2004-11-02 LOC Reduction Request
November 22, 2004
Mr. Pete Carlson, P.E.
SEH
1t3South Fifth'Ave.
P.O~Box1717
. St.Cloud, MN 56302
3030 Centre Pointe Drive
Suite 800
Roseville, Minnesota 55113
telephone 6 5 1 . 5 5 6 . 4 5 5 0
facsimile 6 5 1 . 5 5 6 . 4 5 5 1
He: Request forReductionin Letter of Credit No 65t2-98,Towne La es 5th
Dear Mr. Carlson,
A majority of the utilities have been installed and phase 1 of the stree paved with the first lift
of asphalt inTowne Lakes 5th. I have attached a copy of Application or Payment No.2
which indicates the work completed and paid to date. Please note th contract amount was
reduced $38,566 as a result of revising the sanitary sewer extension Hunter's Pass.
Therefore, the revised contract amount is $1,110,627.03. Based on t e pay estimate the cost
to complete the remaining public utilities and streets improvements in Towne Lakes 5th is
$578,282.65. ($1,110,627.03 - $532,344.38).
The Letter of Credit from Alliance Bank supplied for Towne Lakes 5th is currently in the
amount of $1,205,850.00 which represented the sum of 100% of the stimated cost of
Municipal Improvements ( $1,110,627) per development agreement), 0% of the on and off
site improvements ($36,000), and 150% of the estimated cost for Ian scaping ($223,792.00).
Listed below is a breakdown on the remaining items to be completed.
Item
Contract amount
Work completed to date
Streets/Utilities
$1,110,627
$532,344
$0
On/off site Imp (per D.A.) $36,000
o
Total
$1,370,419
$532,344
Balance to Finish
$578,282
$36,000 .
223 792
$838,075
We respectfully request the city consider a letter of credit reduction of $367,775.00
($1,205,850 - $838,075) to leave a balance of $838,075.00 to guarantee the remaining
municipal, on/off-site improvements and landscaping in Towne Lakes 5th.
Please submit this request to the City Council for consideration at the December 6, 2004
meeting. Your assistance in this matter is greatly appreciated. If you have any questions
please feel free to contact me.
Sincerely
,(S)~
David Hempel
Project Manager
Encl. Pay Est. No.2
Excerpt from 5th Addition DevelopmentAgreement
Cc Mike Waldo