvements (Private) is/are not met within the time frame(s) set forth in said Improvements Agreement. This Credit shall be transferable, as directed by an authorized representative of the Board of County Commissioners of Weld County, Colorado, in compliance with Article 48 of UCP 500 and only in the full amount available to be drawn under the Letter of Credit at the time of such transfer. The transfer may be affected only through ourselves and only upon payment of our usual transfer fee and upon presentation to us at our above -specified office of a duly executed instrument of transfer in the format attached hereto as Exhibit A together with the original of this Letter of Credit. The transfer of this Letter of Credit may not change the place of expiration of this Letter of Credit from our above -specified office. The transfer shall be evidenced by our endorsement on the reverse of the original of this Letter of Credit, and we shall deliver the original of this Letter of Credit so endorsed to the transferee. Page 2 of 4 We hereby promise you that a draft drawn under and in compliance with the terms and conditions of this Letter of Credit will be duly honored by us if presented at this office on or before the current expiration date, currently June 1, 2010, or any future applicable expiration date as described herein. Presentation of drawings in compliance with the terms of this Letter of Credit before 9:00 a.m. Pacific time on any Business Day shall be honored before 2:00 p.m. on the same Business Day by wire transfer in immediately available funds to any account designated in the payment instructions which accompany such drawing (or any other reasonable means specified in the payment instructions which accompany such drawing) Presentation of drawings in compliance with the terms of this Letter of Credit after 9:00 a.m. Pacific time on any Business Day shall be honored before 2:00 p.m. on the following Business Day by wire transfer in immediately available funds to any account designated in the payment instructions which accompany such drawing (or any other reasonable means specified in the payment instructions which accompany such drawing) . As used herein the term "Business Day" shall mean a day of the year on which our San Francisco Trade Services Division, Northern California office is open for business. This Letter of Credit sets forth in full the terms of our undertaking, and such undertaking shall not in any way be modified, amended, amplified or limited by reference to any document, instrument or agreement referred to herein or to which this Letter of Credit relates. The informational statements above are understood to be for information only and not made terms of this Letter of Credit. Except to the extent terms hereof are inconsistent with its provisions, in which case this Letter of Credit shall govern, this Letter of Credit is subject to the Uniform Customs and Practice for Documentary Credits (1993 Revision), the International Chamber of Commerce Publication No. 500. Yours truly, AUREA C. BALENBIN Name ASSISTANT VICE PRESIDENT Authorized Officer Wells Fargo Bank, N.A. Trade Services Division, Northern California One Front Street, 21s` Floor San Francisco, CA 94111.Tel No.: 1-800-798-2815 Fax No.: (415) 296-8905 E -Mail: sftrade@wellsfargo.com Page 3 of 4 Exhibit A Wells Fargo Bank, N.A. Letter of Credit No. NZS642139 Date: Wells Fargo Bank, N.A. Trade Services Division, Northern California One Front Street, 21s` Floor San Francisco, California 94111 Subject: Your Letter of Credit No. NZS642139 Ladies and Gentlemen: For value received, we hereby irrevocably assign and transfer all our rights under the above - captioned Letter of Credit, as heretofore and hereafter amended, extended or increased, to: [insert name of transferee] [insert address] By this transfer, all of our rights in the Letter of Credit are transferred to the transferee, and the transferee shall have sole rights as beneficiary under the Letter of Credit, including sole rights relating to any amendments, whether increases or extensions or other amendments, and whether now existing or hereafter made. You are hereby irrevocably instructed to advise future amendment(s) of the Letter of Credit to the transferee without our consent or notice to us. Enclosed are the original Letter of Credit and the original of all amendments to this date. Also enclosed is $ in payment of your transfer commission (1/4% of the amount transferred, minimum $250.00). Please notify the transferee of this transfer and of the terms and conditions of the Letter of Credit as transferred. This transfer will not become effective until the transferee is so notified. Very truly yours, Board of County Commissioners of Weld County, Colorado By: Name: Title: Signature of Transferor Guaranteed [insert name of bank] By: Name: Title: Page 4 of 4 MEMORANDUM 111kR COLO TO: Board of County Commissioners July 16, 2009 FROM: Jacqueline Hatch-Drouillard SUBJECT: AMUSR-686, Bangma / Mile High Dairy The Department of Planning Services has received an irrevocable standby letter of credit for AMUSR-686 collateral. The collateral is in the amount of nineteen thousand one hundred and twelve dollars and fifty cents ($19,112.50) for site improvements, landscaping and screening. After review of the collateral by the Department of Planning Services and the Department of Public Works, it has been determined that the amount outlined the agreement will be sufficient to complete the work required for AMUSR-686, and the Departments of Planning Services and Public Works recommend acceptance of this collateral. Page 1 of 1 Stephanie Arries From: Jacqueline Hatch Sent: Monday, June 22, 2009 8:35 AM To: Stephanie Arries Subject: AMUSR-686 Mile High Dairy Stephanie, Just to let you know — I have the final signed Improvements Agreement. Once the collateral is okay with you (and you have it) let me know. I will send over to Donna the Improvements Agreement with the staff memorandum to be attached to the collateral. The only changes I see to the Improvements Agreement is that the completion date for the fencing and landscaping instead of being 11/30/2009 it is now 12/31/2009 but the amounts for the improvements all stayed the same. THANKS — let me know if you have any questions Jacqueline 6/22/2009 Page 2 of 2 Donna, I work in the business banking department at Wells Fargo in Greeley. Our customer Mile High Dairy LLC had requested a standby letter of credit but I understand you are requiring some changes. The trade bank has sent me a draft of the new proposed letter of credit. Please review and let me know what you think. Thank you. Kathy Wolf Business Associate Greeley Business Banking 2164 35th Ave Greeley. CO 80634 970-336-6252 C7515-011 WELLS FARGO RESTRICTED or CONFIDENTIAL - Not intended for use, reproduction or further distribution outside of Wells Fargo & Company, or those without a business need -to -know. 6/18/2009 Page 1 of 2 Donna Bechler From: Donna Bechler Sent: Thursday, June 18, 2009 2:19 PM To: 'Kathy.L.Wolf@wellsfargo.com' Subject: FW: Mile High Dairy LLC Standby Letter of Credit Attachments: Board of County Commissioners of Weld County Colorado their format redline after SA.doc Kathy, I sent your e-mail to our County Attorney (Stephanie Arries) and she looked over the document you sent, and has made her changes to it. She said you could call her if you have any questions. Her number is 356-4000 Ext 4394. Donna From: Stephanie Arries Sent: Thursday, June 18, 2009 12:03 PM To: Donna Bechler Subject: RE: Mile High Dairy LLC Standby Letter of Credit Donna Here are my comments - you can send them to your contact at the Greeley branch. Please advise them that the Improvements Agreement has not yet been finalized, so we cannot insert the date of the Agreement. They can call me to discuss how we will do that. Thanks Stephanie From: Donna Bechler Sent: Wednesday, June 17, 2009 4:49 PM To: Stephanie Arries Subject: FW: Mile High Dairy LLC Standby Letter of Credit Stephanie, Here is what Wells Fargo e -mailed me. I will give you the hard copies also, so you can see if it's okay. Donna From: Kathy.L.Wolf@wellsfargo.com[mailto:Kathy.L.Wolf@wellsfargo.com] Sent: Wednesday, June 17, 2009 2:53 PM To: Donna Bechler Subject: Mile High Dairy LLC Standby Letter of Credit 6/18/2009 WUk. COLORADO March 18, 2010 Attn: Aurea Balenbin Wells Fargo Bank N.A. Trade Services Division, Northern California One Front Street, 21st Floor San Francisco, California 94111 CLERK TO THE BOARD PHONE (970) 336-7215, Ext. 4225 FAX: (970) 352-0242 P. O. BOX 758 GREELEY, COLORADO 80632 RE: Letter of Credit #NZS642139 — Mile High Dairy, LLC Ladies and Gentlemen: This letter shall act as a confirmation of your obligations to the Board of County Commissioners of Weld County under the above -referenced Letter of Credit. As you are aware, on the 15th day of July, 2009, Wells Fargo Bank, issued an Amended and Restated Letter of Credit on behalf of Mile High Dairy, LLC, naming the Board of County Commissioners of Weld County, Colorado as beneficiary. The dollar amount of the Letter of Credit was established at Twenty Thousand Dollars ($20,000.00). The terms of the Letter of Credit require that it be maintained by your institution until the 1st day of June, 2010. If your institution intends to terminate its obligations under the Letter of Credit, you are required to provide notice to Weld County ninety (90) days prior to the anniversary date. If we are not in receipt of said notification, the terms of the Letter of Credit will remain in force. If you have any questions regarding this letter or your obligations under the Letter of Credit, or if you disagree with any of the statements contained herein, please call Donna Bechler, at 970-336-7215, ext. 4227, or e-mail me at dbechler@co.weld.co.us. Very truly yours, Bruce T. Barker Clerk to the Board By. eputy Cle to the Board pc Mile High Dairy, LLC N00 9- /7/ 2 I am replacing the Irrevocable Letter of Credit # NZS642139 for Mile High Dairy, LLC (PL 0016 - AmUSR686) from Wells Fargo with a cashier's check for $20,000.00 as replacement collateral. Weld County will return the Letter of Credit to Wells Fargo. neAgor I d(0- /7/7 PZ oo/� REMITTER:: COMMENTS: PAY TO THE ORDER OF THIS DOCUMENT HAS AN ARTIFICIAL WATERMARK PRINTED ON THE BACK. ABSENCE OF THIS FEATURE WILL INDICATE A COPY. Great Western Bank. MILE HIGH DAIRY, LLC USR686 FOR MILE HIGH Making Life Great° DAIRY 5292 EXACTLY **20,000 AND 00/100 DOLLARS $ ******20,000:00 CASHIER'S CHECK PAYABLE THROUGH FIRST INTERSTATE BANK HELENA; MT CUSTOMER COPY REMITTER: MILE HIGH DAIRY, LLC TO: WELD COUNTY CASHIER'S CHECK DATE: THORIZED SI U) ATURE 4/05/11 BRANCH: 0561 ORIGLNATOR: SUAREZAL TIME: 12:58:08 CK ANTI': 52922 ******20,000.00 NOT NEGOTIABLE SAVE THIS COPY FOR YOUR RECORDS NO REFUND OR REISSUE WITHOUT THIS COPY WELLS FARGO Letter of Credit No Longer Required. Replaced with Cashi,r's Chec}c, 4/5{2011. By County of Weld, State of Colorado, Board of County Commissioners 915 10th Street Greeley, CO 80631 Attention: Clerk to the Board Ladies and Gentlemen: TRADE SERVICES DIVISION, NORTHERN CALIFORNIA ONE FRONT STREET, 21s' FLOOR SAN FRANCISCO, CALIFORNIA 94111 Contact Phone: 1(800) 798-2815 Email: sftrade@welisfargo.com Deputy Clerk to the Board of Weld County IRREVOCABLE LETTER OF CREDIT Commissioners Letter of Credit No.NZ5642139 Date: June 12, 2009 At the request and for the account of Mile High Dairy, L.L.C., 15333 WCR 5, Longmont, Co 80504, we hereby establish our Irrevocable Letter of Credit in your favor in the amount of Twenty Thousand United States Dollars (US$20,000.00) available with us at our above office by payment of your signed and dated demand(s) worded as follows with the instruction in brackets therein complied with: "The undersigned, an authorized official of the County of Weld, State of Colorado, Board of County Commissioners ("Beneficiary"), hereby demands US$ [insert amount of drawing] and certifies that Mile High Dairy, L.L.C. ("Applicant") has not performed its obligations specified in the Improvements Agreement by and between the Beneficiary and Applicant ." This Letter of Credit expires at our above office on June 1, 2010. Partial and multiple drawings are permitted under this Letter of Credit. If any instructions accompanying a drawing under this Letter of Credit request that payment is to be made by transfer to an account with us or at another bank, we and/or such other bank may rely on an account number specified in such instructions even if the number identifies a person or entity different from the intended payee. We hereby engage with you that all drawings presented under and in compliance with the terms of this credit will be duly honored for payment. This Letter of Credit is subject to the Uniform Customs and Practice for Documentary Credits (2007 Revision), International Chamber of Commerce Publication No. 600, and engages us in accordance therewith. CO nn ›-cc �CD 0- v- 0 — :t yo U LU 7.1 Es.! BY: Very truly yo WELLS f RG' IANK i.A. (AUIrr SIGNATURE) EISA 'HAU . , ,ne PRESIDENT WELLS FARGO TRADE SERVICES DIVISION, NORTHERN CALIFORNIA ONE FRONT STREET, 21s` FLOOR SAN FRANCISCO, CALIFORNIA 94111 Contact Phone: 1(800) 798-2815 Email : sftradeewellsfarao.com AMENDED AND RESTATED LETTER OF CREDIT BOARD OF COUNTY COMMISSIONER OF WELD COUTY, COLORADO 915 Tenth Street Greeley, Colorado 80631 Attn: Clerk to the Board Letter of Credit No.NZS642139 Date: July 15, 2009 Applicant: Mile High Dairy, L.L.C., Amendment No. 1 Ladies and Gentlemen: This Amendment is to be considered as part of the above Letter of Credit and must be attached thereto. The text of the above mentioned Letter of Credit is deleted in its entirety and replaced by the following: Quote IRREVOCABLE STANDBY LETTER OF CREDIT FOR BOARD OF COUNTY COMMISSIONERS OF WELD COUNTY, COLORADO Date: June 12, 2009 Beneficiary: BOARD OF COUNTY COMMISSIONERS OF WELD COUNTY, COLORADO 915 Tenth Street Greeley, Colorado 80631 Attn: Clerk to the Board Applicant: Mile High Dairy, L.L.C. 15333 WCR 5 Longmont, CO 80504 Ladies and Gentlemen: Effective immediately, at the request of and on behalf of Mile High Dairy, L.L.C, we hereby issue this Letter of Credit #NZS642139 for Twenty Thousand U.S. Dollars (US$20,000.00) in favor of the Board of County Commissioners of Weld County, Colorado, (Board of County Commissioners of Weld County, Colorado and its transferee, if any hereinafter "Beneficiary"). We have been informed that this Letter of Credit is issued to permit Mile High Dairy, L.L.C. to meet the requirements of the Improvements Agreement According to Policy Regarding Collateral for Improvements (Private) (hereinafter "Improvements Agreement"'). This amount may be drawn on at our office located at Wells Fargo Bank, N.A., Trade Services Division, Northern California, One Front Street, 21st Floor, San Francisco, CA 94111. We hereby undertake to honor your sight draft drawn on us bearing upon its face the clause: "Drawn under the Wells Fargo Bank, N.A. Letter of Credit Number NZ5642139, dated June 12, 2009", when accompanied by the following: 1. The original of this Letter of Credit and any subsequent amendments, if any; and Page 1 of 4 2. Original of Beneficiary's statement purportedly manually signed by a member of the Board of County Commissioners of Weld County, Colorado or if this Letter of Credit is transferred, an authorized representative of the transfer beneficiary stating one or both of the following: a. "The beneficiary ("Beneficiary") of Wells Fargo Bank, N.A. Letter of Credit No. NZS642139 (the "Letter of Credit") hereby certifies that it is entitled to draw US Dollars (Written Amount of Withdrawal) ($_) under the Letter of Credit because Mile High Dairy, L.L.C. has defaulted on its obligations under the Improvements Agreement According to Policy Regarding Collateral for Improvements (Private)." b. "The beneficiary ("Beneficiary") of Wells Fargo Bank, N.A.No.NZS642139 (the "Letter of Credit") hereby certifies that it is entitled to draw US Dollars (Written Amount of Withdrawal) ($_) under the Letter of Credit Number because Mile High Dairy, L.L.C. has not, to the satisfaction of the Beneficiary, within sixty (60) days of the expiration date of this Letter of Credit replaced or renewed this Letter of Credit." Unless this Letter of Credit has been transferred, the above statements are acceptable if presented in the form of a purported formally adopted Resolution of the Board of Commissioners of Weld County, Colorado as long as the wording includes the quoted wording of one or both of the above statements. It is a condition of this Irrevocable Letter of Credit that it be considered automatically extended without amendment for additional periods of one year from the present or any future expiration date unless we notify you, the Beneficiary, in writing, not less than ninety (90) days before such date that we elect not to extend this Letter of Credit for such additional term. This notice will be set to the address herein sent by certified mail, return receipt requested or receipted express courier. Upon your receipt of said notice, you may draw on us at sight for the balance remaining under this Letter of Credit within the then applicable expiration date by presentation to us of your sight draft drawn on us bearing upon its face the clause: "Drawn under Wells Fargo Bank, N.A. Letter of Credit Number NZS642139, dated June 12, 2009", when accompanied by "1." And "2" above . Partial and multiple drawings under this Letter of Credit are permitted. Drawings may be submitted to us at our above office by hand delivery or delivered to us by U.S. Postal Service mail, registered mail or certified mail or by express courier or overnight courier. Drawings may also be presented to us via facsimile to facsimile number 415-296-8905 (each such drawing by facsimile, a "Fax Drawing") provided however that a Fax Drawing will not be effectively presented until you confirm by telephone our receipt of such Fax Drawing by calling us at telephone number 1-800-798-2815. Drawings may also be presented by electronic mail presentation via portable document format (PDF') attachment to electronic mail address sftrade@wellsfaroo.co,(each such drawing by electronic mail an "E -Mail Drawing") provided however that an E -Mail drawing will not be effectively presented until you confirm by telephone our receipt of such E -Mail Drawing by calling us at telephone number 1-800-798-2815. A copy of document 1 above is acceptable in the event of a Fax Drawing or E -Mail Drawing. We have been further informed that for purposes of the Letter of Credit, Mile High Dairy, L.L.C. shall be deemed in default if one or more of its obligations under the Improvements Agreement According to Policy Regarding Collateral for Improvements (Private) is/are not met within the time frame(s) set forth in said Improvements Agreement. This Credit shall be transferable, as directed by an authorized representative of the Board of County Commissioners of Weld County, Colorado, in compliance with Article 48 of UCP 500 and only in the full amount available to be drawn under the Letter of Credit at the time of such transfer. The transfer may be affected only through ourselves and only upon payment of our usual transfer fee and upon presentation to us at our above -specified office of a duly executed instrument of transfer in the format attached hereto as Exhibit A together with the original of this Letter of Credit. The transfer of this Letter of Credit may not change the place of expiration of this Letter of Credit from our above -specified office. The transfer shall be evidenced by our endorsement on the reverse of the original of this Letter of Credit, and we shall deliver the original of this Letter of Credit so endorsed to the transferee. Page 2 of 4 C We hereby promise you that a draft drawn under and in compliance with the terms and conditions of this Letter of Credit will be duly honored by us if presented at this office on or before the current expiration date, currently June 1, 2010, or any future applicable expiration date as described herein. Presentation of drawings in compliance with the terms of this Letter of Credit before 9:00 a.m. Pacific time on any Business Day shall be honored before 2:00 p.m. on the same Business Day by wire transfer in immediately available funds to any account designated in the payment instructions which accompany such drawing (or any other reasonable means specified in the payment instructions which accompany such drawing) Presentation of drawings in compliance with the terms of this Letter of Credit after 9:00 a.m. Pacific time on any Business Day shall be honored before 2:00 p.m. on the following Business Day by wire transfer in immediately available funds to any account designated in the payment instructions which accompany such drawing (or any other reasonable means specified in the payment instructions which accompany such drawing) . As used herein the term "Business Day" shall mean a day of the year on which our San Francisco Trade Services Division, Northern California office is open for business. This Letter of Credit sets forth in full the terms of our undertaking, and such undertaking shall not in any way be modified, amended, amplified or limited by reference to any document, instrument or agreement referred to herein or to which this Letter of Credit relates. The informational statements above are understood to be for information only and not made terms of this Letter of Credit. Except to the extent terms hereof are inconsistent with its provisions, in which case this Letter of Credit shall govern, this Letter of Credit is subject to the Uniform Customs and Practice for Documentary Credits (1993 Revision), the International Chamber of Commerce Publication No. 500. Yours truly, AUREA C. BALENBIN Name ASSISTANT VICE PRESIDENT Authorized Officer Wells Fargo Bank, N.A. Trade Services Division, Northern California One Front Street, 21st Floor San Francisco, CA 94111.Tel No.: 1-800-798-2815 Fax No.: (415) 296-8905 E -Mail: sftrade@wellsfargo.com Page 3 of 4 Exhibit A Wells Fargo Bank, N.A. Letter of Credit No. NZS642139 Date: Wells Fargo Bank, N.A. Trade Services Division, Northern California One Front Street, 21st Floor San Francisco, California 94111 Subject: Your Letter of Credit No. NZS642139 Ladies and Gentlemen: For value received, we hereby irrevocably assign and transfer all our rights under the above - captioned Letter of Credit, as heretofore and hereafter amended, extended or increased, to: [insert name of transferee] [insert address] By this transfer, all of our rights in the Letter of Credit are transferred to the transferee, and the transferee shall have sole rights as beneficiary under the Letter of Credit, including sole rights relating to any amendments, whether increases or extensions or other amendments, and whether now existing or hereafter made. You are hereby irrevocably instructed to advise future amendment(s) of the Letter of Credit to the transferee without our consent or notice to us. Enclosed are the original Letter of Credit and the original of all amendments to this date. Also enclosed is $ in payment of your transfer commission (1/4% of the amount transferred, minimum $250.00). Please notify the transferee of this transfer and of the terms and conditions of the Letter of Credit as transferred. This transfer will not become effective until the transferee is so notified. Very truly yours, Board of County Commissioners of Weld County, Colorado By: Name: Title: Signature of Transferor Guaranteed [insert name of bank] By: Name: Title: Page 4 of 4 c Donna Bechler From: Richard Hastings Sent: Tuesday, April 05, 2011 10:22 AM To: Donna Bechler; Stephanie Arries Cc: David Bauer; Donald Carroll; Kim Ogle Subject: RE: collateral Attachments: image003.png; image002.png Donna, I called AGPRO who is the engineering firm associated with Mile High Dairy (USR-686). They gave me a phone number of 909-214-5345 for a Wes Bangma. I also found a home phone # of 970-535-4176 for a Wesley R Bangma in Mead CO. Let me know if this works for you and if not I'll search some more. Thanks, Richard Hastings Compliance Analyst & Construction Inspector Weld County Public Works 1111 H Street, P.O. Box 758 Greeley, CO 80632 (970)304-6496 Ext. 3727 I6{I.IllII W El0_6CO ONir u Confidentiality Notice: This electronic transmission and any attached documents or other writings are intended only for the person or entity to which it is addressed and may contain information that is privileged, confidential or otherwise protected from disclosure. If you have received this communication in error, please immediately notify sender by return e-mail and destroy the communication. Any disclosure, copying, distribution or the taking of any action concerning the contents of this communication or any attachments by anyone other than the named recipient is strictly prohibited. From: Donna Bechler Sent: Tuesday, April 05, 2011 8:52 AM To: Stephanie Arries; Richard Hastings Cc: David Bauer; Donald Carroll; Kim Ogle Subject: RE: collateral I don't know how to get ahold of the guy who called me just before 5:00 yesterday afternoon regarding bringing in a Cashier's check. I think he said his name was Wes, but I'm not sure. He is the one bringing in the check. The bank hasn't contacted me about it — he must have talked to the bank and they said they wouldn't renew the Letter of Credit, so he called me. Donna Bechler Deputy Clerk to the Board 915 10th Street 1 April 6, 2011 CLERK TO THE BOARD PHONE (970) 336-7215, Ext. 4227 FAX: (970) 352-0242 P. O. BOX 758 GREELEY, COLORADO 80632 Attn: Aurea Balenbin, Asst VP Wells Fargo Bank N.A. Trade Services Division, Northern California San Francisco, California 94111 RE: Cancellation and release of Collateral — Mile High Dairy, LLC Ladies and Gentlemen: Attached hereto please find the original Irrevocable Letter of Credit No. NZS642139, issued by Wells Fargo, Trade Services Division, Northern California, in the amount of $20,000.00. It has been replaced by cash collateral from Mile High Dairy, LLC, so we are returning the Letter of Credit to you. If you have questions or need additional information, please do not hesitate to contact me at (970) 336-7215, Extension 4227. Very truly yours, BOARD OF COUNTY COMMISSIONERS By; Donna J. Bec Deputy Clerk to the Board rn m rU nJ to m 0 U.S. Postal ServiceTM CERTIFIED MAIL., RECEIPT (Domestic Mail Only; No Insurance Coverage Provided) Postage Certified Fee O Return Receipt Fee (Endorsement Required) Restricted Delivery Fee nJ (Endorsement Required) rl u1 0 IM1 Total Postage & Fees ere 0 1 Sent To 4pt�1 I I /J 1 ` Fes/ ory�P`'O Box MSJ�Q ee I,1Crei 1)W....!PA. ... 60571ae L GA ZIr.CA 9z//// tnkf1 /.tArea.. u1.O ; i • Complete Items 1, 2, and 3. Also complete item 4 if Restricted Delivery is desired. • Print your name and address on the reverse so that we can return the card to you. ■ Attach this card to the back of the mailpiece, or on the front if space permits. 1. Article Addressed to: !()ells Ingo Sank /1Pm/ /lured_ dalenbm )S51 k, P trade Services -4'g) Northern LW One Ciron/SI> /SF/oor .2n F'ranciseo) C4 9vi// 2. Article Number (Transfer from service label) Date of Del ls D. Is delivery address ittoritefp1'0 If YES, enter delive addr.ili below: r'Ws Certified Mail 0 Express Mail Registered 0 -Return Receipt for Merchandise ❑ Insured Mall O C.O.D. 7005 1820 0003 52214 8317 PS Form 3811, February 2004 Domestic Retum Receipt 102595-02-M.1540 Hello