1993-09-16 LOC Establish
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Builders Development &.. Finance, Inc.
3200 Main Street. Suite 210. Coon Rapids. MN 55448
(6 t 2) 422-822 t
FAX (6t2) 422-8t77
IRREVOCABLE LEITER OF CREDIT NO. 12009 DATED: SEPTEMBER 16, 1993
City of Albertville
City Administrator
POBox 131
Albertville, MN 55301
Gentlemen:
We hereby establish our Irrevocable Letter of Credit, numbered as indicated
above, and effective immediately upon the recording of the Final Plat, in
favor of the City of Albertville (the "City") at the request and for the
account of Kenco Construction, Inc. (the "Developer") in the amount of and
not to exceed Five Hundred Fifty Six Thousand Seven Hundred Six and 00/100
Dollar ($556,706.00), as such amount is decreased as provided below,
available to you by your sight draft or drafts drawn upon us in connection
with the certain Improvements (the "Improvements") for the subdivision to
be known as "Parks ide" as such Improvements are described on Exhibit "A"
attached, and in the Development Agreement between City and the Developer
dated 1993.
Each draft drawn under the Letter of Credit must be accompanied:
A. The original of this Letter of Credit;
B. A notarized draft executed by the City Clerk or Administrator
stating that the Developer is in default of the Development
Agreement, that the Developer has failed to complete the
Improvements in accordance with the terms of the Development
Agreement, and that the City is entitled to draw upon the LETTER
OF CREDIT. Such statement shall set forth the Improvements not
completed, the respect in which the Improvements have not been
completed and the amount required to cure such failure.
Each draft drawn under this Letter of Credit must:
1. Be signed on behalf of the City by the City Clerk or
Administrator or his/her designee;
2. Be in an amount required to cure the default by the Developer,
to complete the Improvements, which amount shall not exceed
$556,706.00;
3. Bear on its face the clause "DRAWN UNDER LETTER OF CREDIT NO.
12009 Dated; September 16, 1993";
4. Be presented for payment during regular business hours at our
Collection Department, 1055 East Wayzata Boulevard, Wayzata,
Minrlesota 55391, no later than 2:00 pm on September 30, 1994
at which time this LETTER OF CREDIT will expire.
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The amount of this Letter of Credit shall be automatically reduced in the
amount of Fifty Seven percent (57%) of the estimated cost of the work
completed as each portion of the Improvements are completed and are
certified by the City Engineer and approved by the City Council. Each
drawing hereunder shall reduce by the amount of such drawing the amount
available under this LETTER OF CREDIT.
We hereby agree that drafts drawn and presented in comformity with the
terms of the LETTER OF CREDIT will be duly honored upon presentation.
Except as otherwise expressly stated, this LETTER OF CREDIT is subject 'to
the Uniform Customs and Practices for Documentary Credits (1983 Revision).
International Chamber of Commerce Publications No. 400 (the "Uniform
Customs"). This LETTER OF CREDIT shall governed by and construed in
accordance with the laws of the State of Minnesota, including the Uniform
Commerical Code as in effect in the State of Minnesota.
This LETTER OF CREDIT is not transferable or assignable and is not issued
for the benefit of any third party claimant.
We shall not be called upon to resolve issues of fact or law between the
City and the Developer.
//""'1
BUILDEiS DEVELOPMENT "&TCE. INC.
By
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EXHIBIT "A"
Utility Letter of Credit
UTILITY CONSTRUCTION
Contingencies
Engineering
Legal Expenses
Total Utility Related Costs
Multiplied by
Utility Letter of Credit Requirements
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$784,740.00
23,542.00
117,711. 00
1,850.00
$927,843.00
60%
$556,706.00
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Builders Development &.. Finance, Inc.
3200 Main Street. Suite 210. Coon Rapids. MN 55448
(612) 422-8221
FAX (612) 422-8177
IRREVOCABLE LEITER OF CREDIT NO. 12010 DATED: SEPTEMBER. 16, 1993
City of Albertville
City Administrator
POBox 131
Albertville, MN 55301
Gentlemen:
We hereby establish our Irrevocable Letter of Credit, numbered as indicated
above, and effective immediately upon the recording of the Final Plat, in
favor of the City of Albertville (the "City") at the request and for the
accoun t of Kenco Construction, Inc. (the "Developer") in the amount of and
not to exceed. Twenty Nine Thousand Four Hundred and 00/100 Dollars
($29,400.00), as such amount is decreased as provided below, available to
you by your sight draft or drafts drawn upon us in connection with the
certain Improvements (the "Improvements") for the subdivision to be known
as "Parkside" as such Improvements are described on Exhibit "A" attached,
and in the Development Agreement between City and the Developer dated
1993; and to guarantee full compliance with all aspects of
this Development Agreement.
Each draft drawn under the Letter of Credit must 'be accompanied:
A. The original of this Letter of Credit;
B. A notarized draft executed by the City Clerk or
Administrator stating that the Developer is in default of the
Development Agreement, that the Developer has failed to complete
the Improvements in accordance with the terms of the Development
Agreement, or has otherwise failed to comply with the terms of the
Development Agreement, and that the City is entitled to draw upon
the LETTER OF CREDIT. Such statement shall set forth the
Improvements not completed, the respect in which the Improvements
have not been completed and the amount required to cure such
failure, or the City shall set forth the nature and extent of
such default and the amount required to cure such default.
Each draft drawn under this Letter of Credit must:
1. Be signed on behalf of the City by the City Clerk or
Administrator or his/her designee;
2. Be in an amount required to cure the default by the Developer,.
to complete the Improvements, or in an amount authorized by the
Development Agreement, which amount shall not exceed $29,400.00;
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3. Bear on its face the clause "DRAWN UNDER LE'll.ER OF CREDIT NO.
12010 Dated; September 16, 1993";
4. Be presented for payment during regular business hours at our
Collection Department, 1055 East Wayzata Boulevard, Wayzata,
Minnesota 55391, no later than 2:00 pm on September 30, 1994
at which time this LETTER OF CREDIT will expire.
The amount of this Letter of Credit may be reduced in the amount of Fifty
Seven percent (57%) of the estimated cost of the work completed as each
portion of the Improvements are completed, and all provisions of the
Developers Agreement have been complied with and have been approved by the
City Council. Each drawing hereunder shall reduce by the amount of such
drawing the amount available under this LETTER OF CREDIT.
We hereby agree that drafts drawn and presented in comformity with the
terms of the LETTER OF CREDIT will be duly honored upon presentation.
Except as otherwise expressly stated, this LETTER OF CREDIT is subject to
the Uniform Customs and Practices for Documentary Credits (1983 Revision).
International Chamber of Commerce Publications No. 400 (the "Uniform
Customs"). This LETTER OF CREDIT shall governed by and construed in
accordance with the laws of the State of Minnesota, including the Uniform
Commerical Code as in effect in the State of Minnesota.
This LETTER OF CREDIT is not transferable or assignable and is not issued
for the benefit of any third party claimant.
We shall not be called upon to resolve issues of fact or law between the
City and the Developef'.
By
Its
& ;FINANCE, INC.
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On-And Off-Site Letter of Credit
Estimated cost per lot
Multiplied by:
Add:
Street signs and Street Cleanup
Total On- and Off-Site Costs
Multiplied by
On-and Off-Site Letter of Credit
EXHIBIT "Ail
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$ 480.00
90 lots
$43,200.00
(Use $43,000.00)
$ 6,000.00
49,000.00
60%
$29,400.00