Madison – North Ellis Developments Ltd. – 1385 Ellis Street and 510 Doyle Avenue, Kelowna BC

A to be built 57 unit condominium plus 3 commercial units to be built on a .536 acre site located at 1385-1387 Ellis Street & 510 Doyle Avenue, Kelowna, B.C.  The upscale tower will be 15 storeys of 1,800 s.f. (average) luxury units in the heart of downtown Kelowna.  The site is two blocks from the beachfront.  Cooper Pacific is being asked, as a condition of the Citizens Bank 1st mortgage, to provide a $5,000,000 letter of credit (gross with fees and interest of $7,000,000) which, should there be any cost overruns then it can be used.  The money will be deposited into an interest bearing account, with interest to come back to Cooper Pacific.  The agreement as spelled out in the Citizens Bank commitment letter is that once the project is at 50% complete (hard costs) then $1,250,000 of the letter of credit will be released.  At 75% complete (hard costs) then an additional $1,250,000 of the letter of credit will be released.  Once occupancy certificate has been issued verifying 100% completion of construction then the final $2,500,000 of the letter of credit will be released.