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HomeMy WebLinkAboutA053 - Letters of Credit (Released) for Developer's Contribution: Lincoln Way and Franklin RECEIPT — CITY CLERK'S OFFICE Date: 8/10/2017 Name First National Bank on behalf of Pinnacle Properties (Keith Arneson) Address 405-5th Street City Ames, Iowa 50010 Description Amount Developer's Contribution: Lincoln Way and Franklin $ 200,000 (South Fork Subdivision, 151 Addition) Deposit into Account No. 320-7500-389-5900 Received by Diane Voss Total $ 200,000 r s CITY OF Ames, 1 es Smart Choice August 10, 2017 v Mr. Keith Arneson Pinnacle Properties Ames, LLC 4114 Cochrane Parkway Ames, Iowa 50014 Dear Mr. Arneson: On the {� � day of August, 2017, Joel Thil ges of First National Bank remitted Check No.04aILal in the amount of $200,000 to be used towards your agreed-to share of costs for the West Lincoln Way Intersection Improvements (Franklin Avenue/Lincoln Way). This cash deposit replaces and allows the release of: LOC No. 0411 in the amount of $200,000 for Outlot R, South Fork Subdivision, 1st Addition (Lincoln Way and Franklin). ---_ :;,Ohn—C. Joiner, Public Works Director T);anA R Vnac ('itv (']Prk 1 ST fIRST CASHIER'S CHECK 042627 NATIONAL 72-227/739 BANK 08/08/17 AMES--.ANKENY•JONNS10N VALLEYJUNGTION WESTOES MOINES c PAY TO THE _ ORDER OF City of Ames $200,000.00 E Two Hundred Thousand & NO/100------------------------------ Z LL TWO NATURES REQUIRED OV $1,000.00 it REMITTERFulfilment of LOC 4 0411 between Pinnacle Properites and the i ' roes AUT RI Np E s�l.af Rki SrFIRST NATIONAL. BANK tqq W 1 AMES • ANKENY • JOHNSTON NFL VALLEY JUNCTION I;sS hR9PIKAgust 8, 2016 Irrevocable Letter of Credit No. 0411 RE: Outlot R, South Fork Subdivision First Addition, Ames, Iowa City of Ames 515 Clark Ames, IA 50010 RE: Pinnacle Properties of Ames, L.C. 4114 Cochrane Parkway Ames, Iowa 50014 Gentlemen, We hereby establish our Irrevocable Letter of Credit No.0411 in favor of: City of Ames 515 Clark Ames, IA 50010 For the Account of: Pinnacle Properties of Ames, L.C. 4114 Cochrane Parkway Ames, Iowa 50014 In the amount of$200,000.00 U.S. Dollars. Irrevocable Letter of Credit No. 0411 will expire on August 7, 2017. Drafts for payment must be accompanied by the following: 1. Copies of all invoices, which have remained unpaid for 60 days from invoice date. 2. Beneficiary's signed statement indicating that the invoices are unpaid. 3. Copy of this irrevocable Letter of Credit No. 0411. Partial Payments are permitted. We hereby agree that drafts drawn under and in compliance with the terms of this Letter of Credit will be duly honored. This Letter of Credit is subject to the Uniform Customs and Practice of Documentary Credit (1993)Revision, International Chamber of Commerce Publication#400. Sincerely, First National Bank of Ames By: oel A. Thilge reside AMES OFFICE ANKENY OFFICE JOHNSTON OFFICE VALLEY JUNCTION OFFICE WEST DES MOINES OFFICE 405 5th Street 1205 N.Ankeny Blvd. 8460 Birchwood Court,Suite 1100 301 5th Street 5625 Mills Civic Parkway,Suite 100 Ames,IA 50010 Ankeny,IA 50023 Johnston,IA 50131 West Des Moines,IA 50265 West Des Moines,IA 50266 515-232-5561 515-965-3969 515-440-7180 515-274-3483 515-225-2641 Fax 515-232-5778 Fax 515-965-0125 Fax 515-331-2996 Fax 515-274-0173 Fax 515-225-8718 www. FNBames . com www. FNBdm . com Member FDIC LENDER Re: Fw: Re: Fw: LOC's for Pinnacle 08/09/2017 12:48 PM Diane R Voss to: John C Joiner Zi Bcc: Diane R Voss John: g g he will bring the ? This L not something that would go to Council to release; it is Joel Thilges is requesting a letter releasing the LOC and acknowled in the $200,000 check to me). Do you want to write that? merely an exchange of one type of security for another. Please advise. Thanks! Diane Voss, City Clerk/Records Manager P. O. Box 811 Ames, Iowa 50010 (515) 239-5105 Good morning, Keith! If you'd like to bring Diane... 08/08/2017 07:03:42 AM John C Joiner From: John C Joiner/COA rpail.com> Cc: Diane RVoss/CO To: "Keith Arneson" <A@ COA, Dam ion Pregitzer/COA@COA Date: 08/08/2017 07:03 AM Subject: Fw: Re: Fw:LOC's for Pinnacle Good morning, Keith! like to bring Diane the $200k you mentioned, I'm good with releasing the LOC noted If you'd below. Thanks! John W.,.. John C. Joiner, P.E. Director of Public Works 515.239.5165 desk 1 515.239.5404 fuz k Avenue Ames, IA 50010 Iloiner@city amesJa.usI City Hall, 51piel- Quality Programs" Exceptional Service " www.CityofAmes.org I " Caring Peo -----Forwarded by John C Joiner/COA on 08/08/2017 07:01AM ----- To: John C Joiner/COA@COA From: Diane R Voss/COA 8/9/2017 Page 1 of 2 RE: Fw: Re: Fw: LOC's for Pinnacle Joel A. Thilges to: Diane R Voss 08/08/2017 11:26 AM Cc: Keith Arneson, John C Joiner Hide Details From: "Joel A. Thilges" <Joel.Thilges@FNB247.com> To: Diane R Voss <DVoss@city.ames.ia.us> Cc: Keith Arneson<keithdarneson@gmail.com>, John C Joiner<JJoiner@city.ames.ia.us> Diane, I will issue the City of Ames a Check in the Amount of$200,000.00 to fulfill the obligations of Letter of Credit #0411. In turn, I will need a release of the Letter of Credit#0411 indicating that the obligation has been met. Just let me know when you are ready to complete the transaction and I will bring the Check over. Joel A. Thilges, Senior Vice President, Commercial Lending First National Bank 405 Sth Street, Ames, la 50010 Office—515.663.3025 Cell—515.291.0729 Joel.Thilges@FNB247.com NMLS ID#609252 What Banking Should Be. BANK ' 'TNATIONAL From: Keith Arneson [mailto:keithdarneson@gmail.com] Sent: Tuesday, August 08, 2017 7:11 AM To: John C Joiner Cc: Joel A. Thilges; Diane R Voss Subject: Re: Fw: Re: Fw: LOC's for Pinnacle This message originated from outside your organization Thank you! I'll have Joel Thilges with First National get the paperwork to Diane. On Tue, Aug 8, 2017 at 7:03 AM, John C Joiner<JJoinerna,city.ames.ia.us>wrote: file:///C:/Users/diane.voss/AppData/Local/Temp/notesC7AO56/—webO599.htm 8/9/2017 Page 2 of 2 Good morning, Keith! If you'd like to bring Diane the $200k you mentioned, I'm good with releasing the LOC noted below. Thanks! John John C. Joiner, P.E. Director oj'Public Works 515.239.5165 desk I 515.239.5404 fux jjoiner@city.ames.ia.us t City Hall, 515 Clark Avenue I Ames, IA 50010 www.CityofAmes.org I - Caring People - Quality Programs - Exceptional Service -----Forwarded by John C Joiner/COA on 08/08/2017 07:01AM ----- To: John C Joiner/COA@COA From: Diane R Voss/COA Date: 08/07/2017 05:35PM Subject: Re: Fw: LOC's for Pinnacle LOC No. 0411 in the amount of $200,000 for Outlot R, South Fork Subdivision, 1st Addition (Lincoln Way and Franklin). Diane Voss, City Clerk/Records Manager P. 0. Box 811 Ames, Iowa 50010 (515) 239-5105 file:///C:/Users/diane.voss/AppData/Local/Temp/notesC7AO56/-webO599.litm 8/9/2017 f 2 SrFIRST NATIONAL BANK AMES • ANKENY • JOHNSTON VALLEY JUNCTION • WEST DES MOINES Issue Date: August 7, 2015 Irrevocable Letter of Credit No. 0411 RE: Outlot R, South Fork Subdivision First Addition, Ames, Iowa City of Ames 515 Clark Ames, IA 50010 RE: Pinnacle Properties of Ames, L.C. 4114 Cochrane Parkway Ames, Iowa 50014 Gentlemen, We hereby establish our Irrevocable Letter of Credit No.0411 in favor of: City of Ames 515 Clark Ames,IA 50010 For the Account of: Pinnacle Properties of Ames,L.C. 4114 Cochrane Parkway Ames, Iowa 50014 In the amount of$200,000.00 U.S. Dollars. Irrevocable Letter of Credit No. 0411 will expire on August 7, 2016. Drafts for payment must be accompanied by the following: 1. Copies of all invoices,which have remained unpaid for 60 days from invoice date. 2. Beneficiary's signed statement indicating that the invoices are unpaid. 3. Copy of this irrevocable Letter of Credit No. 0411. Partial Payments are permitted. We hereby agree that drafts drawn under and in compliance with the terms of this Letter of Credit will be duly honored. This Letter of Credit is subject to the Uniform Customs and Practice of Documentary Credit (1993)Revision, International Chamber of Commerce Publication #400. Sincerely, First National Bank of Ames 50 AMES OF r ANk Y OFFIL'E JOHNSTON OFFICE VALLEY JUNCTION OFFICE WEST DES MOINES OFFICE 405 5th Street 1205 N.Ankeny Blvd. 8460 Birchwood Court,Suite 1100 301 5th Street 5625 Mills Civic Parkway,Suite 100 Ames,IA 50010 Ankeny,IA 50023 Johnston,IA 50131 West Des Moines,IA 50265 West Des Moines,IA 50266 515-232-5561 515-965-3969 515-440-7180 515-274-3483 515-225-2641 Fax 515-232-5778 Fax 515-965-0125 Fax 515-331-2996 Fax 515-274-0173 Fax 515-225-8718 www . FNBames . com www . FNBdm . com Member FDIC LE,oEfl En Re: LOC: South Fork Subdivision, 1 st Addition (Outlot R) Brett Stupp to: Diane R Voss 08/10/2015 01:09 PM Cc: Damion Pregitzer,Justin Clausen Hi Diane - South Fork 1st Addition (Outlot R)will remain unchanged as the intersection improvements @ Lincoln Way and S. Franklin have not been completed at this time. Respectfully, Brett S Brett M. Stupp Construction Supervisor 515.239.5276 main 1515.203.6118 cell bstupp@city.ames.ia.us I City Hall, 515 Clark Avenue I Ames, IA 50010 www.CityofAmes.org I "Caring People_ Quality Programs " Exceptional Service Diane R Voss First National Bank would like to know asap if th... 08/07/2015 05:12:19 PM From: Diane R Voss/COA To: Brett Stupp/COA@COA Date: 08/07/2015 05:12 PM Subject: LOC: South Fork Subdivision, 1st Addition (Outlot R)AND LOC: Brookview Place West,4th Addition First National Bank would like to know asap if these improvements have been completed. Will you have time to check on Monday, August 10? (Brookview Place West, 4th, was originally split between Hunziker and Furman.) Thanks! Diane Voss, City Clerk/Records Manager P. O. Box 811 Ames, Iowa 50010 (515) 239-5105 RESOLUTION NO. 14-663 RESOLUTION APPROVING REDUCTION IN LETTER OF CREDIT FOR OUTLOT R, SOUTH FORK SUBDIVISION MEMORANDUM OF UNDERSTANDING (LINCOLN WAY/FRANKLIN AVENUE INTERSECTION) FOR THE CITY OF AMES,IOWA WHEREAS,the 2001 Memorandum of Agreement(or"Developer's Agreement")for South Fork Subdivision requires the developer to pay 50% of the costs of construction only for the installation of left turn lane improvements at the intersection of Lincoln Way and Franklin Avenue and for a traffic signal with left turn lane improvements at Lincoln Way and Dotson Drive; and, WHEREAS,the City agreed to pay for the remaining 50%of these costs, as well as for any engineering design and right-of-way costs needed to complete these projects; and, WHEREAS,the agreement stipulates that these improvements will not be constructed until such time as the intersection has fallen below a Level of Service"C"or a final plat is sought for a part of the site east of Dotson Drive and not abutting Dotson Drive, whichever occurs first; and, WHEREAS, the developer, Pinnacle Properties, has recently approached the City with the desire to develop the eastern portions of South Fork Subdivision, and, therefore, has triggered the requirement that the Franklin and Lincoln way intersection improvements be constructed; and, WHEREAS,the developer is required to provide security in an amount equal to 50%of the estimated costs of construction only,based upon an engineer's estimate of probable cost,and the most recent construction cost estimate from December 2014 is $900,000; and, WHEREAS, City staff submitted an application for an Iowa Department of Transportation (IDOT)Traffic Safety Improvement Program(TSIP)grant in the amount of$500,000,and has been notified by the IDOT that the City was awarded the full amount; and, WHEREAS, therefore, after applying the value of the grant, $400,000 remains to be split equally between the developer and the City ($200,000 each); and, WHEREAS,on December 11,2012,City Council replaced the financial security on what was Outlot U and Outlot R,from a mortgage on the properties,to a letter of credit(LOC)in the amount of$175,100and $280,000, respectively; and, WHEREAS, the total security for the Franklin intersection improvements currently equals $460,100, and based on the most recent estimate and receipt of the IDOT safety grant,the LOC for Outlot R should be reduced to reflect the revised estimated developer's share of$200,000. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa, that reduction in the Letter of Credit in the amount of$280,000 to$200,000 for Outlot R,South Fork Subdivision,for the Lincoln Way/Franklin Avenue Intersection improvements is hereby approved. ADOPTED THIS 16" day of December, 2014. Diane R. Voss, City Clerk Ann H. Campbell, Mayor Introduced by: Betcher Seconded by: Goodman Voting aye: Betcher, Gartin, Goodman, Nelson, Orazem Voting nay: None Absent: Corrieri Resolution declared adopted and signed by the Mayor this 16' day of December, 2014. ITEM # 25 DATE: 12-16-14 COUNCIL ACTION FORM SUBJECT: SOUTH FORK SUBDIVISION — AMENDMENT TO MEMORANDUM OF AGREEMENT BACKGROUND: The 2001 Memorandum of Agreement (or "Developer's Agreement") for South Fork Subdivision requires the developer to pay 50% of the costs of construction only for the installation of left turn lane improvements at the intersection of Lincoln Way and Franklin Avenue and for a traffic signal with left turn lane improvements at Lincoln Way and Dotson Drive. The City agreed to pay for the remaining 50% of these costs, as well as for any engineering design and right-of-way costs needed to complete these projects. The agreement stipulates that these improvements will not be constructed until such time as the intersection has fallen below a Level of Service "C" or a final plat is sought for a part of the site east of Dotson Drive and not abutting Dotson Drive, whichever occurs first. The developer, Pinnacle Properties, has recently approached the City with the desire to develop the eastern portions of South Fork Subdivision, and therefore has triggered the requirement that the Franklin and Lincoln way intersection improvements be constructed. The developer is required to provide security in an amount equal to 50% of the estimated costs of construction only, based upon an engineer's estimate of probable cost. The most recent construction cost estimate from December 2014 is $900,000. City staff submitted an application for an Iowa Department of Transportation (DOT) Traffic Safety Improvement Program (TSIP) grant in the amount of $500,000, and has been notified by the Iowa DOT that the City was awarded the full amount. Therefore, after applying the value of the grant, $400,000 remains to be split equally between the developer and the City ($200,000 each). This is the same arrangement that was used for the first required intersection improvement at Dotson Drive and Lincoln Way, which were accepted as complete by the City Council in August 2014. On December 11, 2012, City Council replaced the financial security on what was Outlot U and Outlot R, from a mortgage on the properties, to two letters of credit (LOC), one in the amount of $175,100 and the other in the amount of $280,000. Therefore, the total security for the Franklin intersections improvements currently equals $460,100. Based on the most recent estimate and receipt of the IDOT safety grant, the two LOCs should be released or reduced to reflect the revised estimated developer's share of $200,000. 1 r ALTERNATIVES: 1. Approve release of the letter of credit for Outlot U in the amount of $175,100, and reduction of the letter of credit for Outlot R from $280,000 to a new total amount of $200,000. 2. Maintain the current security in the form of two letters of credit totaling $460,100. MANAGER'S RECOMMENDED ACTION: This new letter of credit will continue to secure the required offsite intersection improvements at Franklin and Lincoln Way. The project is anticipated to move forward in calendar year 2015; and once complete, will be the final required offsite public improvement of the South Fork Subdivision. Therefore, it is the recommendation of the City Manager that the City Council adopt Alternative No. 1, thereby approving release of the letter of credit for Outlot U in the amount of $175,100, and reducing the letter of credit for Outlot R from $280,000 to a new total amount of $200,000. 2 bT FIRST NATIONAL BANK AMES •ANKENY Issue Date: August 7, 2014(Revised December 18,2014) Irrevocable Letter of Credit No. 0411 RE: Outlot R, South Fork Subdivision First Addition, Ames, Iowa City of Ames 515 Clark Ames, IA 50010 RE: Pinnacle Properties of Ames, L.C. 4114 Cochrane Parkway Ames, Iowa 50014 Gentlemen, We hereby establish our Irrevocable Letter of Credit No.0411 in favor of: City of Ames 515 Clark Ames, IA 50010 For the Account of: Pinnacle Properties of Ames, L.C. 4114 Cochrane Parkway Ames, Iowa 50014 In the amount of$2$0,900.00 $200,000.00 U.S. Dollars. Irrevocable Letter of Credit No. 0411 will expire on August 7, 2015. Drafts for payment must be accompanied by the following: 1. Copies of all invoices,which have remained unpaid for 60 days from invoice date. 2. Beneficiary's signed statement indicating that the invoices are unpaid. 3. Copy of this irrevocable Letter of Credit No. 0411. Partial Payments are permitted. We hereby agree that drafts drawn under and in compliance with the terms of this Letter of Credit will be duly honored. This Letter of Credit is subject to the Uniform Customs and Practice of Documentary Credit (1993) Revision, International Chamber of Commerce Publication #400. Sincerely, First National Bank of Ames By: � IV ftff Oltges, b*&9ITY OFFICE NORTH GRAND OFFICE ANKENY OFFICE 405 5th Street 2330 Lincoln Way 2406 Grand Avenue 1205 N.Ankeny Blvd. Ames, IA 50010 Ames, IA 50014 Ames, IA 50010 Ankeny, IA 50023 515-232-5561 515-292-6157 515-233-2400 515-965-3969 Fax 515-232-5778 Fax 515-965-0125 Member FDIC www . FNBames . com tQ STFIRST NATIONAL BANK AMES •ANKENY Issue Date: August 7, 2014 Irrevocable Letter of Credit No. 0411 RE: Outlot R, South Fork Subdivision First Addition, Ames, Iowa City of Ames 515 Clark Ames, IA 50010 RE: Pinnacle Properties of Ames, L.C. 4114 Cochrane Parkway Ames, Iowa 50014 Gentlemen, We hereby establish our Irrevocable Letter of Credit No.0411 in favor of: City of Ames 515 Clark Ames, IA 50010 For the Account of: Pinnacle Properties of Ames, L.C. 4114 Cochrane Parkway Ames, Iowa 50014 In the amount of$280,000.00 U.S. Dollars. Irrevocable Letter of Credit No. 0411 will expire on August 7, 2015. Drafts for payment must be accompanied by the following: 1. Copies of all invoices,which have remained unpaid for 60 days from invoice date. 2. Beneficiary's signed statement indicating that the invoices are unpaid. 3. Copy of this irrevocable Letter of Credit No. 0411. Partial Payments are permitted. We hereby agree that drafts drawn under and in compliance with the terms of this Letter of Credit will be duly honored. This Letter of Credit is subject to the Uniform Customs and Practice of Documentary Credit (1993) Revision, International Chamber of Commerce Publication#400. Sincerely, First National Bank of Ames By: oel A. Thilges, Vic resident MAIN OFFICE UNIVERSITY OFFICE NORTH GRAND OFFICE ANKENY OFFICE 405 5th Street 2330 Lincoln Way 2406 Grand Avenue 1205 N.Ankeny Blvd. Ames, IA 50010 Ames, IA 50014 Ames, IA 50010 Ankeny, IA 50023 515-232-5561 515-292-6157 515-233-2400 515-965-3969 Fax 515-232-5778 Fax 515-965-0125 Member FDIC w w w . F N B a m e s c o m LE,NDER ST FIRST NATIONAL BANK AMES •ANKENY Issue Date: August 7, 2014 Irrevocable Letter of Credit No. 0411 RE: Outlot R, South Fork Subdivision First Addition, Ames, Iowa City of Ames 515 Clark Ames, IA 50010 RE: Pinnacle Properties of Ames,L.C. 4114 Cochrane Parkway Ames, Iowa 50014 Gentlemen, We hereby establish our Irrevocable Letter of Credit No.0411 in favor of: City of Ames 515 Clark Ames, IA 50010 For the Account o£ Pinnacle Properties of Ames, L.C. 4114 Cochrane Parkway Ames, Iowa 50014 In the amount of$280,000.00 U.S. Dollars. Irrevocable Letter of Credit No. 0411 will expire on August 7, 2014. Drafts for payment must be accompanied by the following: 1. Copies of all invoices,which have remained unpaid for 60 days from invoice date. 2. Beneficiary's signed statement indicating that the invoices are unpaid. 3. Copy of this irrevocable Letter of Credit No. 0411. Partial Payments are permitted. We hereby agree that drafts dram under and in compliance with the terms of this Letter of Credit will be duly honored. This Letter of Credit is subject to the Uniform Customs and Practice of Documentary Credit (1993)Revision, International Chamber of Commerce Publication#400. Sincerely, First National Bank of Ames APPR VED AS,TO FORM By �vL By� ` K. PARKS oel A. Thilge ' e President TY ATTORNEY MAIN OFFICE UNIVERSITY OFFICE NORTH GRAND OFFICE ANKENY OFFICE 405 5th Street 2330 Lincoln Way 2406 Grand Avenue 1205 N.Ankeny Blvd. Ames, IA 50010 Ames, IA 50014 Ames,IA 50010 Ankeny, IA 50023 515-232-5561 515-292-6157 515-233-2400 515-965-3969 Fax 515-232-5778 Fax 515-965-0125 Member FDIC w w w . F N B a m e s . c o m LE RESOLUTION NO. 13-355 RESOLUTION ACCEPTING LETTER OF CREDIT FOR LINCOLN WAY AND FRANKLIN AVENUE INTERSECTION IMPROVEMENTS (FOR DEVELOPMENT IN SOUTH FORK SUBDIVISION, 1ST ADDITION) FOR THE CITY OF AMES,IOWA WHEREAS, the 2001 Memorandum of Agreement for South Fork Subdivision contains stipulations regarding future left turn lane improvements at the intersection of Lincoln Way and Franklin Avenue that directly relate to further development of outlots; and, WHEREAS, the developer is required to guarantee its financial obligation by providing security in an amount equal to 50%of the estimated costs of construction, as specified by the City; and, . WHEREAS, the obligation for Outlot R, l" Addition, (3908 Marigold Drive) was secured through a mortgage to the City of Ames on the land in Outlot R,which had an approximate net value of$280,000; and, WHEREAS, the City of Ames has released the mortgage on property located at 3908 Marigold Drive (Outlot R), and a letter of credit has been filed by Pinnacle Properties Ames, LLC, for the Lincoln Way and Franklin Avenue intersection improvements. NOW, THEREFORE, BE IT RESOLVED,by the City Council of the City of Ames,Iowa, that the Letter of Credit in the amount of$280,000 from Pinnacle Properties Ames,LLC,as security for the Lincoln Way and Franklin Avenue intersection improvements is hereby accepted. ADOPTED THIS 6`h day of August, 2013. lia& Diane R. Voss, City Clerk Ann H. Campbell, Mayor Introduced by: Davis Seconded by: Szopinski Voting aye: Davis, Goodman, Larson, Orazem, Szopinski, Wacha Voting nay: None Absent: None Resolution declared adopted and signed by the Mayor this 6"day of August, 2013.