1996-01-07 LOC Reduction
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LAND DEVELOPMENT COMPANY
January 7.1996
Mr. Pete Carlson - SEH
c/o Mr. Gary Hale
City Administrator
5975 Main Avenue NE.
Albertville. MN 55301
RE: Letter of Credit and Bond Reductions for Parkside 3rd Addition
Dear Mr. Carlson:
During 1996. substantial work has progressed on the project. Kenco has paid both our grading contractor
and utility contractor for work progress. In addition. due to easement acquisition not concluded by the City.
Kenco acted and purchased easements from the Barthel family which you are aware to expedite the 60th
Street trunk sewer project.
At this time, Kenco is forwarding a request to lower the existing surety based on work completed. Since all
work was subject to inspection by the City. we believe a note accepting the utility piping is reasonable. Our
lien waivers from Brown & Cris for utilities is included. Similarly. lien waivers from Busse and LaTour are
also included.
$220,250 of remaining work remains for Brown & Cris. Of this amount, we agreed to release 50% of the
cost of the December paving line item. adding back $ 6.30 I. All items have been completed on the 60th
Street project. The grading agreement with the City was amended to include Parkside 4th. As such, I have
projected about $10,250 to complete the grading in the wetland fill areas (presuming permit issuance for the
City Park parking lot) and reseeding. These remaining items create a balance of $236,80 I.
The City approved of a 75% letter of credit obligation at 100% (236,80 I * .75 = 177600) and a 25% bond at
150% (236.801 * .25 = 59200, * 1.5 = 88.800). A reduction to the existing $511.124 Lac. on file to
$177,600 should be able to occur and a reduction of the existing $489,637 bond to $88.800 should be able
to occur. Clearly Kenco has spent time and money creating the progress per spec within the subdivision to
date. There should be little doubt that we will fulfill our obligations per the development agreement as soon
as the construction season resumes in 1997.
Please notify our bank accordingly upon your concurrence with my math above. If you have any questions.
please contact me.
Land Development Director
attachment:
pay requests. lien waivers
1 psidsrtydoc
13736 Johnson Street NE . Ham Lake. MN 55304 . 757-9816 . Fax: 757-4094