2019-01-03 CC Packet Reduce LOC �lb�rtvi��� Mayor and Council Re uest for Action
Smd Town WYp.QIp pty Uh. q
January 3, 2019
SUB.TECT: CONSENT-HUNTERS LAKE-LETTER OF CREDIT REDUCTION NO. 1
RECOMMENDATION: It is respectfully requested that the Mayor and Council consider
approval of the following motion:
MOTION TO: Reduce Letter of Credit No. 162, held as security for the Hunters Lake
development,to no less than $149,260 conditioned on any outstanding balances owed to the City
being paid in full.
BACKGROUND: Tony Dingman of Douglas Carlson Development has requested a reduction
to the Letter of Credit held for the Hunters Lake Addition. The Letter of Credit is held as
performance and warranty security for the site improvements and is currently in the amount of
$388,800.
Assuming the developer is current with all fees owed to the City and based on work completed to
date, it is recommended that Letter of Credit No. 162 be reduced to no less than $149,200. The
reduced balance is believed to be sufficient surety and is consistent with the development
agreement.
KEY ISSUES:
• This reduction does not constitute acceptance of improvements.
POLICY CONSIDERATIONS: It is City policy to have all Letter of Credit reductions
approved by the City Council I
FINANCIAL CONSIDERATIONS: There are no financial implications for this request
LEGAL CONSIDERATIONS: The City has the legal authority under the development
agreement to reduce the Letter of Credit upon completion of the required improvements or deny
requests for reduction if the required improvements are found unacceptable. ;
Submitted Through:Adam Nafstad, City Administrator-PWD II
On File: LOC Reduction History I,
Agenda Page 17
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