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HomeMy WebLinkAbout0001 PUBLIC IMPROVEMENT AGREEMENT (qo]) Ij()~ / THIS AGREEMENT made this 10th of June, 2003, by and between J ~ (V!I the CITY OF WHEAT RIDGE, COLORADO, a home rule municipal corporation j- ./ (the "City"), and George S Johnston ,(the "Developer"), together referred to as the "Parties" RECITALS The Developer is the owner of certain real property located in the City of Wheat Ridge, which is more particularly described in Exhibit A attached hereto and made a part hereof (the "Property"), commonly known as 12701 W 42nd Avenue On January 8, 2003, the City of Wheat Ridge, after the required review process, approved a building permit for the Property located at 12701 W 42nd Avenue The approvals cited above are contingent upon the express condition that the Developer faithfully perform all duties created by this Agreement. AGREEMENT NOW, therefore, for and in consideration of the mutual promises and covenants contained herein, the sufficiency of which are mutually acknowledged, the parties hereto agree as follows 1. Purpose The purpose of this Agreement is to set forth the terms and conditions for development of the Property All conditions contained herein are in addition to any and all requirements of the City of Wheat Ridge Charter, any and all state statutes, and any other sections of the City of Wheat Ridge Municipal Code and are not intended to supersede any requirements contained therein 2. Title Policy. If applicable, title commitment for the Property shall be provided to the City. The title commitment shall show that all property to be dedicated to the City is or shall be, subsequent to the execution and recording of this Agreement, free and clear of all liens and encumbrances (other than real estate taxes which are not yet due and payable). The City, in its sole discretion, may accept any dedication regardless of encumbrances The title policy evidenced by the title commitment shall be provided thirty (30) days after the recording of this Agreement. 3 Breach by the Developer; the City's Remedies In the event of a breach of any of the terms and conditions of this Agreement by the Developer, the City may take such action as permitted and/or authorized by law, this Agreement, or the ordinances and Charter of the City as the City deems necessary to protect the public health, safety and welfare, to protect lot buyers and builders, and to protect the citizens of the City from hardship and undue risk. These remedies include, but are not limited to PUBLIC IMPROVEMENT AGREEMENT 04/03 RECEPTION NO. F :I. I':! b .3 ;'j ') 7/03/2003 14:05:52 PG: 001-013 PAGE FEE: 66.00 DOC.FEE: 0.00 RECORDED IN JEFFERSON COUNTY, COLORADO (a) (b) (c) (d) The refusal to issue any building permit or certificate of occupancy; The revocation of any building permit previously issued under /) which construction directly related to such building permit has not r- commenced, except a building permit previously issued to a third party, A demand that the security given for the completion of the Public Improvements be paid or honored, or Any other remedy available at law or in equity Unless necessary to protect the immediate health, safety and welfare of the City or to protect the City's interest with regard to security given for the completion of the Public Improvements, the City shall provide the Developer thirty (30) days written notice of its intent to take any action under this paragraph. The Developer may cure the breach described in the notice during said thirty-day period. 5 Public Improvements and Warranty All storm sewer lines, drainage structures, paved streets, curb, gutter and sidewalk, and necessary appurtenances as shown on the associated construction documents (the "Public Improvements" or "Improvements") as approved by the Director of Public Works or designee of the City, shall be installed and completed at the expense of the Developer within the time frames set forth on Exhibit B The Public Improvements required by this Agreement and shown on the construction documents approved by the Director of Public Works, hereinafter "Director", the time frames for construction of the Improvements and the itemized costs of these Improvements are set forth on Exhibit B attached hereto and incorporated herein All Public Improvements covered by this Agreement shall be made in accordance with the construction documents drawn according to regulations and construction standards for such improvement and approved by the Director It is understood by the Parties that the description of the Public Improvements may be general in nature, and that reasonable modifications of the scope, nature, costs, and similar aspects of the Public Improvements may be necessary to secure final approval of the Public Improvements The quantities and locations for the Public Improvements are based on information that was available at the time of approval of the construction documents by the Director The Developer shall warrant any and all Public Improvements for a period of two (2) years from the date the Director certifies that the Public Improvements conform with specifications approved by the City. Specifically, but not by way of limitation, the Developer shall warrant the following. (a) That the title conveyed shall be marketable and its transfer rightful; (b) Any and all facilities conveyed shall be free from any security interest or other lien or encumbrance; and (c) Any and all facilities so conveyed shall be free of defects in materials or workmanship for a period of two (2) years as stated above (d) To the degree the Developer is required to install and maintain landscaping on public or private property, it is the obligation of PUBLIC IMPROVEMENT AGREEMENT 04/03 Developer to maintain the required landscaping for two (2) growing season(s) ~ The City will finally accept for maintenance all Public Improvements after the warranty period has expired provided all warranty work has been completed The City shall accept for snow removal purposes only, all dedicated public streets after the City issues the first certificate of occupancy 6. Observation, Inspection and TestinQ The City shall have the right to require reasonable engineering observations and testing at the Developer's expense Observation and testing, acquiescence in, or approval by any engineering inspector of the construction of physical facilities at any particular time shall not constitute the approval by the City of any portion of the construction of such Public Improvements. The City shall make approval only after completion of construction and in the manner hereinafter set forth The Director is designated by the City to exercise authority on its behalf under this Agreement and to see that this Agreement is performed according to its terms. Work under this Agreement may, without cost or claim against the City, be suspended by the Director for substantial cause The Director and his authorized representatives shall have free access to the work at all times The Director, or his designee, will make periodic observations of construction (sometimes commonly referred to as "supervision"). The purpose of these observations and construction checking is to determine if the work is being performed in accordance with the plans and specifications. Inspectors may be appointed to inspect materials used and work done Inspections may extend to all or any part of the work and to the preparation or manufacture of the materials to be used The Inspector will have authority to reject defective materials and to suspend any work that is being done improperly, subject to the final decision of the Director 7 Completion of Public Improvements. The obligations of the Developer provided for in paragraph 5 of this Agreement, including the inspections hereof, shall be performed on or before Tu,<.J~ I D ,2003 , and proper application for acceptance of the Public Improvements shall be made on or before such date Upon completion of construction by the Developer of such Improvements, the Director or designee, shall inspect the Improvements The Developer shall make all corrections necessary to bring the Improvements into conformity with the approved documents. Once approved by the Director, the City shall accept said Improvements upon conveyance 8 Protection Developer, at its expense, shall continuously maintain adequate protection of all Improvements from damage prior to acceptance by the City and shall protect the City's property from injury and loss arising in connection with this Agreement. Developer shall make good any such damage, injury or loss except such as may be caused directly by authorized agents or employees of the City Developer shall adequately protect adjacent property and shall provide and maintain all passageways, guard fences, lights and other facilities for protection required by public authority or local conditions. PUBLIC fMPROVEMENT AGREEMENT 04103 Developer shall be responsible for damage to any public and private I J property on and adjacent to the site of Developer's Improvements caused by -; negligent or willful acts of Developer, its agents or subcontractors When any direct or indirect damage or injury is done to public or private property by or on account of any act, omission, neglect or misconduct in the construction of Improvements, or in consequence of the non-execution thereof on his part, such damaged property shall be restored by Developer at its own expense to a condition similar or equal to that existing before such damage or injury Developer shall at all times take necessary precautions to ensure the protection of the public. Developer shall furnish, erect and maintain, at its own expense, all necessary barricades, suitable and sufficient red lights, construction signs, provide a sufficient number of watchmen, and take all necessary precautions for the protection of the work and safety of the public through or around his construction operations as Developer and the Director shall deem reasonably necessary 9 Related Costs - Public Improvements The Developer shall provide all necessary engineering designs, surveys, field surveys, testing and incidental services related to the construction of the Public Improvements at its sole cost and expense If applicable, a final drainage letter certified accurate by a professional engineer registered in the State of Colorado shall also be submitted at the request of the Director 10. Improvements to be the Property of the City All Public Improvements for roads, concrete curb and gutters, public storm sewers and public drainage improvements accepted by the City shall be the property of the City following acceptance by the City, as provided above 11. Performance Guarantee. In order to secure the construction and installation of the Public Improvements the Developer shall, prior to issuance of a building permit, furnish the City, at the Developer's expense, with the Performance Guarantee described herein The Performance Guarantee provided by the Developer shall be an irrevocable letter of credit in which the City is designated as beneficiary, for one hundred twenty-five percent (125%) of the estimated costs of the Public Improvements to be constructed and installed as set forth in Exhibit B to secure the performance and completion of the Public Improvements as required by Section 26-110, of the Wheat Ridge Code of Laws. An irrevocable letter of credit shall be supplied to the City within ninety (90) days of the execution of this Agreement in the amount and form approved by the City Failure of the Developer to provide an irrevocable letter of credit to the City in the manner provided herein shall negate the City's approval of this Agreement. Letters of credit shall be subject to the review and approval of the City Attorney The Developer shall not start any construction of any public or private improvement on the Property including, but not limited to, staking, earth work, overlot grading or the erection of any structure, temporary or otherwise, until the City has received and approved the irrevocable letter of credit. The estimated costs of the Public Improvements shall be a figure mutually agreed upon by the Developer and the Director, as set forth in Exhibit B PUBLIC IMPROVEMENT AGREEMENT 04/03 attached hereto If, however, they are unable to agree, the Director's estimate shall govern after giving consideration to information provided by the Developer r including, but not limited to, construction contracts and engineering estimates. J The purpose of the cost estimate is solely to determine the amount of security. In the event the Public Improvements are not constructed or completed within the period of time specified by paragraph 7 of this Agreement or a written extension of time mutually agreed upon the parties to this Agreement, the City may draw on the letter of credit to complete the Public Improvements called for in this Agreement. In the event the letter of credit is to expire within fourteen (14) calendar days and the Developer has not yet provided a satisfactory replacement, the City may draw on the letter of credit and either hold such funds as security for performance of this Agreement or spend such funds to finish Public Improvements or correct problems with the Public Improvements as the City deems appropriate Upon completion of performance of such improvements, conditions and requirements within the required time, the Developer shall issue an irrevocable letter of credit to the City in the amount of twenty-five percent (25%) of the total cost of construction and installation of the Public Improvements, to be held by the City during the warranty period If the Public Improvements are not completed within the required time, the monies may be used to complete the improvements 12. Indemnification The Developer shall indemnify and hold harmless the City and its officers, employees, agents or servants from any and all suits, actions, and claims of every nature and description caused by, arising from or on account of this Agreement any act or omission of the Developer, or of any other person or entity for whose act or omission the Developer is liable, with respect to the Public Improvements; and the Developer shall pay any and all judgments rendered against the City as a result of any suit, action, or claim, together with all reasonable expenses and attorney's fees and costs incurred by the City in defending any such suit, action or claim The Developer shall pay all property taxes on the Property dedicated to the City, if any, and shall indemnify and hold harmless the City for any property tax liability 13 Waiver of Defects. I n executing this Agreement, the Developer waives all objections it may have concerning defects, if any, in the formalities whereby it is executed, or concerning the power of the City to impose conditions on the Developer as set forth herein, and concerning the procedure, substance, and form of the ordinances or resolutions adopting this Agreement. 14. Third Party Beneficiaries There are and shall be no third party beneficiaries to this Agreement. 15 Modifications This instrument embodies the whole agreement of the Parties. There are no promises, terms, conditions, or obligations other than those contained herein, and this Agreement shall supersede all previous communications, representations, or agreements, either verbal or written, between the parties There shall be no modification of this Agreement except in PUBLIC IMPROVEMENT AGREEMENT 04103 writing, executed with the same formalities as this instrument. Subject to the conditions precedent herein, this Agreement may be enforced in any court of /_ competent jurisdiction. 'f 16 Release of Liability. It is expressly understood that the City cannot be legally bound by the representations of any of its agents or their designees except in accordance with the City of Wheat Ridge Code of Ordinances and the laws of the State of Colorado. 17. Captions The captions to this Agreement are inserted only for the purpose of convenient reference and in no way define, limit, or prescribe the scope or intent of this Agreement or any part thereof 18. SindinQ Effect. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, successors, and assigns as the case may be 19 No Waiver No waiver of any of the provisions of this Agreement shall be deemed or constitute a waiver of any other provisions herein, nor shall such waiver constitute a continuing waiver unless otherwise expressly provided, nor shall the waiver of any default hereunder be deemed a waiver of any subsequent default hereunder. 20. Invalid Provision. If any provision of this Agreement shall be determined to be void by any court of competent jurisdiction, then such determination shall not affect any other provision hereof; all of the other provisions shall remain in full force and effect. It is the intention of the Parties that if any provision of this Agreement is capable of two constructions, one of which would render the provision void, and the other which would render the provision valid, then the provision shall have the meaning which renders it valid 21 GoverninQ Law The laws of the State of Colorado shall govern the validity, performance and enforcement of this Agreement. Should either party institute legal suit or action for enforcement of any obligation contained herein, venue of such suit or action shall be in Jefferson County, Colorado 22. Attorneys Fees. Should this Agreement become the subject of litigation to resolve a claim of default of performance or payment by the Developer and a court of competent jurisdiction finds in favor of the City, the Developer shall pay the City's attorney's fees and court costs 23 Notice. All notices required under this Agreement shall be in writing and shall be hand delivered or sent by registered or certified mail, return receipt requested, postage prepaid, to the addresses of the parties herein set forth All notices so given shall be considered effective seventy-two (72) hours after deposit in the United States mail with the proper address as set forth below Either party by notice so given may change the address to which future notices shall be sent. Notice to Developer' Notice to City: PUBLIC IMPROVEMENT AGREEMENT 04/03 &Eo~G-E '5. TOHt-JSTCu,J 1'2- "701 (Ai. 42- /V'b /'t ve zc>oG, J3IlY.,'9.,..,7 01. Director of Public Works 7 7500 West 29th Avenue WJ.lE/fr R /bt..E. cO 80033 , Wheat Ridge, CO 80033 24 Force Maieure. Whenever the Developer is required to complete the construction, repair, or replacement of Public Improvements by an agreed deadline, the Developer shall be entitled to an extension of time equal to a delay in completing the foregoing due to unforeseeable causes beyond the control and without the fault or negligence of the Developer including, but not restricted to, acts of God, weather, fires and strikes 25. AssiQnment or AssiQnments There shall be no transfer or assignment of any of the rights or obligations of the Developer under this Agreement without the prior written approval of the City. 26. RecordinQ of AQreement. This Agreement shall be recorded in the real estate records of Jefferson County and shall be a covenant running with the Property in order to put prospective purchasers or other interested parties on notice as to the terms and provisions hereof 27 Title and Authority. The Developer, ~~ 5olfll~, expressly warrants and represents to the City that it is the r rd owner of the property constituting the Property and further represents and warrants, together with the undersigned individual(s) that the undersigned individual(s) has or have full power and authority to enter into this Subdivision Improvement Agreement. The Developer and the undersigned individual(s) understand that the City is relying on such representations and warranties in entering into this Agreement. PUBLIC IMPROVEMENT AGREEMENT 04/03 WHEREFORE, the parties hereto have executed this Agreement on the day and year first above written. CITY-,>F WHEAT RIDGkGPLORADO .- .. J By' ATTES~ ~JM . tt-n~ Wanda Sang, City CI APPROVED AS TO FORM. ~AiJ~t(jr~ Gerald Dahl, City Attorney DEVELOPER By' - 1 ~/! t~s..~ (( ,~ ) ) ) ss. STATE OF COLORADO COUNTY OF . J t[fe-I- '.::> l1J0 ","'- The foregoing instrument was acknowledged before me this 10 '/ day of :J"N( , 2~, by G-c-oR &t: <' .) J ^ i4 oJ 's, 0 "J as , ~(Li?'" IfJec"rr- of J<-rlr-J-,;',vrJ u>J S'\1t\>"\ C)J'oj COJ--A..PArJY Witness my hand and official seal /-/~-oS- L~~ PUBLIC IMPROVEMENT AGREEMENT 04/03 EXHIBIT A ~ LEGAL DESCRIPTION LOTS 1 AND 2, BLOCK I, JOHNSTON SUBDMSION 1 ST AMENDl.IENT, EXCEPTING THEREFROl.l f>N( PORTION mEREOF LYING WITHIN THAT PARCEL CONVEYED TO THE METROWASTEWATER REClAMATION DtSTR1CT BY DEED RECORDED FEBRUARY 14, 1991 AT RECEPTION NO. 91012950. RE-RECORDED MARCH " 1991 AT RECEPTION NO. 91016795 AND RE-RECORDED IoIARCH 4, 1991 AT RECEPTION NO 91017151, COUNTY OF JEmRSON, STATE OF COlORADO. A PART OF mE SOUTHWEST ONE QUARTER OF SECTION 20. TOWNSHIP 3 SOUTH, RANGE 69 WEST OF THE SlXTH PRINCIPAl MERIDIAN, cm Of WHEAT RIDGE, COUNTY OF JEFITRSON, STATE OF COLORADO, MORE P.ARTlCULARLY DESCRIBED AS FOllOWS. COMMENCING ,l,T THE WEST 1/4 CORNER OF SAID SECOON 20; TH[NCf NORTH 89"09'12' EAST AlONG THE NORTH UNE OF THE SOlJT}fWEST 1/4 OF SAID SECTlON 20 A DISTANCE Of 2080.76 FEET TO THE WEST RIGHT OF WAY UNE OF XENON STREET. THENCE SOUTH 0"19'37. EAST AlONG SAID WEST RIGHT OF WAY UNE OF XENON STREET 375.12 ffiT TO THE POINT OF BEGINNING THENCE CONTlNUING soum 0'19'37" EAST AlONG SAID WEST RIGHT OF WAY UNE OF XENON STREET 130.55 FEET: THENCE SOUTH <<'51'23' WEST 21 15 FEET TO THE NORTH RIGHT OF WAY UNE OF WEST 42ND AVENUE, mENCE NORTH 89"57'37" WEST AlONG SAID NORTH RIGHT OF WAY UNE OF WEST 42ND AVENUE 207.22 FEET, THENCE NORTH 0"19'37" WEST 20.00 FEET. THENCE NORTH 89"57'37. WEST 58.00 FEET. THENCE SOI.ITH 0"19'37' EAST 20.00 FEET TO A POINT ON SAID NORTH RIGHT OF WAY UNE WEST 42ND AVENUE. THENCE NORTH 89"57'37. WEST AlONG SAlO NORTH RIGHT Of WAY UNE 147.00 FEET, THENCE NORTH 0"02'23" EAST 145.55 FEET, THENCE SOUTH 89"57'37. EAST 426.29 FEET TO THE POINT OF BEGINNING CONTNNING 1.3967 ACRES, MORE OR LESS. ~:\J ~'dJ PRfNCIPALS PA,L'L R PE:-.....OCK W KILl'r Oll\'ER JQ~C HELlGRE~ EXHIBIT B J~ Z E I L E R - P E N N 0 C K T S E "oJ R S I N G c 10 H A '.; A R C H T E C E E Proiect: Hector-Johnston Construction Date November 14 2002 JobNo 202-119 Prep By WJL Owner Hector-Johnston Construction, Inc Location Johnston SubdivIsion Lot 1, Block 1 12701 W 42nd Avenue Wheat Ridge, CO Description Engineers Cost Estimate of Public Improvements Any estImations of prices probable project costs or construction costs rendered by Zeller-Pennock, Inc..'OHA represents a best judgment and are furnished for Information only Zeller-Pennock, Inc/OHA makes no warranty of guarantee either expressed or implied as to the accuracy of such opinions as compared to bId or actual costs Topic No ITEM UNITS QUANTIT PRICE AMOUNT Water Asphalt Patching for Water Tons 2 S 3600 S 72 00 Total = S 72.00 Storm Curb Inlets wi Hardware EA $1,28000 $ 1,280 00 Total = $ 1,280 00 Street 1 Asphalt Patching Tons 15 S 3600 $ 540 00 Imprvmnts 2 Curb & Gutter wi 4' Sidewalk L.F 342 S 1989 $ 6,802 38 3 8' Cross Pan EA 30 S 3550 $ 1,06500 4 Intersection Access Ramp EA 22 S 2650 S 583 00 5 No Parking Signs EA 3 S 150 00 S 450 00 Total = $ 9,440 38 Total Public Improvements = $ 10,792.38 +~';$"" " if z j "9~. JD ::: JlI~'/90...8 2-27 BRY \ 'iT ST SlJTE 600 DE', ER. CO 80211 (3031455-3322 F \X (03)455-3708 --. EXHIBIT B A-FAST PATCH, INC. 16490 W. 51st Avenue Golden, CO 80403 Phone: 303/278-1413 Fax: 303/278-3980 .... ! 11 L ",-: ,', ..; = -, - \, I ~ '- ~ ( i:" It"., \ ~", ..... 1 ........l-..y . ..... Proposal No. Sheet No. Date .- ,- _,___._-5J~g~3,.- ;. '_r .s 2D .0-. ::( l. _~~ . .....,..~_<L~.~~_.._ 1/1 05/17/03 )/ NAME COMPANY ADDRESS CITY/ST A IE PHONt NO F A.X NO Bob Hector-Johnston Construction Co 2006 Bryant St. Denver. CO 80211 303-480-5390 303-480-9344 WORK TO BE PERFORMED AT: ADDRESS 12701 W 4200 Ave. CITY/STATE \VheatRidge. CO DATE OF PLANS BY PROPOSAL SUBMITfED TO: 12701 W 42"'D A\lE. A-Fast Patch, Inc. hereby proposes to furrush the matenals and perfonn the labor necessary for the completIOn of the work as follows Mill perimeter of overlay work for a 1" tluck butt Jomt. $1,200 LS Level and overlay WIth SxJCx asphalt mix to match eXlstmg street, mcludmg. clean and tack existing, and asphalt overlay Approx. 60 tons @ $70 OO/ton $4,200" *Payment to be based upon actual tons used to proVIde for 1 50/0 cross-slope on 420<1 Ave. and 2% cross-slope on Xenon Street. NOTE: THIS WORK IS IN ADDITION TO THAT PROPOSED ON PREVIOUS PROPOSAL DATED 04/11/03. Note Unless specifically Included herem, tlus proposal EXCLUDES the followmg: LAYOUT, TESTING, PERMIT AND INSPECTION FEES, SAWING, REMOV ALS, EXCAVATION, SUBGRADE PREP; TRAFFIC CONTROL, UTILITY ADmSTMENTS, SNOW, FROST, OR TRASH REMOVAL, DEWATERING, DEMUCKING, AND WEATHER PROTECTION Tills proposal IS to become a part of any other agreement between the parties involved All matenalls guaranteed to be as specified, and the above work to be performed m accordance WIth the draWIngs and speCIficatIons subffiltted for above work and completed In a substantial workmanlike manner for the sum of PER ABOVE(SPER ABOVE), with payments to be made as follows PAYMENT IN FULL FOLLOWING COMPLETION OF WORK If a payment IS not made when due, interest and late charges at the rate of 1 5% per month (18% per annum) will be assessed on the unpaid balance from the payment due date If A-Fast Patch, Inc retams an attorney to enforce any terms oftlus proposal or to collect any unpaId balance due under the proposal, as the proposal may be modified or changed, A-Fast Patch, Inc. shall be entitled to recover from the other party reason-able attorney's fees and costs In addItIon to any other sum prOVIded by law A-FAST PATCH, INC by The above pnces, speCIficatIons and condItIons are satIsfactory and are hereby accepted. A-Fast Patch, Inc. is authonzed to do the work as specified above Payments will be made as outlmed above Date Signature: National Bank GOLDEN FACILITY )J-- IRREVOCABLE LETTER OF CREDJI CITY OF WHEAT RIDGE 7500 W 29'h Avenue Wheat Ridge CO 80215-6713 NO: DATE EXPIRY' AMOUNT 70494 January 8. 2003 Jclnuary 8 2004 $1349048 Gentlemen We hereby authorize you to draw on us for the account of George S Johnston whose address is 122 Pine Road Evergreen CO 80439, up to an aggregate amount of Thirteen Thousand Four Hundred Ninety and 48/100 ($13 490 48) available by your draft(s) at sight to guaranty the construction and completion of the Road Improvements located at 12701 W 42no Avenue. Wheat Ridge. CO 80422 Each draft presented under this Letter of Credit must state that it is drawn under PEAK NATIONAL BANK LETTER OF CREDIT NUMBER 70494 dated January 8.2003 and the amount endorsed on this Letter of Credit We hereby agree with the drawers, endorsers. and bona fide holders of all drafts drawn under and In compliance with the terms of this credit that such drafts will be duly honored upon presentation to the drawee Yours very truly. It RKT ts (303) 216-9999 · 770 Heritage Rd · Golden. Colorado 80401 National Bank /~ IRREVOCABLE LETTER OF CREDIT CITY OF WHEAT RIDGE 7500 W 29'11 Avenue Wheat Ridge, CO 80215-6713 NO: DATE: EXPIRY: AMOUNT' 70542 May 20, 2003 May 20, 2004 $5.400 00 Gentlemen We hereby authorize you to draw on us for the account of George S Johnston whose address is 122 Pine Road, Evergreen, CO 80439, up to an aggregate amount of Five Thousand Four Hundred and No/100 ($5,400 00) available by your draft(s) at sight to guaranty the completion of the Street Improvements located at 12701 W 42"0 Avenue Wheat Ridge, CO 80422 Each draft presented under this Letter of Credit must state that it is drawn under PEAK NATIONAL BANK LETTER OF CREDIT NUMBER 70542 dated May 20 2003, and the amount endorsed on this Letter of Credit We hereby agree with the drawers, endorsers, and bona fide holders of all drafts drawn under and in compliance with the terms of this credit that such drafts will be duly honored upon presentation to the drawee Yours very truly, RKTts Phone 303-216-9999 . Fax 303-216-9998 770 Heritage Rd . Golden. Colorado 80401