SUBJECT
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1st Amendment to Wynnstone, Cascades, & Brentwood Infrastructure Agreement. Specifically, amending the "Letter of Credit" terms in the agreement to allow a Surety (Performance) Bond.
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DESCRIPTION
This is a request to amend the "Letter of Credit" (LOC) terms of the Wynnstone, Cascades, & Brentwood Infrastructure Agreement between the County and Developer (GLK Real Estate, LLC). The infrastructure agreement was approved by the Board on November 21st, 2023, and involves multiple infrastructure improvements associated with Wynnstone, Cascades, & Brentwood developments. Specifically, improvements to FDC Grove Road, Park Place Boulevard, Massee Road, and Holly Hill Grove Roads 2 and 3, etc...
A "Letter of Credit" (No. 754018532-L001) in the amount of Five Million Forty-nine Thousand Four Hundred Eighty-Seven and 30/100 Dollars ($5,049,487.30) was provided by the Developer and accepted by the Board on March 5, 2024. This amount is 110% of the total costs of the improvement.
To date the Developer has completed the following work associated with the agreement, which involves clearing & grubbing; road grading and paving, engineering & surveying, and construction management. They have also completed a section of FDC Grove Road from Park Place to Sand Hill Road and improvements to Holly Hill Grove Road Two.
* $215,272.13 Site Work
* $163,662.91 Engineering
* $61,498.35 Surveying
* $105,000.00 Construction Management
* $545,433.39 Total Costs Paid
The proposed amendment specifically seeks to replace the "Letter of Credit" with a Surety (Performance) Bond in the amount of $4,449,510.95, which is the remaining balance of the project at 110% (same 110% requirement as the Letter of Credit). The developer contends that replacing the Letter of Credit with a Surety (Performance) Bond will allow them to free up capital needed for their operations while still providing surety of the project to the County.
Pursuant to Section 4.3 of the Infrastructure A...
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