2005-08-10 LOC Request for Reduction
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August 10, 2005
via facsimile and U.S. Mail
3030 Centre Pointe Drive
Suite 800
Roseville, Minnesota 55113
Mr. Bob Moberg, P.E.
SEH
3535 Vadnais Center Dr
St. Paul, MN 55110-5196
telephone 6 5 1 . 5 5 6 . 4 5 5 0
facsimile 6 5 1 . 5 5 6 . 4 5 5 1
Re: Request for Reduction in Letter of Credit No 6512-98, Towne Lakes 5th
Dear Mr. Moberg,
I have attached a copy of Application for Payment No.4 which indicates the work completed
and paid to date. Based on the pay estimate the cost to complete the remaining public
utilities and streets improvements in Towne Lakes 5th is $309,211. ($1,148,072-
$838,861)
The Letter of Credit from Alliance Bank supplied for Towne Lakes 5th is currently in the
amount of $713,471 which represented the sum of 100% ofthe estimated cost of
municipal improvements per development agreement, 50% of the on and off-site
improvements ($36,000), and 150% of the estimated cost for landscaping ($223,792).
Listed below is a breakdown on the remaining items to be completed.
JNm. Contract Work completed Balance
amount ~ to finish
Streets/Utilities $1,148,193 $838,861 $309,211
On/off-site Imp (per D.A.) $ 36,000 $ 0 $ 36,000
Landscaping (per D.A.) $ 223.792 $ 0 $223.792
Total $1,407,864 $838,861 $569,003
We respectfully request the City consider a letter of credit reduction of $144,468
($713,471- $569,003) to leave a balance of $569,003 to guarantee the remaining
municipal, on and off-site improvements and landscaping in Towne Lakes 5th.
Please submit this request to the City Council for consideration at the August 15, 2005
meeting. Your assistance in this matter is greatly appreciated. If you have any questions
please feel free to contact me.
Sincerely,
~
David Hempel
Project Manager
Enc!. Pay Est. No.4
Cc Mike Waldo, CPDC
Larry Kruse, City of Albertville