2005-12-08 LOC Reduction Request04
10EC
December 8, 2005
Mr. Larry Kruse, City Administrator
City of Albertville
5975 Main Ave. N.E.
Albertville, MN _55301
Re:Cetter of Creditit for Po
Agreement — Towne Lakes 6th
Dear Ms. Kruse:
f
The development agreement for the project required a financial security of
$477,587.00 to guarantee installation of the public street and utility
improvements. The public utility improvements have been completed along
with the first lift of asphalt on Linwood Drive and 68th St. Attached is a
breakdown of the remaining public street improvements for Linwood, 68th and
Lancaster in Towne Lakes 6th Addition. As you will note the balance to
complete the remaining public streets is estimated at $150,597 compared to
the previous estimate of $356,807.
Since we are now submitting the platting fees and security requirements for
the project we would like to request that the letter of credit amount required be
reduced to reflect the actual balance of work remaining. I have provided a
breakdown of platting fees and security requirements for your convenience.
Please let me know if this request is acceptable so we can finalize the letter of
credit amount with the bank. We are intending on submitting the plat fees and
security within the next two weeks. Thank you for your consideration in this
matter.
Sincerely
David Hempel
Sr. Project Manager
Encls.
Cc Mike Couri, Couri and MacArthur
Mark Kasma, Bolten & Menk
3030 Centre Pointe Drive
Suite 800
Roseville, Minnesota 55113
telephone 65 1. 5 5 6. 4 5 5 0
facsimile 65 1• 55 6.455 1
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10/19/05 Revised 12/08/05
Letter of Credit and Cash Requirements- Towne Lakes 6th
Albertville, MN.
Based on the development agreement for Towne Lakes 6th the following is a list of
fees and security requirements.
• Escrow for City Costs and Eng/Legal Fees (to be billed monthly)
• 3% administration Fee based on public utility and street estimate
($477,587 x .03)
• Pre -payment of 70 th St upgrade
• Letter of Credit for on and off site improvements (50% of cost)
• Letter of Credit for future boulevard landscaping along 68th Street
• Letter of Credit for Landscaping improvements
(150% of estimated cost — 2 yr guarantee)
• Letter of Credit for Public Improvements was $477,587
(balance of remaining public street & Utilities improvements)
$0
$14, 328.00
$144,474.00
$86,544.00
$5,600.00
$82,677.00
$150,598.00
• Sewer & Water Trunk fees
($1,400 & $1,200/acre) x 7.37 acres = $19,162.00 less trunk credit of
$15,474.90. $3,687.10
Total Cash required to have city sign
_ $162,489.10
0 Letter of Credit Total for final plat improvements = $325,419.00