HomeMy WebLinkAboutNEW BELGIUM BREWERY FOURTH LOT 1 AGREEMENT # 2 - Filed DA-DEVELOPMENT AGREEMENT - 2012-02-08RECEPTION#: 20120006694, 01/31/2012 at
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Scott Doyle, Larimer County, CO
LOT 1 OF NEW BELGIUM BREWERY FOURTH FILING
AMENDMENT AGREEMENT NO.2
THIS AMENDMENT AGREEMENT, made and entered into this 2 nd day of January, 2012,
by and between the CITY OF FORT COLLINS, COLORADO, a Municipal Corporation, hereinafter
referred to as the "City"; and NEW BELGIUM BREWING COMPANY INC., a Colorado
Corporation, hereinafter referred to as the "Developer."
WITNESSETH;
WHEREAS, the City entered into a Development Agreement with the Developer on June
16, 2006, the terms of which govern the development activities of the Developer pertaining to
that certain real property situated in the County of Larimer, State of Colorado, (hereafter referred
to as the "Property") and legally described as follows, to wit:
Lot 1 of New Belgium Brewery Fourth Filing, City of Fort Collins, County of Larimer,
State of Colorado.
WHEREAS, the Development Agreement was amended by Amendment Agreement No.1 on
December 24, 2008.
WHEREAS, the parties presently desire to again modify the Development Agreement by this
Amendment Agreement No. 2;
NOW, THEREFORE, in consideration of the promises of the parties hereto and other good
and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties
hereto agree to amend the terms and conditions of the Development Agreement as follows:
A. Subheading lI (Special Conditions) Paragraphs D.1— 2 shall be replaced with the following:
1. The Developer previously provided a letter of credit in the amount of $1,195,330.00 as an
escrow to secure the completion of the design and construction for the frontage
improvements along Buckingham Street (Phase 2 Improvements) in accordance with
Amendment No. 1. In accordance with Amendment No. 1 the design and construction of
the frontage improvements along Buckingham Street were to be approved and constructed
by December 24, 2011. Since said design has not yet been approved the design and
construction will not occur prior to December 24, 2011.
2. a. In accordance with Section 24-95 of the City Code the Developer is responsible for
constructing the portion of Buckingham Street adjacent to the site prior to the issuance of
the first building permit. Notwithstanding the foregoing, the City and the Developer had
agreed to delay the construction of these improvements (Phase 2 Improvements) provided a
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Clty Clerks Office, Fort Collins, Colorado
letter of credit was provided to the City to guarantee the completion of these improvements.
With this amendment agreement the City and the Developer agree that the completion of
the Phase 2 Improvements are allowed to be further delayed provided a new letter of credit
is provided for $631,574.00. Said non expiring letter of credit shall be available to cover
the costs necessary to relocate the Coy Ditch outside of Buckingham Street; and to design
and construct the Buckingham Street improvements, and the utility and storm drainage
facilities made necessary by the improvements to the Development; and any outstanding
design and permitting costs necessary to complete full approval needed in order to
commence construction of the Phase 2 Improvements. This revised amount is further
described and detailed on Exhibit "C".
b. Upon receipt of this new letter of credit the City shall release the previous letter of
credit in the amount of $1,195,330.00. Failure by the Developer to provide the new letter of
credit shall result in the Developer's forfeiture of the right to extend the timeframe for the
design and construction of the Phase 2 Improvements being completed and the City reserves
the right to call the letter of credit on file with the City in order to have the improvements
constructed.
C. Upon receipt by the City of the new letter of credit in the amount of $631,574.00 the
Developer shall have until June 30, 2012 to complete the design, obtain approval by the Coy
Ditch and the City, and construct said Phase 2 Improvements.
d. Should the Developer be unable to complete the Phase 2 Improvements by June 30,
2012 the City reserves the right to call the letter of credit on file with the City in order to
have the improvements constructed.
C. If the City calls either letter of credit, the improvements may then be constructed by
the City or a third party utilizing the proceeds of the letter of credit. If the Phase 2
Improvements are constructed by the City or a third party, neither the City nor the third
parry shall be bound to complete the Phase 2 improvements by June 30, 2012.
B. Exhibit "C" shall be replaced with the new attachment "Exhibit C":
C. All other terms and conditions of the Development Agreement (as amended by Amendment
Agreement No. 1) shall remain unchanged and in fiill force and effect, except as expressly
amended in this Amendment Agreement No. 2.
IN WITNESS WHEREOF, the parties hereto have executed this agreement the day and
year first above written.
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ATTEST: -�
n ..l .1 `Y..•V� . �"- .i%�� _ • cry
APPROVED AS TO CONTENT:
C-icy Engineer
APPRO AS TO FORM:
Deputy City Attorney
THE CITY OF FO CO INS, COLORADO,
a Municipal Corpor ti n
By��
City Manager
DEVELOPER:
NEW BELGIUIVI BREWING COMPANY, INC., a
Colorado Corporation
By: t4�
Kimberley Jordan., C of Executive Officer
ATTEST:
Christine Perich, Chief Operating Officer/Chief Financial Officer
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STATE OF COLORADO )
ss.
COUNTY OF LARIMER )
The foregoing instrument was acknowledged before me this
2011, by NEW BELGIUM BREWING COMPANY, INC. by Kimberley J
Executive Officer and by
( a z Expires:
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day ofJ'l ^'u-6eY,
Exhibit "C"
This first letter of credit amount for this work was determined by taking 1.5 x $705,928 (the June 8,
2006 estimate by Swinerton Builders).
New Belgium spoke with Bill Pigg, the head of the Neenan Company's estimating departments in
September of 2008. He stated that The Neenan Company's historical costs of construction have
escalated over the last few years as follows:
2007 Costs: 5.5% higher than in 2006
2008 Costs: 7% higher than 2007
The letter of credit associated with Amendment Agreement No. 1 was determined by:using the
escalation factors provided by the Neenan Company.
$705,928 x 1.055 x 1.07 x 1.5 = $1,195,330
The letter of credit to be provided as per this Amendment Agreement No 2 shall be determined by
using the bid documents from North Star Design for design, the bid document from Connell for the
construction and additional amounts as itemized below to cover ditch company approval other
construction or design information. This total amount is then multiplied by 1.5. It should be noted
that from Amendment No. 1 to Amendment No. 2 the pond at the SW comer of Buckingham Street
and First Street has been eliminated as the drainage can be accommodated on Lot 1 of New Belgium
Fourth Filing, this reduces the improvements that are required as a part of the Phase 2 Improvements
(frontage improvements at this corner are no longer necessary with this project) and as such did
reduce the construction costs of the project.
North Star Design design costs $12,300.00
Connell construction $301,436.00
Geotechnical (from Connell bid) $7,900.00
Bonding (from Connell bid) $2,810.00
City Inspection and permit fees (from Connell bid) $9,561.00
Survey work $24,114.00
Landscape design $6,900.00
On -site Engineering/ project management $6,028.00
Coy Ditch approval $50,000.00
Total $421,049.00
X 1.5 $631,574.00
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