1999-08-143 LOC ReductionLAND DEVELOPMENT COMPANY
August 13, 1999
Mr. Pete Carlson -City Engineer @ SEH
Ms. Linda Gceb -City Administrator
5975 Main Avenue NE.
Albertville, MN 55301
RE: Letter of Credit Reduction for Cedar Creek South 3'a Addi#ion
Dear Mr. Carlson:
As of August 5, we have completed all the utility work and the first lift of street work: Since the start of
our project the Council has granted Pilot Land Development a reduction in the percentage of surety from
100% to 50%. Please recognize this adjustment for work to be completed. Warranty work is to be
covered under the original 10% and. 5% rules. We will be installing trails on Karston Avenue later this
1 ~ August: We plan to install a 5' wide concrete walk instead of asphalt for a more elegant appearance. We
~~ ~\ ~ would appreciate the Council consideration of full credit for the improved look. The difference in price is
estimated at $6000 to $8000 for the 2,3001ineal feet.
Temporary turnarounds will not be constructed at the ends of pavement on Karston Court and Karston
Circle since they are so short. Cedar Creek Golf staff will not be snowplowing Karston Avenue this year.
The work left to complete per the contracts is final lift, ring and misc. adjustments, trails and monitoring
of erosion control efforts. The amounts for these items are $ 61,866 for the balance of the project.
Warranty work for the project is 5% of the constructed project costs after the first construction season. My
proposed surety to remain is as follows:
Cedar Creek South Utility 10% Warranty on Karston Ave. $198,370 * 10% _ $19,837
Street work completed with 10%warranty $156,329. * 10%= $15,633
Work left to complete street lifts, trails & adjustments $61 866 * 50% _ $30,933
Project Total security in letters of credit $66,403
Please issue confirmation to our lender Northeast State Bank and us regarding the lowering of this letter
of credit. As your inspectors can verify, all work was completed per City standards. Please authorize a
reduction to the LOC from $100,000 to $66,403.00 effective August 25. Please schedule this item for the
next Council meeting and notify Missy of Northeast State Bank at 362-3264 (fax 362-3240) accordingly.
upon your agreement with my math above. If you have any questions, please contact me.
Sincerely,
Donald Jensen %
Land Development Director
Cc: Kent Roessler
Scott Dahlice
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13736 Johnson Street NE • Ham Lake, MN 55304 • 757-9816 Fax: 757-4094