2008-11-07 Default of DA Letter
*Also licensed in Illinois
COURl, MACARTHUR &
RUPPE, P.L.L.P.
Attorneys at Law
705 Central Avenue East
PO Box 369
St. Michael, MN 55376-0369
(763) 497-1930
(763) 497-2599 (FAX)
www.courimacarthur.com
Kyle R. Hartnett
Michael C. Couri.
Andrew J. MacArthur
Robert T. Ruppe"
** Also licensed in California
November 7,2008
VIA CERTIFIED MAIL
Contractor Property Developers Company
Attn: Homer Tompkins, President
3030 Centre Point Drive
Suite 800
Roseville, MN 55113
Re: City of Albertville; Town Lakes 6th Addition.
Dear Mr. Hempel:
Our office represents the City of Albertville, Minnesota. On September 7, 2005, Contractor
Property Developers Company ("CPDC") entered into a Planned Unit Development
Agreement for Town Lakes 6th Addition with the City of Albertville ("Developer's
Agreement").
CPDC is currently in default on the Developer's Agreement as described below.
Paragraph 8 of the Developer's Agreement requires CPDC to pay all costs incurred by the
City arising from the approval of the development and the installation of the improvements.
To date, the City has billed CPDC $974.74 of costs which are required to be reimbursed
under paragraph 8 but which have not yet been paid and which have been outstanding more
than 30 days. If these items are not paid within 30 days ofthe date of this letter, the City
will use a portion of the outstanding letter of credit to satisfy these bills.
Paragraph 6 of the Developer's Agreement required CPDC to provide a letter of credit to
secure its performance and allows the City of Albertville to draw on that letter of credit to
complete work not performed by CPDC and to reimburse itself for costs und,er the
Agreement. CPDC established Letter of Credit No. 6512-117 with Alliance Bank on
December 20, 2005. The original terms of the letter of credit indicated that it perpetually
renewed unless sixty (60) days notice was given that the Letter should expire. By separate
letter of November 21,2007, the letter of credit was reduced to $268,638.00 and was
Contractor Property Developers Company
November 7, 2008
Page 2 of2
extended until December 20, 2008. However, it is not clear from the renewal whether the
automatic renewal terms of the original letter were included in the renewal. Therefore it is
not clear whether the letter will automatically renew or will expire on December 20,2008.
As a result, the City of Albertville intends to draw in full on Letter of Credit 6512-117 on or
about November 10, 2008 to assure that funds are available to complete the work required
by the Developer's Agreement. The City of Albertville will use the funds from the Letter of
Credit to reimburse the expenses that CPDC was required to pay under paragraph 8 and to
complete the work that Developer was required to complete under the Agreement.
Please feel free to contact me if you have any questions regarding this matter. Thank you.
;;;!lJf:k
Michael C. Couri
Couri, MacArthur & Ruppe, P.L.L.P.
Cc: Larry Kruse
Tina Lannes