2001-04-19 LOC0)
0
Michael C. Couri•
COURI & MACARTHUR
Andrew J. MacA/thur
Attorneys at Law
Robelt T. Ruppe••
705 Central Avenue East
PO Box 369
*Also ticensed in ns ais
St. Michael, MN 55376-0369
'•ALw licensed in California
(763) 497-1930
(763) 497-2599 (FAX)
couriandmacarthur®pobox. com
April 19, 2001
VIA FACSIMILE-763-420-9134
Bob Machacek, President
Lakeland Construction Finance, LLC.
7830 Main Street, Suite 210
Maple Grove, MN 55369
Re: City of Albertville; Albert Villas Third Addition Letter of Credit.
Dear Mr. Machacek:
I have reviewed the irrevocable letter of credit no. 200132 issued to the City of
Albertville relating to Albert Villas Third Addition and require changes in the language
of the letter of credit. The following sentences (contained in the first unnumbered
paragraphs on page 2) should be changed as follows (additions are underlined and
deletions are in strikeout):
The amount of this LETTER OF CREDIT shall be reduced by the amount of the
estimated cost of the work completed as each portion of the Improvements are
completed and paid for, and the City. E„gi eor Albertville City Council approves
such reduction. Each dfawiiig hefeundef such reduction shall reduce by the
amount of such dr-awing reduction the amount available under this LETTER OF
CREDIT, except that the amounts available under this LETTER OF CREDIT shall
not fall below the warranty amounts required to be maintained under the
Development Agreement.
These changes will make the (letter of credit consistent with the language in the
Developer's Agreement rega
accordingly and resubmit it t
how you would like the City
possession. Thank you.
ling the letter of credit. Please revise the letter of credit
the City (with a faxed copy to me). Also, please instruct
deal with the April 121h letter of credit now in its
N
Bob Machacek
April 19, 2001
Page 2 of 2
Sincerel
Michael C. Couri
Couri &MacArthur
Cc: �inda Goeb
Gary Rudy (via fax)
7830 Main Street, Suite 210, Maple Grove, MN 55369
Phone: (763) 420-9130 • Fax: (763) 420-9134
1L_ IRREVOCABLE LETTER OF CREDIT NO.200132 DATED APRIL 12, 2001 11
City of Albertville
5975 Main Avenue
PO Box 9
Albertville, MN 55301
Dear Sir or Madam:
We hereby establish our IRREVOCABLE LETTER OF CREDIT, numbered as indicated
above, and effective immediately, in favor of the City of Albertville (the "City") at the
request and for the account of Edina Development Corporation, ("Developer) in the
amount of and not to exceed Nine Hundred Thirty One Thousand and 00/100 Dollars
($931,000.00), as such amount is decreased as provided below, available to you by your
sight draft or drafts drawn upon us in connection with the completion of certain
improvements (the "improvements") for the subdivision known as Albert Villas Third
Addition, as such Improvements are described in the Development Agreement between
the City and the Developer.
Each draft drawn under the LETTER OF CREDIT must be accompanied by:
A. The original of this LETTER OF CREDIT;
B. A notarized statement executed by the City 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 had not been completed,
and the amount required to cure such failure.
Each draft drawn under this LETTER OF CREDIT must:
Be signed on behalf of the City by the City Administrator or his/her designee;
2. Be in the amount required to cure the default by the Developer to complete the
Improvements, amount shall not exceed $931,000.00.
3. Bear on its face the clause "DRAWN UNDER LETTER OF CREDIT NO.
200132, Dated April 12, 2001.
4. Be presented for payment during regular business hours at our Collection
Department, 860 Blue Gentian Road, Suite 135, Eagan, MN 55121, no later
than 2:00 p.m. on April 12, 2002, at which time this LETTER OF CREDIT
shall expire.
The amount of this LETTER OF CREDIT shall be reduced by the amount of the
estimated cost of the work completed as each portion of the Improvements are completed
and paid for, and the City Engineer approves in writing such reduction. 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 under and presented in conformity 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 Practice for Documentary Credits (1993 Revision). International
Chamber of Commerce Publications No. 500 (the "Uniform Customs"). This LETTER
OF CREDIT shall be deemed to be a contract made under the laws of the State of
Minnesota and, as to matters not governed by the Uniform Customs, shall be governed by
and construed in accordance with the laws of the State of Minnesota, including the
Uniform Commercial 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 issued of fact or law between the City and the
Developer.
LAKELAND CONSTRUCTION FINANCE, LLC
By . P
Its Vice esi ent
SECURITY FEATURES: MICRO PRINT TOP & BOTTOM BORDERS - COLORED PATTERN - ARTIFICIAL 'WATERMARK ON REVERSE SIDE - MISSING FEATURE INDICATES A COPY
LAKELAND CONSTRUCTION FINANCE, LLC
Builder: EDINA DEVELOPMENT CORPORATION
Payee:City of Albertville
Date: April 12, 2001
Amount: $70,140.00
Description:Trunk sewer charges - Albert Villas Third Addn
Draw(s):
SECURITY FEATURES: MICRO PRINT TOP & BOTTOM BORDERS - COLORED PATTERN - ARTIFICIAL WATERMARK ON REVERSE SIDE - MISSING FEATURE INDICATES A COPY
LAKELAND CONSTRUCTION FINANCE, LLC
Builder: EDINA DEVELOPMENT CORPORATION
Payee:City of Albertville
Date:April 12, 2001
Amount: $55,110.00
Description:Trunk water charges - Albert Villas Third Addn.
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