HomeMy WebLinkAbout20080828.tiff RESOLUTION
RE: APPROVE IMPROVEMENTS AGREEMENT ACCORDING TO POLICY REGARDING
COLLATERAL FOR IMPROVEMENTS(PRIVATE ROAD MAINTENANCE),AUTHORIZE
CHAIR TO SIGN,AND ACCEPT COLLATERAL FOR USE BY SPECIAL REVIEW#1583-
MARGARET DEHAAN/L AND M FARMS, LLC
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 April 4, 2007, the Weld County Board of Commissioners approved Use by
Special Review Permit#1583, for Margaret DeHaan, P.O. Box 40, Mead, Colorado 80542, for an
Agricultural Service Establishment, including a Livestock Confinement Operation (dairy operation
with a total of 8,000 head), in the A (Agricultural) Zone District, on the following described real
estate, to-wit:
Lot D of Recorded Exemption #4098 W1/2; Lot B of
Recorded Exemption #965 W1/2NE1/4 and NW1/4;
and Lot B of Recorded Exemption#1729 E1/2NE1/4;
all in Section 17, Township 7 North, Range 65 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 Margaret DeHaan/L and M Farms, LLC, with terms
and conditions being as stated in said agreement, and
WHEREAS, the Board has been presented with Irrevocable Standby Letter of Credit
BOK08SDF04655 from Bank of Oklahoma, International Banking Center, One Williams Center,
15th Floor, Tulsa, Oklahoma 74172, in the amount of$51,000.00, and
WHEREAS, after review, the Board deems it advisable to approve said agreement and
accept said Irrevocable Standby 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
Improvements(Private Road Maintenance)between the County of Weld, State of Colorado, by and
through the Board of County Commissioners of Weld County, and Margaret DeHaan/L and M
Farms, LLC, be, and hereby is, approved.
2008-0828
PL1878
IMPROVEMENTS AGREEMENT - MARGARET DEHAAN/L AND M FARMS, LLC
PAGE 2
BE IT FURTHER RESOLVED that Irrevocable Standby Letter of Credit BOK08SDF04655
from Bank of Oklahoma, International Banking Center, One Williams Center, 15th Floor, Tulsa,
Oklahoma 74172, in the amount of$51,000.00, be and hereby is, accepted.
The above and foregoing Resolution was, on motion duly made and seconded, adopted by
the following vote on the 17th day of March, A.D., 2008.
BOARD OF COUNTY COMMISSIONERS
WELD COUNTY, COLORADO
/
s � IE1La\ --
ATTEST: `
H. Jerke, Chair
Weld County Clerk to the Boar mi Yi Q ?
Rte ED
-);s'-, ` D. M.:.en Pro-Tem
BY: f�??�� S a fir.
—apz3e 7
Deputy Clerk to the Board
Willi F. Garcia
APP V AS ORM: zxt ,LT
David . Long
unt Attorney EXCUSED
Douglas Rademacher
Date of signature: -) &/
2008-0828
PL1878
•
o, IMPROVEMENTS AGREEMENT ACCORDING TO
POLICY REGARDING COLLATERAL FOR IMPROVEMENTS
(PRIVATE)
THIS AGREEMENT,made and entered into this 2(o day of February,2008,by
and between the County of Weld, State of Colorado, acting through its Board of County
Commissioners,hereinafter called "County",and Margaret J. DeHaan/L&M Farms, LLC,a
Colorado limited liability company, 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:
Lots B, C and D of Recorded Exemption No. 0709-17-3-RE-4098,
recorded July 29,2005 at Reception No. 3307854, being a part of West V2
of Section 17,Township 7 North,Range 65 West of the 6th P.M.,County of
Weld, State of Colorado; together with Four shares of the stock of The
Larimer & Weld Irrigation Company represented by certificate number
5865,and Four shares of the stock of For Far Lateral Company represented
by certificate number 585;
Lot B of Recorded Exemption No.0709-17-1-RE 965,recorded December
29, 1986 in Book 1 140 at Reception No.2082369,being a part of the West
half of the Northeast Quarter and the Northwest Quarter of Section 17,
Township 7 North, Range 65 West of the 6th P.M.,
AND
Lot B of Recorded Exemption No.0709-17-1-RE-1729,recorded June 14,
1995 in Book 1496 at Reception No.2442458,being a part of the East Half
of the Northeast Quarter of Section 17,Township 7 North,Range 65 West
of the 6th P.M.,County of Weld,State of Colorado;together with: Irrigation
Wells Nos. 6563F, 10059R, 10060R, 10061R,10062R, 10063R, and
187057, 6 shares of stock of The Larimer & Weld Irrigation Co., and 1
share of the stock of Windsor Reservoir and Canal Company.
WHEREAS, a Use By Special Review plat of said property, to be known as USR
1583 DeHaan Great Western Dairy 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:
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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.
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 private Improvements.
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, if requested.
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.
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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, if requested.
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.
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 suit, action or claim, together with all reasonable
expenses and attorney 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)
6.0 Approval of Private Improvements by the County: Upon compliance with
the following procedures by the Applicant, private improvements within a
Use By Special Review Boundary may be approved by the County as private
improvements and will be maintained and repaired by the Homeowners
Association or, in its absence,the owners of lots within the Use By Special
Review Boundary.
6.1 If desired by the County,portions of the private improvements may
be placed in service when completed according to the schedule
shown on Exhibit "B," but such use and operation shall not
constitute an approval of said portions.
6.2 County may,at its option,issue building permits for construction on
lots for which private improvements detailed herein have been
started but not completed as shown on Exhibit "B," and may
continue to issue building permits so long as the progress of work
on the improvements in that phase of the development is satisfactory
to the County;and all terms of this Agreement have been faithfully
kept by Applicant.
6.3 Upon completion of the construction of Private Improvements
within the Use By Special Review Boundary and the filing of a
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Statement of Substantial Compliance,the applicant(s)may request
in writing that the County Engineer inspect its private improvements
and recommend that the Board of County Commissioners partially
approve them. Not sooner than nine months after partial approval,
the County Engineer shall, upon request by the applicant, inspect
the subject improvements, and notify the applicant(s) of any
deficiencies. The County Engineer shall re-inspect the
improvements after notification from the applicant(s) that any
deficiencies have been corrected. If the County Engineer finds that
the improvements are constructed according to County standards,he
or she shall recommend full approval. Upon a receipt of a positive
unqualified recommendation from the County Engineer for approval
of private improvements within the Use By Special Review
Boundary,the Board of County Commissioners shall fully approve
said improvements.
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 be 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
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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.
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.
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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.
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
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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.
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 final approval by the
Board of County Commissioners.
(THERE IS NO SECTION 10)
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.
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IN WITNESS WHEREOF,the parties hereto have caused this Agreement to be executed on the day
and year first above written. APPLICAN ' G3v 61//)42
APPLICANT:1,, a I. (j,(,t.:7` a et----_
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TITLE: dL.ihet- Ih«h . e%
Subscribed and sworn to before me this 24,day of Feb cucti , 20J oiliwCO cc-BX41144 r, a " ��-4 '
My Commission expires: — \ , 1 C=__
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ATTEST: \ ^,•1i±q f; BOARD OF COUNTY COMMISSIONERS
��ev ,.,,,y s�'�� WELD COUNTY, COLORADO
Weld County Clerk to the Board ` � �
i J S " �
William H. Jerke , Chair
BY. ifu Va'i Ca��( "� `' 1 ,
De Cler ko the Board ) MAR 200d
APPROVED AS TO FORM: •,
County tforney
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EXHIBIT "A"
Name of Use By Special Review: Margaret J. DeHaan/L&M Farms, LLC.
Filing: USR#1583
Location: Section 17, Township 7 North, Range 65 West of the 6th P.M.
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 Estimated
Costs Construction Cost
Site grading and Asphalt Surface $32,539.00
Street grading
Street base
Street paving—Entrance 50' x 50' $10,500.00
Curbs, gutters,and culverts
Sidewalk
Storm sewer facilities
Retention ponds
Ditch Improvements
Subsurface drainage
Sanitary sewers
Trunk and forced lines
Mains
Laterals(house connected)
On-site sewage facilities
On-site water supply and storage
Water Mains(includes bore)
Fire hydrants
Survey and street monuments and boxes
Site lighting
Street Names
Fencing requirements
Landscaping 50 trees $ 7,961.00
Park improvements
Road culvert
Grass lined swale
Telephone
Gas
Electric
Water transfer
SUB-TOTAL: $51,000.00
Engineering and Supervision Costs$
(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 $51,000.00.
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.
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Said improvements shall be completed according to the construction schedule set out in Exhibit"B".
By:`/ 3C(r7
MA A J. DeHA
L&M FARMS, LLC
By: Date: 2 ' .26 .car ,2008
MARGARET J. DeHAAN, Manager
,
B . V Date: ,2 a '" , 2008.
LA R . DeHAAN, Manager
(If corporation, to be signed by President and attested to by Secretary, together with corporate seal.)
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EXHIBIT "B"
Name of Use By Special Review: Margaret J. DeHaan/L&M Farms,LLC.
Filing: USR#1583
Location: Section 17, Township 7 North,Range 65 West of the 6`h P.M.
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 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 and Asphalt Surface No later than November 30, 2008
Street base
Street paving—Entrance No later than November 30, 2008
Curbs, gutters, and culverts
Sidewalk
Storm sewer facilities
Retention ponds
Ditch improvements
Subsurface drainage
Sanitary sewers
Trunk and forced lines
Mains
Laterals(house connected)
On-site sewage facilities
On-site water supply and storage
Water mains
Fire hydrants
Survey and street monuments and boxes
Site lighting
Street name signs
Fencing requirements
Landscaping No later than November 30, 2008
Park improvements
Road culvert
Grass lined swale
Telephone
Gas
Electric
Water Transfer
SUB-TOTAL:
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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:7).CV CL a2 t j - G c�� Date: ..2C �� , 2008
MA GARtT J. De N
L&M FARMS, LLC
By: '))OA C 2}c. `6r J 2 <=___Date: 2 -2 C og , 2008
MARG`ARF�. DeHAAPC, Manager
By �� J Date: 2 ' .2V ":Q8 , 2008
ARR . DeHAAN, Manager
(If corporation,to be signed by President and attested to by Secretary, together with corporate seal.)
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BANK OF OKIAHOMAU, 31-1-
INTERNATIONAL BANKING CENTER
ONE WILLIAMS CENTER, 15TH FLOOR
TULSA, OK 74172
USA
02/28/08
BENEFICIARY:
BOARD OF COUNTY COMMISSIONERS OF WELD COUNTY
**SEE L/C FOR FULL BENEFICIARY NAME AND ADDRESS**
LETTER OF CREDIT NUMBER: BOK08SDF04655
APPLICANT: LARRY AND MARGARET DEHAAN/L&M FARMS, LLC
AMOUNT: 51, 000.00 USD
EXPIRATION: 02/28/09
AT THE REQUEST OF THE APPLICANT WE HAVE ISSUED OUR IRREVOCABLE STANDBY LETTER
OF CREDIT REFERENCED ABOVE; THE ORIGINAL IS HEREBY ATTACHED.
IF THE TERMS OF THE LETTER OF CREDIT ARE UNSATISFACTORY, WE SUGGEST YOU
IMMEDIATELY COMMUNICATE WITH THE APPLICANT AND REQUEST THE APPROPRIATE
AMENDMENT.
INQUIRIES DIRECTED TO OUR OFFICE MAY BE MADE TO TELEPHONE +1 (918) 588-6601
OR TO FAX +1 (918) 588-6026. PLEASE SEND ALL CORRESPONDENCE DIRECTED TO OUR
OFFICE TO THE ABOVE MENTIONED ADDRESS.
IF PRIOR TO THE EXPIRATION DATE, THE APPLICANT'S OBLIGATION WITH YOU HAS BEEN
COMPLETED AND YOU NO LONGER AVAIL YOURSELF OF OUR LETTER OF CREDIT, WE KINDLY
ASK YOU TO RETURN THE ORIGINAL LETTER OF CREDIT AND ALL AMENDMENTS ALONG WITH
A LETTER GIVING US YOUR CONSENT TO CLOSE THE LETTER OF CREDIT SO THAT THE
APPLICANT' S LIABILITY WITH THE BANK IS RELEASED.
4 BANK OF OKLAHOMAR
IRREVOCABLE STANDBY LETTER OF CREDIT BOK08SDF04655
ISSUED IN TULSA, OKLAHOMA ON 02/28/08
BENEFICIARY:
BOARD OF COUNTY COMMISSIONERS OF WELD COUNTY
**SEE L/C FOR FULL BENEFICIARY NAME AND ADDRESS**
APPLICANT:
LARRY AND MARGARET DEHAAN/L&M FARMS, LLC
3766 VALE VIEW LANE
MEAD, CO 80542
DATE AND PLACE OF EXPIRY: 02/26/09 TULSA, OKLAHOMA
AMOUNT: 51, 000 . 00 USD
USD fifty one thousand and no cents
BENEFICIARY:
BOARD OF COUNTY COMMISSIONERS OF WELD COUNTY
ATTN: CLERK TO THE BOARD
P.O. BOX 758
GREELY, CO 80632
WE HEREBY OPEN OUR IRREVOCABLE STANDBY LETTER OF CREDIT IN YOUR FAVOR FOR THE
ACCOUNT OF LARRY AND MARGARET DEHAAN/L&M FARMS, LLC, 3766 VALE VIEW LANE,
MEAD, CO 80542, FOR A SUM NOT TO EXCEED THE AGGREGATE OF FIFTY-ONE THOUSAND
DOLLARS ($51, 000.00) TO SECURE THE IMPROVEMENT AGREEMENT OF LARRY AND
MARGARET DEHAAN/L&M FARMS, LLC DATED FEBRUARY 26, 2008 .
EACH DRAFT MUST BE MARKED 'DRAWN UNDER BANK OF OKLAHOMA, N.A. , LETTER OF
CREDIT NO. BOK08SDF04655, AND BE ACCOMPANIED BY A SIGNED STATEMENT FROM THE
BOARD OF COUNTY COMMISSIONERS OF WELD COUNTY, COLORADO STATING:
"LARRY AND MARGARET DEHAAN/L&M FARMS, LLC HAS COMMITTED A MATERIAL BREACH OF
THE IMPROVEMENTS AGREEMENT ACCORDING TO POLICY REGARDING COLLATERAL FOR
IMPROVEMENTS REGARDING USR NO. 1563 DATED FEBRUARY 26, 2008 BY AND BETWEEN
LARRY AND MARGARET DEHAAN/L&M FARMS, LLC/THE BOARD OF COUNTY COMMISSIONERS
FOR THE COUNTY OF WELD. "
THIS CREDIT IS SUBJECT, SO FAR AS APPLICABLE, TO "THE UNIFORM CUSTOMS AND
PRACTICE FOR DOCUMENTARY CREDITS, 2007 REVISION, THE INTERNATIONAL CHAMBER OF
COMMERCE PUBLICATION NO. 600. "
WE HEREBY AGREE WITH YOU THAT ALL DRAFTS DRAWN UNDER AND IN COMPLIANCE WITH
THE TERMS OF THIS CREDIT WILL BE DULY HONORED WHEN PRESENTED FOR PAYMENT TO
OUR MAIN OFFICE, BANK OF OKLAHOMA, N.A. , INTERNATIONAL BANKING CENTER,
LOCATED AT BANK OF OKLAHOMA, N.A. , ONE WILLIAMS CENTER, 15TH FLOOR SOUTH,
TULSA, OKLAHOMA, 74172. THIS LETTER OF CREDIT WILL EXPIRE ON FEBRUARY 28,
2009.
THIS LETTER OF CREDIT IS AUTOMATICALLY EXTENDED WITHOUT AMENDMENT FOR
ADDITIONAL ONE YEAR PERIODS FROM THE CURRENT EXPIRATION OR ANY FUTURE
EXPIRATION DATE UNLESS 60 DAYS PRIOR TO SUCH CURRENT EXPIRATION DATE BANK OF
OKLAHOMA, N.A. NOTIFIES BENEFICIARY IN WRITING THAT THE LETTER OF CREDIT WILL
NOT BE RENEWED. IN THE CASE YOU RECEIVE SUCH A NOTIFICATION, YOU MAY DRAW BY
PRESENTATION OF THE FOLLOWING:
4 BANK OF OKIAHOMAK&
(A) A DRAFT AT SIGHT ON BANK OF OKLAHOMA, N.A. ; AND
(B) A STATEMENT PURPORTEDLY SIGNED BY AN OFFICIAL OF THE BOARD OF COUNTY
COMMISSIONERS OF WELD COUNTY, COLORADO STATING THAT:
"WE HAVE RECEIVED NOTICE FROM BANK OF OKLAHOMA N.A. THAT LETTER OF CREDIT NO.
BOKOSSDF04655 WILL NOT BE RENEWED, AND THAT LARRY DEHAAN/L&M FARMS, LLC HAS
FAILED TO PROVIDE PROOF OF ADEQUATE COLLATERAL AND SUBSTITUTION OF THIS
LETTER OF CREDIT NO. BOKOSSDF04655; " AND
(C) COPY OF LETTER OF CREDIT FROM BANK OF OKLAHOMA, N.A. STATING NON-RENEWAL
OF LETTER OF CREDIT NO. BOKOSSDF04655 AND THE ORIGINAL LETTER OF CREDIT.
Am
APPROVED_AS ISS 7
AU RIZED SI NATURE
if*‘14gr MEMORANDUM
I I"nose
To: Board of County Commissioners March 11, 2008
COLORADO From: Hannah Hippely, Planner I
Subject: Acceptance of Irrevocable Letter of Credit
Case Number USR 1583
On February 29, 2008, the Department of Planning Services received an Irrevocable Letter of
Credit for L&M farms LLC, for on-site improvements for DeHaan Great Western Dairy Case
Number USR-1583, in the amount of fifty-one thousand dollars and no/100s ($ 51,000.00).
Items covered under this letter of credit include:
Entrance Paving November 30, 2008 $ 10,500.00
Site Grading and Surfacing November 30,2008 $ 32,539.00
Landscaping November 30, 2008 $ 7,961.00
Total Estimated Cost of Improvements and supervision $ 51000.00
The Department of Public Works and the Department of Planning Services, have determined
that the amount of the agreement will be sufficient to complete the work required for on-site
improvements for DeHaan Great Western Dairy, and the Department of Planning Services
recommends acceptance of this Letter.
i
C >
SERVICE.TEAMWORK,INTEGRITY,QUALITY
Kit (140, CLERK TO THE BOARD
PHONE (970) 336-7215, Ext. 4225
FAX: (970) 352-0242
' P. O. BOX 758
GREELEY, COLORADO 80632
C.
COLORADO
June 18, 2009
BANK OF OKLAHOMA, N.A.
ONE WILLIAMS CENTER
15TH FLOOR SOUTH
TULSA, OKLAHOMA 74172
RE: Letter of Credit#BOK08SDF04655 for Larry and Margaret Dehaan/L & M Farms, LLC
Ladies and Gentlemen:
This letter shall act as a reminder 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 28th day of February, 2008, Bank of Oklahoma, issued a Letter of Credit on
behalf of Larry and Margaret Dehaan/L & M Farms, LLC, naming the Board of County Commissioners
of Weld County, Colorado as beneficiary. The dollar amount of the Letter of Credit was established at
Fifty-one Thousand dollars ($51,000.00).
The terms of the Letter of Credit require that it be maintained by your institution until the 28th day of
February, 2009, with auto renewal unless 60 days notice is provided. If you believe that the Letter of
Credit expires prior to that date, please contact me immediately, as you are required under the terms of
the Letter of Credit to replace it.
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 970-356-4000,
ext. 4227.
Very MJdL4truly ours,
Donald O. Warden
Clerk to the Board
i
7 BY45(1/214__: 1,,
Deputy Clerk Yo the Board
pc Larry and Margaret Dehaan/L & M Farms, LLC
l tt/J�t� - 61 y,t/t f
• BANK OF OKIAHOMA�.
June 26, 2009
Board of County Commissioner of Weld County
Attn: Donna Bechler, Clerk to the Board
915 — 10th Street
Greeley, CO 80631
Re: BOK08SDF04655 $51,000.00 for the account of Larry and Margaret DeHaan,
L&M Farms, LLC
Per our phone conversation earlier this week, attached is a revalidated copy of
Amendment no. 1 to the above-referenced letter of credit. The original amendment was
sent to Mr. DeHaan in February for delivery to yourselves, however it has apparently
been lost or misplaced. In the event the letter of credit is ever drawn on, this `revalidated
copy' must be presented to Bank of Oklahoma, N.A. along with the original letter of
credit and any other subsequent amendments.
Yours very truly,
ill Flynn
International Operations Specialist
Bank of Oklahoma, N.A.
One Williams Center, 15th Floor
Tulsa, OK 74172
918-588-6297
cc: Larry DeHaan
V BANK OF OKIAHOMAK.
IRREVOCABLE STANDBY LETTER OF CREDIT AMENDMENT
DATE: 01/29/09
LETTER OF CREDIT NO. : BOK0BSDF04655
AMENDMENT NO. : 1
LC ISSUE DATE: 02/28/08
APPLICANT: LARRY AND MARGARET DEHAAN/L&M FARMS, LLC
3766 VALE VIEW LANE
MEAD, CO 80542
BENEFICIARY: BOARD OF COUNTY COMMISSIONERS OF WELD COUNTY
**SEE L/C FOR FULL BENEFICIARY NAME AND ADDRESS**
BENEFICIARY'S CONSENT: Not Required
AMOUNT: NO CHANGE
BY: .00
NEW EXPIRY DATE: 02/28/10
THIS AMENDMENT IS TO BE CONSIDERED AS PART OF THE ABOVE MENTIONED. CREDIT
AND MUST B ' TAC D THERETO. ALL OTHER TERMS AND CONDITIONS REMAIN
UNCHANGE.`
AUTHORIZED SIGNATURE
REVALIDATED COPY
June 26, 2009
BANK OF OKLAHOMA, N..A
By: By:
Syed Ahmad, Senior Vice President An 314/1.der, Vice President
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