Marshall Real Estate Development ~ SUBDIVISION COMPLIANCE AGREEMENT
THIS AGREEMENT dated the LZ_ day of S5znEm 3f.2 , 2005 between the.
CITY OF TIGARD, a municipality of the State of Oregon, hereinafter termed the "CITY", and
Marshall Real Estate Development, LLC, hereinafter termed "Petitioner".
WITNESSETH :
WHEREAS, Petitioner has applied to the City for approval for filing in Washington County,
a subdivision plat known as Volpe Subdivision, located in Township Two (2) South, Range One
(1)West, Section Eight (8), Willamette Meridian, Washington County, Oregon; and
WHEREAS, the City has adopted the Standard Specifications for Public Works
Construction by Oregon Chapter APWA, for street, structure and related work, and CleanWater
Services Standards and Specifications, for sanitary and storm sewer construction, prepared by
professional engineers, for subdivision improvement development; and
WHEREAS, the improvements to be constructed in Petitioner's. development are
incomplete; and Petitioner has nonetheless requested the City to permit progressive use 'of
property in the subdivision, and the parties.desire hereby to protect the public interest generally
and prospective purchasers of lots in said subdivision .by legally enforceable assurances that
public improvements will be installed as required and completed within the time hereinafter set
forth.
NOW,,THEREFORE, in consideration of the foregoing premises and the covenants and
agreements to be kept and performed by the Petitioner and its sureties, IT IS HEREBY AGREED
AS FOLLOWS:
(1) Petitioner shall proceed with development, with the intent and purpose to complete
all public improvements except sidewalks and street trees of said subdivision not later than two (2)
years from the date of this agreement.. Petitioner agrees to comply with all subdivision standards
as set forth in the Tigard Municipal Code.and the standard specifications of the City of Tigard, to
comply with all terms and provisions specified therein this improvement by the Council and
Planning Commission of the City of Tigard, Oregon, or as may be specified by the Engineering
Department, and to use only such material and to follow such designs as may be required by or
approved by said Department. Petitioner shall provide certification of installation conformance
and one as-built mylar, both stamped by a registered civil engineer, to the City prior to City
inspection of petitioners improvement work for City conditional and final acceptance consideration.
Petitioner's contractor shall be licensed, bonded, and insured.
(2) To assure compliance with the City's requirements and the provisions herein,
Petitioner tenders to the City a surety bond in form approved by the City, with liability in the
amount of$489,000.00 a copy of which is attached and by this reference made a part hereof.
(3) In the event that Petitioner shall fail, neglect or refuse to proceed with the work in
an orderly and progressive manner to assure completion within the time limits, upon ten (10) days
notice by the City to Petitioner and Petitioner's sureties, and such default and failure to proceed
continuing thereafter, the City may at its option proceed to have the work completed and charge
the costs hereof against Petitioner and Petitioner's Sureties and in the event same be not paid, to
bring an action on the said bond to recover the amount thereof. In the event such action be
brought, Petitioner and Petitioner's Sureties promise and agree to pay, in addition to the amounts
SUBDIVISION COMPLIANCE AGREEMENT Page 1 of 4
I
accruing and allowable, such sum as the court shall adjudge reasonable as attorney's fees and
costs incurred by the City, both in the Trial Court and Appellate Court, if any, or the City may, at its
option, bring proceedings to enforce against the Petitioner and/or Petitioner's Sureties specific
performance of the contract and compliance with the subdivision standards and ordinances of the
City of Tigard, and in such event, in like manner, the City shall be entitled to recover such sum as
the court shall adjudge reasonable as and for the City attorney's fees and costs, both in the Trial
Court and Appellate Court, if any..
(4) Petitioner to form a Washington County.Street Lighting District,
(5) The City agrees to make and provide periodic and final inspections which in the
City's interest are desirable to assure compliance herewith, in consideration whereof the Petitioner
shall pay a deposit of$24,450.00.
(6) Developer to install all traffic control devices (signs) associated with said
subdivision.
(7) At such time as all improvements except sidewalks, street trees and final lift of
asphalt on local streets within the subdivision have been completed in accordance with the City's
requirements, Petitioner shall submit a "certificate of installation conformance"to the City to notify
the City of readiness for conditional acceptance inspection. Then, upon notification by the
Engineering Department, that the. requirements. of the City have been met, the Petitioner will
submit to the City a good and sufficient guarantee bond, if not already provided with the
performance bond, form approved by the City, to provide for correction of any incomplete work or
any, defective work or maintenance becoming apparent or arising within one (1) year after
conditional acceptance of the public improvements by the City. Petitioner agrees to maintain the
one-year guarantee bond in full force and effect until the City/Agency accepts the improvements
for operational and maintenance responsibility and the release of said bond has been granted in
writing.
(8) Upon receipt of certification from the Engineering Department that all requirements
have been met, and a One Year Guarantee Bond, the City agrees to conditionally accept the
public improvement subject to the requirement of completion of all work and correction of
deficiencies and maintenance for a period of one year as set forth above.
(9) That in addition to or supplementary of the requirements of Tigard Municipal Code
and the provisions hereof, Petitioner binds itself to conform to the following requirements and
scheduling limitations:
(a) No building permits, or permits to connect to public utility services shall be
issued for lots within Petitioner's subdivision as described until: 1) the City Engineer has
determined that the corresponding improvements are substantially complete to assure that the
health and safetyof the citizens will not be endangered from inadequate public facilities, and 2)
Petitioner has provided to the CityEngineer one check print of.the as-built drawings, prepared by
a registered civil engineer, for review and approval, along with certification of substantial
completion, signed and stamped by Petitioner's engineer.
(b) Upon a determination by the City Engineer that the improvements are
substantially complete and a check print of the as-built drawings has been reviewed and
approved, the Petitioner or individual lot owners within the subdivision may.receive building
permits or utility service for not more than 50-percent of the platted lots within the subdivision.
SUBDIVISION COMPLIANCE AGREEMENT Page 2 of 4
(c) No building permits shall be issued or utility service approved for any lot
which, together with previously approved lots, would exceed 50-percent of the platted lots within
the subdivision until: 1) all required improvements have been completed in accordance with the
approved plans, except for those improvements listed in Section 7 above, 2) Petitioner has
provided one as-built mylar stamped by a registered civil engineer, 3) the Petitioner has submitted
a "certificate of installation. conformance" as described'.in Section` 7 above, 4) a One Year
Guarantee.Bond, as described in Section 8 above, has been submitted by Petitioner, and 5) the
remaining, incomplete improvements listed.in Section 7 are assured.by a performance assurance.
(d) None of the lots of Petitioner's subdivision as described may be occupied
for residential purposes until an Occupancy Permit is issued under authority of.the City and no
Occupancy Permit shall be issued prior to conditional acceptance of the subdivision and to the
time that the sidewalk paralleling the street for each developed lot proposed to be occupied, is
installed as a part of the development; provided that all sidewalks as required by the plans and
Tigard Municipal Code shall be installed throughout said subdivision not later than three (3) years
from the date of this Subdivision Compliance Agreement.
(e) All landscaping trees on that portion of each lot between the public
sidewalks and the curb (parking area), if required, shall be planted in place prior to final inspection
and issuance of Occupancy Permit for each such lot in the subdivision. Provided that final
inspection and application for Occupancy Permit occurs within any calendar month from October
to April of any year, such plantings may be deferred until the next following growing season: In
any event, all required landscaping and trees in all areas shall be planted and in place within the
entire subdivision within three (3) years from the date of this subdivision improvement contract.
(f) After conditional City/Agency acceptance of the public improvements, the
Petitioner agrees to place the final lift of asphalt on all streets within the development, placement
scheduling to be approved by the City.
(g) Compliance with all terms and provisions specified for said subdivision
development by (Washington County, by CleanWater Services of Washington County and by)the
Council and the Planning Commission of the City of Tigard, Oregon, (in regard to variances
allowed from the Tigard Municipal Code, conditions specified by the zone use classification and,
also on the approved plat(s) and plan(s).)
(h) Petitioner agrees to correct any defective work and to perform any
maintenance, upon notification by the City, arising during the guarantee period as set forth above.
(10) At such time as all public improvements have been completed in accordance with
the City's requirements, Petitioner shall notify the City of readiness for final inspection and upon
certification by the Engineering Department that all requirements of the City have been met, the
City agrees to accept said improvements for operation and maintenance responsibility, and
release the Petitioner's Guarantee Bond.
(11) The parties hereby adopt the,form of performance bond, copy is attached and by
reference made a part hereof, and Petitioner agrees to cause to have said bond executed and
filed with the City concurrently with the execution of this agreement at or prior to the time this
agreement is executed on behalf of the City. Petitioner further agrees to maintain said bond in full
force and effect until otherwise authorized by the City in writing.
(12) The specific requirements of Paragraph 9 hereof shall for all purposes be included
as a part of the obligation secured by the performance bond mentioned above, and the City shall
SUBDIVISION COMPLIANCE AGREEMENT Page 3 of 4
be entitled to recourse in the.event of default on the part of the Petitioner with respect to any
requirement thereof.
IN WITNESS WHEREOF, Petitioner acting by and through its duly authorized
undersigned officers pursuant tor resolution of its Board of Directors has caused this agreement to
be executed, and the City acting pursuant to resolution of lits Council adopted at a regularly
scheduled meeting on the 13th day of October, 1986; has caused this agreement to be executed
by the City Engineer.
PETITIONER: MARSHALL REAL E DEVELOPMENT, LLC
THE CITY OF TIGARD
By: Q to .
City Engineer
Return signed copy to:
Marshall Real Estate Development LLC
PO Box 91249
Portland, OR 97249
1AFNG\M1KEIMCAPS1V0Ipe ENG2005-00055\REVISED SUBDIVISION COMPLIANCE AGREEMENT 5.doc
SUBDIVISION COMPLIANCE AGREEMENT Page 4 of 4
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. '14
SUBDIVISION IMPROVEMENT
PERFORMANCE BOND
Bond No. 559577S
KNOW ALL MEN BY THESE PRESENTS, that we Marshall Real Estate Development,
LLC as Principal, and DEVELOPERS SURETY AND INDEMNITY COMPANY, a corporation duly
authorized to conduct a general surety business in the State of Oregon, as Surety, are jointly and
severally held bound unto the City of Tigard, Oregon, a municipality of the State of Oregon,
hereinafter called obligee, in the sum of four hundred eighty-nine thousand dollars and zero cents
($489,000.00), lawful money of the United States of America, for the payment of which we, as
Principal, and as Surety, jointly and severally bind ourselves, our successors and assigns firmly
by these present.
THE CONDITIONS OF THIS BOND AND OBLIGATION IS SUCH, that the Principals are
developing a subdivision, known as Volpe Subdivision, located in Washington County, Oregon,
and have entered into a Compliance Agreement with respect to timely development and
improvement, a copy of said Agreement is attached, and by reference made a part hereof; and
NOW, THEREFORE, if the Principal herein shall faithfully and truly observe and comply
with all terms of the Agreement and shall well and truly perform all matters and things undertaken
to be performed under said Agreement and under all ordinances, regulations and conditions of the
Obligee applicable to said development and improvement, and shall promptly make payments to
all persons supplying labor or material for any of the work provided by said agreement, and shall
not permit any lien or claim to be filed or prosecuted against the Obligee,then this obligation shall
be void, otherwise to remain in full force and effect.
In the event of suit or action be filed by the Obligee hereunder to enforce said contract or
to recover under the terms of this bond, in addition to all other rights and remedies, the City, in the
event it shall prevail, shall be entitled to recover such sums as the Court may adjudge reasonable
as and for attorney's fees.
IN WITNESS WHEREOF,the parties hereto have caused this bond to be executed this
1ST day of SEPTEMBER 2005.
Marshall Real FAate Development, LLC
Principal
Ztrue
Title
( opyof the Power of Attorney
must be attached to the original of this bond). DEVELOPERS SURETY AND INDEMNITv rQMPANY
Surety
Attorney i actmoRAG'A r okr.Y.,
FIVE CENTERPOINTE SUITE 530
LAKE OSWEGO OR 97035
Address ,� ,, ,. - ��, 4",1jw*V akeW"We dpe P k°" .dm ',,;
POWER OF ATTORNEY FOR
DEVELOPERS SURETY AND INDEMNITY COMPANY
INDEMNITY COMPANY OF CALIFORNIA
PO BOX 19725,IRVINE,CA 92623 (949)263-3300
KNOW ALL MEN BY THESE PRESENTS,that except as expressly limited,DEVELOPERS SURETY AND INDEMNITY COMPANY and INDEMNITY
COMPANY OF CALIFORNIA,do each,hereby make,constitute and appoint:
***Lori D. Cunningham, Sean Flinn, Blaine D. Williamson, Geri M. Burnett, Morag A. Corey, Eric Englund,
jointly or severally***
as their true and lawful Attorney(s)-in-Fact,to make,execute,deliver and acknowledge,for and on behalf of said corporations,as sureties,bonds,undertakings
and contracts of suretyship giving and granting unto said Attomey(s)-m-Fact full power and authority to do and to perform every act necessary,requisite or proper
to be done in connection therewith as each of said corporations could do,but reserving to each of said corporations full power of substitution and revocation,and
all of the acts of said Attomey(s)-in-Fact,pursuant to these presents,are hereby ratified and confirmed.
This Power of Attorney is granted and is signed by facsimile under and by authority of the following resolutions adopted by the respective Board of Directors of
DEVELOPERS SURETY AND INDEMNITY COMPANY and INDEMNITY COMPANY OF CALIFORNIA,effective as of November 1,2000:
RESOLVED,that the Chairman of the Board,the President and any Vice President of the corporation be,and that each of them hereby is,authorized to
execute Powers of Attorney,qualifying the attorney(s)named in the Powers of Attorney to execute,on behalf of the corporations,bonds,undertakings and contracts
of suretyship;and that the Secretary or any Assistant Secretary of the corporations be,and each of them hereby is,authorized to attest the execution of any such
Power of Attomey;
RESOLVED,FURTHER,that the signatures of such officers may be affixed to any such Power of Attorney or to any certificate relating thereto by
facsimile,and any such Power of Attorney or certificate bearing such facsimile signatures shall be valid and binding upon the corporation when so affixed and in
the future with respect to any bond,undertaking or contract of suretyship to which it is attached.
IN WITNESS WHEREOF,DEVELOPERS SURETY AND INDEMNITY COMPANY and INDEMNITY COMPANY OF CALIFORNIA have severally caused
these presents to be signed by their respective Executive Vice President and attested by their respective Secretary this 1 st day of February,2005.
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By: C�
�.",j AND�iy�4a MPANVO
David H.Rhodea,Executive Vice-President �..* .,,0
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By:
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Walter A.Crowell,Secretary 4 /pyyp�,.� o 4/FO
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STATE OF CALIFORNIA )
)SS.
COUNTY OF ORANGE )
On February 1,2005,before me,Nita Q Hiffmeyer,personally appeared David H.Rhodes and Walter A.Crowell,personally known to me(or proved
to me on the basis of satisfactory evidence)to be the persons whose names are subscribed to the within instrument and acknowledged to me that they executed the
same in their authorized capacities,and that by their signatures on the instrument the entity upon behalf of which the persons acted,executed the inshument.
WITNESS my hand and official seal.
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Signature
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LINTY
aoaaa. Jen 10,2009
CERTIFICATE
The undersigned,as Executive Vice-President,of DEVELOPERS SURETY AND INDEMNITY COMPANY and INDEMNITY COMPANY OF
CALIFORNIA,does hereby certify that the foregoing Power of Attorney remains in full force and has not been revoked,and furthermore,that the provisions of
the resolutions of the respective Boards of Directors of said corporations set forth in the Power of Attorney,are in force as of the date of this Certificate.
This Certificate is executed in the City of Irvine,California,the 1ST day of SEPTEMBER 2005
By
David L.Kerrigan,Executive Vice-President
B7-1360(Rev.2/05)
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DISCLOSURE RIDER
Terrorism Risk Insurance Act of 2002
The Terrorism Risk Insurance Act of 2002 created a three-year program under which the
Federal Government will share in the payment of covered losses caused by certain events of
international terrorism. The Act requires that we notify you of certain components of the Act, and
the effect, if any, the Act will have on the premium charged for this bond.
Under this program, the Federal Government will cover 9.0% of the amount of covered
losses caused by certified acts of terrorism, as defined by the Act. The coverage is available only
when aggregate losses resulting from a certified act of terrorism exceed$5,000,000.00. Insurance
carriers must also meet a variable deductible established by the Act. The Act also establishes a
cap of$100 billion for which the Federal Government or an insurer can be responsible.
Participation in the program is mandatory for specified lines of property and casualty
insurance, including surety insurance. The Act does not, however, create coverage in excess of
the amount of the bond, nor does it provide coverage for any losses that are otherwise excluded
by the terms of the bond, or by operation of law.
No additional premium has been charged for the terrorism coverage required by the Act.
Developers Surety and Indemnity Company
Indemnity Company of California
17780 Fitch,Suite 200
Irvine,CA 92614
(949)263 3300
www.inscoDico.com
ID-1498(Rev.5/03)