Agenda 05/25/2010 Item #16A 8
Agenda Item No, 16A8
May 25, 2010
Page 1 of 13
EXECUTIVE SUMMARY
Recommendation that the Board of County Commissioners (BCC) concur with stafrs
proposal to work with the Developer of Coco Lakes, as necessary, to complete the project
as proposed and to aUow the issuance of Certificates of Occupancy on homes as certain
construction milestones are met.
OBJECTIVE: To have the Board of County Commissioners (BCC) concur with the Growth
Management Division (GMD) staff proposal to al10w the issuance of Certificates of Occupancy
on homes in Coco Lakes as certain construction milestones are met.
CONSIDERATIONS: The Bailey Lane PUD was original1y approved as Ordinance 95-37,
which was replaced by Ordinance 2000-078. The PUD is a 24.76 acre development located on
the West side of Airport Road with access provided from Bailey Lane. Bailey Lane PUD is a low
density project consisting of 75 singlc-family units comprising a mix of both villa and more
traditional single-family dwelling units. The PUD Master Plan shows a total of 12.66 acres of
residential development, 3.22 acres oflakes, 3.35 acres of road right-of-way, 4.79 acres of buffer
and preserve areas and 0.74 acres of recreational and clubhouse area. The original plat of Coco
Lakes was approved in September 1999, and the replat oflots 49 through 75 was approved in July
2005. The infrastructure was substantially complete and usable at that time with the exception of
some sidewalks, some preserve requirements, and the final jift of asphalt on the roads. The
project infrastructure is essentially completed and half of the lots are developed but due to the
ongoing economic downturn development has slowed considerably. The approved plat called for
al1 the preserves to be in place and completed prior to development; however, considering that the
development is being completed lot by lot, the developer proposes the following timeline for the
completion of these items:
1) Preserve Installation. Each preserve area will be planted individual1y as each home is
constructed. The areas around the lakes not related to specific homes are to be planted
as homes are sold and cash becomes available, but not later than before issuance of the
38th (50% build out) building permit.
2) Sidewalks. The sidewalks are to be placed after driveways are installed for each home as
they are built. For the homes that are currently missing driveways, the driveways will
be installed as homes are sold and cash becomes available, but not later than before
issuance o{the 38th (50% build out) building pennit.
3) Bond. The County currently has a Cash Bond in the amount of$91 ,282.30 as security for
completion of the required subdivision improvements. The estimated remaining
improvements are valued at approximately $6] ,200.
In light of the current economic conditions, staff believes that in lieu of forcing what are now
difficult financial commitments on the developer to eomplete and plat al1 the preserves as
originally stated on the approved plat, commitments that would most likely force the developer
to abandon the development, that it is far more prudent to let the developer proeeed according to
preceding conditions as long as the developer continues to show good faith efforts.
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Agenda Item No. 16A8
May 25,2010
Page 2 of 13
FISCAL IMPACT: All applicable land development and permitting fees have been and will
continue to be paid pursuant to the approved GMD (formerly CDES) fee schedule as
development proceeds.
GROWTH MANAGEMENT IMPACT: There is no growth management impact.
LEGAL CONSIDERATION: This Executive Summary has been reviewed for legal
sufficiency and is legally sufficient for Board action. STW
RECOMMENDATION: That fbe BCC concur with staffs approach to work wifb the
developer to complete this project and pursuant to compliance with all applicable development
and building codes issue Certificates of Occupancy for the homes in Coco Lakes as long as the
developer continues to comply with stated milestones.
PREPARED BY: Stan Chrzanowski, P.E. County Engineer
A TT ACHMENTS: 1) Construction and Maintenance Agreement
2) Irrevocable Standby Letter of Credit
3) 20 10 aerial photo of site
Item Number:
Item Summary:
Meeting Date:
Agenda Item No, 16A8
May 25, 2010
Page 3 of 13
COLLIER COUNTY
BOARD OF COUNTY COMMISSIONERS
16A8
Recommendation that the Board of County Commissioners (BCC) concur with staffs
proposal to work with the Developer of Coco Lakes, as necessary. to complete the project as
proposed and to allow the issuance of Certificates of Occupancy on homes as certain
construction milestones are met.
5/25/2010 9:00:00 AM
Manager - Engineering Review Services
Date
Prepared By
Stan Chrzanowski
Community Development &
Environmental Services
Engineering & Environmental Services
5/6/20102:38:35 PM
Director - COES Engineering Services
Date
Approved By
William D. Lorenz. Jr., P.E.
Community Development &
Environmental Services
Engineering & Environmental Services
5/7/20101:24 PM
Approved By
Date
Judy Puig
Community Development &
Environmental Services
Operations Analyst
Community Development &
Environmental Services
5/10/2010 9:15AM
Approved By
Assistant County Attorney
Date
Steven Williams
County Attorney
County Attorney
5/10/20109:26 AM
Director - Transportation Planning
Date
Approved By
Nick Casalanguida
Transportation Division
Transportation Planning
5/13/20103:19 PM
Date
Approved By
OMS Coordinator
County Manager's Office
Office of Management & "Budget
5/13/20103:28 PM
County Attorney
Date
Approved By
Jeff Klatzkow
5113/20104:32 PM
Leo E. Ochs, Jr.
County Manager
Date
Approved By
County Managers Office
County Managers Office
5/15/20103:39 PM
Agenda Item No. 16A8
May 25, 2010
Page 4 of 13
CONSTRUCTION AND MAINTENANCE AGREEMENT
OF SUBDMSION IMPROVEMENTS
RECORD PLAT PRIOR TO CONSTRUCTION
. THIS AGREEMENT entered into this..3G.. day of ~,,~~ ,1999 between
Palm Foundation II, Inc., a Florida Corporation hereinafter referred as "Developer", and the
Board of County Conunissioners of Collier County, Florida hereinafter referred to as "The
Board".
RECITALS
1. Developer has, simultaneously with the delivery of this Agreement, applied for
the approval by the Board of a certain plat of a subdivision to be known as:
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2. Division 3.2 of the Collier County Unified Land Development Code requires the
Developer to post appropriate guarantees for the construction of the improvements required by
said subdivision regulations, said guarantees to be incorporated in a bonded agreement for the
construction of the required improvements.
NOW, THEREFORE, in consideration of the foregoing premises and mutual covenants
hereinafter set forth, Developer and the Board do hereby covenant and agree as follows:
I. Developer will cause to be constructed site improvements
including roadways, drainage facilities, water and sewer facilities and lighting
and signage within 36 months from the date of approval said subdivision plat,
said improvements hereinafter referred to as the required improvements.
2. D~veloper herewith tenders its Irrevocable Standby Letter of
Credit (attached hereto as Exhibit "A" and by reference made a part hereof)
hereinafter the "Surety Bond", in the amount of 5310,000.00 which amount
represents 10% of the total contract cost to complete construction plus 100% of
the estimated cost to complete the required improvements at the date of this
Agreement.
3. In the event of default by the Developer or failure of the
Developer to complete such improvements within the time required by the
Collier County Unified Land Development Code, Collier County, after written
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Agenda Item No, 16A8
May 25.2010
notice to Developer may call upon the Surety Bond to insure satisfactoryPage 5 of 13
completion of the required improvements.
4. 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 been furnished to be reviewed and approved by the
Development Services Director for compliance with the Collier County Unified
Land Development Code. The Development Services Director shall, within
sixty (60) days of receipt of the statement of substantial completion, submit his
recommendations concerning the required improvements to the Board.
5. Upon receipt by the Board of recommendations from the
Development Services Director concerning required improvements, the Board
shall within thirty (30) days either: a) notify the Developer in writing of its
preliminary acceptance of the improvements; or b) notify the Developer in
writing of its refusal to accept improvements, therewith specifying those
conditions which the Developer must fulfill in order to obtain the Board's
acceptance of the improvements. However, in no event shall the Board refuse
preliminary acceptance of the improvements if they are in fact constructed and
submitted for approval in accordance with the requirements of this Agreement.
6. The Developer shaH maintain all required improvements for a
minimum period of one year after preliminary acceptance by the Board. After
the one year maintenance period by the Developer has terminated, the
Development Services Director shall inspect the improvements and, if found to
be stiH in compliance with Collier County Unified Land Development Code as
reflected by final acceptance by the Board, the Developer's responsibility for
maintenance of the required improvements shall terminate and the Board shall
release the remaining 10% of Surety. Otherwise, the Developer's responsibility
for maintenance shall continue until final acceptance by the Board.
7. In accordance with Division 3.2 of the Collier County Unified
Land Development Code, the Developer may from time to time request the
Development Services Director to reduce annually the dollar amount of the
Surety Bond on the basis of work completed. Each request for a reduction in the
doHar amount of the Surety Bond shall be accompanied by a statement of
substantial completion by the Developer's engineer together with the project
records necessary for review by the Developer Services Director. The
Development Services Director may grant the request for a reduction in the
amount of the Surety Bond for the improvements completed as of the date of the
request.
8. In the event the Developer shaH fail or neglect to fulflH its
obligations under this Agreement, upon certification of such failure by the
W:\1994\1994099\GHH\PRlORCON,doc
2
Agenda Item No, 16A8
May 25,2010
D' IS' D' d . 'd d b th C . Page 6 of 13
eve opment ervIces !rector an upon notice as provI eye olher
County Unified Land Development Code, the Board shall have the right to
construct and maintain, or cause to be constructed or maintained, pursuant to
public advertisement and receipt and acceptance of bids, the improvements
required herein. The Developer, as principal under the Surety Bond tendered
herewith, shall be liable to pay and to indemnify the Board, upon completion of
such construction, the fmal total cost to the Board thereof, including, but not
limited to, engineering, legal and consequential, which the Board may sustain on
account of the failure of the Developer to carry out all of the provisions of this
Agreement
9. 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 ca~ this Agreement to be
executed by their duly authorized representatives this ~ day of _ ~~, _, 1999.
Signed, sealed and delivered
in the presence of: Palm Foundation n, Inc.,
a Florida Corporation
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Witn 55 ~ l' t~
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Witness ~o\i\.l e.. &c;o'?..
BY~{c/JA-(~
Steve Loveless, President
AITEST:
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--":'~f,:P~~'Brock, Clerk '
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~~%f()rmand
legal sufficiency:
Board of County Commissioners
of Collier County, Florida
BY:~~
Pamela S. Mac'kie, Chairwoman
tLrIt j A~
fbtt-David C. Weigel, County Attorney
W:\I994\1994099\GIUl\PRlORCON.doc
3
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Agenda Item No, 16A8
May 25. 2010
Page 7 of 13
COLLIER COUNTY GOVERNMENT
COMMUNITY DEVELOPMENT AND ENVIRONMENTAL SERVICES DMSION
Engineering and Environmenral Services
2800 North Horseshoe Drive . Naples, Florida 34104
May 29, 2009
Mr. Babak Gohari
9931 Treasure Cay Lane
Bonita Springs, FL. 34135
Re: Irrevocable Letter of Credit No. SM422597W / Coco Lakes
Dear Mr. Gohari:
Collier County has received notification from Wachovia that they elect not to renew the
above referenced letter of credit. This letter of credit currently serves as the maintenance
security for the subdivision related improvements in Coco Lakes Subdivision.
Because of review and scheduling time, a replacement security must be received by
Engineering Review no later than August 1, 2009. Should no replacement be received,
Collier County may be forced to draw on Letter of Credit No. SM422597 to ensure
compliance with the Collier County Land Development Code.
Please attend to this matter at your earliest convenience. Should you have any questions
or require additional information, do not hesitate to contact this office.
Sincerely,
~Orth
Senior Engineer
xc:
Clerk to the Board
Steve Williams, County Attorney
Engineer of Record
Wachovia
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Phone (239) 252-5866
Fax (239) 252-6201
www.colliergov.net
WE HAVE RECEIVED
LETTER OF CR
AMENDMENT RE
YOU CHOOSE T
NT FOR CANCELLATION WILL TAKE PRECEDENCE OVER THIS NOTICE,
EXTENSION AND THE EXpIRY DATE QUOTED BELOW,
IN TflE EVENT THAT YOU HAVE CHOSEN NOT TO ACCEPT THE AMENDMENT
FOR CANCELLATION. TO OUR STANDBY LETTER OF CREDIT, THIS LETTER
SERVE AS OUR NOTICE OF NON EXTENSION. THIS STANDBY LETTER OF
WILL NOT EXTEND BEYOND ITS CURRENT EXPIRY DATE OF 09/03/09,
PLEASE CONTACT 'OUR STANDBY CUSTOMER CARE PROFESSIONALS AT
OPTION 2 WITH QUESTIONS REGARDING THIS LETTER OF CREDIT.
CENTER OF EXCELLENCE
WE BRING TO YOtJRATTENTION THAT THE AUTO EXTEND LANGUAGE IN THIS LETTER OF
CREDIT STATES THAT NOTICE WILL BE SENT "060 DAYS" PRIOR TO THE CURRENT
EXPI ATE. , FOR CLARIFICATION, NOTICE MUST BE SENT NO LES
06 WEVER, GIVING NOTICE IN ADVANCE OF THE D60 DAYS IS
AS SE OF THE NOTICE IS TO GIVE ENOUGH TIME FOR YOU TO
TO THE CURRENT EXPIRATION DATE IF NEEDED.
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"'Agefldaltem No. 16A8
"",:,", May 25.2010
': Pa'ge9of13
IRREVOCABLE STANDBY LETTER OF CREDIT NO:SM422597
,SUER: WACHOVIA BANK, NATIONAL ASSOCIATION, LETTER gFCREDIT DEPARTMENT,
.01 LINDEN STREET, WINSTON, NC 27101 ",' ' '
PLACE OF EXPIRY: AT ISSUER'S COUNTERS..
- '~". 1- -,!
:,_:~.,~
I AMOUNT; $91,282.30
CREDIT AVAILABLE WITH: ISSUER
I BY: PAYMENT AGAINST DOCUMENTS BENEFICIARY'S DRAFT AT
SIGHT DRAWN ON THE ISSUER "_:~~..-":)~~;,,,:r~' <'t' ,;~
I DOCUMENTS REQUIRED: AVAILABLE BY BENEFICIARY'S DRAFT(SY AT SIGHT DRAWN ON
,=m ISSUER AND ACCOMPANIED BY BENEFICIARY'S SIGNED "'S'TATEMENT PURPORTEDLY
GNED BY THE COUNTY ADMINISTRATOR CERTIFYING THAT~~~I'PALM FOUNDATION II INC.
tiAS FAILED TO CONSTRUCT AND/OR MAINTAIN THEIMPROv'EMENTS 'ASSOCIATED WITH
THAT CERTAIN PLOT OF SUBDIVISION KNOWN AS CbCO'''LAKES"OR,A.'IfINAL INSPECTION
SATISFACTORY TO COLLIER COUNTY HAS BEEN J?ERFORMED.'E'RIOR:.TO"'THE DATE OF
EXPIRY, 'AND SATISFACTORY ALTERNATE J?ERFORMAN'cE~ SECulUTY","HAS-"NQT BEEN PROVIDED
TO AND FORMALLY ACCEPTED BY THE BENEFICI~Y'~-:-.1j:'.'1~:;-~.ir::~,.tf;},(:!>
/ . ,":", - _-~! ~ l_,_,;-!{'.~l~~~i~l~~~~~~'>~"r:'..~'.
DRAFT(S) DRAWN UNDER THIS LETTER OF CREDITMUSTBE'j\1ARKED:],.."DRAWN UNDER
WACHOVIA BANK, NATIONAL ASSOCATION CREDIT NO;_1:~SM42i5'97?;DATEb SEPTEMBER
03, 2002" II THE ORIGINAL LETTER OF CREDIT ANJ:j::Ar;L/" ,S,,':'tF ,ANY, MUST
BE PRESENTED FOR PROPER ENDORSEMENT .' "''''''''''''''''~iir.;,>''; ~ -, . "(. '~',-<." ", ,
. ::,;,..",-"'"""':1 ,'] 7"":" ~ ;ij"'F ;'1'.......'",.......;..
....: ':';";':(J~':~'!IJ.!!~\ .?~.:-:.;',;',\"
THIS LETTER OF CREDIT SETS FORTH IN F.Uhr; 'THE)~P:RM~GRF~::JSSUER'S UNDERTAKINC
ANS SUCH UNDERTAKING SHALL NOT IN ANY WAY, BE: .MODIFJ:ED:,~""AMENDED OR AMPLIFIED .
BY REFERENCE TO ANY DOCUMENT, INSTRUMENT OR"AGREEMEN'I:..REFERENCED TO HEREIN
OR IN WHICH THIS LETTER OF CREDIT RELATE8,,:;'ANri::ANx;;~sUCHj.EI;'ERENCE SHALL NOT
BE DEEMED TO INCOPORATE HEREIN BY REFI;;RE;NC?~:lJbc.tJMENT,;.'i'INSTRUMENT OR
AGREEMENT. ;::"'''u":''f"; ;~~,~N,:;~ lib '- ,
.:,~;~i'J~-:<.'~~J~~__-4,. ';
I ISSUER HEREBY ENGAGES WITH BENEFICIARY THAT,::',:,P~~,>,",'~,~'-
COMPLIANCE WITH THE TERMS OF THIS CREDIT;WILI2~BE.P
IF PRESENTED WITHIN THE VALIDITY OF THIS" CREri' -;~' ~
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TO AND FORMING PART OF STANDBY CREDIT NO. SM422597
Agenda Item I~O. I bA~
, M,ay 25, 2010
Page 10 of 13
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EXCEPT SO FAR AS OTHERWISE EXPRESSLY STATED HEREIN THIS ORIGINAL LETTER
OF CREDIT IS SUBJECT TO THE "UNIFORM CUSTOMS AND PRACTICE FOR
DOCUMENTARY CREDITS: (1993 REVISION), INTERNATIONAL CHAMBER OF
COMMERCE, PUBLICATION NO. 500."
R OF CREDIT SHOULD BE DIRECTED TO US AT
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ENGINEER'S OPINION OF COST TO COMPLETE
Coco Lakes
, HM File No. 1994099
June 30, 2009
Agenda Item No. 16A8
May 25. 2010
Page 11 of 13
Descriotion
Quantify
Units
Unit Cost
Total
Lake Preserves Plantings
Sidewalk
Street Lighting
Rear Lot Preserves Exotic Rem val
2nd Course Asphalt
See attached
1,200
5
30
8,600
LF
EA
Lots
SY
$8
$500
$100
$4
11,700
9.600
2,500
3,000
34,400
Total
61,200
10% of originat cost of subdi"ision improvements (per owner)
Amount Required for L.O.C.
38,000
99,200
H,\1994\1994099ISSIGHHICoco Lake~ Cost to Complete 090630.XLS
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Page 1
Agenda Item No, 16A8
May 25. 2010
Page 12 of 13
Lake Preserves:
44 pine trees $1,540.00
29 live oaks $ 1,595.00 -'---...
30 cabbage palms $2.400,00
219 coco plums $766,50
758 muhly grass $1,137.00
135 Wax Myrtle $540,00
146 Simson Stopper $584.00
72 Silver Saw Palmetto $1,440.00
1629 Smooth Spartina -.J.1629 00
TOTAL $11,631.50
, .
0.16A8
5.2010
13 of 13