2008-06-02 Affidavit of DrawCITY OF ALBERTVILLE
WRIGHT COUNTY
STATE OF MINNESOTA
AFFIDAVIT OF LARRY KRUSE IN SUPPORT OF
DRAW UNDER LETTER OF CREDIT NO. 8815-0707-DI,
DATED JULY 9, 2007 OF CONTRACTORS CAPITAL CORPORATION
State of Minnesota )
) ss.
County of Wright )
I, Larry Kruse, being the duly appointed City Administrator for the City of
Albertville, Wright County, Minnesota, Beneficiary of Irrevocable Letter of Credit
No. 8815-0707-DI dated July 9, 2007 of Contractors Capital Corporation, pursuant
to the authority granted by the City Council of the City of Albertville, being first
duly sworn, deposes and says that Hunters Development, LLC, is in default of the
Developer's Agreement for Hunters Pass Estates dated August 15, 2005 in that
Hunters Development, LLC has failed to pay costs incurred by the City within thirty
(30) days of billing by the City as required by the Developer's Agreement.
The City shall use said funds in the amount of $8,126.23 obtained from the
Letter of Credit to complete a portion of the obligations of Hunters Development,
LLC pursuant to the terms of the Developer's Agreement.
WITNESS my hand as City Administrator for the City of Albertville, Wright
County, Minnesota this 2nd day of June, 2008.
Larry Kru, , City Administrator
Subscribed and sworn to before
me t n d of June, 2008. %: Tracey Nubbe
Notary Public
Minnesota
1 COtt iSSiOn Expres January 31, 2012
RECEIPT OF LETTER OF CREDIT MATERIALS
FROM TRACEY NUBBE, FINANCE DIRECTOR FOR THE
CITY OF ALBERTVILLE
Received of Tracey Nube, Finance Director for the City of Albertville, the
following original documents:
1. Irrevocable Letter of Credit No. 8815-0707-DI dated July 9, 2007 issued by
Contractor Capital Corporation on account of Hunters Development, LLC;
2. Affidavit of Larry Kruse, City Administrator for the City of Albertville in
support of draw on Letter of Credit No. 8815-0707-DI dated July 9, 2007;
3. Site Draft of the City of Albertville in the amount of $8,126.23; and
4. Letter from Larry Kruse requesting Contractor Capital Corporation to
disburse $8,126.23 to the City of Albertville as a draw on Letter of Credit
No. 8815-0707-DI dated July 9, 2007.
June 2, 2008
By: -17 ,,C. r, Qhe
Title: 1C)c
Contractor Capital Corporation
Nbertville
Small Town living. Big City life.
June 2, 2008
VIA HAND DELIVERY
Contractors Capital Corporation
1428 5 h Avenue
Anoka, MN 55303
Re: City of Albertville; Hunters Development.
Dear Sirs:
Accompanying this letter are the following original documents:
l . the original Letter of Credit No. 8815-0707-DI dated July 9, 2007 issued by
Contractors Capital Corporation on account of Hunters Development, LLC;
2. Affidavit of Larry Kruse;
3. Site Draft of City of Albertville in the amount of $8,126.23; and
4. Receipt of Letter of Credit Materials from Larry Kruse, City Administrator
for the City of Albertville.
Please disburse $8,126.23 as a draw on the letter of credit to City of Albertville.
Please note that this is only a partial draw on the letter of credit and the City
reserves the right to draw on said letter of credit again in the future to cure
additional Developer defaults pursuant to the Developer's Agreement between
Hunters Development, LLC and the City of Albertville. Thank you.
Sincerely,
Larry Kru
City of Albertville
P.O. BOX 9
Albertville, MN 55301
(763) 497-3384
1428 5`h Avenue
ntractor5
Anoka, MN 55303
763.784.3400 Office
rapital
763.784.6766 Fax
17316 Kenyon Avenue, Suite 102
rporation
Lakeville, MN 55044
952.898.3400 Office
952.898.3411 Fax
www.contractorscapital.com
Maximizing your profits with our integrity
IRREVOCABLE LETTER OF CREDIT N0, 8815-0707-DI
Dated: July 9, 2007
City of Albertville
5975 Main Avenue Northeast
Albertville, MN 55301
Re: Hunters Development, LLC
Hunters Pass Estates
Dear Sir/Madam:
We hereby establish our Irrevocable Letter of Credit ("Letter of Credit") in favor of the City of Albertville,
Minnesota ("Beneficiary") for the account of Hunters Development, LLC, a Minnesota limited liability
company ("Customer"), in an aggregate amount of Two Hundred Four Thousand One Hundred Twenty
Dollars ($204,120.00).
The Letter of Credit is given to assure the performance of the Customer's obligations to the Beneficiary
under the Development Agreement dated u r - IS-, _)co between the Customer and
the Beneficiary ("Development Agreement") for developer improvements for the following: Municipal
improvements, on and off -site improvements, and landscaping/screening materials.
All drafts must be endorsed by the Mayor or City Administrator of the Beneficiary and bear the clause
Drawn on Irrevocable Letter of Credit No. 8815-0707-DI, dated July 9, 2007 and must be accompanied by
the following:
1. The Letter of Credit, which shall be returned to the Beneficiary after notation thereon of the amount
and the date of each draft; and
2. A sworn statement executed by the Mayor or the City Administrator of the Beneficiary to the effect
that the Customer has failed to perform its obligations to the Beneficiary under the Developer Agreement,
specifying the nature of the default, the amount necessary to cure the default, and that funds disbursed will
be used to cure the default.
Each document presented to us must be an original document.
City of Albertville
Page 2
IRREVOCABLE LETTER OF CREDIT NO. 8815-0707-DI
All drafts drawn under and in compliance with the Letter of Credit will be duly honored, provided that
presentment is made during regular business hours at our offices located at 1428 5th Avenue, Anoka,
Minnesota 55303 before August 12, 2008, at 12:01 p.m., when the Letter of Credit shall expire.
The Letter of Credit and the proceeds thereof cannot be assigned. We shall have no obligation or liability
under the Letter of Credit to any person other than the Beneficiary.
The Letter of Credit shall be governed in all respects by the laws of the State of Minnesota, including the
Uniform Commercial Code adopted thereby.
CONTRACTORS CAPITAL CORPORATION
By
Patricia Filip
Its President
Date: June 2, 2008
USD $8,126,23
CUSTOMER DRAFT
At sight, pay to the order of City of Albertville the amount of $8,126.23 U.S.
Dollars Drawn under Letter of Credit Number 8815-0707-DI dated July 9, 2007 of
Contractors Capital Corporation.
TO:
City of Albertville
Larry Kruse, City Administrator
5959 Main Avenue NE Gt�2
P.O. Box 9
Albertville, MN 55301 Auth 'zed Signature, Drawer
(endorse on reverse)