2001-11-13 LOC Reduction 16-01
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PILOT
LAND DEVELOPMENT COMPANY
November 13, 2001
Mr. Pete Carlson - City Engineer @ SEH
Ms. Linda Goeb - City Administrator
5975 Main Avenue NE.
Albertville, MN 55301
RE: Letter of Credit Reduction for_
Dear Mr, Carlson:
We have finished all the utility and curb work for this project. Due to the County road project we are due
to pave the first lift on November 14th, Per the Development Agreement, the final lift will be placed in the
summer of 2003. Since the water mains were placed under a City contract, are we now responsible for
full warranty, or only the sanitary sewer? I have seperated the items below in order to arrive at the
remaining surety. We have completed the necessary work through paving and request a draw down of
the LaC amount in the Development Agreement to commence the first year warranty period. Please
process a reduction to the LaC for all items except warranty, the final lift and landscaping, and
preliminarily accept the utility work. Turn Lanes have been turned over to Wright County DOH.
The golf course staff will maintain plantings and turf on site and snow plowing is being handled by Kenco
and a homeowners association vendor. My proposed surety to remain is as follows:
Cedar Creek South 7th H2O services Warranty
Trunk water amount per Development Agrmt
Sewer work completed with 10% warranty
On and off site improvements (Driveways, stoops)
$ 24,309 * 10% $ 2,431
$ 28,264 * 0% $ 00
$ 76,340 * 10% $ 7,634
$ 15,000 $ 15,000
$ 3135 * 150% $ 117,600
$ 10,009 * 100% = $ 10.009
$152,674
Landscaping and Irrigation at $3135 * 25 DU
Work left to complete for paving & adjustments
Project Total security in letters of credit
Please issue continuation 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 LaC from the $182,600 in the development agreement number to $152,674.00 effective
November 20. Please schedule this item for the next Council meeting and notify 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,
Land Development Director
Cc:
Kent Roessler, Pilot
John Wilczek - Meyer -Rohlin
Linda Goeb . Albertville
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13736 Johnson Street NE
Ham Lake, MN 55304 . 763-772-1001 . Fax: 763-757-4094