2004-11-03 LOC Release
. FRll1 : CITY CF FUlERTUILLE FAX In 76349732'. Nov. 03 2004 JZ' P2
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.Al ~~l'!.U b~ 5975 Mo;n Avenue N.E, : eo. Box 9. ., ~beIM'e '. MN SSJOl · (;63) .97.3384 . Fox}~63) 49.7.3210
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November 3, 2004
Alliance Bank
120 Town Square
, '444 Cedar Street
St. ~aul, Minnesota 55101
RE; RoleaseofLetterofCreditNo. 6512-98'.
Contractor Property DeveloPers Company.
Towne LSkes;'5th Addition -
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Dear Ms. Turbes;
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Please accept this as official notification that November 1,2004, the Albertville City
Council moved to gives notice to reduce Letter of Credit No. 6512-98 from One Million
Three Hundred Ninety Two Thousand Eight lIundred Sixty One and 45/1 00 Dollars '
($1,392,861.45) to One Million Twoiiundred Five Theusand Eight Hundred Fifty
Dollars ($.).,205,850.00) effective November 1,2004.
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, Should you have any questions, please contact me at (763) 497-3384:
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Cc: Mike Couri, City Attorney
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,Dave Hempel
3030 Centre Pointe Drive ·
Suite 800
Roseville, Minnesota 55113
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curbing as required by this subparagraph, Developer may, at its
expense, install sod no less than three feet in width in back of all
curbing, provided that if, in the judgment of the City Engineer, the
installation of silt fencing in one or more places is needed, the
Developer shall install such silt fencing at its expense upon request by
the City Engineer.
D. Notwithstanding the requirements of subparagraphs 2C and 4A above
and except as otherwise provided in this Agreement, the Developer
shall install to the City's satisfaction improvements for each lot or
parcel, prior to the date that a certificate of occupancy (temporary or
permanent).is issued by the, City for a building located on the lot,
unless the certificate of occupancy is issued after October lstand
before March 30th in any given year, in which case a certificate of
occupancy shall be issued with the requirement that the Dev~loper b~
required to install said on-and off-site items f()rsuch lotbythe
following June 30th.
E. Developer shall install storm water retention/water quality ponds and
basins upon the Development as shown on the Grading, Drainage and
Erosion Control Plan attached as Exhibit E. Said ponds and basins
shall be dedicated to the City, and Developer shall provide the City
with perpetual drainage easements over such ponds. Said retention
ponds and basins shall be installed prior to the installation of utilities.
5. Intended Use of Subdivision Lots.
A. It is the Developer's and City's intent that a total of 61 single family and
detached town home residential units be constructed on the 60
residentially zoned lots being fmal platted as numbered lots and blocks in
Said Plat, with one dwelling unit per numbered lot, except Lot 14, Block 4
on which a two-family attached dwelling may be constructed, provided
the City Council first approves the site plan for such two family attached
dwelling prior to its construction. Developer agrees that it shall not
construct any dwelling units other than the above referenced dwelling
units on the land in Said Plat.
--y.. .>- 6. Surety Requirements.
A. Developer will provide tlie City with an irrevocable letter of credit (or
other surety as approved by the City Attorney) as security that the
obligations of the Developer under this contract shall be performed.
Said letter of credit or surety shall be in the amount of $1,392,861.45
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representing the sum of 100% of the estimated cost of the Municipal
Improvements ($1,133,068.45), 50% of the on and off-site
improvements ($36,000.00), and 150% of the estimated cost for
landscaping/screening materials ($223,792.00). Said letter of credit or
surety must meet the approval of the City attorney as to form and
issuing banlc
B. The City may draw on said letter of credit or surety to complete work
not performed by Developer (including but not limited to on- and off-
site improvements, Municipal Improvements described above, erosion
control, and other Sllch measures), to pay liens on property to be
. 'dedicatedt() the City, to reimburse itself for costs incurred in the
drafting,e'Xecution,. administration or enforcement of this Agreement,
to repair or correct deficiencies or other problems which occur to the
Municipal Improvements during the warranty period, or to otherwise
fulfill the obligations of Developer under this agreement.
C. In the event that any cash, irrevocable letter of credit, or other surety
referred to herein is ever utilized and found to be deficient in amount
to payor reimburse the City in total as required herein, the Developer
agrees that upon being billed by the City, Developer will pay wjthin
thirty (30) days' of the mailing of said billing, the said deficient
amount. If there should be an overage in the amount of utilized
security, the City will, upon making said determination, refund to the
Developer any monies which the City has in its possession which are
in excess of the actual costs of the project as paid by the City.
D. Developer hereby agrees to allow the ~ity to specially assess
Developer's property for any and all costs incurred by the City in
enforcing any of the terms of this agreement should Developer's letter
of credit or surety prove insufficient or should Developer fail to
maintain said letter of credit or smety,in the amount required above
within 30 days of mailing of written request by the City.
E. That portion of said cash, irrevocable letter of credit or other surety
with respect to the performance of Site Improvements shall be released
upon certification of the City Engineer and approval of the City
Council that all sucb items are satisfactorily completed pursuimt to this
Agreement.
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F. In the event a surety referred to herein is in the form of an irrevocable
letter of credit, which by its terms may become null and void prior to
the time at which all monetary or other obligations of the Developer
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