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HomeMy WebLinkAboutBond Release RequestWAYNE L. ALLEN ASSISTANT VICE-PRESIDENT CORPORATE COUNSEL General Development Corporation EXECUTIVE OFFICES • IIII SOUTH BAYSHORE DRIVE • MIAMI, FLORIDA 33131 • TELEPHONE (305) 350-1231 March 5, 1975 The Honorable F. Eugene Cragg Mayor, City of Sebastian 644 Dempsey Avenue Sebastian, Florida Dear Mayor Cragg: Re: Release of Corporate Performance Bond This letter is to request that the City of Sebastian release the Corporate Performance Bond which we have previously posted with the City of Sebastian. This bond, dated January 27, 1964 is in the amount of $1,864,594.00. Attached is a proposed Resolution and support- ing documents for this request. Our request is based upon the fact that we have duplicate bonding. When the surety bonds were released and the corporate bonds were posted in 1970, the 1964 corporate bond was apparent- ly overlooked and not released. Enclosed also is a draft agreement for consideration regarding a program we are proposing for a continuing program of street completions and acceptance. We would appreciate the City taking action upon this request at its earliest convenience. Thank you. Sincerely, WAYNE L. ALLEN WLA:da encls. cc: Messrs. Avella, Bluem, Crump, Doheny, Flagg RESOLUTION CITY COUNCIL CITY OF SEBASTIAN SEBASTIAN, FLORIDA RELEASE OF CORPORATE BOND OF GENERAL DEVELOPMENT CORPORATION WHEREAS, General Development Corporation has requested the City Council to release its corporate bond, dated January 27, 1964, in the amount of $1,864,594.00, which bond assured the construction of streets within the City of Sebastian in accordance with its subdivision regulations, and WHEREAS, General Development Corporation in 1970 posted corporate bonds for the roads remaining to be constructed within platted units bonded by the 1964 bond, while simultaneously obtaining the release of certain surety bonds posted. NOW, THEREFORE, be it resolved by the City Council of the City of Sebastian, Florida that: The corporate bond of General Development Corporation dated January 27, 1964, in the amount of $1,864,594.00 is hereby released and any obligation of General Development Corporation arising therefrom to the City of Sebastian is no longer of any force or effect. Dated this day of March, 1975 Attest: Clerk Mayor, City of Sebastian PEI,11011%1MA_�CE L'OND • .. v r T n � r rrrti • . ,. I:1\Uti� r�Ll� i,-ZL\ by T�i1�aE That GENERAL DEVELOMMENT COIZPOI,tiATION, a Delaware Corporation authorized to transact business in the State of Florida, ( hereinafter called the ".Principal") is held and firmly bound unto the City of Sebastian, Indian River County, a municipal corporation existing under the laws of the State of Florida, in the penal sum of ONE MILLION EIGHT HUNDRED SIXTY FOUR THOUSAND FIVE .HUNDRED NINETY FOUR DOLLARS ($1, 864, 594, 00) for the. payment of which it binds itself, its.successors and assigns firmly by these presents. THE CONDITION OF THE ABOVE OBLIGATION is such that whereas the Principal has platted portions of Sections 1, 11, 12, 13,. 14, 23 and 24, Township 31 South, Range 38 East, and portions of Sections 17 and 18, Township 31 South, Range 39 East, Indian River County, Florida, into a Subdivision known as SEBASTL•4N HIGHLANDS, UNITS 1 thru 6 and 8 thru 10, according to the plats thereof recorded as follows: Plat Designation Plat Book Pages Sebastian Highlands 5 14 and 15 Sebastian Highlands, Unit 2 5 34 thru 37 Replat of Portions of Sebastian Highlands, Unit 2 - Page 3 6 88, 88A and 88B Replat of Portions of Sebastian Highlands, Unit 2 - Page 3 6 87, 87A and °7D Replat of Collier Creek Sebastian • Highlands, Unit 2 - Page 4 . 6 89 Replat of Portions of Seba.s.tian Highlands, Unit 2 Page 4 6 89A, 89B and 90 Sebastian Highlands, Unit 3 5 99 • Sebastian Highlands; -Unit :4' 5 1170 and 101 Sebastian Highlands, Unit 5 5 102 and 103 Sebastian Hilmlands, Unit 6 5 9� thiu 97 Sebastian Hi ;hlands, Unit 8 6 9 thru 1.1 Sebastian Highlands Unit 9 6 36 and 36.i Replat of Portions of Sebastian Highlands, Unit 9 7 2 Sebastian IIi :hl ands Unit 10 6 37, 37"A" thru 37 "O" G ' 9 of the public x-ccord:, o' Adian River C,oiinty, Florida: ithe plats of saiLi sub- divisions show streets and drainage canals thereon, and the Principal has agreed that it will grade and pave the streets and complete such canals as are shown on said plats of the aforedescribed property and other improvements and all othcr.requiremcntl in accordance with the specifications of the City of Sebastian, and approved by the .City Engineer. NOW, THEREFORE, if the Principal shall within ten (10) years from the date hereof, grade and pave the streets and complete such canals as are shown on said plats and other improvements thereof, which abut the aforedescribed property, in accordance with the specifications and requirements of the City of Sebastian, Florid: then this obligation shall be void; otherwise, the and approved by its City Engineer; ' rt�ain in full force and effect. until such work is completed. ,All improve- ! same shall re. mints and work shall be in accordance with the City of Sebastian's Subdivision Ordinance, known as Ordinance No. 179, and any other ordinances adopted relating thereto. tion of the Principal shall diminish in It is expressly understood the obliga ti. I proportion to the ation of the _e ' mounts expended from time to time toward the comp h ,it i improvements for whics; obligated hereunder; and that by its approval and t acceptance of this Bond, ahe City of Sebastian, Florida, agrees to acknowledge fro... t. i time to time,. in writing, the reduction of the? total sum of this obligation according work has been completed. to the extent such IN WITNESS WHEREOF, the Principal has caused these presents to be ' executed by its proper officers and its corporate seal to be affixed hereto, all of '1 . day of January, 196: ' which has been done at Aliami, Dade County, Florida, this ° w' ' COT'PORATT '(Cor.u. Seal) . i The foregoing Fond is hereby approved f da of and accepted Y R 1961 by the duly constituted zuthority for the City of Sebastian, Florida cit3F Clerk � GENERAL DEVELOPI•IZIN 1 •- Y Attest: esident Asst Secretary PL;RI'OIZMANCE BOND KNOW ALL MEN BY THESE PRESENTS: That GENERAL DEVELOPMENT CORPORATION, a Delaware corporation authorized to transact business in the State of Florida, (herein- after called the "Principal") is held and firmly bound unto the City of Sebastian, Indian River County, a municipal corporation existing under the laws of the State of Florida, in the penal sum of THREE HUNDRED EIGHTEEN THOUSAND FIVE HUNDRED THIRTY-NINE DOLLARS ($318,539.00) for the payment of which it binds itself, its suc- cessors and assigns firmly by these presents: THE CONDITION OF THE ABOVE OBLIGATION is such that whereas the Principal has platted portions of Sections 1, 11, 12, 13, 14, 23 and 24, Township 31 South, Range 38 East, and portions of Sections '17 and.18, Township 31 South, Range 39 East, Indian River County, Florida, into Subdivisions known as Sebastian Highlands according to the plats thereof recorded as follows: Plat Designation Plat Book Pages Sebastian Highlands, Unit 2 5. 34 and 37 Sebastian Highlands, Unit 3 5 99 Sebastian Highlands, Unit 4 5 100 and 101 Sebastian Highlands, Unit 5 5 102 and 103 Sebastian Highlands, Unit 6 5 93 thru 97 Sebastian Highlands, Unit 8 6 9 thru 14 Sebastian Highlands, Unit 9 6 36 and 36A Sebastian Highlands, Unit 10 6 37, 37"A" thru 37"0" in the public records of Indian River County, Florida; the plats of said subdivisions show streets and drainage canals thereon, and the Principal hereby agrees that it will grade and pave the streets and complete such canals as are shown on said plats of the afore- described property in accordance with the specifications of the City of Sebastian on the date hereof. NOW, THEIRE`FORE, if the Principal shall within four (4) years from the date hereof, grade and pave the streets and complete such canals as are shown on said plats which abut the aforesaid property as agreed, then this obligation shall be void; otherwise, the same shall remain in full force and effect until such work is completed. It is expressly understood the obligation of the Principal.shall with respect to each individual subdivision unit, be in the amount reflected as "Bond Amount" on the attached schedule "A" and that such amounts shall diminish in proportion to the amounts expended from time to time toward the completion of the improvements for which it obligated hereunder; and that by its approval and acceptance of this Bond, the City of Sebastian, Florida, agrees to acknowledge from time to time, in writing, the reduction of the total sum of this obligation according to the extent such work has been completed. IN WITNESS WHEREOF, the Principal has caused these presents to be executed by its proper officers and its corporate seal to be affixed hereto, all of which has been done at Miami, Dade County, Florida, this day of 1970. (SEAL) GENERAL DEVELOPMENT CORPORATION THE FOREGOING BOND IS HEREBY APPROVED AND ACCEPTED THIS DAY OF , 1970 CITY OF SEBASTIAN, FLORIDA BY Mayor ATTEST Clerk BY ATTEST 2 President Secretary SCHEDULE "A" SEBASTIAN HIGHLANDS SUBDIVISION Plat Designation Bond Amount Sebastian Highlands, Unit 2 14,376. Sebastian Highlands, Unit 3 24,000. Sebastian Highlands, Unit 4 21,600. Sebastian Highlands, Unit 5 15,200. Sebastian Highlands, Unit 6 19,950. Sebastian Highlands, Unit 8 71,874. Sebastian Highlands, Unit 9 2,789. Sebastian Highlands, Unit 10 148,750. TOTAL $318,539. A G R E E M E N T THIS AGREEMENT, entered into this day of March, 1975, between GENERAL DEVELOPMENT CORPORATION, a Delaware corporation, authorized to do business in the State of Florida, hereinafter called "General", and the City of Sebastian, a municipality under the laws of the State of Florida, and hereinafter called "City". WITNESSETH: WHEREAS, General has recorded in the Official Records of Indian River County, plats subdividing lands within City and, WHEREAS, General has posted as security for the construction of roads and drainage facilities as shown on said plats, corporate performance bonds, and, WHEREAS, General has completed construction, or will complete in accordance with this agreement, roads and drainage facilities as shown on said plats, and, WHEREAS, said roads and drainage facilities must be constructed in accordance with the ordinances in effect at the time of acceptance by the City, of the plats which were duly recorded by General, and, THEREFORE, the parties do hereby agree as follows: 1. General shall complete construction of all roads and drainage facilities in the recorded plats of Sebastian Highlands Units One through Seventeen, as recorded in the Official Records of Indian River County, which roads and drainage facilities were not previously constructed and accepted by the City of Sebastian. 2. General shall complete construction of said roads and drainage Facilities in accordance with the requirements of the ordinances of City in effect at the date of acceptance by the City of the plats, and the requirements of said ordinances shall be the standards applied by the City and its engineer in accepting the roads and drainage facilities so constructed. 3. General shall complete all roads and drainage facilities in the aforesaid plats on a phased basis, submitting to the City for acceptance, said roads on a continuing and regular basis until all roads and drainage facilities are completed. 4. City will require its engineer to inspect said roads and drainage facilities as they are tendered by General and within 30 days of their being tendered by General, the engineer shall report to General, in writing, any discrepancies which he finds. General shall then correct said discrepancies and shall re- submit for final approval to the City the completed roads and drainage facilities. 5. Upon acceptance of the aforesaid roads by the City, the City Commission shall pass an appropriate resolution accept- ing the construction of said roads and releasing therefrom all bonds heretofore posted with City by General, in full or portions thereof, in amounts equal to the amount of construction work originally bonded and herewith accepted. 6. Simultaneously with the passage of the aforesaid resolution by City, General shall post with City a maintenance bond in an amount not in excess of $200.00 per mile for all roads and drainage facilities which are released from the construction bonds. The maintenance bonds shall guarantee the performance of maintenance by General on the roads accepted by City for a maximum period of three (3) years from the date of said acceptance of construction, after which time said maintenance bonds shall automatically expire by their own terms and City shall assume full responsibility for maintenance of all the roads and drainage facilities covered by said bonds. 7. General, by entering into this agreement, hereby acknowledges that it relinquishes and waives all rights and protection of any ordinances or regulations of City which set a shorter period of time for required maintenance by the developer. 8. General during the three year maintenance period shall mow all the swales in the drainage facilities, repair all holes which might develop in the pavement of the roads and shall apply a herbicide to kill all vegetation which would interfere with the proper operation of the drainage facilities or would cause deterioration of the roads which have been constructed. 9. It is the intent of the parties that the aforesaid program shall be a continuing program between the parties which shall be carried out in good faith and without undue delay by either party. 10. It is an express condition of this agreement that it shall be legally binding upon the parties and specifically enforceable in the Courts of the State of Florida. Entered into this day of March, 1975. Executed on behalf of the City of Sebastian in accordance with a resolution passed by majority vote of the City Commission at its meeting on March, 1975. ATTEST: CLERK ATTEST: WAYNE L. ALLEN ASSISTANT SECRETARY F. EUGENE CRAGG MAYOR, CITY OF SEBASTIAN C. C. CRUMP, SR. VICE-PRES. GENERAL DEVELOPMENT CORP.