2008-12-22 LOC - Unfinished Landscaping
-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
Sarah E. Schwarzhoff
Michael C Couri.
Andrew J. MacArthur
Robert T. Ruppe"
--Also licensed in California
December 22, 2008
Ms. Cindi Matt
Johnson, Larson, Peterson & Matt, P .A.
908 Commercial Drive
Buffalo, !\1N 55313
Re: City of Albertville; Prairie Run; Landscaping Letter of Credit.
Dear Ms. Matt:
On August 6, 2004, Alpine Capital, LLC issued letter of credit number 2601003
on behalf of Gold Key Development, Inc. in favor of the City of Albertville in the amount
of $58,200.00 in connection with Gold Key's landscaping/screening obligations under the
July 16,2004 Prairie Run Developer's Agreement between Gold Key and the City of
Albertville. That letter of credit was subsequently extended by Alpine Capital until
December 31,2007. In December, 2007, the City asked Gold Key to extend the Letter of
Credit in a reduced amount to cover what the City identified as unfinished landscaping
obligations. Gold Key disputed the need to extend the letter of credit. When the City
informed Alpine Capital that it intended to partially draw on the letter of credit, Alpine
Capital extended the letter of credit in the full amount of$58,200 until December 31,
2008.
In the meantiP1e, the landscaping work identified by the City remains unfinished.
The City has identified the unfinished/warranty work to consist of four evergreen trees
that did not survive and 99 shrubs of which there was no sign of such shrubs being
planted. The current estimated cost of planting and/or replacing these items is $8,202.50,
in addition to City-incurred expenses related to the renewal of the letter of credit in 2007,
and expenses incurred in 2008 related to identifying the cost to remedy the landscaping
deficiencies and to pursue the renewal of the letter of credit. At this time, the City is
asking that the landscaping letter of credit (No. 2601003) be renewed in the amount of
$9,500 via delivery of an original renewal letter from Alpine Capital (or a new letter of
credit from a different bank doing business in Minnesota which is acceptable to the City)
to the Albertville City Hall no later than 5 p.m. on December 29,2008. If an acceptable
new letter of credit or the renewal of the current letter of credit is not received by that
Ms. Cindi Matt
December 22,2008
Page 2 of2
date, the City will draw upon the existing Alpine letter of credit in the approximate
amount of $10,000 on December 30, 2008 (the additional $500 is the estimated cost of
the City to draw on the letter of credit). Please note that under paragraph 5F of the
Developer's Agreement, the Developer has the obligation to renew the letter of credit
prior to 45 days before the expiration of the letter of credit. That renewal date passed
more than one month ago.
It is my understanding from correspondence last December that Gold Key disputes
the City's conclusions as to landscaping work that has been completed to date. The City
would like to discuss this issue with Gold Key to see if the two parties can agree on the
extent of the work outstanding and a process under which the work would be completed.
In the meantime, the City must take action to preserve the letter of credit if Gold Key
chooses not to renew the letter of credit by December 29,2008.
In the event Gold Key does not intend on renewing the letter of credit, I would
appreciate hearing from you with regard to this matter prior to 5 p.m. on December 29th.
Thank you.
7i1fSincerelY,
-. ,. cc
~
Michael C. Couri
Couri, MacArthur & Ruppe, P.L.L.P.
Cc: Tina Lannes
Larry Kruse
Jason Kuboushek
Paul Reuvers