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WD-37-95
Report #6 THE CORPORATION OF THE MUNICIPALITY OF CLARINCTON REPORT Mcctinfr. COUNCIL Mac#_ Date; July 17, 1994 By-law # Report : wig-37-95mlc#: B 09 00 .02.0 Res,# subjew WIILUWBROO�C GARDENS SUBDIVISION PLAN 40M-1676 AND LIZA DEVELOPMENTS SUBDIVISION PLAN 40M-1688 COMPLETION OF BRADSHAW STREET ecolilmen attons: It is respectfiilly recommended that Council approve the following: i 1. THAT Report WD-37-95 be received; 2. THAT Resolution #GPA-1.28-94 passed by Council at its meeting of March 14, 1994 by which Council adopted the recommendations contained in Report#WD-15-94 be amended: a) by deleting Recommendation 2 and replacing it with the following: "2. THAT the Municipality enter into an Agreement with the Royal Bank of Canada respecting the Completion of the outstanding Works in the Willowbrook Gardens Subdivision Agreement (Plan 40M-1676) in a form satisfactory to the Director of Public 'Works (the "Director") which Agreement shall include the undertaking of the Royal Bank of Canada as follows: R aPORT O :WD-37-95 PA 2 a) To acknowledge the propriety of the actions taken by the Municipality and its officials in appropriating funds under the Letter of Credit. l�) To pay, on presentation of appropriate invoices, all reasonable legal and consulting costs or miscellaneous costs (i.e. snowclearing, snowfence) incurred or to be incurred by the Municipality as a result of the default of Ashdale Capital Corporation Ltd. in completing the works as required by the Subdivision Agreement. I c) The completion of the works required by the Subdivision Agreement including the south portion of the Bradshaw Street Urban Upgrading Work and Storm Sewer Oversizing 'Work in accordance with a schedule to be determined by the Director. d) To consent to the following payments: Payments Made i) Consumer's Gas Invoice $ 3,005.72 G.M. Sernas Invoices 38,616.86 iii) Peto MacCullum Invoices 2,495.72 iv) Bennett Paving 159147.53 v) George Moore Electric 1258.06 vi) J.D. Barnes Surveying 1542.00 vii) Ron Robinson Ltd. 1,970.00 viii) Advertising Costs 603.48 ix) Sunland Landscape 5,760.00 RJEPORT NWWD-37-95 FACE 3 x) Shibley Righton Invoices (to Nov. 2, 1994) 9,867.74 xi) Snowclearing Invoices 4,977.23 Net C.S.T. on above items 6,405.74 Total: $235,650.08 Aldi i m1 Paments Rehire i) Soper Creek Contribution $132,400.00 ii) Regional Work at Bradshaw St. 25,716.31 iii) Clarington Planning Invoice 106.88 iv) Clarington Hydra Invoices 268.69 v) Clarington Management Fee 39,371.52 Total: $197,863.40 e) To indemnify and save harmless the Municipality from any and all claims made pursuant to the Construction—Lien Act, in respect of the supply of labour, services and material to date under the requirements of the Subdivision Agreement, limited to those claims made by Cana- Drain, Pilan and Direct Equipment, provided that the Royal Bank of Canada, at its cost, may obtain an order or orders of a court of compctcnt jurisdiction dismissing any one or all of such claims as against. the Municipality and provided that the Municipality will co- operate at the cost of the Royal Bank of Canada in obtaining any such order or orders, F) To obtain and deliver all engineering drawings prepared by C.M. Sernas & Associates Ltd. respecting the works and the benefits of all rights associated with such drawings. I I REPORT O.:WD- 7-95 PAGE g) To pay the Clarington Hydro invoice in the amount of $192.65. h) To indemnify and save harmless the Municipality from the Bell Canada claim provided that the Royal Bank of Canada, at its own costs, may defend such claim. i) To deliver an unconditional and irrevocable letter of credit issued by the Royal Bank of Canada and containing terms satisfactory to the Municipal Treasurer in the minimum amount of$859,237.50 ds security for the performance by the Royal Bank of Canada of its obligations. j) To comply with property standards order (File No. V93/414) issued on December 2, 1993, and notice to comply (File No. V93/414) issued on October 25, 1993. i b) by deleting Recommendation 5 and replacing it with the following. i 5) THAT upon the execution of the Agreement with the Royal Bank of Canada and deposit with the Municipality's Treasurer of the Letter of i Credit required pursuant to the Agreement, the Municipality's Treasurer be authorized to make payment to the Royal Bank of Canada in the amount of $1,460167.5.35 adjusted to take account of � updated figures, as determined by the Director, together with interest in an amount to be determined by the Municipality's Treasurer but not to exceed interest which has accrued to the Municipality from the deposit of this money in the Municipality's account. I REPORT MaWD-37-95E 3. THAT the Municipality enter into an agreement in a form satisfactory to the Director in consultation with the Municipality's Solicitor with Royal Bank of Canada and its general contractor for the completion of the works under the Ashdale Subdivision Agreement permitting the Municipality to assume the rights of Royal Bank of Canada under its construction contract with the general contractor for the completion of the works under the Ashdale Subdivision Agreement should Royal Bank of Canada default in completing such works. 4. THAT the Mayor and Clerk be authorized to execute the agreement among Royal Bank of Canada, its general contractor and the Municipality and that the necessary by-law be passed. 5. THAT the Subdivision Agreement between the Municipality and 621182 Ontario Limited (Liza Developments) be amended to require the owner to construct the north section of the Bradshaw Street Urban Upgrading Work in accordance with a schedule to be determined by the Director and incorporate the costs thereof into the Works Cost Estimates, 6. THAT the Mayor and Clerk be authorized to execute the necessary agreement to amend the Subdivision Agreement with Liza Developments Ltd, and that the necessary by-law be passed. I 7. THAT the agreements referred to in these recommendations contain such other previsions that the Director in consultation with the Municipality's Solicitor considers to be necessary in order to protect the MunicipaIity's interests. S, THAT By-law No. 35-94 be repealed and a new by-law be passed to authorize the Mayor and Merle to execute an agreement to give effect to the recommendations i i U20111 NO •WD-37-95 PACE 6 contained in Report #WD-15-94 as amended by the recommendations contained in this Report. nPORT 1.0 AWACHMENTS No. 1: Report #WD-15-94 No. 2: Report #WD-27-93 No. 3: Correspondence from Helyar & Associates dated July 6, 1995 to Manager of Engineering No. 4: Correspondence dated July 4, 1995 from Milran Development Consultants to Manager of Engineering No, S: Correspondence dated July 12, 1995 from Milran Development Consultants to Manager of Engineering 2.0 BACKGROUND 2.1 At its meeting held on March 14, 1994, Council approved the recommendations contained in Report #WD-15-94 (Attachment No. 1) which recommended that the i Municipality enter into an agreement with the Royal Bank of Canada to complete the works required pursuant to the Subdivision Agreement among the Municipality, Ashdale Capital Corporation Ltd. ("Ashdale") as owner and Royal Bank of Canada as mortgagee (Plan 40M-1670), Ashdale had defaulted in performing its obligations under the Ashdale Subdivision Agreement to construct, complete and maintain certain works including the south portion of the "Bradshaw Street Reconstruction Work" and "Storm Sewer Oversizing Works" as defined in the Agreement. REPORT NO:WD-37-95 PAGE 1 2.2 Previously, as authorized by Council by its adoption of the recommendations. contained in Report #WD-27-93 (Attachment No. 2) at its meeting held on July 12, 1993, the Director had given notice of default to Ashdale and the Municipality's Treasurer had presented for payment the Letter of Credit that had been deposited by Ashdale with the Municipality as a Performance Guarantee under the Ashdale Subdivision Agreement. Council also adopted the recommendation that the Municipality complete the works required by the this Agreement and apply the funds deposited with the Municipality following the calling of the Letter of Credit for this purpose. 2.3 Letter of Credit #P2601.OT06206 issued by the Royal Bank of Canada was called and the proceeds ($1,835,055.05) were deposited in the Municipality's account. Certain but not all of the works required by the Ashdale Subdivision Agreement were undertaken by the Municipality, Other works remain to be undertaken and completed. As security for the remaining works the Municipality now has cash on deposit as a Performance Guarantee rather than a letter of credit. 2,4 r1lie agreement with Royal Bank of Canada authorized by Council at its meeting of March 14, 1994 was to address; (1) certain costs incurred by the Municipality as a result of the default by Ashdale; (2) certain cost sharing payments which the Municipality was to endeavour to collect under the Subdivision Agreement; (3) the indemnification of the Municipality against certain liabilities; and(4)compliance with certain property standards orders affecting the subject lands. (These matters are discussed in detail in Report #VVD-15-94) Central to the agreement recommended in Report #WD-15-94 is the principle that the Municipality would complete the works required by the Ashdale Subdivision Agreement (as authorized by Council's adoption of Report WD-27-93 at its meeting held on July 12, 1993) but that progress i i REPORT NC1MD-37-95 PAGE-8 payments under any construction contract entered into by the Municipality for such works would be paid by the Royal Bank of Canada. 2.5 As authorized by Council on March 14, 1994, the Director in consultation with the. Municipality's Solicitor prepared a form of agreement satisfactory to the Director. This form of agreement was delivered to the solicitors for Royal Bank of Canada who requested in writing a number of amendments to the agreement. Royal Bank of Canada's proposed amendments to the draft agreement are not satisfactory to the Director having regard to protection of the Municipality's interests. As a result, the agreement authorized by Council on March 14, 1994 has not been executed either by the Municipality or Royal Bank of Canada. 2.6 Prior to and since the preparation of Report #WD-15-94 the Municipality has made the following expenditures relating to the default of Ashdale and/or the completion of the Works required by the Asltdale Subdivision Agreement by the Municipality: Payments Made i) Consumer's Gas Invoice 3,005,72 ii) G.M. Sennas Invoices 38,616.86 iii) peto MacCullum Invoices 2,495.72 iv) Bennett Paving 159,14753 v) George Moore Electric 1,25$.06 vi) J.D. Barnes Surveying 1,542.00 vii) pion Robinson Ltd. 1x976,00 viii) Advertising Costs 603.48 ix) Surnland Landscape 5,760.00 x) Shibley Righton Invoices (to Nov, 2, 1994) $ 9,867.74 xii) Snowclearing Invoices 4,977,23 REPORT NO.tWD-37.95 PACE 9 Net G.S.T. on above items 6,405.74. Total; $235,650.08 Additional Payments Required i) Soper Creek Contribution $132,400.00 ii) Regional Work at Bradshaw St. 25,716.31 iii) Clarington. Planning Invoice 106.88 iv) Clarington Hydro Invoices 268.69 Total: $:158,491.88 Additionally, pursuant to the terns of the Ashdale Subdivision Agreement the Municipality is entitled to a management fee of 30°Io of expenditures totalling $196,857.60 being $59,057.28. This is a matter which is discussed below in this Report. 3.0 DISSCUSSION 3.1 Numerous discussions have been held between Public Works Department Staff and a representative of Helyar & Associates, quantity surveyors and engineers representing Royal Bank of Canada which have resulted in a written proposal to the Managcr of Engineering Services dated July 6, 1995 (Attachment No. 3). The objective of Royal Bank of Canada in these discussions was to vary the arrangements Previously agreed to with the Municipality to: (1) permit the works required by the Ashdale Subdivision Agreement to be completed by Royal Bank of Canada and not the Municipality in order to avoid payment of the management fee which the i Municipality would otherwise be entitled to under the Ashdale Subdivision Agreement in respect of the completion of works performed by the Municipality; (2) reduce the management fee to 20% from 30% on works undertaken and completed to date by the Municipality; (3) obtain payment of or credit for interest on the funds REPORT • deposited with the Municipality as a Performance Guarantee; and (4) obtain a legal commitment from the Municipality to recover the cost of external and oversizing works which are of benefit to other owners constructed by Royal Bank of Canada. 3.2 The Liza. Subdivision Agreement between the Municipality and 621182 Ontario Limited (Liza Developments) in respect of the lands the Phase 1 portion of which is within the approved and registered Plan of Subdivision 40M-1688 requires the owner to construct the north portion (Apple Blossom Blvd. South to the Ashdale PIan) of the Bradshaw Street Urban Upgrading Work (as defined in the Agreement) in accordance with the Liza Subdivision Agreement. The Works Cost Estimate incorporated in the Liza Subdivision Agreement did not include an estimate of the cost of the Bradshaw Street Urban Upgrading Work since it was contemplated that it would be undertaken in Phase 2 of the development and that financial security for it would be deposited with the Municipality at that time. As a result, the Performance Guarantee now on deposit with the Municipality does not include an amount to secure the completion of the Bradshaw Street Urban Upgrading Work. 3.3 6211820 Ontario Limited (Liza Developments) has recently applied to the Municipality for a reduction in its Performance Guarantee in respect of the Liza Phase 1 lands. The Municipality has not responded to this application pending consideration of this Report. 3.4 Each of the existing Ashdale and Liza Phase 1 Subdivision Agreements provide that (i) the Municipality passes a Development Charge By-law under the Act which is applicable to the Land; REPORT - - FAE 11 (ii) the Development Charge By-law comes into force; and (iii) Municipal Council is not required by the Ontario Municipal Board to repeal the Development Charge By-law, then as soon as reasonably practicable the Municipality and the Owner intend to enter into a front-ending agreement respecting the' reconstruction of Bradshaw Street. As yet, the Municipality has not passed a Development Charge By-law which incorporates such works and their costs in the By-law. IS Milran Development Consultants, consulting engineers, on behalf of Liza. Developments and its secured lender Royal Bank of Canada has proposed in writing to the Manager of Engineering Services (see Attachment Nos. 4 and. 5) that 621182 Ontario Limited (Liza,Developments)now proceed with the Bradshaw Street Urban Upgrading Work and that the surplus amount of the performance Guarantee now i held by the Municipality be applied towards securing this work if: (1) the Municipality agrees to enter into a front-ending agreement for the Bradshaw Street Urban Upgrading Work in accordance with the Subdivision Agreements; (2) the south portion of Bradshaw Street is committed to by Royal Bank of Canada; and (3) the Municipality agrees to endeavour to collect contributions towards the Bradshaw Street Urban UpgradingWork as a condition of severance ace Approval of lands owned by other owners who will benefit from the Bradshaw Street Urban Upgrading Work, i 3.6 Both Helyar & Associates ori "behalf of Royal Bank of Canada and Milran Development Consultant on behalf of 621182 Ontario Limited (Liza Developments) have requested that the Municipality agree endeavour to collect contributions towards the cost of reconstructing Bradshaw Street as a condition of severance i REPORT approval for lots which benefit from such work and that the Municipality enter into front-ending agreements with each of these owners or their legal representatives in order that they can he assured that part of the cost of such works will be recovered by them from other benefiting owners. The Municipality's solicitor advises that under the provisions of the Dev 1 me ,nt Chugo A .1, the Municipality cannot commit itself legally to endeavour to collect contributions as a condition of subdivision or severance approval. The Development Chargg�Act requires that an amendment to the Development Charge By-law be enacted respecting the service in operation and its estimated cost as well as to delineate the area benefiting therefrom. The terms of the existing Ashdale and Liza Phase i Subdivision Agreements adequately address the issue of entering into front-ending agreements under the Act and the recovery of costs and commit the Municipality to the extent that it can prior to Council enacting a by-law amending the Development Charges By-law to incorporate the Bradshaw Street Urban Upgrading Work. Cost calculations for and the distribution of benefits from the rcconstruction of Bradshaw Street have now been prepared by G.M. Sernas&Associates Ltd.,consulting engineers,and approved by the Director and the provisions of the Subdivision Agreement respecting cost recoveries may be implemented by the Municipality, Accordingly, itis recommended that the request of Helyar & Associates and N ilran Development Consultants respecting a further legal commitment of the Municipality in this regard not be approved. i i 33 Tl'e Municipality will be benefited by having both the north and south portions of Bradshaw Street reconstructed at the same time and at this time. Although the Municipality is presently in a position to reconstruct the south portion of Bradshaw Street, it is not presently in a position to reconstruct the north portion of Bradshaw Street. It is in the best interest of the Municipality that the Municipality allow Royal Bank of Canada to complete the balance of the works required by the A.shdale l REPQK N .. 7.9 FA 1 Subdivision Agreement under the terms proposed by it if a binding commitment for the completion of the north portion of Bradshaw can be obtained. These arrangements have been proposed to the Municipality on terms generally acceptable to the Director except for the requirement that the Municipality commit to either entering into a front-ending agreement and endeavour to collect. Under the Development Charges Act, the benefiting owners have the opportunity to be heard by Council and to appeal either or both the amendment to the Development Charge By-law or proposed front-ending agreements to the Ontario Municipal Board. 3.8 In order to secure completion of the north portion of Bradshaw Street, it will also be necessary to amend the Liza Phase 1 Subdivision Agreement with 6211820 Ontario Limited (Liza Developments) to provide for a commitment for such work to be undertaken presently and for a revision of the Works Cost Estimate to incorporate the cost of such work. This in turn will require the deposit of a Performance Guarantee to secure the estimated cost of its construction. Respectfully submitted, Reviewed by, tep en o es, ng, WiH. Sto-ckTe Director of Public 'Works ' Chief Administrative Officer i i i THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON REPORT Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE File# Date: MARCH 7, 1994 Res. # Report#: WIL15-94 File#: 'R- 09 - 09 -.003 By-Law# Subject: WILLOWBROOK GARDENS SUBDIVISION, PLAN 40M-1676, COMPLETION OF ALL OUTSTANDING WORKS Recommendations: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT Report WD-15-94 be received; 2. THAT the Municipality enter into an Agreement with the Royal Bank of Canada respecting the completion of the outstanding Works in Willowbrook Gardens Subdivision (Plan 40M-1676) in a form satis actory to the Director of Public Works which Agreement sha...` include the undertaking of the Royal Bank of Canada as follows: a) To acknowledge the propriety of the actions taken by the Municipality and its officials in appropriating funds under the Letter of Credit. b) To pay, on presentation of appropriate invoices, all reasonable legal and consulting costs or miscellaneous costs (i.e. snowclearing, snowfence) incurred or to be incurred by the Municipality as a result of the default of Ashdale Capital Corporation Ltd. 'in completing the works as required by the Subdivision Agreement. c) To pay all progress payments required by the construction contract or contracts entered into or to be entered into ATTACHMENT NO. 1 WD-37-95 RECYCLE. A HEA IA AEA ®11EGYCEE 1H6[i Yi.EEDCW AECNCIElI VAEFR ' REPORT NO. : WD-15-94 PAGE 2 by the Municipality for the completion of the works required by the Subdivision Agreement, forthwith, after presentation to the Royal Bank of Canada of a true copy of appropriate certification of completed work made by the Consulting Engineers to such construction contract or contracts . d) 'To consent to the following payments: i) West Branch Soper Creek contribution: $.132.,4 Q0-. Oi - ii) Snow clearing costs: 2,824.80 iii) Consumers Gas invoice: 3,216.12 iv) Shibley Righton 4,188.74 v) Municipality of Clarington Management Fee 110,800.83 e) To indemnify and save harmless the Municipality from any and all claims made pursuant to the Construction Lien Act in respect of the supply of labour, services and material to date under the requirements of the Subdivision Agreement, including but not limited to those claims made by Cana-Drain, Pilen and Direct Equipment, provided that the Royal Bank of Canada, at its cost, may obtain an order or orders of a court of competent jurisdiction dismissing any one or all of such •claims as against the .Municipality and provided that the Municipality will co- operate at the cost of the Royal Bank of Canada in obtaining any such order or orders. I f) To obtain and deliver all engineering drawings prepared by G. M. Sernas and Associates Ltd. respecting the works and the benefits of all rights associated with such drawings. REPORT NO. : WD-15-94 PAGE 3 g) To pay the Clarington Hydro invoice in the amount of $192 . 65. h) To indemnify and save harmless the Municipality from the Bell Canada claim provided that the Royal Bank of Canada, at its own cost, may defend such claim. i) To deliver an unconditional' and irrevocable letter of credit issued by the Royal Bank of Canada and containing terms satisfactory tri--the- Municipal Treasurer in the minimum amount of $1,033,251.43 as security for the performance by the Royal. Bank of Canada of its obligations. j) To comply with property standards order (File No. V93/414) issued on December 2, 1993, and notice to comply (File No. V93/414) issued on October 25, 1993; 3. THAT the Mayor and Clerk be authorized to execute the necessary Agreement with the Royal Bank of .Canada; 4-. THAT Ashdale Capital Corporation Ltd. and the Royal Bank of Canada be advised of Council's decision and. be provided with a copy of Report WD-15-94; and 5. THAT, upon the execution of the Agreement with the Royal Bank I of Canada and deposit with the Municipality's Treasurer of the Letter of Credit required pursuant to the Agreement, the Municipality's Treasurer be authorized to make payment to the j Royal Bank of Canada. in the amount of approximately $1,640,758.34, subject to updated figures, as determined by the Director. I i i REPORT NO. : WD-15-94 PAGE 4 REPORT 1.0 ATTACHMENTS No. 1: Rey Map No. 2: Correspondence, dated November 10, 1993, from the Municipality's solicitors to the Royal Bank of Canada's solicitors. No. 3: Correspondence, dated November 25, 1993 from the Royal Bank of Canada's solicitors to the Director of Public Works. No. 4: Property Standards Order, dated December 2, 1993 No. 5: Correspondence, dated December 15, 1993, from the Royal Bank of Canada' to the Municipality's By-law Enforcement Officer. 2.0 BACKGROUND 2.1 Pursuant to the recommendations contained in Report WD-27-93, adopted by Municipal Council at its meeting held on. July 12, 1993, the Director of Public Works issued a final notification letter to Ashdale Capital Corporation Ltd. notifying it of its default, neglect, act or omission in failing to complete the construction or installation of the Works pursuant to the Subdivision Agreement with the Municipality,- Ashdale Capital Corporation Ltd. failed to comply with the final notification letter. Again, in accordance with the recommendations contained in Report WD-27-931 the Treasurer of the Municipality presented Letter of Credit (P.26010T06206) deposited with the Municipality in respect of the construction and maintenance of the Works and other obligations provided for in the Subdivision Agreement, for payment at the issuing bank. 2.2 The Municipality was approached by the Royal Bank of Canada . which was the issuing bank of the Letter of Credit. Discussions were held with the Royal Bank of Canada Officials REPORT NO. : WD-15-94 PAGE 5 and their solicitors to determine whether any portion of the money received by the Municipality from presentation of the Letter of Credit could be returned to the Royal Bank of Canada in return for the undertaking of the Royal Bank of Canada to complete the outstanding Works pursuant to the Subdivision Agreement. By letter dated November 10, 1993, from the Municipality's solicitors to the Royal Bank of Canada's solicitors a proposal was made whereby the amount of $1, 640,758.34 could be returned to the Royal Bank of Canada upon their undertaking on the. matters_set_ out--in the letter and which matters are reflected in the recommendations contained in this Report (Attachment No. 2) . The actual amount will reflect the recent completion of some of the Works and additional invoices, and will be as determined by the Director. 2 .3 By letter dated November 25, 1993, solicitors for the Royal Bank of Canada agreed to the required undertakings on behalf of the .Royal Bank of Canada (Attachment No. 3) . 2 .4 During the course of the negotiations with the Royal Bank of Canada the By-law Enforcement Division of the Municipality issued a Notice to Comply (File No. V93/414) on October 25, 1993, and an Order (File No. V93/414) issued on December 2, 1993, pursuant to the Municipality's_Property Standards By-law (Attachment No. 4) . By letter dated December 15, 1993, the Royal Bank of Canada indicated it would take the necessary steps to rectify the Notice and the Order (Attachment No. 5) . To date these matters have not yet been attended to. 2 .5 The Municipality has entered into a similar arrangement with the Royal Bank of Canada respecting the Trulls Delbert i Subdivisions and the undertakings of the Royal Bank of Canada pursuant to that arrangement are currently being carried out to the satisfaction of the Director of Public Works. If a REPORT NO. : WD-15-94 PAGE 6 similar arrangement is entered into with the Royal Bank of Canada in respect of the Willowbrook Gardens Subdivision, it is anticipated that such arrangement will also be completed to the satisfaction of the Director of Public Works . If such arrangements are not conducted satisfactorily then the. Director of Public Works may report to Council requesting authority to draw on a Letter of Credit required to be deposited with the Municipality's Treasurer pursuant to such arrangements with the Royal Bank of Canada. Respectfully submitted, Recommended for presentation to the Committee, Walter A. Evans, P.Eng. Marie Marano, H.B.Sc. , AMCT Director of Public Works Acting Chief Administrative Officer WAE*ph February 8, 1994 Attachments pc: Ashdale Capital Corporation Ltd. c/o Jaffey & Jozefacki 4961 Highway 7E , Suite 200 Markham, ON WR 1N1 Royal Bank of Canada Regional Corporate Centre - � 40 Ring Street. West, Suite 800 Oshawa, ON L1H lA4 Walker Head Barristers and Solicitors 1305 Pickering Parkway Suite 506 Corporate Centre Pickering, ON L1V 3P2 i i i LOWBROOK BD VISION 4 676 W - w W Q Q w o CONCESSION STREET t oo 0 0� O OO O C:\ATfACHS\SUBD\WILLOW [D:RAWN BY: J �o M DATE. JUNE '199311 0 0 °�� o ATTACHMENT N0. 1 KEY MAP D-15-94 II i S hibley Righton Barristers & Solicitors RICHARD E SHIBTEY,Q.C. RUPERT F.RIGUTON,Q.C. HAROLD H.El I OTT,Q.0 NICHOLAS T.MACOS DENNIS C.HEFFERON DONALD IC ROBINSON,Q.C. RICHARD E ANKH•Q.C- RECEPTION:(416)363-9381 BARRY S.WORTZMAN,Q.C. LESLIE S.MASON DEZ WINDISCHMANN VOICEMAIL•(116)363-3425 JOHN P.BEL MICHAEL FI ZPATRICK,Q,C. GEORGE CORN V.ROSS MORRISON LINDA S.BOHNFLN ALAN L BROMSTEIN EX-r•NSION 238 JOHN C.SPEARN MICHAEL C:BIRL)Y PETER C.WILLIAMS PAUL E McINNIS PETER G.NEILSON CLIFFORD 1.COLE FAX:(416)363-64M JONATHAN H.FLANDERS CHARLES SIMCO THOMAS A.STFF'ANIK WILLIAM L NORTHCOTE JAMES ROSSTFER HEL.DER M.TRAVASSOS PETER V.RAYTEK J.JAY RUDOLPH CYNTIILA J.GUNN MARTIN J.HENDERSON NICHOLAS T.MACOS WARREN S.RAPOPORT RICHARD E COLES MARTIN PETERS ALEXANDER P.TORGOV BOX 32-401 BAY STREET CHARLES M.CASTLE PHILIP P.HEALEY SHEILA M.MadaNNON CHARLES G.T.WIEBE J.PAUL R HOWARD WADE D.JAMIESON TORONTO,CANADA LEONARD D.RODNESS SANDRA E DAWE LINDA J.GODS_ MSH 2ZI JANIS E INGRAM CHRISTINE M.SILVERSIDES SALVATORE G.P.FR.ISINA THOMAS McRAE JAMES W.BUSSIN KAREN L McMASrER CRAIG A.LEMS JUUEA.MACIURA JENNIFER L PERRY COUNSEL SUITE 1800 MARTIN L O'BRIEN,Q.C. BARRY D.UPSON,Q.C. TTIE SIMPSON TOWER November 10, 1993 File No. 9101936 WITHOUT PREJUDICES I� Messrs. Walker, Head Barristers and Solicitors 1305 Pickering Parkway Suite 506, Corporate Centre _I Pickering, Ontario ......... D L1V 3P2 Attention: Mr. Victor A Sero Dear Sirs: Re: The Corporation of the Municipality of Clarington (the "Municipality") Subdivision Agreement (the "Subdivision Agreement") with Ashdale Capital Corporation Ltd. ("Ashdale") s Registered Plan 40M-1676 We wish to confirm that we held without prejudice meetings on September 10, 1993 and on October 19, 1993 to address the concerns raised by Royal Bank of Canada ("RBC") through its solicitors Walker Head that the amount of money drawn by the Municipality on Letter of Credit P26010TO6206 (the "Letter of Credit") was in excess of the amount required by the Municipality to complete the outstanding works under the Subdivision Agreement. We ' must stress at the onset, it is the position of the Municipality that the appropriation of funds has been made in accordance with the terms of the Subdivision Agreement and that there is a continuing default on the part of Ashdale in that it has failed to complete the works and to forthwith reinstate the full amount of the performance guarantee as required by paragraph.3.7(1) of the Subdivision Agreement. ATTACHMENT N0.2 WD-15-94 I Page 2 As to the allegation that the amount appropriated was excessive we wish to advise you of the following amounts for which the Municipality had actual or contingent liability pursuant to the Subdivision Agreement: 1. Estimated costs to complete the works including reconstruction of Bradshaw Street - $1,000,000.00 2. West Branch Soper Creek Contribution $132,400.00 3. Potential claims for construction lien: a) Sernas $43,000.00 b) Cana-Drain Services Inc. $200,000.00 C) Pilen $7,103.00 d) Direct Equipment $4,727.00 Total - $254,830.00 Plus 25% for costs $63,707.50 Total $318,53750 4. Bell Canada claim $1,754.45 5. Clarington Hydro $192.65 6. Bradshaw Street Easement acquisition unknown i I 7. Ashdale Holdings sidewalk lands acquisition unknown As you can 'see from the foregoing figures and contingent expenditures, at the time the Municipality appropriated funds under the Letter of Credit, it was fully justified in drawing the full amount thereof. i Subsequent settlement by RBC with Sernas and Associates,Consulting Engineers to Ashdale has permitted the Municipality to obtain accurate and detailed estimates of the works completed to date and the works which remain outstanding together with valuations of each. These valuations in 1993 costs are $1,586,945.38 and $652,062.88 respectively. The latter figure escalated by five (5%) percent-as a projection for 1994 costs is $684,666.03. The estimated costs to complete include five (5%)percent for contingencies, ten (10%) percent engineering costs and seven (7%) percent G.S.T. Additionally, the Municipality requires a completion allowance of $116,340.87 and a maintenance deposit of$202,244.53. t i Page 3 RBC has expressed a concern about the thirty (30%) percent management fee to which the Municipality is entitled pursuant to paragraph 5.17(1) of the Subdivision Agreement. Specifically RBC surmises that the Municipality's actual costs will be less than such percentage of the cost to complete. In response we wish to point out that supervisory fees in the construction industry are commonly based on a percentage mark-up and not upon an actual cost basis. Additionally the Municipality is not organized on an on-going basis to track the time spent by its officials and employees on specific matters. Further the Municipality has not sought to manage the completion of the works but rather has been put in this position with respect to the incomplete Willowbrook Subdivision after prolonged default by Ashdale. Ashdale's default in continuing to complete the work has been known to RBC. Also the requirement of the Director of Public Works that the works be completed on or before August 13, 1993, 1 was advised, was also known to RBC. Having regard to the recent initiatives by RBC to assist the Municipality in the completion of the works, the Director of Public Works is prepared to interpret the thirty (30%)percent management fee set out in paragraph 5.17(10) of the Subdivision Agreement as inclusive of engineering costs provided that it is without prejudice to the rights of the Director to make a different interpretation of this provision in respect of defaults under other subdivision agreements.As engineering costs have been accounted for above, this interpretation results in a specified management fee of twenty (20%) percent which percentage will be based, in this instance, upon the estimated cost to complete exclusive of contingencies, engineering and taxes. This results in a management fee of $110,800.83. An alternative interpretation of the provision would permit a management fee of $205,399.80. Having regard to the foregoing factors, the Director of Public Works is prepared to recommend to Municipal Council that a substantial portion of the funds currently held by the Municipality pursuant to appropriations under the Letter of Credit returned to RBC if RBC undertakes as follows: 1. To acknowledge the propriety of the actions taken by the Municipality and its officials in appropriating funds under the Letter of Credit. 2. To pay, on presentation of appropriate invoices all reasonable legal and consulting costs or miscellaneous costs (ie. snowclearing, snowfence) incurred or to be incurred by the Municipality as a result of the default of Ashdale in completing the works as required by the Subdivision Agreement. I 3. To pay all progress payments required by the construction contract or contracts "entered into or to be entered into by the Municipality for the completion of the works required by the Subdivision Agreement forthwith after presentation to RBC of a true copy of appropriate certification of completed work made by the Consulting Engineers to such construction contract or contracts. I d Page 4 4. To consent to the following payments: a) West Branch Soper Creek contribution $132,400.00 b) Snow clearing costs $2,824.80 C) Consumers Gas invoice $3,216.12 d) Shibley Righton $4,188.74 e) Municipality of Clarington Management Fee $110,800.83 5. To indemnify and save harmless the Municipality from any and all claims made pursuant to the Construction Lien Act in respect of the supply of labour, services and material to date under the requirements of the Subdivision Agreement including but not limited to those claims made by Cana-Drain, Pilen and Direct Equipment, provided that RBC at its cost may obtain an order or orders of a court of competent jurisdiction dismissing any one or all of such claims as against the Municipality and provided that the Municipality will cooperate at the cost of RBC in obtaining any such order or' orders. 6. To obtain and deliver all engineering drawings prepared by G.M. Sernas and Associates Ltd. respecting the works and the benefits of all rights associated with such drawings. 7. To pay the Clarington Hydro invoice in the amount of$192.65. 8. Indemnify and save harmless the Municipality from the Bell Canada claim provided that RBC at its own cost may defend such claim. 9. To deliver an unconditional and irrevocable letter of credit issued by RBC and containing terms satisfactory to the Municipal Treasurer in the minimum amount of$1,033,251.43. Upon receipt of the undertakings from the RBC as set out above and in a form satisfactory to the Director of Public Works, the Director of Public Works will recommend to Municipal Council that the amount set out below and calculated as follows be returned to RBC. Total amounts drawn under the Letter of Credit: I a) $1,835,055.05 Page 5 b) $57,939.73 C) $1,194.05 Total $1,894,188.83 Less total of invoices paid or to be paid $10,229.66 Less management fee $110,800.83 Less West Branch Sopher Creek contribution - $1321400.00 Amount to be returned to Royal Bank of Canada $1,640,758.34 Please provide us with a letter from Royal Bank of Canada or by your firm on its behalf committing Royal Bank of Canada to the required undertaking. Upon receipt of such letter the appropriate report may be prepared and placed on the agenda for the next scheduled general purpcse and administration committee meeting. Depending upon when and if approval of this proposed arrangement is given, the Municipality may be required to make ongoing payments for construction or engineering of the works. RBC has also expressed an interest in obtaining payment which otherwise benefits Ashdale for contributions from other developers in the benefitting area in respect to oversizing works installed by Ashdale. In this regard, it is an requirement under the Subdivision Agreement that the Owner enter into a Frontending Agreement with the Municipality pursuant to the Development Charges Act prior to any such contributions which have been collected by the Municipality being paid to Ashdale. You have made us aware in the past that RBC has received an assignment of benefit of such contributions from Ashdale. Has RBC received an assignment of the Subdivision Agreement which can be evidenced and which may permit RBC to enter into a Frontending Agreement directly with the Municipality? Otherwise is RBC in a position to require Ashdale.to enter into such agreement with the Municipality? Yours truly, SHIBLEY RIGHTON Per: ORIGINAL SIGNED BY NICHOLAS T. NAGCS Nicholas T. Macos NTM/kh a. Ms.Marie Marano Mr.Palter Eva= Mr.Dennis Hefferon re\475,Iclters\sgr•3.kr j I i I J 1305 ftkering Nckw yy Pic-kering. (403) 213A-4484 WAUMJM Suite 506, Cogor= Qm-e Whitby: (4a3)683-3444. PicXeting, nm. LI V 3P2 Fax; �Acas���"rr�l�i Mn 420-1072, aa�rcrra ,� E" 29LIVEM ISY FACSIKILB t - 3 ru-J)a e4 P. Head; November 989 IflflB A"m R RowsG7 Mr. Nicholas T. Maeos N Mr A. Spa Shib1ey Righton rdaa.r. Hoffm4" Barristers ft Solicitors i Ne Box 32 401 Nay street L bi&rw Femir Toronto, Ontario MSH 2Zl Dear Mr. Maeos RES liOlrAi. BAW (W CATI&Mv AM)A.LE CAPITAL CORKRATIQN LTD. AND TEIH CORFORATICK (W TSE liliN11DIPALITY OF C1.WAMm. — it> 3It�'t'13>k PIAN 40f-•1670 s This letter Will Confirm the underaigned's telephone discussion With you on November 23, 1433 , wherein the ugderoigaed confirAwd that Royal Bank of Canada is prepared to provide you with the undertaking as set forth on pages 3 and 4 of your Jotter to the undersigned dated November 10s I9931 prav113ad that Munlcip43 'Royal (Clarington) $pproves or the return of monies to Royal Bank of Canada in geeordanae with pages 4' and S of ydar aforesaid tetter. We look forward to hearing from you. Yours very truly, WAI. VAS/ss ie o A. Baro car_: Royal Sank of Canada R.W. Lawronao (by facstmile) _ I M 4r a h r ATTACHMENT N0. 3 c.. 4d�4h•"• WD-15-94 Socian of LMttn;'�}rrrmin m a ltnninit,�r. In Cxvif Liti�tuttan THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON BY-LAW ENFORCEMENT DIVISION ORDER PURSUANT TO SECTION 31(7) OF THE PLANNING ACT 1983 Issued To: Municipal Address: Ashdale Capital Corp. 33 Flaxman Avenue c/o Jaffey & Jozefacki BOWMANVILLE, Ont. 4961 Highway 7E, Suite 200 • MARKHAM, Ont. Leval Description WR 1N1 Part Lot 33, Plan 40M-1676 former Town of Bowmanville Municipality of Clarington OWNER: Instrument No. 164854 Ashdale Capital Corp. WHEREAS a Notice of Violation was sent to you as the owner or a person having a financial interest in the property by registered mail on October 25, 1993 requiring you to make repairs to the Property described above; AND WHEREAS you failed to remedy the defects set out in Schedule "A" which is attached hereto and which forms part of -this Order; IT IS HEREBY ORDERED THAT the repairs necessary to correct the defects set out in Schedule "A" be carried out and the property brought to a condition of compliance with the standards prescribed by Property Standards By-law #82-63 on or before December 23, 1993. IT IS FURTHER ORDERED THAT if the repairs or clearance of the site are not completed in accordance with any permits required by law within the time specified herein, the Corporation may carry out the repairs or clearance at the expense of the owner. YOU ARE HEREBY ADVISED THAT if you are not satisfied with the terms or conditions of this Order that you may appeal to the Property Standards Committee by sending a Notice of Appeal by registered mail to the Secretary, Property Standards Committee, 40 Temperance Street, Bowmanville, on or before December 16, 1993, stating your grounds for appeal. In the event that no appeal is taken, within the above prescribed period, the Order shall be deemed to be confirmed and shall be final and binding upon you, requiring you to comply with its terms within the time and in the manner specified in the Order. j Be advised, all repairs and maintenance of the property shall be carried out with suitable materials in a manner accepted as good workmanship in the trades concerned. _ I I FILE V93/414 ISSUED ON: DECEMBER 2, 1993 SERVED BY: Registered Mail I PROPERTY STANDARDS OFFICER DATE: DECEMBER 2, 1993 Leonard Creamer P.S.O. Witness Senior-Municipal Law Enforcement Officer I i I ATTACHMENT N0. 4 WD-15-94 I THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON BY-LAW'ENFORCEMENT DIVISION PROPERTY'STANDARDS BY-LAW 82-63 SCHEDULE "A" FILE NO V9'�/414 Number Section Deficiency 1 5.1.1(1) Yard not kept clean and free from rubbish and debris; (property to be cleaned of all garbage and waste material). 2 5.1.5 Abandoned buildingnot Protected risk of fire, acidentor other against and not effectively secured to prevent unauthorized entrance; (the building has been abandoned for several years and has been boarded up and broken into several times, there has been no attention to regular maintenance, building is to be demolished). i - I I I I j - i L[_l. 1J . .., to•c,� K.ti.I.VKr.l.,r-.1 r i r« .� _ A. ROYAL LSA N K P.W. (BOBS LkYaM FCE TZOYAr, BANK OF CarrADA Sr. Account;Manager Re tonal Corporate Centre Real Estate 40 King Street WestiSuite 800 Oshawa, Ontario H IM Transit 08556 (9057 436-7197 Fax: (905)436-7347 December 15, 1993 Via Fax (905) 623-4169 Municipality of Clarington 40- Temperance Street Bowmanville, Ontario LIC 3A6 Attention: Leonard Creamer, Pso Senior'Municipal Law Lnfprcement officer Dear Sire: RL: 2'own of Newcastle Property Standards By-Zaw 82-63 Town of Newcastle Waste Material By-Laws 90-160 Block 87, 88, 89"'& 100, Plan 4oM--ia78 Your Files: V931143 & V931144 Seatlon 31(7) of the Planning Act 1983 Property Standard By Law 82-63 Your File P'umber V931414 We are writing at this time to confirm our telephone conversation at which time we advised that the Royal Bank would take the necessary steps to remedy the defects set out in the Schedule "Am submitted to Ashdale Capital Corporation Limited dated December 2 1993, as well as your Notice on File V931414 issued ort October 25, 1993 . We would also ensure that repairs and clearance of the site will be completed in accordance with any permits required by law. j We trust this meets with your satisfaction, .however, if there are any questions, please do not hesitate to contact the undersigned. Yours truly, I Rwzljd ATTACHMENT N0. 5 WD-15-94 THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON BY-LAW 94- Being a By-law to authorize the execution of an Agreement between the Corporation of The Municipality of Clarington and the Royal Bank of Canada. THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON HEREBY ENACTS AS FOLLOWS: 1. THAT the Mayor and Clerk are hereby authorized to execute, -on behalf of The Corporation of The Municipality of Clarington and seal with The Corporation's seal, an agreement between the Royal Bank of Canada and the Municipality. 2. THAT the agreement attached hereto as Schedule "A" forms part -of this By-law. BY-LAW read a first and second time this 14th day of March, 1994. BY-LAW read a third time and finally passed this 14th day of March, , MAYOR CLERK A THE CORPORATION OF THE TOWN OF NEWCASTLE REPORT Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE File# Date: JULY 5, 1993 Res. # Report#:.. WD-27-93 File#: B. 02 . 09 .003 By-Law# Subject: WILLOWBROOK `GARDENS SUBDIVISION, PLAN 40M-1676, COMPLETION OF ALL OUTSTANDING WORKS Recommendations: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following; 1. THAT Report WD-27-93 be received; 2 . THAT the Director of Public Works be .authorized FORTHWITH to issue a 'Final Notification Letter' to Ashdale Capital Corporation Ltd. notifying it of its default, -.neglect, act or omission in failing to complete the construction or installation of the Works pursuant to the Subdivision ..Agreement with the Town such notice given pursuant to paragraph 5. 17(1) of the Subdivision Agreement and requiring that all outstanding Works be completed on or before August 13, 1993. 3. THAT, if all outstanding Works are not completed by the August 13, 1993 to the satisfaction of the Director of Public Works, the Treasurer is authorized to present the letter of credit (P.26010T06206) deposited with the Town in respect of the construction and maintenance of the Works and other obligations provided for in the Subdivision Agreement for payment at the issuing bank. 4• THAT the Director of Public Works and the Treasurer be authorized to expend the monies received from the presentation of the letter of credit to satisfy the Owner's obligations in respect of the completion of the construction- and the ^I-A a C.«E ATTACHMENT N0. 2 iN6lS PiMf(ED pi PEGYCIFD PAPEq REPORT NO. : WD-27-93 PAGE 2 maintenance of the Works in accordance with the Subdivision Agreement. 5 . THAT Ashdale Capital Corporation Ltd. and the Royal Bank of Canada be advised of Council's decision and be provided with a copy of Report WD-27-93. REPORT 1.0 ATTACHMENTS No. 1: Key Map No. 2 : Copy of letter from Owner's Engineer, dated June 3, 1993 No. 3: Copy of Letter to Owner, dated June 7, 1993 No. 4: Copy of Pertinent Excerpts from the Subdivision Agreement No. 5: Copy of proposed 'Final Notification Letter' to Owner 2.0 BACKGROUND 2.. 1 The Corporation of the Town of Newcastle entered into a Subdivision Agreement, dated August 22, 1991, with Ashdale Capital Corporation Ltd. as Owner to develop lands located in Bowmanville by a plan of subdivision (Attachment No. 1) . The Subdivision Agreement required that the Owner construct a storm sewer system; stormwater management works; all roadworks, including hotmix paving, curbs, sidewalks, topsoil and soddiAg. of boulevards, paving of driveway entrances, street lighting, street trees; noise attenuation fencing, and reconstructing Bradshaw Street, hereinafter referred to as the 'Works ' . I 2.2 At the time of enteriN into* the Subdivision Agreement, the Owner deposited with the Treasurer a letter of credit (P26010T06206 issued by the Royal Bank) to secure• the construction and maintenance of the Works required and other obligations provided in the Subdivision Agreement. The present amount of the letter of credit is $1,836,294 .10. REPORT NO. : WD-27-93 PAGE 3 2 . 3 The initial Works were completed by the Owner in the fall of 1991 . Since that time numerous complaints have been received from residents regarding the lack of construction activity within the subdivision. Despite attempts by staff to contact the Owner to expedite the Works, the Owner has not responded and no action has occurred to date. 2 . 4 A letter was received from the Owner's Engineer, G. M. Sernas and Associates Ltd. , dated June 3 , 1993, advising that they had withdrawn their services and were proceeding with lien action against Ashdale Capital Corporation Ltd. (Attachment No. 2) . 2 .5 Public Works staff issued an advisory letter on June 7, 1993 notifying the Owner that a report to Council was being prepared which could be averted if immediate action was taken to initiate the Works (Attachment No. 3) . Again, no action or response has occurred to date. 2 . 6 The outstanding Works include, but are not necessarily limited to: base asphalt repairs, curbs, sidewalks, surface asphalt paving, driveway approach paving, boulevard sodding, street trees, sound barrier fencing and the reconstruction of Bradshaw Street. Staff estimates the cost of completing all outstanding Works to be approximately $1, 100,000.00 . I f 2 .7 Pursuant to paragraph 5. 17(1) of each of the Subdivision Agreement (Attachment No. 4) , the Director of Public Works after receiving the authority of Town Council may give the Owner notice in writing of the default, neglect, act or omission of the Owner in not constructing or installing or causing to be constrt�cted'• or installed any of the Works required by the Subdivision Agreement. On the later to occur of ten (10) business days after the giving of such notice or such additional period as may be specified in the notice, the Town, at the cost and expense of the Owner may employ a contractor or such workmen and purchase such services and/or REPORT NO. : WD-27-93 PAGE 4 required for the proper completion of the Works in accordance with the Subdivision Agreement. 2 . 8 To ensure the Town can carry out the completion of the outstanding Works this construction season, if the Owner does not complete all outstanding requirements by August 13, ' 1993, the Town will proceed with completing the Works at the full expense of the Owner. In order to protect the Town's interests and ensure there are no delays in accessing the security for the Works, it is recommended that the letter of credit be drawn down for its full value. Respectfully submitted, Recommended for presentation to the Committee, --- - -------- - -- ------ --- -------------- -r----------- Walter A. Evans, P.Eng. , Lawrence E. Rot e�fl, Director of Public Works Chief Administ atf-,�e Officer NC*WAE*ph June 23, 1993 Attachments pc: Ashdale Capital Corporation 85 West Beaver Creek Road Richmond Hill, Ontario L4B M I Fax: 881-8116 Attention: Mr. J. Cornacchia i Royal Bank of. Canada, Regional Corporate Centre, 40 King Street West, 8th Floor, Oshawa, Ontario L14 1A4 Fax: 436-7347 � Attention: Mr. R.W. Lawrence I i i 1 ILL0 j1-BR0OIC { S BD VISION 4 , 676 W W � W � (� Q v� _ --- - -- cn. - z - t'''' c Q = W c� Q m m CONCESSION STR E F -J f ... 1I Ll oDi � i O� O OO O II C:\AITACHS\SUED\WILLOW DRAWN BY: JM [DATE: JU193 ATTACHMENT N0. 1 KEY MAP '�-27-93 June 3 , 1993 A SSOCiateS Ltd. VIA FACSIMILE AND MAIL t 10 sr:,:.,C iAtft, Unit Town of Newcastle 40 Temperance Street Bowmanville, Ontario L1C 3A6 Attention: Mr. A.S. Cannella, C.E.T. Manager of Engineering Dear Sir: RE: ASHDALE CAPITAL CORPORATION LTD. PLAN 40M-1676 TOWN OF NEWCASTLE OUR PROJECT NO. 88242 Please be advised that G. M. Sernas & Associates Limited has withdrawn our services and proceeded with lien action against Ashdale Capital Corporation---Ltd. far--. non-payment-e-f professional "- fees on the Willowbrook Gardens Subdivision. We will continue our attempts to resolve this issue with our client and will inform you, in writing, should a satisfactory resolution be attained. In the interim, it is asked that all correspondence and items requiring action be forwarded directly to Ashdale. Should you wish to discuss this matter further, we would be pleased to meet with you at your convenience. Yours very truly, G. M. SE A115ster, OCIATES LIMITED `I;1:' -� i F-HdAH"o ma Z-1 TORd P. Eng. President & General Manager RDW/lob I cc: Region of Durham, Attn: Mr. C. Curtis, P.Eng. Pilen Construction, Attn: Mr. T. Marchese i Ashdale Capital Corporation, Attn: Mr. J. Cornacchia Snell, Fraser Lawyers, Attn: Mr. S. Mutch G.M. Sernas & Associates Limited, Attn: Mr. N. Mensink, P.Eng. Attn: Mr. D. Dwyer, C.E.T. ATTACHMENT NO. 2 I WD-27-93 MISSISSAUGA WHITBY OTTAWA I NIA PI(I June 7, 1993 Ashdale Capital Corporation 85 West Beaver Creek Road Unit 2 Richmond Hill , ON L4B 1K4 FAX: 881-8116 ATTENTION: Mr. J. Cornacchia Dear Sir: RE: WILLOWBROOKE SUBDIVISION, BOWMANVILLE PLAN 40M-1676 On May 11, 1993 , this office sent a letter to your consultants , G.M. Sernas and Associates' Limited requiring that a schedule be forwarded showing the completion of remaining works . I have attached a copy for your reference. No response was received from your office. On June 3 , 1993, we received a letter from G.M. Sernas and Associates Limited (also attached) , advising that they have 'withdrawn our services ' relating to your project. In addition, this office has received calls from residents requesting that surface works and fencing be completed. Since there has been no recent activity in that regard, it appears the works are abando4ed. Since this situation contravenes sections 5 .3, 5 . 17 and Schedule ' I '- of the Subdivision Agreement, we are proceeding with a report to Council under section 5 . 17 of the agreement. I ATTACHMENT N0. 3 WD-27-93 i I . 2 CORPORATION OF THE TOWN OF NEWCASTLE . . . 2 Should you wish to avert this action, we would suggest that you immediately: 1 . Resolve the status of your engineer; and 2 . Submit a schedule outlining prompt completion of appropriate surface works and fencing. yours truly, Norman A. Clark, C .E .T . Construction Supervisor NAC/ce pc: A.S.- Cannella, Manager of Engineering R. Webster, G.M. Sernas &- Associates Ltd. I I I I i i I i I Page'47 5.17 IncQmplete or Faulty Works and Lienc (1) If, in the opinion of the Director, the Owner is not constructing and installing or causing to be constructed or installed any of the Works required by this Agreement so that it will be completed ",thin the time specified for such completion in the Schedule of Works, or if the Works are being improperly constructed or installed, or if the Owner neglects or abandons the said Works or any part of them before completion, or unreasonable delay occurs in the execution of the same, or for any other reason the Works are not being constructed or installed properly and promptly and in full compliance with the provisions of this Agreement, or the Owner neglects or refuses to reconstrict or rei:stall any of the Works which may be rejected by the Director as defective, deficient or unsuitable,or the Owner in the opinion of the Director otherwise defaults in performance of this Agreement, then in any such case after receiving the authority of the Town Council, the Director may give the Owner notice in writing of such default, neglect, act or omission. Following the later to occur of the expiry of ten (10) business days, excluding Saturdays, after the giving of such notice and the expiry of such-addi6ortal=period as ma}-be specified in the notice given to the Owner by the Director, the Town, at the cost and expense of the Owner, may employ a contractor or such workmen and purchase such services, supplies and/or services as in the opinion of the Director are required for the proper completion of the Works in accordance with this Agreement. In cases of an emergency, as determined by the Director in his discretion, any deficiency(s) or defect(s) in the Works, or any failure to complete the Works in accordance with this Agreement, may be corrected or remedied by the Town at the cost and expense of the Owner without prior notice to the Owner, provided that forthwith after the Town so acts, the Director shall give written notice to the Owner describing the emergency, the action taken by the Director, and the cost of correcting the deficiency or default in question. The cost of any work which the Town undertakes under this paragraph 5.17(1) shall be determined by the Director in his discretion and his decision shall be final. It is understood and agreed by the Parties that the j cost4or which the Owner is responsible under this paragraph 5.17(1) shall include a management fee to the Town either of thirty30% ( ) percent of the contractor's charges to the Town (including any charges for overhead and profit) or, if such work is undertaken by the Town, thirty (30%) percent of all costs incurred by the Town I to complete the Works in question. The Owner shall reimburse the Town for the cost of all Works, and the cost of correcting or remedying all deficiencies, defects and defaults pursuant to dw! s paragraph 5.17(1) which have been incurred by the Town forthwith after the Director gives the Owner written demand for payment of such cost. i I ATTACHMENT N0. 4 WD-27-93 Page 48 (2) Ln the event that any construction liens are filed under the Construction lien Act, such filing(s) shall constitute a default in performance by the Owner of this Agreement. In any such case, the Director may no:iry the Owner in writing of such default. If the Owner fails to discharge the lien claimant within ten (10) business days, excluding Saturdays, after the giving of such notice, or within such further period of time as may be specified in the notice, t!tri the Town may pay the full amount of the claim and costs into a Court of competent jurisdiction. The Town is hereby authorized by the Owner to draw on and appropriate the whole or any portion(s) of the Performance Guarantee to indemnify the Town against the costs and expense so incurred by the Town. In the ever.: that the Town draws on and appropriates any portion of the Performance Guar::ee to satisfy the claim of any one (1) or more construction lien clairnants and cos::, forthwith after the Director gives written notice to the Owner requiring it to do so, the Owner shall reinstate the Performance Guarantee and/or the Security for t::e Maintenance Guarantee, as the case may be, to the full amount(s) required :ander the provisions of this Agreement. 5.18- En"-fyr-E1gKTTnzc--Repaire In addition to the Town's other rights under ;his Agreement, the Owner acknowledges and agrees that at any time and from ;ime to time, employees or representatives of the Town who are authorized by the Director, or contractors retained by the Town may enter on the said Lands for the purpose of maKing emergency repairs to any of the Works. Such entry and repairs shall not be deemed -.o be an acceptance of any of the Works by the Town, nor an assumption by the Town of any responsibility or Iiability in connection therewith, or a release by the Town of the Owner from any of its obligations under this Agreement. 5.19 Dama-c to Existing Services Forthwith after written demand therefor is given by the Director to the Owner, the Owner shall-"pay to or to the direction of the Town; the cost of repairing any damage to any property or services of the Town, the Region, or any utility authorih, .- company or (the "Damaged Services") including without limiting the generality of the foregoing, any road(s), water, electrical, gas, telephone, cable television and sewer systems, and the cost of relocating any Damaged Services, caused by or resulting from the development of any one (1) or more portions of the Lands, or the construction or installation of any of the Works,provided that all such repai%r�land or relocation(s) are completed to the satisfaction of the Director, the Region and the relevant utility authority or company which owns or is responsible for the Works, property or services in question. In addition, the Owner agrees with the Town, at the Owner's cost, to relocate any of the Works constructed or installed pursuant to this Agreement which are located in driveways or so close thereto as in the I July 5, 1993 Ashdale Capital Corporation 85 West Beaver Creek Road Richmond Hill, Ontario L4B 1 K4 Fax: 881 -8116 Attention: Mr. J . Cornacchia Dear Sir: RE: WILLOWBROOK GARDENS SUBDIVISION, BOWMANVILLE, PLAN 40M-1676 TOWN OF NEWCASTLE OUR FILE: B.02.09.003 --FINAL NOTIFICATION LETTER-- This letter will serve as notice, as stipulated under Section 5.17 of the Subdivision Agreement between the Corporation of the Town of Newcastle and Ashdale Capital Corporation, that, in the opinion of the Director of Public Works, you have defaulted in performance under the conditions of the agreement. Due to a lack of progress on the above-noted subdivision, you are hereby notified that you have urtil August 13, 1993, to complete all outstanding works to the satisfaction -of -the--D�r or=o-f--PubLic=--Works which. include but are not limited to: 1 . Carrying out base asphalt repairs; 2. Completing all appropriate curbs, sidewalks and driveway aprons; 3. Completing all boulevards, including sod and street trees; 4. Completing all noise attenuation and chain link fencing; 5. Completing surface asphalt; and 6. Completing Bradshaw Street reconstruction. All works are to be completed to the satisfaction of the Town of Newcastle and require the full time supervision of your consulting engineers, G. M. Sernas and Associates Ltd. Public Works' staff will review the status of these works with your consultant just prior to the August 13 deadline. Any works not completed to our satisfaction will.,,then be carried out by the Town, at your full expense, in accordance with the terms and conditions of the Subdivision Agreement. Yours truly, ' W. A. Evans, P. Eng. Director of Public Works NAC:ph ATTACHMENT NO. S WD-27-93 PC: Marie Marano, Treasurer Pattie Barrie, Clerk A. S. Cannella, Manager of Engineering Royal Bank of Canada, Regional Corporate Centre, 40 King Street West, 8th Floor, Oshawa, Ontario L14 1A4 Attn: Mr. R.W. Lawrence i i I JL. . ...�........0 ......� �a.aav✓ --_—�-�o-s--T-�cmc:[' ..-._ iv�_v..„�..a..v ,• �, INC. rr:a+.�rc Etlma:7l�r, 4'Er1c3w'rrr 71.1 King Street Woo,5th Floor Twonto,Canada 105V 1N4 Our Ref, 94708 TE,,:4161702,1100 F.r.c 418176;-2200 Mr. Anthony S. Cannella, O.E.T. July 6tn, 1995 Mtantargnr of Rnginsoring PLiblic Works Department Municipality of Clarington 4C Temperance Street Bowmanville, Ontario L1 C 3A6 Dear Sir, RF., AfihlnAl F i'APITAL !*'ORPORATION Willowbrook Subdiuiclon and Pradehaw- troot Completion o€Works Agreement FLrther to our meeting of June 26th, 1995, we have met with Royal Rank and wil3h to advise you tht,t Royal Bank wish ag to proceed 0n thO 1`011CAIVt(ly 18FrT15; 1. Agreement Royal Bank will enter Into an agreement to proceed based substantially on the agrserrient prepared by Shlbley Righton in April 1,=194 but amended to remove redundant or non- applicable wording,and amended to provide for Royal Bank to complete the Work under the Subdivision Agreement, 2: Cash Security Held by the Municipality The original value of security retained by the Municipality was $1;894,188.€„3. Payments of 0"*,009.t T i 1c1VV -1jWt111 '"Ov �! d a tur tl lur = $200,t)00 Is commined bar nol ye. palm Security to be held for the outstanding Works undar the Subdivi0on Agrcomont (Intornal roads enc! Bradshaw Strcot) will btu calcu;ated by C.M, Sernas using the formula agreed in ,Mur m6eting (i.e, co6t of Woi, s plu, , 5% c:ulttlt;Ur<tiuy Pl�ijs 10% eragirreering plus a 20% completion allowance), Therefore, based on the final calculations, the Municipality will return unspent security monies to Royal Sank in exchange for an irrevocable letter of credit reflecting the now security required. 3. OUtNteli 0i i. Olaltrt Royal Barak, as part of tete agreement roferred to iter,, 1, will Indemnify the Municipality against claims, liens, actions, etc., arising pursuant to the Construction Lien Act in respect of the supply of ,materials, services or labour to date upon the lands. The Municipality will confirm to Royal Rank all ololmo of which it has raocivod notioo Pat the date hereof erred will agree to rely upon Royal Bank's Indernnily for same, ATTACHMENT N0. 3 WD-37-95 /2 i I SE,,'1.,by:HtLYAK 13 UC'l:1TE3 7- 6-95 : 1 '39PINI 1167032200 1905623,1169: 3/ 7 I it?LYAI H.ek A-SS:)C.;IAI-ES INC:. 00/07/95 Pia AS HDALE CAPITAL CORrORATION t'nge F Wil!Qwbrook $ubdivision and Bradshaw Street COMpIpt►on of Warks A reement 4. Setvicin_Gontract Royal Bank Is in agre9ment to the Muni,^ipality being a party to the contract to build the Ashdale portion of Bradshaw Street, The form and content of same will h,B established at a later date. 5. Manaci meat Fees Royal Bank acknowledges that the Municipality Is entitled to retain a managoment fee of 20% an mortiioe oxpondod to date (l.c. :!: $4,,000), l lowever, th6 Municipality will waive its right to ally tug ltrtr rrrarragernent fees on complstlon of the Warps provitaing trio wcarK IS completed in accordance with the agreement referred to item 1. 0. Interest on Gash Se,curltv Hold The Municipality will pay interest to Royal Bank calculated on the basis: of the security monies held at provalling intoroct rates throughout the period held, We une,srstand that this currently stands at ± $100,000. 7. Reductlgn tp Securities As Work is completed, the Municipality covenants to timely releases a-' security upon acceptance of the works and proof of payment received. 8. Front Ending AareeMent§ fast Recoveries The Municipality will assist Royal Bank in the preparation of these agreements for cast recovery purposes. fur l�frrr�cr , iho A_rtuliiCip,;klitY will ��1� �,1�, U'v Mull;uip;-ARy't� dium W cou'.0 on Srudohuw Street construction upon completion of same based on the figures prepared ;)y G.M. Sernas. VV3 trust that the al,ave outlines the general tagreertrent provisions in order for you to proceed to counsel to ratify same. Yours truly, i HELYAR & AS18,0CIATES INC. '1 per: A, Barker l rector c.c,. Mr. Pi,-,hard Geofroy, Special Moans, Royal Bank of Canada Mr. Paul Avis, Garvey 5erris i i i Fr'�aT BY.`HELYARg SOC 1.'1`t •�"-, t 1 t.r ry .icar 'i.wu,'a ru � ! �StrM ,IC!/ O✓ f r 'This Agreement ntiede ae Of the day of 15a4� B •r w><E N: The C m,poration of tite Mt.titic,ipality of Clarington DRAFT {hereinafter balled "The Muttidpality") or the Firm aPartAnd Royal Bank of Canada (horeittufter Of the 9eewiJ..Part wHIERUASz A. Tho Munit~lpality and Aehdale Capital Corporation Ltd. ("Ashdale';1 hti've entEred info s aUbdivisja,�at d6ruel-terit (the "Sabdivisiot Avmnegta) 1 opecting thF rlrtvPlnpmtjnt, c4nktru00i% and installrAtMn n( (Kp such tonin Rs defined in the Subdivision Agre(�lnent)(kite "Works") in respect of ldnd-8-�the "Lands")is turw laitj QUt as Man 401vl-16;16 in kite Matrticipality of'Claririgtori,in the R48&nai Munic)paltty of Durham; U, Ashdale was and continues to be in defdulE of its ubligafdor,to cott&I,u�t and install the Works; (w After detiverfttg notice of gu,ch defautt to AtMa!e±lte Cwirwil of tht! mWilcipatlt i►utlturizotl thn N4'411lQ1l1alit},.i TTS aiuror on two sq rnty cimaYtaitYnt:iso draw upon letter of credit 11u1nj:er P260107%206 (tile"Letter of Cm,LUVI)dapiteii writh this A4urieipaltty as t4 N-ifutmatumv(=tlaranlee 6W such term, is cieffned in the SuUdivi ion A rQent4aa) fcar n total amount drawn of$1,694,18&83 (the "Drawn bunds"}: D. Royal N(1) thy+raj isterc,tj 0%rher of d chargv f mortgage of land registered a$airttat title toj�?cf I,anLI3,(2)hutax£.' ttcd the��bdiwisrart��r�ctz►ent a — Mortjliqgr�,-and 0} ivAg the iiguing f6r iht Ult*e Uf erecut; E. Royal has roquedted t:httt it portion of the Drawn 7Funas tie returned to It subject to the coc/enant4,, wnticlts- etct �t Agreer,ce nt; and p. This Agreement is hull-sorized by by-law 94-35 of the]vlu lie.�igaliiy hissed sat the 14(h clay of March, 199e1, NOW THEREFORE '4"dl'TA,ESSETH THAT in consideration of the alum of Ten Duilars MI 1).06) pa!A 1,a,ty tV the 01her,tkc:rntiftial kVVVu,autt:aiLtl agreements writaitted herein and other good and valuahle conGidaration,the rw!:pt and sufficiency of wilich is hor.OY Acknowledged.thQ partifmi agroa au follow©t�• me I 11 The pitrdes hereto agree that the recit6l4 conta_jsted herein are true in substanco and in fact, i 2. Royal I-mraby acknowledges aad asrees that 4:11 acdons taken to date by tho A4unicjga.lity and its offid.als pursuant to the rightq arca obligatior 3 Of the MtutMgali2y Linder th�� $Lvbdl 1613Jt Agreeme,n?,ir ist81 in's� draws upoft the or credit wktc rryper and In accordance with 4ie rights of 1-fW MurdclpAIlty tinder the 5ubd!Visiun pgmunent. SEN'T.,SY:IIELY9R, ASSOCIATES : 7- 6-95 : 1 :40P1i 4167032200 19056234169:# 5/ 3. Royal shall Pay to the M1111.icipajity within fawteen (14)days of prMmtatjon of ,tppropxiatt; 111Vo1Ces, All reas<ixtable legol and consulting costs or miscellaneous C05t$ incurred or to be tna<tirrietd ty the Municipality its a rt.�sulr, of the;default of Ashdtalc hi completin.a., the Works as required k,y the;tubdtvisivn Agreement. 4• Royal shall eater i fo�cons° - f Wt t 1 s under thN .a clivi i, n A regiment and shall pay all progre.10 1'ur1 �,�t�iC{ul�rri b;i suer, ecsnsrrt Cibn"cUri�ra thin fourteen (14) dAyY after prmentation to R.¢yal of the appzopriate certification of ;x i'-tplotod work made by the consulting eiiKj ueers ro cuch constmctjon,'t ccmtracts. 1 9' May be A '»Ytr&�tR if ik_f;t�elacts.-. . gi1 lte"eby collse,lts to the Treasurer of the hfuniclpailty making the follMA'41; pay+IAL-Ata from the Drawn Funds! i. Wast branch of the Seager Creak 6jr—itributirm,-Ozie 11undrQct rind Thirty-Two Thcaztsalid, Four ffiwidred ($132,4010.00)DolMrs; Snow Clearing costs - Two'Thousand, Eight Hundred and Taifnty.Firilr f.1�7,8'71.!iU)I:i�t1�o�nr��' �=,i61,t} d�oiln, Consunler8 Gas SJtvoiCe " E tlt�ueatlCE, Two�Itultlred &il(i Slxt»en {$3,J16.? ) Udhx1 lars and 1 welve Cents; IV, �lkil)IUY MOW" -FOUx Thow uld,Otte Huitclrecl atttt Eighty- right M,188.74) Dollars and SeverLty-Four Cents; and V. kivnicipaltty cif C:lariitgton Management Fee (as defines[in the !ital?divis7t;tl Aare?rttertt) a t nf, uniriral.ty uf_ larirLn here wiles its ri hg t ro y fur11 feces sat � .st1�-�-tdl7sii,S" P t kavir into tllL� MQ- LLMld QM1 t h tr 1 iMr*.. i?.��€3.t?�.(ar�t�.in.ta1r��.. With 6. Roy'll agrees to indemnify a:nt4 save harmless the Mutlidpality front 7r13" nn1 1111 r.401i#A52., 41,,;,,, 1 tiulrl11114a, fug ua,cteuliautis ana expenso's including reasonable legal fees which arise }aunuant to the t2r>nstrtlCti 1n urn, .%,j an gC•il=v4t of 0t4 auyyly Uf ia'uc.Ur,SQr Ie ti UAI5 materials to date upoj the 1,,Anda pursuant fn the of Li.,x Subdivision Agmement, provided that Royal at its coot they obtain act order of a coda of 420atpe(ent jtIrisdictlo t di&;liSs1r'1&any such calm1t against t4� Municipi'lity. Tl e lvlurlicipallts shall cooperate at the ec i Pf U Y�1 in 01)[aliline hits h n rii r iv (1rril=r s— -- ' !t"nt it hos nasi t. ,,E l nutlet: of um: clatrns or act]ons save tot tate i � s i I - Ttte 2uni£faltt agrcwc�to r1a1.= u on lZo t"3'� inciernaiitl1 sat to the, bt�ve r2zlitrts or actions and_a reee that it*v-ill snot withhold regi uctiu,� alt fQr_f ietty (if the Rc111aceul n N!rform (as heroinafter dofined)by reiison 0111y that 30111y that ud, claimor ac g ifotts Ve . I i ,BY t f EL1' k9t AS SOC I ATES 7. ROYAL shall pay to Claringtcin Hydro all uU(,stancztng inVolce in that amuunl of Qnc) I I indred and Ninety,Twa VollArs and Sixty-Fiva f�etUs ($192.56). Ther parties acknowlecigt,that during the tnntullation of n portio of the Wnrkq by Afhd:R1* or itv agents ecrtaltt t,iu;trttlertt owned by liau Canada had been damttgecL loyal agreos to indemnify and save hanrilCSS thr hfunicipiliity from any claim by Bell Canada or its a£,anta for tho co.51 of the repalr o••the replacement of such equipment prnvlded that Royal at its c!Wn CoSt may defend npingt such claim. Tisa ?M tieipalit� ryes to r�U1 u on Ro il's ind_emni wl It res t t�, the al)OVO 13011 Carta& cllahn and a rtes that It will tiot wit oiti re V'ilio t- e tiaraxc q,, LiWr1 n-- onl that su h claim h nol L t:ti released or dismiss�eci.� Uphn the execukiorl of this A reemenl, Royal shall deliver tc) the it inlcipality an t�t'�e:}�tulti�i. atul 1rrevmable letter al!credit isqual by Royal and t oitaCnine termr, m6s arinry to the TRustldPft1 6y�'n rraaoure, in thea . ___Dollstre($__ _ ,.) (ihr. "ftr=pl:tramont POrformzmoc Guaraniww ") act wk;urlty fo;r Lhe performance by Ronal of iter cbligatipn5 pvrsuattt to this Agrr'ittirrli- �i llte xeplacoment P' rfcrrma�:lcte Gtlarante-e shall also be deemed to 1:'-e' the Performance(;trarantec for the purpclSes Of the aubc]1451on Agroarxient and may be red;iced or released 0111y in accord cc tiv'.ttl t1tNt Provisions of the Subdivision Ai;reenient, if Royal shell default ir,the lerfOrrttance of any Of its o;bligatians pursuant to this Agreement, then after five (5)dayli written notice to Royal Of any default htireunder i made by arty uftld Al of the Municipality, Ll'i¢'4i'uniciAl.ty's T�*Asurer may present elle replacement PerfQrma7ce guarantee to Loyal for piyment In psi amount c.We nn41nQo by the MUnicipa)ity's Treasurer acting reN41111WY 911ffidnflI ff)r j'titrtlfi m ni ratrmnrYu$, Farm �r.it.lt ny t<rtyal. Thr Ilrtuntripalit},x Tr4,,aurCr sheat ay Auv.t at, lvascanaltl}'practical deliver ten Royal Iaayment in all amount equal to the amount pf the Drawn Funds less.Such amounts as have bagri speC:iFimily autktoriuhj to b+;palcl frc>nti thf~Drawrt rt Adfi by this Agreemeit# lues interest eaxru l on such Drawn Funds at,thc+ re�railin ra r X8 cy l .e elate hereof titre init.r st etlTrlted a to are efuil a roxtrn lei r tac?.a00. - .�_. _ e. Tho larovisluns of this AgreE•tnertl shall not derogate from the provi94ina oj' the. Subdivision Agroomont, Whe-rover a-nd to the extent thi'l �7ny provision of this Air'rw-w:ent conflicts with any provision ci' the Subfiivi�ion Ag1 Crete ,! tiie respective provision of the ,gobdivisimt Agro-onle>1t shall prevail, 1 Any notice, raquest, cortltrtucd4atirtl Or demand tinder this Agre�rttii"it shrill 1�r-in tvritlrtg.tuts alt tis k�t tort ldMr pro rrly tiz?ltt edt wisest givers or served Personally oi•by registeNd mail to the Municipality at 40 Temperance e Strcfet, 13owmar-iville,Ontario, Attention: Us. Patti T., liatrse, '1'QWh Clerk, asses (4 RO)'Al at Royal Barak of C?anade,20 King 1Tt' LYl{P,.41. X11t� 1;;3nra Tor6n4.. ►1 k.�1 u__-. —.�_�__•_v0t tf�x� hf"li 1L" a U tvir. tC. r1 GtYi,t'OY 5S n10i' ,ori r�ullt ;rfanftger, Such 1100cer request or demand shall be dee;neci to hitwTn bwr delivered can the date its delivered if given ur serired pQr oti.ally or on the third day following utitilin4,if 11'is mailed. If at any tinia notice If, delivered by mail And tkwro is 4my Cessation (w•hetheT anticipated or FYlvting)of mail uendoo Ame-efliftt;tate delivery of such r1c tick, the rlotice shall not be deeined to have been deliven:d tuitil. five (3)}_Usixiess days after the elate that normai maty � 'tor ice is restored, I �5NT.,BY:IIELYAR& ASSOCIATES ; 7- 6-95 ; 1:41YDi 4167032200-+ 19056234169 # 71 7 ti 13. Thr f4i ttirl atit a,re0s tc> operate with Fioyul In entsrinlr 3zetca f cin fi5l? 4grOen'tenls With respect to tile sta m jtirate~r OV4WIZIng aettl cantr u'l3"Ung un severanaI of luta On Bradshaw stmOL The LC�TutiTc i e t to r cc�nrr tau to c larttt a s ears a i` `casts cl I rWe a raw Street kK?n urn rnmr� tir.rt rs chi. °. uaei haw iS trey Ere�`ared i)G.M.Semas. 14, This Agreement shAll be governej by and interpretud In aeeord2xtm with the "Wt "'of the P-rovince of UMMa and the Mies subrW1 to the juricdiptlnr. os ole, 4k,lo ui tlev I'ruvInce Qf c`Jr1td„„"10 In order to anlizl°C� this Agreement. it. Urdvus the. Wiltaxi otherwf e requires When used in this ASrcmimf, the singular includes the plural and the rnascv$ek includes the feminine. 16- Ito}'ttl aekr,awlt?,dves anJ agrees that the Munitlpality has authority,to Enter trkio this Agreement, Lhat every prvvisiose hereof is authorized by laNv, is!'oily anfurceakle by the I'grtics and that this Agreement is;r,ide by the Mt.tt�idlMllty th reliance oil dia acl4ttowlodgement and agreetltzrtt of Royal 4g afor(S.Md. N WITNESS Wll13l:HOF the Parties lteret) have hereunto set their hared;, and seals the day anti year first above wi-Itten and the Parties,hereto hark here?ttttto affixed thr:ir rorpnmin vaala til i1j,heuN,43 c( Qwie J'Awj"VI 'i i,Ysb duly 4uthonzed In that hphalf. C'I le Coke) AUON OF THE MUNICIPALM UF CLARINGTON By!_ MANP HAMRF, MAYOR RMA.7, BANK bF CANADA B)-; Ne.me: Ti I It-: By ._ Name, -- T10u: kh 905897112.4 !fILRAN D EV P()1 ULTANTS MILRAN DEVELOPMENT CONS A4Iq(,I,(;I;A(.I ill r.,xECUT1' .CENTRE ci St ll'T'f?250, K)UR R0131;:R-I'SPECK PARYNVAY N1►`.VISSAUGA,ONTARIC) UZ ISI T'I I,! T'!Ic.)NE(905) R97=1122 !'AX 897-1124 r� ,)r,.l.y 41 1995 IMPORTANT FAX MESw)',AGE zo '-- � � COMPANY '►'cIF ttUNICIPALITY OF CLARINGTON FAX Na..�- ----- - 4() Temperrl. neP Street FROM -- - i k o wm a n v i 11 e, Ont . L 1 C 3 A 6 NOS OF PA(3ES—._r— Atte::)tion: T . Cannella RE' - - _�-- PF: BRADSHAW I)rar Tony: a r „rLt,er. to our m�?eting of June 261 1995 , I w'�..h to confirm that Iii2a agreement with proceeding with tlae construction of Bradshaw as as possible . This position i.s contingent upon the following: 1 . That Che City is advised by the Ashdale interests that they also wish to proceed witlj the construction of. Bradshaw immedi.at-elY 2. . That. approval is received f. rvtit clar:ington Council to proceed with construction in accordance with our di.scuusions at the above-mentioned meeting. .l , `'-hat .. E:.he . Municipality of Clarington is in agreement with the prepa.ra°t.iorn of a front-ending agreement in accordance with the Subdivision Agreement to 1'ecOver funds from Mar ;,hetti and MG, for st(-)rm sewer oversizing .. 4 . That the Municipality ()f Clarin5ton will endea•+or to collect from severable land, the aYadshaw re--construction cost as a condition of the severance approval . i I ATTACHMENT N0. 4 j WD-37-95 i e 9058971124 MILRA\ D EV P()2 rt t 1 r.nrr Development Consultant Rig: t3rac�shaw Page 2 r r h 5 . That hydro requirements will only be for underg:rpond service Fronting the new lots created on Bradstyaw, with tha remainder of the lands being served kry the existing overhead service . (we have been advised by Sesrnas that Clarington Hydro has set -out these requirements ) .,. {� . 7•t,eLAf the perc:Pntages for contingencies and enginee-ring are reduced from 15 and 15 to 5 and 10 in order to assist with the provision of the necessary L.C. ' s . r +:, i: st the above is in accordance with Lhe Municipal:Ay 's r-,qui Cements and would appreciate receiving a udpy of your Report- Eo when such becomes available . l , truly M (LRAN PE ELOPMENT CONSULTA x'S i E'er. M .chael Millard , P . Eng , C b. cor'rigall M. Barker 1'. Ching K . Dwyer i I ` 9058971124 MILRA\ U ES' P01 MILRAN DEVEL0,PN,.._,NT CONSULTANTS MISSISSAUGA E'XECUT'IVE CENTRE SUITE 250, FOUR ROBERT SPECK PARKWAY : =^�'°.� MISSISSII.UGA, ONTARIO L4Z 1.51 I PPoR rAN t TELEPHONE (905) 897-1122 FAX FAX MESSAGE .1uly .12 , 1995 TO COMPANY FAX N Q. THE MUNYCIPALTTY OF ir'LARINGTON No. GF PAGjE8 f 40 'Temperance Street Liowmanville, ant . LIC 3X6 Attenti0n: Mr . NOL!ti Clmrke f�c� ��- � r�- � �• — RE: BRADSHAW PRW ECT bear NorM: P!IctYt(--�r to MY July 4th communication to the attention of Tony c,annel.la and, our meeting of Jul- 11 aty our offices , i wish to confirm the following: i 1 . That Liza is in agreement with proceeding to halle the north portion of Bradshaw constructed in accordance with the . conditions set out in the July 4 communication . 2 . Li.2a is in agreement with the assigning of the excess securities from Mearns I 'to the F3radshaw Street north construction. A request :Eo: securities reduction was forwarded to Mr . Cannella by Marshall Macklin Monaghan on Jurte 28, 1995 , 3 . That Li.2a agrees, in principal to the calculation for distribution of Bradshaw construction costs as prepared by G . M. Sernas and discussed at the June 26 meeting . I t..ust that these clarifications will eliminate any confusion with reg2,rd to the north portion of the Bradshaw project . Yours truly MILRAN DEVELOPMENT CONSULTANTS ` i Per Mich el A . Millard , F . Ing . ATTACHMENT N0. 5 WD-37-95 cc: D . Co rigali M. Barker T. Chirig K . Dwyer i OS<'./mom/25 A DIVISION OF MILRAN INVESTMENTS LIMITED