1996-08-07 Ltr Re: DA
.
.
William S. RadzwiU
Andrew J. MacArthur
Michael C. Couri
Megan M. McDonald
RADZWILL & COURI
I
Attorneys at Law
705 Central Avenue East
PO Box 369
St. Michael, MN 55376
(612) 497-1930
(612) 497-2599 (FAX)
August 7, 1996
VIA FACSIMILE
Mr. Don Jensen
Kenco Construction, Inc.
13736 N.E. Johnson street
Ham Lake, MN 55304
Re: Parkside 3rd Addition Developer's Agreement.
Dear Don:
Please find enclosed a copy of the proposed final Parks ide 3rd
Addition Developer's Agreement, along with a Memorandum of
Developer's Agreement and the calculations for letter of
credit/bond requirements. I expect to receive the exhibits from
SEH in Thursday's mail.
Please note that the following paragraphs of the Developer's
Agreement have been modified to reflect the city Council's comments
or have had blanks filled in: lA, 2A, 2B, 2C, 3A, 3D, SA, 16A, and
16B. Please review these changes to confirm that the Developer's
Agreement is accurate as written.
Note also that the City will need the letter of credit and
bond as well as checks in the amount of $22,800 (trunk line
charges) and $2,605 (park dedication fees). The trunk line charges
and park dedication fees have been calculated over all lands except
the commercially zoned properties. It is my understanding that
those outlots in the residentially-zoned areas will not be charged
additional park dedication or trunk charges in the future should
they be replatted with adjoining properties.
Finally, if Kenco has not forwarded the signed grading
contract on to the city with the $50,000 letter of credit, please
do so immediately. That item will need to be taken care of before
.
.
PARKS IDE 3RD ADDITION
CALCULATION OF LETTER OF CREDIT/BOND REQUIREMENTS
Estimated Construction Cost
streets, utilities, etc.
Latour bid
Estimated Engineering (10%)
Sanitary Sewer Trunk Line
Per construction cost estimate
Estimated Engineering (18%)
Total Estimated Construction Cost
Surety needs
Bank Letter of Credit
at 75% of total surety needs
Bond
at 150% of rema1n1ng surety needs
($326,424 x 1.5)
$983,180
$98,318
$190,000
$34,200
$1,081,498
$224,200
$1,305,698
-----------
-----------
$979,274
$489,637