HomeMy WebLinkAbout20-63 Development Agreement with Second Royalty LLC Public Way Improvements 06-10-20204637391 10/05/2020 04.53 PM
Total Pages: 1 Rec Fee: $13.00
Carly Koppes - Clerk and Recorder, Weld County, CO
RESOLUTION NO.20-63
A RESOLUTION OF THE BOARD OF TRUSTEES OF THE TOWN OF
FIRESTONE, COLORADO, APPROVING A DEVELOPMENT
AGREEMENT WITH SECOND ROYALTY LLC PERTAINING TO THE
CONSTRUCTION AND INSTALLATION OF PUBLIC ROADWAY
IMPROVEMENTS
WHEREAS, Second Royalty LLC ("Owner") is the developer of a subdivision to be known
as "St. Acacius Subdivision — Replat No. 1" in the Town of Mead, Colorado; and
WHEREAS, the Owner is required to construct improvements in public right-of-way under
the jurisdiction of the Town of Firestone ("Town"); and
WHEREAS, a Final Utility Plan ("FUP") titled St. Acacius Subdivision Construction
Documents, was prepared by Atwell LLC and approved by the Town; and
WHEREAS, the development regulations of the Town require that the Owner enter into a
Development Agreement ("Agreement") with the Town relative to improvements ("Public
Improvements") related to the FUP.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF TRUSTEES OF THE
TOWN OF FIRESTONE, COLORADO:
Section 1. The Development Agreement between the Town of Firestone and Second
Royalty LLC is hereby approved in substantially the same form as the copy attached hereto as Exhibit
A, and the Mayor is authorized to execute the agreement on behalf of the Town.
INTRODUCED, READ AND ADOPTED thisAkday of (it" 2020.
.�� •i SiAT.a'r,Mayor
WWillam P. Hayashi, Town Attorney
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Total Pages: 17 Rec Fee: $93.00
Carly Koppes - Clerk and Recorder, Weld County, CO
DEVELOPMENT AGREEMENT
[St Acacius Subdivision Replat No 1— Road 9.51
THIS AGREEMENT is made and entered into this Ne day of June„ , 2020,
by and between the TOWN OF FIRESTONE, a Colorado municipal corporation whose address is
151 Grant Avenue, Firestone, CO 80520 ("Town") SECOND ROYALTY LLC, a Colorado limited
liability company, whose address is c/o Laramie Dawson, 126 E. 56th Street, loth Floor, New York,
New York 10022 ("Owner").
WHEREAS, the Owner is the developer of a subdivision to be known as "St. Acacius
Subdivision — Replat No. 1" in the Town of Mead, Colorado; and
WHEREAS, the Owner is required to construct improvements in public right-of-way under
the jurisdiction of the Town; and
WHEREAS, a Final Utility Plan ("FUP") titled St. Acacius Subdivision Construction
Documents, prepared by Atwell LLC and approved by the Town, a copy of a portion of which FUP
is attached hereto by reference only as Exhibit A, and which FUP will require construction of the
public improvements set forth herein; and
WHEREAS, the development regulations of the Town require that the Owner enter into a
Development Agreement ("Agreement") with the Town relative to improvements ("Public
Improvements") related to the FUP.
NOW, THEREFORE, in consideration of the foregoing, the parties hereto promise,
covenant and agree as follows:
1. Owner Obligation. The Owner shall be responsible for performance of the covenants
set forth herein.
2. Construction Deadline; Warranty; Acceptance of Public Improvements. (a) Owner
shall at its sole expense construct and install, on or before October 1, 2021, all roadway and related
improvements required by the approved FUP. All Public Improvements identified in Exhibit A and
Exhibit B shall be completed by such date and in full conformance with the FUP and with all other
applicable drawings, plans and specifications approved in writing by the Town, and with all applicable
ordinances, rules and regulations of the Town.
(b) No later than fourteen (14) days after the Public Improvements are completed, Owner
shall request inspection of the same by the Town. If Owner does not request this inspection within
fourteen (14) days of completion of improvements, the Town may conduct the inspection without the
approval of Owner. Owner shall provide "as -built" drawings, in both hard copy and electronic file
format acceptable to the Town, and a certified statement of construction costs. If Owner has not
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completed the Public Improvements on or before the completion date set forth in subsection (a), the
Town may exercise its rights to secure performance as provided in Section 4 of this Agreement. If
Public Improvements completed by Owner and as -built drawings provided by the Owner are
satisfactory, the Town shall grant Conditional Acceptance, which shall be subject to Final Acceptance
as set forth in subsection (d). If the Public Improvements completed by Owner are unsatisfactory, the
Town shall provide written notice to Owner of the repairs, replacements, construction or other work
required to receive Conditional Acceptance. Owner shall complete all needed repairs, replacements,
construction or other work within thirty (30) days of said notice, unless delayed by weather or other
Force Majeure event, as defined below. After Owner completes the repairs, replacements, con-
struction, or other work required, Owner shall request the Town re -inspect the work to determine if
Conditional Acceptance can be granted, and the Town shall provide written notice to Owner of the
acceptability or unacceptability of such work prior to proceeding to complete any such work at
Owner's expense. If Owner does not complete the repairs, replacements, construction or other work
required within thirty (30) days of said notice, subject to delays as provided above, the Town may
exercise its rights to secure performance as provided in Section 4 of this Agreement. The Town
reserves the right to schedule re -inspections, depending upon scope of deficiencies.
(c) Until such time as the Town grants Final Acceptance, Owner shall warrant all Public
Improvements for defects in materials and workmanship and, at its own expense, take all actions
necessary to maintain said improvements and make all needed repairs or replacements which, in the
reasonable opinion of the Town, shall become necessary. If within thirty (30) days after Owner's
receipt of written notice from the Town requesting such repairs or replacements, the Owner has not
completed such repairs, the Town may exercise its rights to secure performance as provided in Section
4 of this Agreement.
(d) At least thirty (30) days before two (2) years has elapsed from the issuance of
Conditional Acceptance of the Public Improvements, or as soon thereafter as weather permits, Owner
shall request a Final Acceptance inspection. The Town shall inspect the improvements and shall
notify the Owner in writing of all deficiencies and necessary repairs, if any. If there are no
deficiencies, or after Owner has corrected all deficiencies and made all necessary repairs identified in
said written notice, the Town shall grant written Final Acceptance. If Owner does not correct all
deficiencies and make repairs identified in said inspection to the Town's satisfaction within thirty (30)
days after receipt of said notice, weather permitting, the Town may exercise its rights to secure
performance as is provided in Section 4 of this Agreement.
3. Financing and Improvement Guarantees. (a) Except as otherwise specially agreed
herein, the Owner agrees to install and pay for all Public Improvements described in Exhibit B or
otherwise required by this Agreement as shown on the approved FUP attached hereto by reference
only as Exhibit A. Said Improvement Guarantee shall include, but not be limited to, street
construction, utility relocation, landscaping, storm sewer and drainage improvements.
(b) Prior to commencing construction of the Public Improvements, Owner shall submit to the
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Town the following Improvement Guarantees for all Public Improvements:
(1) Owner shall provide a letter of credit in form and substance as shown in
Exhibit C as the Improvement Guarantee in an amount equal to one hundred percent (100%)
of the total estimated cost, including labor and materials, to secure the performance of the
installation of Public Improvements the amount shown in Exhibit B:
(c) The term of the Improvement Guarantee provided by Owner shall be for a period of
time sufficient to cover the completion of construction of the associated Public Improvements and,
except as set forth in subsection (d) below, shall not be released until Final Acceptance of the
associated Public Improvements has been granted by the Town. The Improvement Guarantee set forth
in subsection (b)(1) above shall be released upon Final Acceptance of the Public Improvements by
the Town. If the Owner provides a letter of credit, the letter of credit shall not expire during the winter
season (November 1 — March 1).
(d) At the time of Conditional Acceptance of the Public Improvements, the Town shall
reduce the amount of the Improvement Guarantee set forth in subsection (b)(1) above to fifteen
percent (15%) of the certified statement of construction costs for the Public Improvements.
(e) The remaining Improvement Guarantees set forth in subsection (b)(1) above shall be
released upon Final Acceptance of the Public Improvements by the Town, provided no mechanics'
liens have been fled with respect to the Public Improvements and the Owner is not otherwise in
breach of this Agreement. If any mechanics' liens have been filed with respect to the Public
Improvements, the Town may retain all or a portion of the Improvement Guarantee up to the amount
of such liens. If Owner fails to have improvements finally accepted within two (2) years of the date
of the issuance of Conditional Acceptance or any improvements are found not to conform to this
Agreement, or to applicable Town standards and specifications, then Owner shall be in default of the
Agreement and the Town may exercise its rights under Section 4 of this Agreement.
(f) In addition to any other remedies it may have, the Town may, at any time prior to
Final Acceptance, draw on any Improvement Guarantee issued or provided pursuant to this
Agreement if Owner fails to extend or replace any such Improvement Guarantee at least thirty (30)
days prior to expiration of such Improvement Guarantee. If the Town draws on the guarantee to
correct deficiencies and complete improvements, any portion of said guarantee not utilized in
correcting the deficiencies and/or completing improvements shall be returned to Owner within thirty
(30) days after said final acceptance. In the event that the Improvement Guarantee expires or the
entity issuing the Improvement Guarantee becomes non -qualifying, or the cost of improvements and
construction for a phase is reasonably determined by the Town to be greater than the amount of the
security provided for such phase, then the Town shall furnish written notice to the Owner of the
condition, along with supporting documentation, and within thirty (30) days of receipt of such notice
the Owner shall provide the Town with a substituted qualifying Improvement Guarantee, or augment
the deficient security as necessary to bring the security into compliance with the requirements of this
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Section 3. If such an Improvement Guarantee is not submitted or maintained, then Owner is in default
of this Agreement and is subject to the provisions of Section 4 of this Agreement.
4. Breach of Agreement. In the event that the Owner should fail to timely comply with
any of the terms, conditions, covenants and undertakings of the Agreement, and if such noncom-
pliance is not cured and brought into compliance within thirty (30) days of written notice of breach
of the Owner by the Town, unless the Town in writing and in its sole discretion designates a longer
cure period, then the Town may exercise any one or more of the following rights and remedies: (a)
immediately upon the expiration of such cure period draw upon the Guarantee, which may be used
by the Town to complete or cause to be completed any or all of the Public Improvements at Owner's
expense; (b) restrict or withhold the issuance of any building permits, COs or other approvals or
permits; (c) if the Town so chooses, complete the required Public Improvements with funds other
than the Guarantee, in which event Owner shall reimburse the Town within thirty (30) days after
receipt of written demand and supporting documentation from the Town; or (d) pursue any other
remedy at law or in equity that may be appropriate under municipal, state or federal law, including
but not limited to an action for specific performance. All notices by the Town to the Owner will
specify the conditions of default. All costs incurred by the Town, including, but not limited to,
administrative costs, court costs and reasonable attorney fees, in pursuit of any remedies due to the
breach by the Owner shall be the responsibility of the Owner. The Town may deduct these costs from
the Guarantee. All of the foregoing rights and remedies of the Town shall be cumulative, and the
Town may exercise any one or all of such rights and remedies without prejudice to any other right or
remedy available to the Town. No act, event or omission will be a breach hereunder if the Owner's
failure to perform is caused by Force Majeure or by any act, omission or default by the other Party.
As used herein, "Force Majeure" shall mean delays of Owner in performing hereunder which are
caused by or related to governmental moratoria or similar development restrictions processing delays,
strikes, work shortages, acts of God or any other matter beyond Owner's control. In the event of any
Force Majeure event, the date on which Owner was otherwise obligated to perform shall be deemed
automatically extended for a like number of days as the duration of the Force Majeure event.
5. Testing and Inspection. (a) Owner shall employ, at its own expense, a licensed and
registered testing company, previously approved by the Town in writing, to perform all testing of
materials or construction that may reasonably be required by the Town, including but not limited to
compaction testing for embankment fills, structural backfills, pipe bedding, trench backfills,
subgrades, road base course and asphalt, and concrete strength testing, and shall furnish copies of test
results to the Town on a timely basis for Town review and approval prior to commencement or
continuation of construction to which the testing is applicable. In addition, at all times during said
construction the Town shall have access to inspect the materials and workmanship of said
construction, determine the progress of the work, and determine compliance of the work with the
approved plans and the Town's construction regulations, and all materials and work not conforming
to such regulations, plans and specifications shall be repaired or removed and replaced at Owner's
expense so as to conform to such regulations, plans and specifications. Until Final Acceptance, the
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Owner shall be responsible for, and shall promptly pay upon receipt of invoice therefor, all actual
costs incurred by the Town for engineering, planning, inspection, testing, and legal services related
to the Public Improvements to be constructed under this Agreement or to the administration of this
Agreement.
(b) All work shown on the approved FUP shall be subject to inspection by the Town.
Inspection by the Town shall not relieve the Owner from compliance with the approved plans and
specifications or the Town's construction regulations. Inspection services requiring the presence of
Town staff are provided Monday through Friday, except legal holidays, from 8:00 a.m. to 4:00 p.m.
During the hours listed above, inspections shall be scheduled a minimum of forty-eight (48) hours in
advance with the Town. Requests for inspection services beyond the hours listed above, shall be
submitted in writing a minimum of forty-eight (48) hours in advance to the Town for approval. If the
request is denied, the work shall not proceed after the time requested until an inspection has been
performed during the hours listed above. The Owner shall comply with all notification and inspection
requirements of the sanitation district serving the property with regard to sanitary sewer and storm
drainage improvements.
6. Recording of Agreement. The Town shall record this Agreement at Owner's expense
in the office of the Clerk and Recorder, County of Weld, State of Colorado, and the Town shall retain
the recorded Agreement.
7. Binding Effect of Agreement. This Agreement shall run with the Property and shall
inure to the benefit of and be binding upon the successors and assigns of the parties hereto.
8. Assignment, Delegation and Notice. Owner shall provide to the Town for approval
written notice of any proposed transfer of the Property to any successor, as well as arrangements, if
any, for assignment or delegation of the obligations hereunder. Owner and successor shall, until
written Town approval of the proposed transfer of title and assignment or delegation of obligations,
be jointly and severally liable for the obligations of Owner under this Agreement.
9. Modification and Waiver. No modification of the terms of this Agreement shall be
valid unless in writing and executed with the same formality as this Agreement, and no waiver of the
breach of the provisions of any section of this Agreement shall be construed as a waiver of any
subsequent breach of the same section or any other sections which are contained herein.
10. Addresses for Notice. Any notice or communication required or permitted hereunder
shall be given in writing and shall be personally delivered, sent by a nationally recognized overnight
delivery service, or sent by United States mail, postage prepaid, registered or certified mail, return
receipt requested, addressed as follows:
3•]1A
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Town of Firestone
Town Clerk
151 Grant Avenue
P.O. Box 100
Firestone, CO 80520
With a required copy to:
Williamson & Hayashi, LLC
Attn: William Hayashi
1650 381h Street, Suite 103 West
Boulder, CO 80301
Second Royalty LLC
Attn: Glen R. Smith, VP
1805 S. Bellaire Street, Suite 110
Denver, CO80222
Spencer Fane
Attn: James Kurtz -Phelan
1700 Lincoln Street, Suite 2000
Denver, CO 80203
Second Royalty LLC
c/o Laramie Dawson
126 E. 561h Street, I Och Floor
New York, New York 10022
or to such other address or the attention of such other person(s) as hereafter designated in writing by
the applicable parties in conformance with this procedure. Notices shall be effective upon mailing or
personal delivery in compliance with this paragraph.
11. Title and Authority. Owner warrants to the Town that it is the record owner of the
Property, and that he has full power and authority to enter into this Agreement.
12. Applicable Law; Venue; Severability. This Agreement is to be governed and
construed according to the laws of the State of Colorado. Venue for any action related to this
Agreement shall be in the district courts of Weld County. In the event that upon request of Owner or
any agent thereof, any provision of the Agreement is held to be violative of the municipal, state, or
federal laws and hereby rendered unenforceable, the Town, in its sole discretion, may determine
whether the remaining provisions will or will not remain in force.
13. Indemnity. Owner agrees to indemnify and hold harmless the Town and its officers,
agents, and employees from and against all liability, claims, damages, losses, and expenses,
including but not limited to, attorney fees arising out of, resulting from, or in any way connected
with this Agreement or the right and obligations of the Owner hereunder.
14. Non -Liability. Owner acknowledges that the Town's review and approval of any
plans for the Public Improvements is done in furtherance of the general public health, safety and
welfare and that no specific relationship with, or duty of care to the Owner or third parties is
assumed by such review approval, or immunity waived, as is more specifically set forth in the
Colorado Governmental Immunity Act.
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15. Insurance; OSHA. Subdivider shall, through contract requirements and other normal
means, guarantee and furnish to the Town proof thereof that all employees and contractors engaged
in the construction of improvements are covered by adequate Workers' Compensation Insurance and
Public Liability Insurance, and shall require the faithful compliance with all provisions of the Federal
Occupational Safety and Health Act (OSHA).
16. Agreement Status After Completion. Upon completion of the Public Improvements
and inspection approval thereof by the Town, and provided that no litigation or claim is pending
relating to this Agreement, this Agreement shall no longer be in effect.
17. Ownership of Public Improvements. Subject to this Agreement and to any
provisions of this Agreement relating to Conditional or Final Acceptance of the Public
Improvements stated herein, Owner shall convey to the Town all of the Public Improvements at
the time of Conditional Acceptance, free and clear of all liens, encumbrances and restrictions, by
bill of sale or other proposed document of conveyance. All improvements made upon Town
property or Town rights -of -way or Town easements shall, after conditional acceptance by the
Town, be and remain the sole and exclusive property of the Town, free and clear from any and all
claims by the Owner or others.
18. Legal Expenses. In the event that it is necessary to initiate legal proceedings to
enforce the provisions of this Agreement, the non -prevailing party shall be responsible for all
reasonable legal expenses and costs incurred by the prevailing party.
19. Third Party Beneficiaries. This Agreement will not be construed as or deemed to
be an agreement for the benefit of any third party or parties, and no third party or parties will have
any right of action hereunder for any cause whatsoever.
[SIGNATURE PAGE FOLLOWS]
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IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first set
forth above.
TOWN:
O/VTOWN OF FIRESTONE, COLORADO
1®
j a By:
% 0 Bobbi Sindel , Mayor
ATTEST:
ACKNOWLEDGMENT
STATE OF COLORADO )
ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this 1®1lay of
_�r1e. 20W by__ Pii0bb1 S n Q.J Q�i as Q►
Witness my hand and official seal.
My commission expires: - �' • a a
JESSICA ANNE KOENIG
(S1 AL) Notary Public
State of Colorado
Notary ID # 20144044046
My Commission Expires 11-14-2022
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OWNER:
SECOND ROYALTY, LLC
By:
Nam .,v
Title:
ACKNOWLEDGMENT
STATE OF COLORADO )
ss.
COUNTY OF /4S )
The foregoing instrument was acknowledged before me this day of
20.20, by �n as 16te I et eAf —aM4
- ^f Second Royalty, LLC.
Witness my hand and official seal.
My commission expires:
(SEAL) Notary Public
DIANE CROWLEY ORTIZ
NOTARY PUBLIC
STATE OF COLORADO
NOTARY ID 19994011266
MY COMMISSION SXPIRES APRIL 26 2023
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EXHIBIT A
By reference
Sheets S1 thru _, -09 thru - , and thru
Of the "St. Acacius Subdivision Construction Documents" prepared by Atwell LLC dated
, 2020, stamped by Jeff French, PE and approved by the Town of Mead Town
Engineer on S t: p IS2020.
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EXHIBIT B
Engineers Estimate of the Cost of Public Improvements
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ONATWELL
Project St Acacius Subtd Weri Prepared By. MLH Date: Thursday March5 2020 .lob Number: 13,110 Client
Park Land Commm
St. Acacius Metropolitan District Firestone Phase I SIA
item cxy unit uns cost Item cost Description
C—ty Ro.d 912(H.1 SeGion) Z625 LF $297.00 $779.625oD IA MviA 2Lace-k kd-rrad-y, crab& gutter and sHenaAcs
Ss .y S— Cartrstien 1 FA S1,5DO.00 $1,50000 Kr— M.W2L--Irckd—ad—y,cv68 gutter e,d sder.Ra
Roadway Total $779,625.00
Total
St. Acactus Metropordan (Wrict TOTAL: S779,925.00
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EXHIBIT C
IRREVOCABLE LETTER OF CREDIT
Required Form
[date of Letter of Credit - the date the credit is opened]
Town of Firestone, CO
151 Grant Avenue
P.O. Box 100
Firestone, CO 80520
Attn: Town Clerk:
We hereby issue our Irrevocable Letter of Credit Number in your favor for the account of
, in an amount not to exceed
effective immediately and expiring at our counters on (except November 1 - March 1) or any extended
expiration date as indicated below.
Funds under this Letter of Credit are available for payment by sight, by presentation of your sight
draft(s) substantially in the form of Exhibit "A" accompanied by your written certificate substantially
in the form of Exhibit "B".
Partial and multiple drawings are permitted.
This Letter of Credit will automatically be extended for a period of one (1) year from the present or
any future expiration date unless we notify you in writing by certified mail ninety (90) days prior to
any expiration date that we elect not to renew this Letter of Credit for any additional period.
We hereby engage with you that all drawings in conformity with terms and conditions of the Letter
of Credit will be duly honored upon presentation to our counters on or before any expiration date as
indicated above.
All bank charges, including any advising bank charges, are to be charged to (account party's name).
If a demand for payment by you hereunder does not, in any instance, conform to the terms and
conditions of this Letter of Credit, the bank shall give the Town written notice, and send copy of this
notice by FAX to the Town of Firestone (Attn: Town Clerk) to (720) 476-4232, within three business
days of presentment of any nonconforming draft that the purported negotiation was not effective in
accordance with the terms and conditions of the Letter of Credit, stating with pat icularity the reasons
therefore. The bank will hold all documents at the bank for the Town, or send them to the Town, at
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the Town's option. Any such nonconforming demand may be corrected and resubmitted within three
(3) business days of receipt of the bank's mailed notice of nonconformity. A resubmittal will be
deemed to have been presented to the bank on the date of the original demand for payment.
We are a current member of (FDIC) (FSLIC).
This credit is subject to the Uniform Customs and Practice for Documentary Credits, 2007 revision,
ICC publication number 600.
This Irrevocable Letter of Credit sets forth in full the terms of our undertaking and such undertaking
shall not in any way be modified, amended or amplified by reference to any document or instrument
referred to herein or in which the Irrevocable Letter of Credit relates and any such reference shall not
be deemed to incorporate herein by reference any document or instrument.
Sincerely,
(Bank)
Clan St. Acacia, SIA
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EXHIBIT A TO LETTER OF CREDIT
101W11w81W]1,Am1•dyj1a018p]'J ILTA04IKill101a
IRREVOCABLE LETTER OF CREDIT NO.
DATE: , 20
PAY TO: The account of the Town of Firestone, Colorado, Account
No. . at
Colorado, THE SUM OF
TOWN OF FIRESTONE, COLORADO
By:
Town Clerk
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Int
EXHIBIT B TO LETTER OF CREDIT
CERTIFICATE FOR PAYMENT
The undersigned, a duly appointed officer of the Town of Firestone, Colorado (the "Town"),
hereby certifies to (the "Bank"), with reference to the Bank's
Irrevocable Letter of Credit No. (the "Letter of Credit"), issued by the
Bank in favor of the Town, that:
the
(1) The undersigned is the Town Clerk for the Town.
(2) The Town is authorized to make a drawing under the Letter of Credit.
(3) The amount which is due and payable from the Letter of Credit is
$ , and the amount of the sight draft accompanying this
certificate does not exceed such amount.
IN WITNESS WHEREOF, the undersigned has executed and delivered this certificate as of
day of , 20
TOWN OF FIRESTONE, COLORADO
By:
Town Clerk
Clean St, Acacia, STA
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Exhibit D
LEGAL DESCRIPTION
St Acacius Subdivision Replat No 1, recorded in the office of the Weld County Clerk and
Recorder on September 14, 2020 at Reception No. 4629456 Town of Mead, County of Weld,
State of Colorado.