2002-11-16 LOC Reduction
LAND DEVELOPMENT COMPANY
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J.trly 16, 2002
Mr. Pete Carlson - City Engineer @ SEH
Ms. Linda Goeb - City Administrator
5975 Main Avenue NE.
Albertville, MN 55301
RE: Reduction to Letter of Credit # 16-01 for Cedar Creek North 3rd Addition
Dear Mr. Carlson:
Thank you the final punch list which was completed in order to place the final lift in October. The project
is all set for winter and all lots have housing starts with only a few left to close and receive new fresidents.
Warranty work for the project is 10% of the constructed project costs during the first year and 5% after the
first construction season. Please confirm when the 5 % warranty period can expire since the final lift is
done. My proposed surety to remain for Karston Drive is as follows:
5% Sanitary and Water Utility Warranty
$94,287 * 5%
$85,829 * 5%
$22.960 * 5%
$ 4,714
$ 4,291
$ 1.150
$10,155
5% of storm sewer and street for Warranty
Work left to complete for final lift
Project Total security in letters of credit
Please issue confirmation to our lender Northeast State Bank and us regarding the lowering of this letter of
credit. As your inspectors can verify, all work was completed per City standards. Please authorize a
reduction to LOC #16-01 from $31,965 to $10,155 effective November 19. Please schedule this item for
the next Council meeting and notify Maria of Northeast State Bank at 362-3264 (fax 362-3240) accordingly
upon your concurrence with my math above. If you have any questions, please contact me.
Vice President of Land Development
Cc:
Paul Kirchoff - Controller
John Wilczek - Meyer Rohlin
Maria Orlowski - NESB
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