HomeMy WebLinkAbout93-139 f.
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THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON
BY-LAW 93-139
Being a By-Law to authorize the Municipality of
Clarington to Accept a Proposal of the Royal
Bank of Canada with Respect to the Trulls
Delbert Subdivision
WHEREAS at a meeting held on July 19, 1993, the Council of the
Municipality of Clarington endorsed resolution #GPA-479-93
authorizing the Director of Public Works and the Treasurer to
expend the monies received from the presentation of the letters
of credit to satisfy the Owner's obligations in respect of the
completion of the construction and maintenance of the Phase 1 and
Phase 2 works in accordance with the Phase 1 and Phase 2
Subdivision Agreements;
NOW THEREFORE THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON
HEREBY ENACTS AS FOLLOWS:
1. THAT the Mayor and Clerk are hereby authorized to endorse a
copy of a letter dated August 31, 1993 from the Royal Bank
of Canada with respect to the Trulls Delbert Subdivision
Phase 1 (Plan 40M-1684) and Phase 2 (Plan 40M-1685) and
completion of all outstanding works.
2. THAT the letter attached hereto as Schedule "A" forms part
of this By-law.
By-law read a first and second time this 13th day of September
1993.
By-law read a third time and finally passed this 13th day of
September 1993.
ayor
Deputy Clerk
i
.•� ;. • R(*AL BANK
R.W.Lawrence Royal Ban f Canada
Senior Account Manager Regional Corporate Centre
Real Estate 40 King Street West, 8th Floor
Oshawa, Ontario L1 H 1 A4
Transit 08556
(416)436-6883 Fax: (416) 436-7347
August 31, 1993
i SEP 0 -
_
Walter Evans
Director of Public Works
Municipality of Clarington
40 Temperance Street
Bowmanville, Ontario
L1C 3A6
Dear Mr. Evans:
Re: Trulls Delbert Subdivision Phase I (Plan 40M-1684) and
Phase II (Plan 40M-16851 and completion of all outstanding works
Royal Bank is a secured lender to the developers of the above-referenced
subdivisions and as mortgagee of the subdivision lands has executed the
subdivision agreements with the Municipality of Clarington affecting these lands
to postpone the Bank's security to the subdivision agreement. Our Bank has also
delivered to the Municipality letters of credit as security for the obligations
of the developers pursuant to the subdivision agreements and in particular the
completion of the Works (as defined in the subdivision agreements) .
You have advised that the Municipality had given final notification to the
developers to complete the outstanding Works by August 13, 1993 and the
developers have failed to complete those Works by that date. Tenders had been
received by the Municipality for the completion of the Works except for the
construction of the detention pond and the Director of Public Works is now in a
position to recommend to the Municipal Council the acceptance of one of the
submitted tenders. We have advised by the Director that prior to being able to
make such recommendation to the Municipal Council the Director must be in a
position to advise the Municipal Council that the amount of the proposed
construction contract price had been received by the Municipality pursuant to a
draw upon the letters of credit or that satisfactory arrangements have been
proposed by the Royal Bank for the timely of payment of progress draws all in
accordance with the terms of the construction contract to be entered into by the
Municipality for the completion of the Works.
Royal Bank proposes and undertakes to the Municipality as follows: -.
1. Upon presentation of appropriate invoices, the Royal Bank will pay all
rl"onable legal, consulting and administrative costs incurred or to be
incurred by the Municipality as a result of the default of the developers
in completing the Works as required by the subdivision agreements. In
consideration of this undertaking and agreement the Municipality agrees
not to charge a management fee as provided for in the subdivision
agreement.
. . . /2
Walter Evans
Director of Public Works
August 31, 1993
Page 2
2. To pay all progress payments required by the construction contract to be
entered into by the Municipality for the completion of the Works (except
for the water quality work) forthwith after presentation to the Royal Bank
of a true copy of appropriate certification of completed work made by the
consulting engineers to the construction contract.
3. If the Municipality elects to enter into a construction contract for the
completion of the detention pond then the Royal Bank shall pay the
progress draws required by the construction contract to be entered into by
the Municipality for the completion of the water quality work forthwith
after presentation to the Royal Bank of a true copy of appropriate
certification of completed work made by the consulting engineers to the
construction contract.
4. The foregoing undertaking to make payments are limited to a total maximum
sum of $548,651.54.
The proposal and undertaking given in this letter shall not derogate from any
rights which the Municipality may have to draw upon the letters of credit in
accordance with the provisions of the subdivision agreements. We acknowledge
that the Municipality shall continue to retain the letters of credit as security
for the performance of the obligations of the developers pursuant to the
subdivision agreements and that the letters of credit will not be reduced or
returned except after application by the developers or the Bank for reduction or
return of the letters of credit in accordance with the Municipality's usual
procedure.
If the Municipality does not accept this letter or if the Municipality accepts
this letter and subsequently for any reason draws under the letter of credit the
Bank shall have no further liability hereunder and this undertaking agreement
shall be null and void.
Yours truly,
ROYAL BANK OF CANADA
E-. ilea
p Robert W. Lawrence
/lm Diane Harare, Mayor
Acknowledged and accepted:
MUNICIPALITY OF CLARINGTON
Marie P. Kni t, D ut Clerk
cc: Nicholas T. Macos, Shibley Righton, Barristers & Solicitors
Tony Cannella, Department of Public Works
Allan McGale, Senior Manager, Royal Bank of Canada, Special Loans Group
Paul Avis, Garvey, Ferris, Barristers & Solicitors