HomeMy WebLinkAbout2012-06-05 Bridgewater Letter of Credit - $100,000 securing Phase I Via
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BRIDGEWATER BANK
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June 5, 2012
Irrevocable Letter of Credit No. 223
City of Oak Park Heights
Attn.: City Administrator
14169 Oak Park Blvd
Oak Park Heights, MN 55082
To Whom It May Concern:
We hereby establish in favor of the City of Oak Park Heights this Irrevocable Letter of
Credit Number 223 for the account of Oakgreen Senior Villas, LLC ( "the Developer") for
Oakgreen Project in an aggregate amount of One Hundred Thousand and No /100 Dollars
($100,000.00).
This LETTER OF CREDIT shall be deemed automatically renewed without modification
for one (1) year from June 5, 2012 or any extended expiration date unless forty -five (45)
days or more prior to such date we shall notify you by registered or certified mail that we
elect not to extend this LETTER OF CREDIT for any such additional period. The Letter
of Credit shall remain in full force and effect until such time as the Developer completes
Phase II as required in the Developer's Agreement or provides a $100,000 cash security
to the City.
Partial drawings permitted.
Each draft under this Letter of Credit must:
1. Be signed on behalf of the City;
2. Bear on its face the clause "drawn under Bridgewater Bank Letter of Credit
Number 223 dated June 5, 2012; and
3. Be accomplished by a certification signed on behalf of the City of Oak Park
mac, ,Hei �=� 1 er ( i ) the Developer failed to obtain a Certificate of Occupancy
N -� for th .'tease II 'roject on or prior to December 31, 2015 or (ii) the Developer
fails to re -w the letter of credit for at least a one -year period at least 45 days
prior to its stated termination date, as renewed or extended from time to time, the
3800 American Boulevard West, PHONE 952.893.6868 bridgeivaterbankmn.corn
Suite 100 r nx 952.893.6869
Bloomington, MN 55431
City may draw upon the letter of credit in the amount of $100,000 and retain such
funds as a penalty.
We hereby engage with drawers and/or bona fide holders that drafts drawn and
negotiated in conformity with the terms of the credit will be duly honored upon
presentation.
Except as otherwise state herein, this Letter of Credit shall be governed by the most
recent version of the Uniform Customs and Practice for Documentary Credits,
International Chamber of Commerce Publication No. 600.
Bridgewater Bank
By: _`•
Jeffrey D. Shellberg
Its: Executive Vice President