HomeMy WebLinkAbout2006-04-07 OPH Ltr to Applicant RE LOCCity of Oak Park Heights
14168 Oak Park Blvd. N • Box 2007 • Oak Park Heights, MN 55082 • Phone (651) 439-4439 • Fax (651) 439-0574
April 7 2006
Mr. Jeff Hause
Fox Hollow East, LLC
1909 ST. Croix Trail
Stillwater, MN 55082
Also via email - jeff@jghauseconstniction.com
RE: Letters of Credit:
Dear Mr. Hause,
You have recently contacted the City requesting a reduction in the amounts as held under the two above
letters of credit.
Specifically, the City does agree to release 60 percent of the LOC from S&C Bank, leaving a continued
security for the City of Oak Park Heights of $126,870. These funds secure items 10 through 15 as listed
under "PLAN A's" in the development agreement. However, until the City receives a satisfactory revised
LOC from S&C Bank incorporating this new figure for an additional twelve months, the current amount
will remain in place and must also be renewed for an additional twelve months. Please note that the current
S&C Bank LOC does expire on 4/18/06, The City will be required to draw on these funds if the revised
LOC is not provided prior to 4/17/06.
Additionally, the City does agree to release $100,000 from the LOC as provided by Lake Elmo Bank,
leaving a continued security for the City of Oak Park Heights of $351,163.00. These funds secure items 1
through 9 as listed under "Plan A's" in the development agreement. However, until the City receives a
satisfactory revised LOC from Lake Elmo Bank incorporating this new figure, the current amount will
remain in place and will be renewed for an additional twelve months. Please note that the current Lake
Elmo Bank LOC does expire on 4/22/06, but does automatically renew for a period of one year unless the
City is notified in writing at least 60 days prior to its expiration. The City has not received such
communication.
Please let me know if you have any questions.
Eric Jo
City Ai
on
inistrator
S&C Bank
Lake Elmo Bank
Cc: Judy Holst,jjuanc 1 irector
Mark-Vter mg, City Attorney
LOC #- 07198216
LOC#- 436
- $317,175.00
- $451,163.00
BENEFICIARY: CITY OF OAK PARK HEIGHTS
WASHINGTON COUNTY MN
STILLWATER MN 55082
IR = EV CABLE STAND} SY LETTER. J F C EDIT
(BOXES NOT CHECKED ARE INAPPLICABLE.)
APRIL 18, 2005
DATE
S &C BANK
5795 MORNING DOVE AVENUE N
S I ILLWATER MN 55082
(NAME AND ADDRESS OF ISSUING BANK)
BY:
SPECIAL INSTRUCTIONS:
ALL BANKING CHARGES OTHER THAN ISSUING BANK'S ARE FOR BENEFICIARY'S ACCOUNT.
PARTIAL DRAWINGS ARE PERMITTED 0 NOT PERMITTED.
LE 1 1 ER OF CREDIT NO.. 07198216
5 &C Bank version 02/13/04
WE HEREBY AUTHORIZE YOU TO DRAW ON US FOR THE ACCOUNT OF FOX HOLLOW EAST, LLC UP TO AN AGGREGATE AMOUNT
OF THREE HUNDRED SEVENTEEN THOUSAND ONE HUNDRED SEVENTY-FIVE AND NO /100 DOLLARS ($317,175.00)
AVAILABLE BY YOUR DRAFTS AT SIGHT TO BE ACCOMPANIED BY THE FOLLOWING:
DRAFTS ON US AT SIGHT MUST BE ACCOMPANIED BY A BENEFICIARY'S SIGNED STATEMENT
(PURPORTEDLY SIGNED BY AN AUTHORIZED SIGNER OF THE CITY OF OAK PARK HEIGHTS) ALONG WITH
A COPY OF THIS LETTER OF CREDIT NO. 07198216 IN ONE OF THE FOLLOWING FORMS:
1. FAILURE TO COMPLY WITH DEVELOPMENT AGREEMENT RELATED TO FOX HOLLOW EAST, LLC PLANNED
UNIT DEVELOPMENT, FOX HOLLOW EAST, LLC HAS EITHER NOT COMPLETED A PUBLIC IMPROVEMENT OR
REPAIRED DEFECTIVE PUBLIC IMPROVEMENT PURSUANT TO A DEVELOPER'S AGREEMENT WITH THE CITY
OF OAK PARK HEIGHTS OR THAT FOX HOLLOW EAST, LLC IS OTHERWISE IN DEFAULT UNDER THE TERMS
OF THAT DEVELOPER'S AGREEMENT.
ALL DRAFTS MUST BE MARKED "DRAWN UNDER LL I 1 ER OF CREDIT Or S &C BANK (ISSUING BANK) NO. 071'98216 DATED APRIL 18,
2005 ".
THIS CREDIT IS SUBJECT TO THE UNIFORM CUSTOMS AND PRACTICE FOR DOCUMENTARY CREDITS (REVISION IN EFFECT AT THE
TIME OF THE ISSUANCE OF THE CREDIT), INTERNATIONAL CHAMBER OF COMMERCE PUBLICATION NO. 500. WE AGREE WITH YOU
TO PAY DRAFT(S) DRAWN UNDER AND IN COMPLIANCE WITH THE TERMS OF THIS CREDIT IF PRESENTED AT THIS OFFICE
TOGETHER WITH THIS LETTER OF CREDIT ON OR BEFORE THE CLOSE OF OUR BUSINESS ON APRIL 18, 2006.
s &C BANK
NAME OF BAN
,e-ece;(
R S OTT OHNSON, P _ ;IDENT
Gentlemen/Madam:
436."
4oBAN
A Ti.,1D!TIoN :OF SERVICE
To: City of Oak Park Heights
14168 Oak Park Blvd. North
Oak Park Heights, MN 55082
IRREVOCABLE LETTER OF
CREDIT NUMBER 436
Date: April 22, 2005
We hereby establish our hrrevocable Letter of Credit in your favor at the request of and
for the account of Fox Hollow East, LLC (hereinafter called: "Principal"), in the aggregate
amount of Four Hundred Fifty One Thousand One Hundred Sixty Three and 00/100
($451,163.00) available upon surrender of this Letter of Credit to us accompanied by your sight
draft(s) drawn on us and the following documents:
(1) A certificate signed by an officer of City of Oak Park Heights stating that there,
exists a basis for presentation of a draw under the Developer's Agreement. The
certificate shall also state:
a. the nature of the basis for presentation of the draw;
b. that Principal has received notice of the basis for presentation in
accordance with the Developer's Agreement, but has not cured the basis
for presentation;
c. the amount to be paid to City of Oak Park Heights;
d. the amount to be retained as security under the Letter of Credit.
All drafts so drawn must be marked "Drawn Under Irrevocable Letter of Credit Number
The above - mentioned Letter of Credit is nontransferable and non - assignable. •
We engage with you that all drafts drawn under and in compliance with the terms of this
Irrevocable Letter of Credit will be duly honored if presented during regular business hours at our
main office located at 11 465 39th Street North, Lake Elmo, Minnesota 55042, before 3:00 P . M .
CST on or before April 22, 2006. This Letter of Credit scheduled to expire on April 22, 2006
will be automatically renewed for 12 months unless the City of Oak Park Heights is notified in
writing 60 days prior to the scheduled expiration.
Letter of Credit 436
April 22, 2005
Page Two
Communications relative to this Irrevocable Letter of Credit should be addressed to the
address specified above and to the attention of "Financial Officer ", mentioning specifically our
Irrevocable Letter of Credit No. 436.
This Letter of Credit shall be governed by and construed in accordance with the laws of
the State of Minnesota, including the Uniform Commercial Code in effect in said state.
Except as otherwise stated herein, this Irrevocable Letter of Credit is subject to the
Uniform Customs and Practice for Documentary Credits (1993 revision), International Chamber
of Commerce Publication No. 500.
LAKE ELMO BANK
Bv:
LI di
Its: Dean W. Anderson, Vice President
Letter of Credit -- Auto Renewal v 04/05
urf,
th
ut,
Lc)
0
A..01
C2
C)
•
•
•
•
•
•
•
•
•
•
•
•
•
•
a
•
•
a
•
•
•
•
•
•
•
•
•
•
•
•
0
•
•
•
•
•
•
•
0
•
•
•
•
•
•
•
•
•
a
•
•
•
•
•
•
•
•
•
•
0
•
•
•
•
•
6
0
•
0
V
•
•
0
0
0
•
•
9
0
9
0
0
9
0
0
0
0
9
9
0
•
•
•
•
•
•
•
•
a
•
•
•
•
•
•
•
•
•
a
•
•
•
•
•
•
•
a
a
•
•
•
•
•
•
a
•
•
•
•
•
•
•
•
•
. • - •
•
•
V ••
•
•
•
•
• • :lb. 7. •
:N:
:3
a
0
•
6
*
0
. 0
a
a
a
a
0
a 0
0
0
0
0
a
a
a
a
a 0
aaa
0
0
•
a
a
a
9
a
9
•
0
=
c
2
Q)
8 .
a) ti)
.0
ci) E
: =
< .1:3
0
C
i
tll 0
.0 .E3
4.. X
!l.m
o'
0 —
n, 0.
4 0 a)
0., :5
CU COW
,
...
= 2,8 vl a o 'ci. 7
.6 ,..,c
a l ra
. t
—
1 5 .r...., ....
12 eL 4.)
CL
IV 1::3 2
2 a 4-
C:
0 4.?). C:
: b Q) 0
c
:3 .b
p r , (f) .::,
C 6 .0
0 0
u MD el
X
1.0
cF
m
w
CP
c