2006-09-25 LOC Reduction Request
September 25, 2006
via email and U.S. Mail
Mr. Adam Nafstad, P.E.
City of Albertville
5975 Main Ave. NE P.O. Box 9
Albertville, MN 55301
Re: Request for Reduction in Letter of Credit No 6512-117, Towne Lakes 6th
3030 Centre Pointe Drive
Suite 800
Roseville, Minnesota 55113
Dear Mr. Nafstad,
telephone 6 5 1 . 5 5 6 . 4 5 5 0
facsimile 6 5 1 . 5 5 6 . 4 5 5 1
All of the public and private utilities in the 6th Addition have the installed, tested and
approved. The base course of asphalt was installed on all of the public streets. Due to
market conditions we will not construct the private streets until next year. I have attached a
copy of the latest pay application (No.3). Based on the pay application the cost to complete
the remaining public/private utilities and streets improvements in Towne Lakes 6th along
with the landscape security is $268,637.65.
The Letter of Credit from Alliance Bank supplied for Towne Lakes 6th is currently in the
amount of $329,649.00 which represented the sum of 100% of the estimated cost of
municipal improvements per development agreement, 50% of the on and off-site
improvements ($86,544), and 150% of the estimated cost for landscaping ($82,677.00).
Listed below is a breakdown on the remaining items to be completed.
JNm
Contract amount
Work com Dieted to date
On/off-site Imp
(50% of value
per D.A.)
Landscaping
(150% of value
per D.A.)
Totals
$ 86,544.00
$38,467.10
Public $831,423.08 - $610,173.98 -
Streets/Utilities $86,544.00(pvt)=$744,879.08 $38,467.10=$571,706.88
$82,677 .00**
$ 7 ,500
$71,42700**
$914,100.08
$617,673.98
$268,6 7.65
*Represents 50% of value
** Represents 150% of value
"',,)0.
We respectfully request the City consider a letter of credit reduction of $61,011.00
($329,649.00- $268,638.00) to leave a balance of $268,638.00 to guarantee the
remaining municipal, on and off-site improvements and landscaping in Towne Lakes 6th.
Please submit this request to the City Council for consideration at the October 2, 2006
meeting. Your assistance in this matter is greatly appreciated. If you have any questions
please feel free to contact me.
Sincerely,
~~
Enc!. Copy of Pay Est. No.3
Excerpt from D.A.
Cc Larry Kruse, City of Albertville /