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Home My WebLink AboutLetter of CreditMayor Tammy de Weerd City Council Members: Keith Bird Joe Borton Charles Rountree David Zaremba March 3, 2009 Attn: Steve Strong Wells Fargo Bank Real Estate Group 299 South Main Street, 6t" Floor Salt Lake City, UT 84111 Re: Release of Payment Bond Loan # 104417 (Gardner-Ahlquist Sub. #1) for Meridian Medical Plaza, LLC After a site inspection and review of the above referenced project by the Planning ined to release the Bond in the original amount of $403,735.00 to you for the completi Department and the Public Works Department, it has been determ on of landscaping. Please use this letter as authorization for Wells Fargo Bank to release the Payment Bond Loan No. 104417. If you have any questions, please contact me at (208) 888-4433. Thank you for our cooperation. y Sincerely, Jaycee L. Holman City Clerk Enclosure COMPLETED MAR 0 3 2009 BY: JH Real Estate Group MAC U1228-063 299 South Main Street,6th Floor Salt Lake City, UT 84111 801 246-1547 801 246-1540 Fax September 16, 2008 City of Meridian, Public Works Department 660 E. Watertower Street, Suite 200 Meridian, Idaho 83642 Principal: Meridian Medical Plaza, LLC, an Idaho limited liability company Subdivision: Gardner-Ahlquist Gateway Subdivision No.l & 2 Bond Obligee: City of Meridian, Public Works Department Loan: Wells Fargo Bank, National Association, Loan # 104417 Payment Bond (Original Amount of Set Aside Letter): $ 403,735.00 Public Works Department: This letter will serve to reduce and extend that certain Set Aside Letter dated November 12, 2007, as amended April 25, 2008 and June 13, 2008("Set Aside Letter") issued by Wells Fargo Bank, N.A. ("Lender") to the City of Meridian, Public Works Department ("Bond Obligee") in the original amount of $403,735.00 ("Payment Bond") for the benefit of Meridian Medical Plaza, LLC, an Idaho limited liability company ("Principal"). Principal has advised Lender that Bond Obligee has agreed to a reduction in the amount of the Set Aside Letter. Upon Lender's receipt a copy of this letter at the above address, signed by Bond Obligee where indicated below (acknowledging its consent to the reduction) this amendment shall be considered as part of the Set Aside Letter and shall serve to amend the Set Aside Letter as follows: The amount of the Set Aside Letter shall be decreased by: $304,600.00 The amount of the Set Aside Letter shall now total: $99,135.00 Our liability hereunder has been extended from July 15, 2008 to October 15, 2008. All capitalized terms herein, unless otherwise defined, shall have the same meanings as the terms used in the Set Aside Letter. Except as expressly stated herein, all other terms and conditions of the Set Aside Letter will remain unchanged and in full force and effect. Sincerely Consent and Agreement of Bond Obligee The undersigned hereby consents and agrees to the Steve Strong, foregoing: Vice President City of Meridian, Public Works Department By: Name/Title: CONSENT AND AGREEMENT OF PRINCIPAL To induce WELLS FARGO BANK, NATIONAL ASSOCIATION ("Lender"), to issue the foregoing Set Aside Letter amendment, Principal hereby represents and warrants that the sum of $99,135.00, is sufficient to pay for the cost of constructing and completing any remaining Bonded Work on the Property as proposed in Exhibit B of the Set Aside Letter. Principal hereby irrevocably and unconditionally authorizes Lender to disburse to the Bond Obligee for the credit and account of Principal any remaining balance of the aforemen- tioned Loan funds which has been allocated for said Bonded Work pursuant to the loan documents for the Loan described above, upon the demand of the Bond Obligee in accordance with the foregoing Set Aside Letter. Any disbursements or payments which Lender makes or may be obligated to make pursuant to the foregoing Set Aside Letter, whether made directly to the Bond Obligee or to others for completion of all or part of the Bonded Work, shall be added to the outstanding principal balance of the promissory note secured by deed of trust ("Note") described in said loan documents; shall bear interest at the rate of interest specified in the Note, and shall have the security afforded disbursements under the Note and said loan documents. Principal hereby indemnifies and holds Lender harmless from any claim, demand, cause of action, damage, loss or liability, including court costs and attorneys' fees, which Lender may suffer or incur as a direct or indirect con- sequence of its issuance of or compliance with the foregoing Set Aside Letter and Principal shall pay any indebtedness arising under this indemnity to Lender immediately upon demand of Lender. Lender shall have no obligation to release any collateral or security described in said loan documents unless and until Lender has received a full and final written release in form and content acceptable to Lender, of all liability under the foregoing Set Aside Letter. Principal's duty to indemnify Lender, as set forth above, shall survive the release and cancellation of the Note and the full or partial release and reconveyance of any other security instruments described in said loan documents. Dated as of September 16, 2008 "Principal" Meridian Medical Plaza, LLC, an Idaho limited liability company By: Ahlquist Devleopment, LLC, an Idaho limited liability company J. Thomas Ahlquist, M. ., Sole Member Real Estate Group MAC U1228-063 299 South Main Street,6th Floor Salt Lake City, UT 84111 801 246-1547 801 246-1540 Fax April 25, 2008 City of Meridian Public Works Department 660 E. Watertower Street, Suite 200 Meridian, Idaho 83642 Principal: Meridian Medical Plaza, LLC, an Idaho limited liability company Subdivision Description: Gardner-Ahlquist Gateway Subdivision No.l & 2 Bond Obligee: City of Meridian, Public Works Department Loan: Wells Fargo Bank, National Association, Loan 4 104417 Payment Bond: $ 403,735.00 Public Works Department: This letter will extend that certain Set Aside Letter dated November 12, 2007 ("Set Aside Letter") executed by Wells Fargo Bank, N.A.("Lender") for the benefit of Meridian Medical Plaza, LLC, an Idaho limited liability company ("Borrower") for the subject Loan. Our liability hereunder has been extended from April 30, 2008 to June 15, 2008. All capitalized terms herein, unless otherwise defined, shall have the same meanings as the terms used in the Set Aside Letter. Except as expressly stated herein, all other terms and conditions of the Set Aside Letter will remain unchanged and in full force and effect. Sincerely T-917-- Steve Strong, Vice President SURETY SPREADSHEET Project Name: Gardner-Ahlquist 1&2 (lands) Date Compiled: 1/10/2008 Letter of Credit/Bond No.: 2/2/8429 Issued By: Expiration Date: .M,.,...,..,. Check No ttem Unfinished Partial Sure Party Responsible Date Signed Off/ Sanitary Sewer -internal $0.00 For Sin -Off Person Comments Sanitary Sewer-offsite - --- $0.00 Public Works Water -internal $0.0000 $0.00 Water- Offsite $0.00 $0.00 Public Works -- _ — Street Lights $0.00 $0.00 Public Works --_ _ Landscaping $367,031.01 $0.00 $36,703.10 $0.00 Building — - - - - - Pathways $0.00 $403,734.11 - -- PZ 2/9/09 BP REDUCE TO 99135.00 Fencing $0.00 PZ - Tiling $0.00 $0.00 PZ Pressurized Irrigation $0.00 $0.00 PZ Gravity Irrigation _—_ $0.00 $0.00 NMID - Other: $0.00 $0.00 NMID - - - $0.00 $0.00 PW - - - - - - $0.00 0.00 --- - -- - $0.00 $0.00 ----- ---- TOTAL: $0.00 $367,031.01 $36,703.10 $0.00 $403,734.11 --- -- Authorized reduction 304599.11 as of 8/26/08 kg 2/9/09 READY TO RELEASE iN BALANCE TO REMAIN: $99,135.00 SURETY SPREADSHEET Project Name: Gardner-Ahlquist 1&2 (lands) Date Compiled: 1/10/2008 Letter of Credit/Bond No.: 2/2/8429 Issued By: Expiration Date: 48 g Check No.: Item 6ae Sewer -internal Sewer-offsite ternalffsitehtsing Pressurized Irrigation Gravity Irrigation Other: Unfinished Partial $0.00 i$000 $367,031.01 $0.00 $0.00 $0.00 $0.00 'AL: $367,031.01 $36,703.1( Authorized reductic Party Responsible Date Signed Off/ Sure For Sign -Off Person $0.00 Public Works $0.00 - $0.00 Public Works $0.00 Public Works $0.00 Building $403,734.11 PZ $0.00 PZ $0.00 PZ $0.00 IRE PZ$0.00 NMID$0.00 NMID$000 PW$0.00 $0.00 F - 3,734.11 304599.11 as of 8/26/08 kg BALANCE TO REMAIN: $99,135.00 TO 99135.00 SURETY SPREADSHEET Project Name: Gardner-Ahlquist 1&2 (lands) Date Compiled: 1/10/2008 Letter of Credit/Bond No.: 2/2/8429 Issued By: Expiration Date: 43012008 6/15/2008 Check No.: Item Unfinished Partial Surety Party Responsible Date Signed Off/ Sanitary Sewer -internal $0.00 Off For Sin - Person Comment_. Sanitary Sewer offsite $0.00 Public Works $0.00 - Water -internal -- $0.00 $0.00 Public Works � -- Water- Offsite $0.00 - Street Lights $0.00 Public Works - — - Landscaping $0.00 $367,031.01 $36,703.10 $0.00 $403,734.11 Building - Pathways $0.00 $0.00 pZ- - - - - PZ Fencing $0.00 $0.00 pZ - - Tiling Pressurized Irrigation $0.00 $0.00 - i - pZ - Gravity Irrigation $0.00 $0.00 NMID $0.00 $0.00 — - NMID Other: - - - $0.00 $0.00 PW - -- _ $0.00 $0.00 - - $0.00 $0.00 $0.00 $0.00 TOTAL: $367,031.01 $36,703.10 $403,734.11 Authorized reduction BALANCE TO REMAIN: $403,734.11 November 12, 2007 City of Meridian Public Works Department 660 E. Watertower Street, Suite 200 Meridian, Idaho 83642 PRINCIPAL: Meridian Medical Plaza, LLC, an Idaho limited liability company SUBDIVISION DESCRIPTION: Gardner-Ahlquist Gateway Subdivision No. 1 & 2 BOND OBLIGEE(S): City of Meridian, Public Works Department LOAN: Wells Fargo Bank, National Association, 104417 PAYMENT BOND: $ 403,735.00 "Property" described on Exhibit "A" attached hereto. SET ASIDE LETTER Gentlemen: Meridian Medical Plaza, LLC, an Idaho limited liability company ("Principal") has advised us that it has entered or is about to enter into an agreement with the Bond Obligee(s) to construct and pay for that certain work on the Property as described on Exhibit B ("Bonded Work"). We have been requested to make or have made a Loan to the Principal, one of the purposes of which will be to finance the construction of said Bonded Work. In reliance upon the Principal's representation of the estimated cost of said Bonded Work, and as an inducement for the execution of the bonds, we will allocate in the disbursement budget for the Loan the sum of $403,735.00 for said Bonded Work. We will disburse said allocated funds from time to time to or for the account of Principal for said Bonded Work in accordance with our loan documents. We make no representation as to the use of said funds after such disbursement and no representation as to the actual performance of the Bonded Work or its quality. This letter shall not make you a party or third -party beneficiary to our loan documents. If the Principal fails to complete or pay for said Bonded Work as required by the Bond Obligee and the Bond Obligee or other claimant demands performance of Principal's obligations pursuant to the bond or bonds, we agree to disburse to you the undisbursed remaining balance of the aforementioned Loan funds that have been allocated for said Bonded Work subject only to (a) federal or state statutory requirements to withhold said funds, (b) if the Principal or the Subject Property be subject to the jurisdiction of a Bankruptcy Court, an Order of that Court directing such disbursement; (c) receipt by us of your written demand accompanied by a COPY of the written demand upon you from the Bond Obligee or other claimant; and (d) proof of completion of such Bonded Work. Meridian Medical Plaza LLC SETASIDE.ID M (09/94) Page 1 11111111111111111111111111111 REGO0152 LOAN NO. 104417 8429-2-2-DEL This is an irrevocable commitment of funds which is not subject to recall, or offset, but is expressly conditioned upon our making and closing of the Loan, your issuance of the bond or bonds, and the other terms and conditions set forth herein. Our liability hereunder shall expire upon the earlier of (i) completion of the Bonded Work or (ii) termination of the Loan or (iii) the loan maturity date of April 30, 2008. P Very truly yours, Wells Fargo Bank, AlaAonal Association By: Steve Strong Its: Vice President Meridian Medical Plaza LLC SETASIDE.ID M (09/94) Page 2 LOAN NO, 104417 8429-2-2-DEL CONSENT AND AGREEMENT OF PRINCIPAL To induce Wells Fargo Bank, National Association ("Lender"), to issue the foregoing Set Aside Letter, Principal hereby represents and warrants that the sum of $403,735.00 is sufficient to pay for the cost of constructing and completing the Bonded Work on the Property, in accordance with attached Exhibit B. Principal hereby irrevocably and unconditionally authorizes Lender to disburse to the Surety for the credit and account of Principal any remaining balance of the aforementioned Loan funds which has been allocated for said Bonded Work pursuant to the loan documents for the Loan described above, upon the demand of the Surety in accordance with the foregoing Set Aside Letter. Any disbursements or payments which Lender makes or may be obligated to make pursuant to the foregoing Set Aside Letter, whether made directly to the Surety or to others for completion of all or part of the Bonded Work, shall be added to the outstanding principal balance of the promissory note secured by deed of trust ("Note") described in said loan documents; shall bear interest at the rate of interest specified in the Note, and shall have the security afforded disbursements under the Note and said loan documents. Principal hereby indemnifies and holds Lender harmless from any claim, demand, cause of action, damage, loss or liability, including court costs and attorney's fees, which Lender may suffer or incur as a direct or indirect consequence of its issuance of or compliance with the foregoing Set Aside Letter and Principal shall pay any indebtedness arising under this indemnity to Lender immediately upon demand of Lender. Lender shall have no obligation to release any collateral or security described in said loan documents unless and until Lender has received a full and final written release in form and content acceptable to Lender, of all liability under the foregoing Set Aside Letter. Principal's duty to indemnify Lender, as set forth above, shall survive the release and cancellation of the Note and the full or partial release and reconveyance of any other security instruments described in said loan documents. Dated as of: November 12, 2007 "PRINCIPAL" Meridian Medical Plaza, LLC, an Idaho limited liability company By: KC Gardner Company, L.C., a Utah limited lia company, M ember/Manager By: Kem C. Gardner, Manager By: Ahlquist Development, LLC, an Idaho limited company, Member/Manager By: J. Thomas Ahlquist, M.D., Sole Member Meridian Medical Pla— za LLC SETASIDE.ID M (09/94) Page 3 LOAN NO. 104417 8429-2-2-DEL CONSENT AND AGREEMENT OF PRINCIPAL To induce Wells Fargo Bank, National Association ("Lender"), to issue the foregoing Principal hereby represents and warrants that the sum of $403,735.00 is sufficient to constructing and completing 9 ng Set Aside Letter, P g the Bonded Work on the Property, in accordance with attached Ex i ' Principal hereby irrevocably and unconditionally authorizes Lender to disburse to the Surety for the cost of account of Principal any remaining balance of the aforementioned Loan funds which has b said Bonded Work pursuant to the loan documents for the Loan described above, upon ety for the credit and Surety in accordance with the foregoing Set Aside Letter. Any disbursements or abeen allocated for makes or may be obligated to make pursuant to the foregoing Set Aside Letter whether made the demand of the Surety or to others for completion 'of all or part of the Bonded Work, shall be add payments which Lender principal balance of the promissorymade directly to the shall bear interest at the rate of interest specified in the Note, and shall have ed to the outstanding note secured by deed of trust ("Note") described in said loan documents; disbursements under the Note and said loan documents. Principal hereby ds Lender harmless from any claim, demand, Ve the security afforded attorneys fees, which Lender may cause of action, damage, loss or liability, en including court nifies and Iccosts and compliance with the foregoing Set Aside Letter and Principal shall pay any indebtedness Y suffer or incur as a direct or indirect consequence of its issuance of or indemnity to Lender immediately upon demand of Lender. Lender shall have no obligation collateral or security described in said loan documents unless and until Lender has received arising under this written release in form and content acceptable to Lender, of all liability under the foregoing to release any Principal's duty to indemnify Lender, as set forth above, shall survive the release and cancellation a full and final and the full or partial release and reconveyance of any other security Set Aside Letter. documents. cellation of the Note instruments described in said loan Dated as of: November ?2, 2007 "PRINCIPAL" Meridian Medical Plaza, LLC, an Idaho limited liability company BY: KC Gardner Company, L.C., a Utah limited liability company, Member/Manager By: Kem C. Gardner, Manager BY: Ahiquist Development, LLC, an Idaho limited liability company, M ber/Manager J. Thomas quist, M.D. ole Mem er Meridian Medical Plaza LLC SETASIDE.ID M (09/94) Page 3 LOAN NO. 104417 8429-2-2-DEL EXHIBIT A DESCRIPTION OF PROPERTY Exhibit A to Set Aside Letter executed by Wells Fargo Bank, National Association, and Meridian Medical Plaza, LLC, an Idaho limited liability company "Principal", in favor of City of Meridian, Public Works Department, "Surety", dated as of November 12, 2007. All the certain real property located in the County of Ada, State of Idaho, described as follows: A Parcel of land being a portion of Montvue Park Subdivision, Book 17 at Plats and being located in the Northwest Quarter of the Northwest Quarter of Section 16, Township 3 North, Range 1 East, Boise Meridian, Ada County, Idaho and described as follows. Commencing at a brass cap monument marking the Northwest corner of the Northwest Quarter, thence along the West line of said Northwest Quarter South 00° 20'34" East a distance of 1332.78 feet and from which the leaving said West line North 89° 39'25" East a distance of 69.60 feet to Southwest corner of said Northwest Quarter bears South 00° 20'34" East a distance of 1320.23 feet, thence a 5/8 inch rebar on the East right-of-way of South Eagle Road, said rebar marking the POINT OF BEGINNING; thence along said right-of-way the following fifteen (15) courses; Along the arc of a curve to the left, of which the radius point lies North 89' 40'24" West, a radial distance of 5,799.58 feet and having a chord bearing of North 00' 00'29" West, 67.75 feet, thence Northerly along the arc, through a central angle of 00' 40'10", a distance of 67.76 feet; thence North 00' 20'34" West a distance of 556.76 feet to a 5/8 inch rebar; thence North 89' 39'26" East a distance of 100.00 feet to a 5/8 inch rebar; thence North 00' 20'34" West a distance of 222.50 feet to a 5/8 inch rebar; thence North 11 ° 41'55" East a distance of 24.56 feet to a 5/8 inch rebar; thence North 00' 20'34" West a distance of 114.34 feet to a 5/8 inch rebar; thence North 89° 39'20" East a distance of 33.37 feet to a 5/8 inch rebar; thence North 09° 27'26" East a distance of 20.00 feet to a 5/8 inch rebar; thence North 80' 32'34" West a distance of 98.33 feet to a 5/8 inch rebar; thence North 00' 20'34" West a distance of 148.90 feet to a 5/8 inch re bar on the South right-of-way of East Franklin Road; thence along said right-of-way the following five (5) courses: South 89' 18'34" East a distance of 91.98 feet to a 5/8 inch rebar; thence South 74' 23'34" East a distance of 109.19 feet to a 5/8 inch rebar; thence North 00' 20'34" West a distance of 131.95 feet to a 5/8 inch rebar; thence North 87' 46'10" East a distance of 314.61 feet to a 5/8 inch rebar; thence South 89' 19'30" East a distance of 388.83 feet to a 5/8 inch rebar; thence leaving said right-of-way South 00' 10'01" East a distance of 20.00 feet to a 5/8 inch rebar marking the Northwest corner of Touchmark Living Center Subdivision Number 1 recorded in Book 89 at Pages 10313 through 10316 records of Ada County; thence along the West boundary line of said Subdivision South 00' 10'01" East a distance of 1,051.18 feet to a 5/8 inch rebar; thence leaving said West boundary line North 89' 12'20" West a distance of 182.39 feet to a 5/8 inch rebar; thence along the arc of a curve to the right, of which the radius point lies North 89' 43'34" West, a radial distance of 64 .47 feet and having a chord bearing of South 45' 31'58" West, 91.59 feet; thence Southwesterly along the arc, through a central angle of 90' 31'06", a distance of 101.85 feet; thence North 89' 1220" West a distance of 40.14 feet to a 5/8 inch rebar; thence South 00' 46'09" East a distance of 154.14 feet to a 5/8 inch rebar; thence North 89' 27'00" West a distance of 655.26 feet to the POINT OF BEGINNING. EXCEPTING THEREFROM Lot 10, in Block 5 of Montvue Park, according to the official Plat thereof, filed in Book 17 of Plats at Page 1107-1108, records of Ada County, Idaho. ALSO EXCEPTING THEREFROM the South 140.0 feet of Lot 1, Block 4, Montvue Park, according to the official Plat thereof, filed in Book 17 of Plats at Page 1107, records of Ada Cou t And n y, Idaho. Lot 2, in Block 4 of Montvue Park, according to the official Plat thereof, filed in Book 17 of Plats at Page 1107 records of Ada County, Idaho. EXCEPT the North 122 feet. Meridian Medical Plaza LLC SETASIDE.ID M (09/94) Page 4 LOAN NO. 104417 8429-2-2-DEL EXHIBIT A ALSO EXCEPTING THEREFROM any road right-of-ways. APN: R5791500005, R5791500010, R5791500021, R5791500031, R5791500041, R5791500069, R5791500125,R5791500130, R5791500140, R5791500151, R5791500153, R5791500165, R5791500265 Meridian Medical Plaza LLC SETASIDE.ID M (09/94) Page 5 LOAN NO. 104417 8429-2-2-DEL EXHIBIT B DESCRIPTION OF AND ALLOCATED FUNDS FOR BONDED WORK Exhibit B to Set Aside Letter executed by Wells Fargo Bank, National Association, and Meridian Medic al Plaza, LLC, an Idaho limited liability compan Department ("Suret " Y ("Principal") in favor of City of Meridian, Public Works y) dated as of November 12, 2007. Landscaping of Perimeter buffer common areas and interior streetscape within right-of-way _ Item - - Mobilization Unit s Unit Cost Total Lum Sum $4,000,00 _ Ornamental Trees 71 Deciduous Trees 111 280 $1__ 9,880.0c _ Coniferous Trees 25 320 $35,520.00 Shrubs 1115 300 $7,500.00 Tree Wells and Grates 32 $35,680.00 Planter Bed Area 8,778.071 s . feet 17 700 $11,900,00 3" Bark 18" Top Soil 81 28 40 $3,251.20 lawn Area 107 113.37 sq feet 487.67 15 $7,315.05 _—` 12" To oil — Sod Surface 3967.16 15 $59,507.40 frri ation Area 115,891.44 sq_feet 107,113.37 0.32 $34, - Bed Lawn — 8778.0- 107113.37 - 1 $8, 77 8_07 - ___ Plaza SpaceSurface -- -5 $_53,556 69 _ ROugh G dnar lI g 15,89_47 10 $60,893.47 inish Gradin -- _ $11,58, .14 0.15 $1__?,383_72 �----- ----__ $36_7,031.01 Note: All above prices_incl_ude cost of materials and Imo' - —� landscape construction and piantin8` abor for al! aspects of All landscaping for phases 1 and 2 should be installed according to the approved - landscape plans, ppfOVed Meridian Medical P� laZa LLC SETASIDE.io M (09/94) Page 6 LOAN NO. 1044 77 8429-2-2-DEL