Agenda 07/22/2008 Item #16A12Agenda Item No. 16Al2
July 22, 2008
Page 1 of 9
EXECUTIVE SUMMARY
Recommendation to accept an alternate security from the current owner of Tuscany
Reserve, and to enter into a new Construction, Maintenance and Escrow Agreement for
Subdivision Improvements
OBJECTIVE:
To accept an alternate security for the required subdivision improvements associated with
Tuscany Reserve and to enter into a Construction, Maintenance and Escrow Agreement with
the current owner of the subdivision.
CONSIDERATIONS:
On January 28, 2003, the Board approved the plat for Tuscany Reserve and entered into a
Construction and Maintenance Agreement for Subdivision Improvements with the developer. A
new developer has purchased the project and has provided a Construction, Maintenance and
Escrow Agreement for Subdivision Improvements. This process is consistent with Section
10.02.05 A.4 of the Collier County Land Development Code,
FISCAL IMPACT:
The County will realize revenues as follows:
Fund: Community Development Fund 131
Agency: County Manager
Cost Center: 138327 -- Engineering Project Review
Revenue generated by this project: Total: $79,860.36, as reflected in the
Executive Summary of January 28, 2003.
GROWTH MANAGEMENT IMPACT:
There is no growth management impact associated with this approval.
LEGAL CONSIDERATIONS:
The County Attorney's Office has reviewed and approved the Construction, Maintenance and
Escrow Agreement for legal sufficiency. JW
RECOMMENDATIONS:
1) That the Board of County Commissioners approve the alternate security and authorize the
Chairman to execute the Construction, Maintenance and Escrow Agreement.
2) Release WCI from the existing Agreement and return the posted performance security.
PREPARED BY: John Houldsworth, Senior Engineer, Engineering Review Department
Page 1 of 1
Agenda Item No. 16Al2
July 22, 2008
Page 2 of 9
COLLIER COUNTY
BOARD OF COUNTY COMMISSIONERS
Item Number: 16Al2
Item Summary: Recommendation to accept an alternate security from the current owner of Tuscany Reserve,
and to enter into a new Construction, Maintenance and Escrow Agreement for Subdivision
Improvements.
Meeting Date: 7/22/2008 9.00.00 AM
Prepared By
John Houldsworth
Senior Engineer
Date
Community Development &
Environmental Services
Engineering Services
6123/2008 1:13:55 PM
Approved By
Judy Puig
Operations Analyst
Date
Community Development &
Community Development &
Environmental Services
Environmental Services Admin.
6/23/2008 2:10 PM
Approved By
William D. Lorenz, Jr., P.E.
Environmental Services Director
Date
Community Development &
Environmental Services
Environmental Services
6/2512008 10:12 AM
Approved By
Community Development &
Joseph K. Schmitt
Environmental Services Adminstrator
Date
Community Development&
Community Development&
Environmental Services
Environmental Services Admin.
7/8/2008 11:07 AM
Approved By
Jeff Wright
Assistant County Attorney
Date
County Attorney
County Attorney Office
7/9/2008 4:05 PM
Approved By
OMB Coordinator
OMB Coordinator
Date
County Manager's Office
Office of Management & Budget
7/9/2008 4:17 PM
Approved By
Mark lsackson
Budget Analyst
Date
County Manager's Office
Office of Management & Budget
7/9/2008 5:14 PM
Approved By
James V. Mudd
County Manager
Date
Board of County
Commissioners
County Manager's Office
711112008 12:53 PM
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Agenda Item No. 16Al2
July 22, 2008
Page 4 of 9
CONSTRUCTION, MAINTENANCE AND ESCROW AGREEMENT FOR
SUBDIVISION IMPROVEMENTS
THIS AGREEMENT (the "Escrow Agreement ") is entered into this 27th day of
May, 2008 by AB Naples, LLC, a Delaware limited liability company (hereinafter
"Developer "), THE BOARD OF COUNTY COMMISSIONERS OF COLLIER
COUNTY, FLORIDA, (hereinafter, the `Board ") and GOODLETTE, COLEMAN,
JOHNSON, YOVANOVICH & KOESTER, P.A. (hereinafter "Escrow Agent').
RECITALS:
A. Developer has, previously obtained the approval by the Board of a certain
plat of a subdivision known as Tuscany Reserve according to the plat thereof recorded in
Plat Book 39, Pages 88 -95 of the Public Records of Collier County, Florida.
B. The subdivision will include certain improvements which are required by
Collier County ordinances, as set forth in a site construction cost estimate ( "Estimate ")
previously prepared by or at the direction of the Developer of the subdivision and
previously approved by the Board. For purposes of this Agreement, the 'Required
Improvements" are limited to those described in the Estimate.
C. Sections 10.02.05 (C) and 10.02.04 of the Collier County Subdivision Code
Division of the Unified Land Development Code requires the Developer to provide
appropriate guarantees for the construction and maintenance of the Required
Improvements.
D. In conjunction with entering into this escrow agreement (the "Escrow
Agreement ") Developer has deposited with Escrow Agent $1,434,259.20 to guaranty the
completion of the remaining Required Improvements.
E. Developer and the Board have acknowledged that the amount Developer is
currently required to guarantee pursuant to this Agreement is $1,434,259.20, and that this
amount represents the Board's current estimate of the remaining costs to be incurred to
complete the Required Improvements plus 10% of the total estimated cost of the
Required Improvements.
NOW, THEREFORE, in consideration of the foregoing premises and mutual
covenants hereinafter set forth, Developer, the Board and the Escrow Agent do hereby
covenant and agree as follows:
1. Developer will cause the remaining portions of the Required Improvements to be
constructed pursuant to specifications that have been approved by the County Manager or
his designee, by April 7, 2009.
2. Developer hereby authorizes Escrow Agent to hold $1,434,259.20 (the "Escrow
Funds "), in escrow, pursuant to the terms of this Agreement.
Agenda Item No. 16Al2
July 22, 2008
Page 5 of 9
3. Escrow Agent agrees to hold the Escrow Funds, to be disbursed only pursuant to this
Agreement.
4. The Escrow Funds shall be released to the Developer only upon written approval of
the County Manager or his designee who shall approve the release of the Escrow Funds
on deposit not more than once a month to the Developer, in amounts due for work done
to date based on the percentage completion of the work multiplied by the respective work
costs, less ten percent (10 1/o); and further, that upon completion of the work, the County
Manager or his designee shall approve the release of any remainder of Escrow Funds
except to the extent of $450,627.00 which shall remain in escrow as a Developer
guaranty of maintenance of the Required Improvements for a minimum period of one (1)
year pursuant to Paragraph 10 of this Agreement. However, if Developer fails to comply
with the requirements of this Agreement, then the Escrow Agent agrees to pay to the
County immediately upon demand the balance of the Escrow Funds, as of the date of the
demand, provided that upon payment of such balance to the County, the County will have
executed and delivered to the Escrow Agent in exchange for such funds a statement to be
signed by the County Manager or his designee to the effect that:
(a) Developer, for more than sixty (60) days after written notification of such
failure, has failed to comply with the requirements of this agreement;
(b) The County, or its authorized agent, will complete the work called for under
the terms of the above - mentioned contract or will complete such portion of such
work as the County, in its sole discretion shall deem necessary in the public interest
to the extent of the Escrow Funds then held in escrow;
(c) The Escrow Funds drawn down by the County shall be used for construction
of the Required Improvements, engineering, legal and contingent costs and
expenses, and to offset any damages, either direct or consequential, which the
County may sustain on account of the failure of the Developer to carry out and
execute the above - mentioned development work; and
(d) The County will promptly repay to the Developer any portion of the Escrow
Funds not expended in completion of the said development work.
5. Written notice to the Escrow Agent by the County specifying what amounts are to
be paid to the Developer shall constitute authorization by the County to the Escrow Agent
for release of the specified funds to the Developer. Payment by the Escrow Agent to the
Developer of the amounts specified in a letter of authorization by the County to the
Escrow Agent shall constitute a release by the County and Developer of the Escrow
Agent for the funds disbursed in accordance with the letter of authorization from the
County.
6. The Required Improvements shall not be considered complete until a statement of
substantial completion by Developer's engineer along with the final project records have
2
Agenda Item No. 16Al2
July 22, 2008
Page 6 of 9
been furnished to and reviewed and approved by the County Manager or his designee for
compliance with the Collier County Subdivision Regulations.
7. The County Manager or his designee shall, within sixty (60) days after receipt of the
statement of substantial completion, either: a) notify the Developer in writing of his
preliminary approval of the improvements; or b) notify the Developer in writing of his
refusal to approve the improvements, therewith specifying those conditions which the
Developer must fulfill in order to obtain the preliminary approval of the Required
Improvements. However, in no event shall the County Manager or his designee refuse
preliminary approval of the improvements if they are, in fact, constructed and submitted
for approval in accordance with the requirements of this Agreement.
8. If the undisbursed portion of the Escrow Funds are insufficient to complete the
Required Improvements, the Board, after duly considering the public interest, may (at its
option) complete the Required Improvements and resort to any and all legal remedies
against the Developer.
9. Nothing in this Agreement shall make the Escrow Agent liable for any funds other
than those placed in deposit by the Developer in accordance with the foregoing provision;
provided, that the Escrow Agent does not release any monies to the Developer or to any
other person except as permitted by the terms of this Escrow Agreement.
10. The Developer shall maintain all Required Improvements for one (1) year after
preliminary approval of the Required Improvements by the County Manager or his
designee. After the one (1) year maintenance period by the Developer and upon
submission of a written request for inspection, the County Manager or his designee shall
inspect the Required Improvements and, if found to be still in compliance with the Code
as reflected by final approval of such improvements by the Board, the Escrow Agent's
responsibility to the Board under this Agreement shall automatically terminate. The
Developer's responsibility for maintenance of the Required Improvements shall continue
unless or until the Board accepts maintenance responsibility for and by the County.
11. All of the terms, covenants and conditions herein contained are and shall be
binding upon the respective successors and assigns of the Developer.
IN WITNESS WHEREOF, the Board and the Developer have caused this
Agreement to be executed by their duly authorized representatives effective as of the 27th
day of May, 2008.
SIGNED, SEALED AND DELIVERED
IN THE PRESENCE OF:
PrintName: yWcoto thrLec
Print NamC(jUhfCQA jjjWC,0
1
ATTEST:
Dwight E. Brock, Clerk
Deputy Clerk
Agenda Item No. 16Al2
July 22, 2008
Page 7 of 9
DEVELOPER:
AB Naples, LLC, a Delaware limited liability
company
By: AB Naples Holdings, LLC, a Delaware
limited liability company
Its: Manager and Sole Member
By: AB Tuscany Holdings, Inc.,
a Delaware corporation
Its: Manager
Rainer N. Filthaut, President
ESCROW AGENT:
Goodlette, Coleman, Johnson,
Yovanovich & Koester, P.A.
N .5141 By: _ A'�
Kev' . Co man, President
Approved as to form and legal sufficiency:
T it
Jeff R tight, Assistant County Attorney
THE BOARD:
Board of County Commissioners
for Collier County, Florida
By:
Print Name: TD M H EIV 4 1x14
Chairman
S: \CUENTS\Addm Bank \001 Gen RepTlatting\CME -Tuscany Reserve Plat.doc
4
Agenda Item No. 16Al2
July 22, 2008
Page 8 of 9
ENGINEER'S ESTIMATE OF PROBABLE CONSTRUCTION COSTS
Project Name: Tuscany Reserve - Phase I B & 1 C
SUMMARY
Date: March 3, 2005
Project Number: WST -TR -012
Paving and Grading
$303,240.00
Storm Drainage
$126,730.00
Sanitary Sewer
$331,837.40
Potable Water
$191,110.00
Irrigation
$40,650.00
Total
$993,567.40
110 % of TOTAL $1,092,924.14
x, ;,1
1,"E141, Zy9.ZG
T.
StKkland T. Smith
Florida ProfeasionAl Engineer 050652
Heidt & Associates, Inc.
Date 7 y, aJ__ —
Phone 239 -482 -7275 239- 462 -2103
3/3/2005
Heidt Associates, Inc. Page 1 of 6 PH1 B & 1C Quandtles 030305.xis
H E I D T &
ASSOCIATES, INC.
CIVIL ENGINEERING
SURVEYING
ENVIRONMENTAL
PERMITTING
PLANNING
LANDSCAPE
ARCHITECTURE
❑ Tampa
2212 W. Swann Avenue
Tampa. FL 33606 -2426
Phone: 813.253.5311
Fax: 813.253.2478
r Fort Myers
3800 Colonial Blvd., #200
Fort Myers, FL 33912 -1075
Phone: 239.482 7275
Fax: 239.482.2103 z
Sarasota-Manatee
401 Interstate Boulevard
Sarasota. FL 34240 -8996
Phone: 941.342.8280
Fax: 941.342.8457
Agenda Item No. 16Al2
July 22. 2008
Page 9 of 9
March 3, 2005
Mr. John Houldsworth
Engineering Services Department
Collier County Community Development Division
2800 North Horseshoe Drive
Naples, Florida 34104
Re: Tuscany Reserve Phase 1
PPL- 2002 -AR -2274
Bond Reduction
Dear Mr. Houldsworth:
Preliminary approval has been granted by Collier County for Phases IA, IA-
1, IA-2, IA-3, IA-4 & IA-5 of Tuscany Reserve Phase 1. Phase 1B and 1C
remain to be constructed. We are requesting a reduction in the bond amount
from $4,506,274.74 to $1,434,259.20, which was calculated as follows:
Original Bond Amount = $4,506,274.74
Less Remaining Phase IB and I C Estimate = $1,092,924.14
Completed Phases Amount = $3,413,350.60
10% of Completed Phases = $341,335.06
Remaining Phase 1B and 1C Estimate = $1,092,924.14
New Bond Amount = $1,434,259.20
Paver Bricks were used in lieu of asphalt for the roads, therefore there is no
2nd lift of asphalt required. A copy of the Bond, Approved "Engineer's
Estimate ", updated "Engineer's Estimate" for remaining Phases 1B and 1 C,
and Preliminary Acceptance letters are attached. Please note that the unit
prices for Phase 1 B and I C have been updated to reflect current pricing.
If you have any questions, please contact us.
Sincerely,
HEIDT AND ASSOCIATES, INC.
Michael C. Pappas, P.E.
Project Engineer
mpaonas(a),heidtinc.com
cc: Dan Ciesielski
WST -TR 4
P: \Tuscany Reserve\Phase I\Construcumo Bond Reduct Ph] 030305.doc