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Home My WebLink About100-15 RESOLUTIONRESOLUTION NO. 100-15 A RESOLUTION TO APPROVE THE PERFORMANCE BOND OF BRIGHT INVESTMENTS, LLC TO GUARANTEE CONSTRUCTION OF REQUIRED SIDEWALK IMPROVEMENTS ALONG ARMSTRONG AVENUE BY THE END OF 2017 WHEREAS, the Planning Commission determined that Bright Investments, LLC's proportional share for infrastructure improvements related to their addition of 80,000 square feet to be the construction of sidewalk improvements along their project frontage connecting to St. Paul Trail; and WHEREAS, Bright Investments, LLC , owner and developer of Bright Technology, agrees to build the required improvement, but is requesting the City Council to approve a performance bond in the amount of $50,000 to allow for a delayed construction of the sidewalk improvement; and WHEREAS, the City Council may approve a performance bond to guarantee such delayed improvement, pursuant to §158.05 (B) of the Unified Development Code. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby approves and agrees to accept the Performance Bond of Bright Investment, LLC, in the amount of $50,000 to be secured by a performance bond or irrevocable bank letter of credit in the same amount in a form and substance to be approved by the City Attorney. This performance bond shall guarantee the required sidewalk improvements will be constructed no later than December 31, 2017. PASSED and APPROVED this 5t` day of May, 2015. APPROVED ATTEST: ON 0 X. - M -I SONDRA E. SMITH, City Clerk Treasurer iTR`°°0 r °r J\A Y OF�sG�`'� wv; FAYETTEVILLE= CO • :�= City of Fayetteville, Arkansas 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Text File File Number: 2015-0208 Agenda Date: 5/5/2015 Version: 1 Status: Passed In Control: City Council File Type: Resolution Agenda Number: A. 11 BRIGHT INVESTMENTS, LLC A RESOLUTION TO APPROVE THE PERFORMANCE BOND OF BRIGHT INVESTMENTS, LLC TO GUARANTEE CONSTRUCTION OF REQUIRED SIDEWALK IMPROVEMENTS ALONG ARMSTRONG AVENUE BY THE END OF 2017 WHEREAS, the Planning Commission determined that Bright Investments, LLC's proportional share for infrastructure improvements related to their addition of 80,000 square feet to be the construction of sidewalk improvements along their project frontage connecting to St. Paul Trail; and WHEREAS, Bright Investments, LLC , owner and developer of Bright Technology, agrees to build the required improvement, but is requesting the City Council to approve a performance bond in the amount of $50,000 to allow for a delayed construction of the sidewalk improvement; and WHEREAS, the City Council may approve a performance bond to guarantee such delayed improvement, pursuant to § 158.05 (B) of the Unified Development Code. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby approves and agrees to accept the Performance Bond of Bright Investment, LLC, in the amount of $50,000 to be secured by a performance bond or irrevocable bank letter of credit in the same amount in a form and substance to be approved by the City Attorney. This performance bond shall guarantee the required sidewalk improvements will be constructed no later than December 31, 2017. City of Fayetteville, Arkansas Page 1 Printed on 5/612015 Jeremy Pate Submitted By City of Fayetteville Staff Review Form 2015-0208 Legistar File ID 5/5/2015 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item 4/17/2015 Development Services / Development Services Department Submitted Date Division / Department Action Recommendation: A RESOLUTION TO APPROVE THE PERFORMANCE BOND OF BRIGHT INVESTMENTS, LLC TO GUARANTEE CONSTRUCTION OF REQUIRED SIDEWALK IMPROVEMENTS ALONG ARMSTRONG AVENUE BY THE END OF 2017.. Account Number Project Number Budgeted Item? NA Budget Impact: Current Budget Funds Obligated Current Balance Fund Project Title Does item have a cost? No Item Cost Budget Adjustment Attached? No Budget Adjustment Remaining Budget $ m V20140710 Previous Ordinance or Resolution # Original Contract Number: Comments: Approval Date: 5- 6 115 CITY OF Tay% 5,eflile ARKANSAS MEETING OF MAY 05, 2015 TO: Fayetteville City Council THRU: Mayor Lioneld Jordan CITY COUNCIL AGENDA MEMO FROM: Jeremy Pate, Development Services Director DATE: April 17, 2015 SUBJECT: Bright Investments, LLC Performance Bond RECOMMENDATION: Approval of a resolution accepting a performance bond and guarantee to install required sidewalk improvements along Armstrong Avenue, pursuant to §158.05 (B). BACKGROUND: Bright Technology is a business located at 2501 S. Armstrong Avenue in the Commerce District of Fayetteville. Situated in Fayetteville with 100,000 plus square feet of manufacturing floor space and 120 employees, Bright Technology specializes in manual and automated sanding, polishing, and buffing for the automotive industry. Recently Bright Investments, LLC, the owner and developer of Bright Technology, obtained approval for an 80,000 square foot expansion on their property, both to expand their own facility but also to provide space for other production/warehouse tenants to locate, a need in our community cited many times by our economic development contract representative, Chung Tan. The expansion is nearing completion, and the first tenant, a locally grown business, has confirmed use of 20,000 square feet for warehouse and distribution, with hopes to expand into another 20,000 square feet in the near future. As with all large scale development projects, the Planning Commission by ordinance evaluates the project and its impact on surrounding infrastructure in order to determine appropriate and proportional improvements. Most often, developers are required to bring the street adjacent to their project into compliance, with curb, gutter, storm drains, street lights and sidewalks. In this case, it was determined that sidewalk improvements, connecting this property to St. Paul Trail, would be the primary infrastructure improvement, based on the impact to the area. DISCUSSION: Bright Investments, LLC acknowledges the required sidewalk improvements. However, due to their initial capital investment in their tenant space and equipment for the building, they are requesting that the City Council approve a performance bond to allow them additional time to construct these sidewalk improvements, rather than before they open later this spring. The performance bond, which would be filed of record at the County, would be accompanied by a monetary bond or bank letter of credit in the amount of the sidewalk improvement. If the sidewalk improvements did not occur within the time specified, the City would have the ability to draw on the monetary guarantee and construct the improvements using those funds. Mailing Address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 BUDGET/STAFF IMPACT: None Attachments: Performance Bond Letter from Applicant Site Plan Bright Investments LLC 2501 S Armstrong Avenue Fayetteville, Arkansas 72701 Office: 479 444 6978 Fax: 479 444 6984 Fayetteville City Council Through Fayetteville Mayor Lioneld Jordan City of Fayetteville 113 W Mountain Fayetteville, AR 72701 April 17, 2015 Dear City Council: I respectfully write to request City Council's approval to delay the construction of the sidewalk improvement which is a condition for permit approval to construct a new 80,000 square feet expansion located at 2575 S. Armstrong Avenue in the Fayetteville Commerce District in Fayetteville. We plan to complete the construction of the sidewalk improvements along Armstrong Avenue no later than December 31, 2017. Bright Investments, LLC is the owner and developer of the said property at 2575 S. Armstrong Avenue. We are required to construct sidewalk improvements along the project frontage to connect to St. Paul Trail as a condition for approval of this large scale development. A construction cost valued at $50,000 is determined as our proportionate share of the infrastructure improvements. Bright Investments, LLC owns Bright Technology, LLC and we work diligently everyday to provide excellent service to our customers. As a result, we are able to not only retain but expand our business. When we relocated to Fayetteville in 2011, we started with 45 employees. Today, our employee count has grown to between 120-125 employees depending on the number of contracts we secure at hand. Our employees enjoy an average pay of $13 an hour plus benefits. As a good corporate citizen of Fayetteville, we stepped up and answered the Chamber's request to build and add large scale real estate inventory that the City badly needed to attract more business to Fayetteville. We are pleased to have seen results already —a local business has already agreed to lease space in this new building. Had this building not been built, they would have to choose locations outside of Fayetteville. In this respect, Bright Investments, LLC has indirectly helped to create new jobs here. To demonstrate our good faith, we are prepared to submit a Performance Bond to be secured by a bond or an irrevocable bank letter of credit in the amount of $50,000, to be drawn upon by the City of Fayetteville should we fail to construct the required sidewalk improvements by December 31, 2017. Just as we are a partner in helping the City to develop, we are hopeful that the City will be our partner to help us grow our business in Fayetteville. Thank you for your kind consideration. Yours truly, Fredi Valle President/CEO Bright Investments LLC 2501 S Armstrong Avenue Fayetteville, Arkansas 72701 Office: 479 444 6978 Fax: 479 444 6984 Performance Bond This Performance Bond executed on theday of May, 2015, by Bright Investments, LLC, to the City of Fayetteville, Arkansas (the "City") WHEREAS, Bright Investments, LLC is the owner and developer of the property located at 2575 S. Armstrong Avenue, and is constructing an 80,000 square feet expansion located in the Commerce District of the City of Fayetteville, Arkansas; and WHEREAS, as a condition for approval of the large scale development for Bright Investments, LLC's expansion, the Fayetteville Planning Commission has required that Bright Investments, LLC, construct sidewalk improvements along the project frontage to connect to St. Paul Trail, a construction cost valued at $50,000, as the developer's proportionate share of the infrastructure improvements; and WHEREAS, the developer desires to delay the sidewalk improvement to a future date and requests to guarantee the construction will be completed within a time period while the building is occupied and utilized by future tenants: AND WHEREAS, Section 158.05 (B) of the Fayetteville Code of Ordinances provides that (a) the developer may, with the approval of the City Council, guarantee payment of the developer's proportionate share of the cost of off -site improvements as determined by the Planning Commission by executing a performance bond in a form approved by the City Attorney, and (b) performance bonds shall obligate the landowner to pay to the City the amount determined by the Planning Commission within 10 days from receipt of written notice from the city. NOW, THEREFORE, Bright Investments, LLC, hereby covenants to construct the sidewalk improvements required by the Planning Commission along Armstrong Avenue connecting to St. Paul Trail no later than December 31, 2017. This Performance Bond shall be secured by a bond or irrevocable bank letter of credit in the amount of $50,000, in a form and substance approved by the City Attorney, to be drawn upon by the City of Fayetteville if Bright investments, LLC does not construct the required sidewalk improvements by December 31, 2017. This Performance Bond executed on the date above written. Bright Investments, LLC B { Y• Fredi Valle, President/CEO Witness: n6.o ;, S I U fl1[ �i. ,.I 111 IIII F 1 }6I F619 tzr` sin '• i₹keI c s 46�x 'ii tr r F �/ I I /f, -�zccn r. oar \' i \..'LL H Imo, _l_:_x__jL___t g \ � emu-w,sz.s _ - fll/J. 99 J71'f/JSI• l 4 .............. Ut'U✓ Uh'Vill:i lf'NC a t i S le Plan . 0.0009S0& ` g ( $ � ,.a P op tied B ilding Expansion 1N y f �x ,� �( 2. 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