HomeMy WebLinkAbout20 - Reimbursement Agreement - Cottonwood Subdivision Water Extension Payback AGREEMENT FOR REIMBURSEMENT
COTTONWOOD SUBDIVISION--WATER MAIN EXTENSION
THIS AGREEMENT FOR REIMBURSEMENT("Agreement"), made and entered into
this day of Au �5 , 20 2W, by and between the CITY OF
BOZEMAN, a municipal corpb•ation, organized under the laws of the State of Montana,
("City"), and The Cottonwood Project, LLC, a Delaware limited liability company
("Developer").
WHEREAS,Developer presently owns land located in Gallatin County,Montana,known
as the Cottonwood Subdivision, more particularly described as follows: Tract 3A-1 of Minor
Subdivision No.454C NW '/4, S15, T2S,R5E, P.M.M., City of Bozeman, Gallatin County MT
according to the map or plat thereof on file and of record in the office of the Clerk and Recorder
of Gallatin County,Montana;and
WHEREAS, the City owns and operates a water system within and adjacent to its
corporate limits;and
WHEREAS, Developer has constructed improvements more particularly described on
Exhibit"A"attached hereto and incorporated herein by this reference(hereafter referred to as the
"improvements"),which are capable of serving the tract hereinabove described;and
WHEREAS, the improvements described in Exhibit "A" are located within the area
served by the City,but have not been finally accepted by the City for maintenance and operation;
and
WHEREAS,the improvements are capable of serving an adjacent property,described as
Lot 2 of Minor Subdivision No. 454B, S15, T2S, R5E, P.M.M., City of Bozeman. Gallatin
County, MT and shown in Exhibit"A",which is herein referred to as"the Benefitted Property";
and
WHEREAS, the Benefitted Property did not participate in the original cost of
construction of the improvements described in Exhibit"B";and
WHEREAS, the Parties determine that if the owner of the Benefitted Property develops
the Benefitted Property the Benefitted Property's proportionate share of the cost of the
improvements is $92,321 (herein referred to as "Reimbursement Fee") as described in Exhibit
"B";and
WHEREAS, the City and the Developer desire to and intend by this Agreement to
provide terms and conditions by which the Benefitted Property may utilize the benefit of the
improvements;and
WHEREAS, the parties hereto agree that the City ill charge and collect the
Reimbursement Fee from the Benefitted Property if the owner or r 4resentative of the Benefitted
Property submits an application to the City for development of the Benefitted Property.
Developer agrees the collection of the Reimbursement Fee will occur no earlier than but prior to
receiving approval for Site Plan, Building Permit, Amended Plat or Subdivision of Land and
before the Benefitted Property may connect to the improvements.
NOW, THEREFORE, in consideration of the conveyance to the City of the
improvements described in Exhibit"A", and the mutual covenants contained herein, it is agreed
by and between the City and Developer as follows:
1. The parties agree that the said improvements have been or will be constructed and
installed in accordance with the requirements of the City and the Director of Public Works. The
Developer agrees to convey his interest in the improvements to the City. The City agrees to
accept said improvements for maintenance as part of its own infrastructure if such improvements
are constructed in accordance with applicable City policies and regulations.
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2. The Developer has submitted or will submit to the City itemized invoices for labor,
material and engineering directly attributable to the installation of the said improvements which
costs are attached and incorporated by reference as Exhibit `B". The Developer does hereby
certify that the costs listed in Exhibit `B" are solely related to the Benefitted Property's
proportionate share of the improvements, approximate the original amount bid for said
improvements,and do not reflect costs related to the Developer property's proportionate share of
the improvements.
3. The Developer has submitted or will submit an as-built set of plans together with the
engineer's certification that the project was completed in accordance with the applicable laws,
rules and regulations and cost of the improvements.
4. The City agrees to collect the Reimbursement Fee from the owner of the Benefitted
Property if it submits an application for development of the Benefitted Property to the City for
development of the Benefitted Property. Developer agrees the collection of the Reimbursement
Fee will occur no earlier than but prior to the Benefitted Property receiving approval for Site
Plan, Building Permit, Amended Plat or Subdivision of Land, and, notwithstanding the above,
before the Benefitted Property connects to the improvements, which fee shall be conclusively
presumed to be a fair charge against the Benefitted Property. The Reimbursement Fee is in
addition to the usual and normal charges that will be made by the City for service connections,
monthly service charges and impact fees. The Developer hereby releases the City from any and
all claims that may arise out of the collection of said fee, including but not limited to error in
calculation of proportionate cost, failure to collect fees set forth herein and in making a
determination that the property or portion thereof is or is not benefitted by said services.
5. The City shall account for funds received and remit said funds to The Cottonwood
Project LLC, designated by writing as the agent to receive said proceeds by the Developer,
approximately thirty(30)days following receipt of said funds.The Benefitted Property shall pay
the 7%Administration Fee. No approval of said entitlements listed previously shall be made to
the Benefitted Property without first paying the required amount and with the full knowledge of
the City.However,if the City,for whatever reason,fails to collect the required fee hereunder,no
liability shall arise nor any claim be made by the Developer against the City.City or Developer
may seek declaratory relief as needed to enforce the City's agreement herein to withhold permits
or approvals sought by the Benefitted Property until the Reimbursement Fee has been paid.
Developer agrees,however,the City shall not be liable to the Developer for the Reimbursement
Fee;rather,the Developer's remedy against the City is limited to a declaration that the owner of
the Benefitted Property must pay the Reimbursement Fee as provided herein.
6. It is agreed that this Agreement shall continue until Developer has recovered One
Hundred percent (100%) of his total "as-built" construction costs, or upon the expiration of
twenty (20) years, whichever shall occur first, whereby this Agreement shall be deemed
terminated and of no further force and effect. Failure of the City to recover the maximum
reimbursement shall neither create a liability on the part of the City nor extend the Agreement
beyond the period specified herein. Provided,however,that should this Agreement not provide
Developer with reimbursement as described above within said twenty (20) year period, this
Agreement may be extended by way of a mutual agreement between the City and Developer,
unless such an extension would work a hardship to the City.
7. Construction and installation of the improvements is limited specifically to the terns
and area covered by this Agreement. Nothing in this Agreement is to be construed as an
obligation on the part of Developer to extend said improvements to any points beyond those
contemplated in this Agreement and described in Exhibit"A.".
S. This Agreement has no effect on City charges for utility connections or impact fees.
The City may connect to the above described improvements as appropriate. Such connections
shall not constitute grounds for reimbursement. Any connections to such improvements of the
above described improvement shall not constitute grounds for reimbursement. The City shall be
the sole judge of what constitutes an improvement, a main, side lateral extension, or sewer
service.
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9. This Agreement shall be recorded in the real property records of Gallatin County,MT
against the Benefitted Property and shall run with the land and bind the Benefitted Property
owner's successors and assigns.
10. The owner of the Benefitted Property may grant an easement over the Benefitted
Property or otherwise allow an another property to access and connect to the described
improvements so long as, prior to any such connection, the connecting party obtains all
necessary city approvals and pays the Reimbursement Fee in full to the extent it remains unpaid.
11. By consenting to and acknowledging this Agreement on the signature page below,
the owner of the Benefitted Property hereby agrees to pay the Reimbursement Fee when it is due
and payable under the terms of this Agreement and agrees the payment of the Reimbursement
Fee to the City will be required as part of any approval of the owner's development application
and that this requirement to pay the Reimbursement Fee runs with the land and is binding on the
Benefitted Property owner's successors and assigns.
[end of text,signature pages and Exhibits A and B follow]
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IN WITNESS WHEREOF the Parties hereto have executed this instrument the day and
year first above written.
City:
CITY OF BOZEMAN
a municipal corporation,organized under
the laws of the State of Montana
By
Title: it ag r �� �n ;a
4>'
By: 5 C ft Wit;;
Name: 04 A
Title: City Clerk
`� Y
g�° 1883
STATE OF MONTANA )
ss.
County of Gallatin )
On this I da of� (0 ZO , before me, e p r i ed a ota
Pu lio for e tate day
Montana, personally appeared
�� d
known to me to be the City Manager and ity C erk,respectively,
of the Ci y of Bozeman and the persons whose names are subscribed to the within instrument,
and acknowledged to me that they executed the same for and on behalf of the City of Bozeman.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my Notarial Seal the
day and year first above written.
�R arE IER 13IEi\J\iENIJE
I
?' �2= Notary nubile
T.NOTAR/ m_for the .`".'}tatE Of I'�IGntana
#' s Resiciin otary Public for the State of Montana
SEAS at 1
e: Bozeman, Pion '>��;:•.. P?:' tang
of ono fl y Commirion Er,pires: i
January 2u, 2022 (Printed Name)
Residing at Bozeman
My Commission Expires: / /20_
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Developer:
THE COTTONWOOD PROJECT,LLC
a Delaware limited liability company
BY: 45ra �n
Title:
STATE OF )
):ss.
County of }
On this 114 day of 4,vi20 20 , before re,the undersigned, a Notary Public for
the State of I p personally appeared e h e ,known or identified to me to
be the MAK.a.,F-✓ of T(<e wod `ec,�- LLB. the corporation that
executed the instrument or the person who executed the instrilment on behalf of said corporation,
and acknowledged to me that such corporation executed the same.
IN WITNESS WHEREOF,I have hereunto set my hand and affixed my Notarial Seal the
day and year first above written.
(SEAL) =Pubtic
EDDY
te of Idahor 20202759es Jul 31,2026
Notary Public for the State of Ids e
(Printed Name
Residing at o%s e� f D
My Commission Expires: • 3l. "2b
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Consented to by Benefitted Property Owner:
Owner Name: V 01 h no <✓lrvv►pQJ✓Lti►, l nc'
Signed by: A l Jl
Title: VKr(UICRjAt
STATE OF MONTANA )
):ss.
County of vwQ )
On this , day of �1 2020, before me, the undersigned, a
Notary Public in and for said State, ersonally ppeared 1I known or
identified to me to be the y(GC Mfilrlty�+ of �
the corporation that executed the instrument or the person who executed the instrument on behalf
of said corporation,and acknowledged to me that such corporation executed the same.
IN WITNESS WHEREOF,I have hereunto set my hand and affixed my Notarial Seal the
day and year first above written.
RFAT)_
OO.. R� JILL HAMRY
?'f NOTARY PUBLIC for the
State of Montana
SEAL Residing at Butte,Montana Notary P blic for tote Siate of Montana
My Commission Fires
OF May 16,2024
(Printed Name)
Residing at
My C 09r ion Expires:
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EXHIBIT A
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C YI`I'ONltOODSUBDIVISION
SCALE WATER I X PENSION MADI ON H.NGINRI:RING
PAYBACK DNTRIC"r T•.X111BIT"A"
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EXHIBIT B
Exldldt 8
Cottonwood Subdivision•Payback District
Water Extension
ITEM
No. ITEMDESCRIPTION Guar* Unit UnitPrtee so Total
Water Main
50 SawcutExrgAsphalt 170 LF S3.00 S6f0.W
51 Remove and Dispose AsphaOConcrete 621 SF $1.00 S621.00
52 RepairAWart 0 SF StO.W S6,20.00
53 Remave and ReAce Concrete ADAramp 12D SF S20.W S2,400.1)(I
54 Remove and Replace Concrete Ctab and CAW 45 LF 530.00 $1,350.00,
5.5 Structural Trench BackM(6*minus) too CY S<"O.W S3.6W.W
56 6'DI pipe class 51 gt0 LF SS4.W S49,140.W
57 Hot Top boating l0'Main 1 EA 51,5W.W $1,500.00
58 10'x8'Topping Sleeve 1 EA S2,500.00 $2.5W.W
59 r0I Cap MJ 3 EA $450.00 $1M.00
W rx6'Tee(hxhydrantleads) 2 EA SSSO.W $1,100.011
81 6'DlHydardlead 20 LF S52.00 S1.040.00
82 8'DI Cote Yahee 5 EA $1.7W.W SB,5W.W
63 ONO'DICtoss 3 EA 5650.W $1.950.W
84 n8 Tee 1 EA $550.W $5W.00
65 Ir Buty Depth Hydrant Assembly 2 EA 54,950.W $9.700.00
Subtotal $2 021,00
Water Main Testing
66 pressure Test,Flushing BBacTs i LS S1,500.W $1,500.00
Testing Subtotal $1,500.00
Testing Town Pump%(20%(' SM0.00
Grand Total(Sutitdal+Town Pump%! S92,321.00
'Percetda Breakdowns
Rem Unit lTownPtmpl ITotal P�cen e
WaterTestino I LF I g10 I I d509 20%
ta.�er,Fi} P.karc:C'f t mFA—,m
Pala t Of f
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