2006-09-14 LOC Request
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Builders Inc.
1~e~~uUe8~ k.
PHONE: 320-252-6774 . FAX: 320-252-6819
2750 COUNTY ROAD 74, 5T.CLOUD, MN 56301
RESIDENTIAL. COMMERCIAL. GENERAL CONTRACTING
September 14,2006
City of Albertville
Larry Kruse
PO Box 9
Albertville, MN 55301
RE: ShoppesofTowne Lakes II
Dear Larry Kruse,
I am requesting to have the City Engineer inspect The Shoppes at Town Lakes II and to release
the security obligations of $284,000 for work that has been completed:
Letter of Credit rovided to the City
Municipal Improvements - Sewer and Water
Completed
Improvements Related to Streets
Grading, Sand, Class 5, Curbing
$419,000.00
$ 77,000
$207,000
(
Total re nest for Se t.2006
Items to complete:
Base Course (Bid attached $26,182.96)
Wear Course (Bid attached $18,864.30)
Landscape/Screening (150% of estimated cost)
Amount remainin in Escrow
$284,000
$ 45,000 (base/ware)
$ 90,000
$135,000
If you have any questions please call me at (320) 980-4588.
Sincerely,
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Al Keller
GCI Builders
cc: City Engineer
City Finance Director
before March 30th in any given year, in which case a certificate of
occupancy shall be issued if all on- and off-site improvements except
landscaping and sod have been installed. In such cases, the Developer
shall cause the required landscaping and sod to be installed by the first
June 30th following the issuance of the occupancy permit.
4. Suretv Requirements.
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A.
Developer will provide the City with an irrevocable letter of credit (or
other surety as approved by the City Attorney) as security that the
obligations of the Developer under this contract shall be performed.
Said letter of credit or surety shall be in the amount of$419,000.00
representing the sum of 100% of the estimated cost of the Municipal
Improvements ($77,000.00), 100% of the on and off-site
improvements related to streets, ($252,000.00), and 150% of the
estimated cost for landscaping/screening materials ($90,000.00). Said
letter of credit or surety must meet the approval of the City attorney as
to form and issuing bank.
B. The City may draw on said letter of credit or surety to complete work
not performed by Developer (including but not limited to on- and off-
site improvements, Municipal Improvements described above, erosion
control, and other such measures), to pay liens on property to be
dedicated to the City, to reimburse itself for costs incurred in the
drafting, execution, administration or enforcement of this Agreement,
to repair or correct deficiencies or other problems which occur to the
Municipal Improvements during the warranty period, or to otherwise
fulfill the obligations of Developer under this agreement.
C. In the event that any cash, irrevocable letter of credit, or other surety
referred to herein is ever utilized and found to be deficient in amount
to payor reimburse the City in total as required herein, the Developer
agrees that upon being billed by the City, Developer will pay within
thirty (30) days of the mailing of said billing, the said deficient
amount. If there should bean overage in the amount of utilized
security, the City will, upon making said determination, refund to the
Developer any monies which the City has in its possession which are
in excess of the actual costs of the project as paid by the City.
D. Developer hereby agrees to allow the City to specially assess
Developer's property for any and all costs incurred by the City in
enforcing any of the terms of this agreement should Developer's letter
of credit or surety prove insufficient or should Developer fail to
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