2006-10-09 LOC 2nd ReductionEBC:> I -TON & M I N K, I N C_
Consulting Engineers & Surveyors
NAU Building • 7333 Sunwood Drive • Ramsey, MN 55303
Phone (763) 433-2851 • FAX (763) 427-0833
October 9, 2006
Mr. Larry Kruse, City Administrator
City of Albertville
5975 Main Avenue NE, P. O. Box 9
Albertville, MN 55301
RE: Towne Lakes 6th Addition
Letter of Credit Reduction (2❑d Reduction)
BMI Project No. T15.21677
Dear Mr. Kruse:
Based on completed work, Contractor Property Developers Company has requested a reduction to Letter
of Credit No. 6512-1 l 7. To date, all of the public utility improvements have been completed and the
roadways have been constructed, with the exception of the placement of the wear course. Restoration
work, landscaping and construction of the private roadways will occur next year. Upon review of the
completed work and accounting for work outstanding, it is recommended that the Letter of Credit be
reduced from $329,649 to $268,638.
Please let me know if you have any questions or would like additional information.
Sincerely,
BOLTON &/MENK, INC.
'4� /v �Z4
Adam Nafs ad, P. E.
Albertville Assistant City Engineer
Cc: Tina Lannes - Albertville Finance Director
David Hempel - CPDC
C:\Documents and Settings\adamna\My Documents\ALBERTVILLE\Developments\Towne Lakes 6th\LOC Reductldoc
MANKATO, MN o FAIRMONT, MN e SLEEPY EYE, MN • BURNSVILLE, MN •WILLMAR, RAMSEY, MN • CHASKA, MN • AMES, IA
www.bolton-menk.com
September 25, 2006 via email and U.S. Mail
Mr. Adam Nafstad, P.E.
City of Albertville
5975 Main Ave. NE P.O. Box 9
Albertville, MN 55301
Re: Request for Reduction in Letter of Credit No 6512-117, Towne Lakes 6th
Dear Mr. Nafstad,
All of the public and private utilities in the 6th Addition have the installed, tested and
approved. The base course of asphalt was installed on all of the public streets. Due to
market conditions we will not construct the private streets until next year. I have attached a
copy of the latest pay application (No.3). Based on the pay application the cost to complete
the remaining public/private utilities and streets improvements in Towne Lakes 6th along
with the landscape security is $268,637.65.
The Letter of Credit from Alliance Bank supplied for Towne Lakes 6th is currently in the
amount of $329,649.00 which represented the sum of 100% of the estimated cost of
municipal improvements per development agreement, 50% of the on and off -site
improvements ($86,544), and 150% of the estimated cost for landscaping ($82,677.00).
Listed below is a breakdown on the remaining items to be completed.
Item Contract amount Work completed to date
3030 Centre Pointe Drive
Suite Soo
Roseville, Minnesota 55113
telephone 6 5 1. 5 5 6.45 50
facsimile 651.556.4551
Public $831,423.08 - $610,173.98 -
Streets/Utilities $86,544.00(pvt)=$744,879.08 $38,467.10=$571,706.88 $173,17�.20
On/off-site Imp $ 86,544.00 $38,467.10
(50% of value
per D.A.)
Landscaping $82,677.00** $7,500
(150% of value
per D.A.)
Totals $914,100.08 $617,673.98
*Represents 50% of value
** Represents 150% of value
$71,427100**
$268,637.65
We respectfully request the City consider a letter of credit reduction of $61,011.00
($329,649.00- $268,638.00) to leave a balance of $268,638.00 to guarantee the
remaining municipal, on and off -site improvements and landscaping in Towne Lakes 6th.
Please submit this request to the City Council for consideration at the October 2, 2006
meeting. Your assistance in this matter is greatly appreciated. If you have any questions
please feel free to contact me.
Sincerely,
V!" H V�
David Hempel
Encl. Copy of Pay Est. No. 3
Excerpt from D.A.
Cc Larry Kruse, City of Albertville
location and has provided acceptable permanent drainage easements
for such replacement ponding.
5. Intended Use of Subdivision Lots.
A. It is the Developer's and City's intent that a total of 42 townhome
residential units be located on Lots 1-42, Block 1 and six single family
units be constructed on Lot 44, Block 1 and Lots 1-5, Block 2 of Said Plat.
Developer agrees that it shall not construct any dwelling units other than
the above referenced dwelling units on the land in Said Plat.
6. Surety Requirements.
A. eveloper will provide the City with an irrevocable letter of credit (or
other surety as approved by the City Attorney) as security that the
obligations of the Developer under this contract shall be performed.
Said letter of credit or surety shall be in the amount of $646,808.00
representing the sum of 100% of the estimated, cost of the Municipal
Improvements ($477,587), 50% of the on and off: site improvements
($86,544), and 150% of the estimated cost for landscaping/screening
materials ($82,677). Said letter of credit or surety must meet the
approval of the City attorney as to form and issuing bank.
B. The City may draw on said letter of credit or surety to complete work
not performed by Developer (including but not limited to on- and off -
site improvements, Municipal Improvements described above, erosion
control, and other such measures), to pay liens on property to be
dedicated to the City, to reimburse itself for costs incurred in the
drafting, execution, administration or enforcement of this Agreement,
to repair or correct deficiencies or other problems which occur to the
Municipal Improvements during the warranty period, or to otherwise
fulfill the obligations of Developer under this agreement.
C. In the event that any cash, irrevocable letter of credit, or other surety
referred to herein is ever utilized and found to be deficient in amount
to pay or reimburse the City in total as required herein, the Developer
agrees that upon being billed by the City, Developer will pay within
thirty (30) days of the mailing of said billing, the said deficient
amount. If there should be an overage in the amount of utilized
security, the City will, upon making said determination, refund to the
Developer any monies which the City has in its possession which are
in excess of the actual costs of the project as paid by the City.
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