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HomeMy WebLinkAbout2006-11-28 OPH Ltr. to Applicant Re Letters of Credit• City of Oak Park Heights 1.4168 Oak Parki 10. N • Box 2007. e yak Park Heights, MN 55082 • Phone (651) 439 -4439 • Fax (651) 439 -0574 iipvet4er 28th, 2006 Mr. Grey Johnson Manchester Homes. Oak Park Teights Development 6750*i'llw&er Alvd. o, till ater,- MN . 55082 Dear Mr. :Johnson 7 am in receipt of the. attached email fr irn Todd Erickson of Foli, Freeman & Erickson requesting that the City reduce the current letters of credit for both the Plan and B elements of the Pine. Grove Gardens Development The City is willing to again reduce portion of these securities, but not to the exact ',..ozjelimitations you request, as the purpose of t4e securities is to ensure final, functional and operational completion of such elements. We have made the .following determination: n: 2) The cur Plan Ar: L C # 3162 from Central Bank the City is ab le to release approx.85.4 percent of, suchttinds, .leavin a balan LOC requirement of. 4 ,OOO.00 . The current Plan 13 L 3161 from Central Bank is 100.000 00. The C is able to release 80.0 t ercent of such funds leaving o balance .L C requirement of $L0,000.00. The next step is.that your lender must issue two issue new letters of credit for the above specified amounts. When these are received, the City will be able to rescind the initial two documents and such amounts. These new letters of credit•must be in similar form and have the same stipulations as the current, documents. Judy Flolst Mark rling • Todd Erickson, FFE Copies of the fmal and implemented homeowner declarations and covenants. sses should you wish further reductions please let me know. To date the project t is.not complete, nor is the City in receipt of the following items as required per the Development Agreement: f) Full as-built drawings in digital and fully compatible with the Washington County. coordinate system. Please provide these to Dennis Postier. ri • Snow removal plans, IRREVOCABLE STANDBY LETTER OF C E . IT AM NDM N TO: City of Oak Park Heights ("City") 14168 Oak Park Blvd. N Oak Park Heights, MN 55082 Dear Sir or Madam: The draft must: No. 3161 Date: Effective August I, 2006 We hereby issue , for the account of Oak Park Heights Development LLC, a Minnesota a limited liability company ("Developer") and in your favor, our Irrevocable Standby Letter of Credit Amendment ("Letter of Credit") in the reduced amount of One Hundred Thousand Dollars ($100,000.00), available to you by our draft drawn on sight on the undersigned bank. a. Bear the clause, "Drawn under Letter of Credit No. 3161 dated effective August 1, 2006, of Central Bank "; b. Be signed by the Chairperson or Clerk of the City of Oak Park Heights; 0. Be presented for payment at Central Bank, 2270 Frontage Road West, Stillwater, MN 55082, on or before 4:00 p.m. on May 17, 2007. This Letter of Credit sets forth in full our understanding and is issued pursuant to that certain Development Agreement between the Developer and the City, dated , and shall not in any way be modified, a mplified, or limited by reference to any document, instrument, or agreement, t, whether or not referred to herein. This Letter of Credit is not assignable. This is not a Notation Letter of Credit. More than one draw may be made under this Letter of Credit. Unless we so notify you in writing before April 17, 2007, this Letter of Credit shall automatically renew for an additional 12 months in the amount then outstanding. This Letter of Credit shall be governed by the laws of the State of Minnesota as supplemented to the extent consistent with this Letter of Credit) by the most current provisions of the Uniform Customs and Practices for Commercial Documentary Credits, International Chamber r of Commerce Publication No, Soo. We hereby agree that a draft drawn under and in compliance with this Letter of Credit shall be duly honored upon presentation. THE FOLLOWING PAGE 1 THE SIGNATURE PAGE. 2 Central Bank (a Minneso banking corporation) 13 Scott W. Faust, Branch President This is the signature page to that certain Irrevocable Stand Letter of Credit Amendment in the amount of One Hundred Thousand Dollars ($100,000.00) and dated August 1, 200 6. IRREVOCABLE STANDBY LETTER OF CREDIT AMENDMENT Dear Sir or Madam: The draft must: 'FO: City of Oak Park Heights hts ("City") 14168 o f Park Blvd. N Oak Park Heights, MN 55082 No. 3162 Date: Effective August 1, 2006 We hereby issue , for the account of Oak Park Heights Development TLC, a Minnesota limited liability company "Developer and in your favor, our Irrevocable Standby Letter of Credit Amendment ("Letter of Credit") in the reduced amount of Two 1- Hundred Seventy Five Thousand Dollars ($275,000,00), available to you by your draft drawn on sight on the undersigned bank. a. Bear the clause, "Drawn under Letter of Credit No. 3162 dated effective August 1, 2006, of Central l lank "; b. Be signed by the Chairperson or Clerk of the City of oafs Park Heights; 0. Be presented l for payment at Central Bank, 2270 Frontage Road West, Stillwater, MN 55082, on or before 4:00 p.m, on May 17, 2007. This Letter of Credit sets 'bah in full our understanding and is issued pursuant to that certain Development ment Agreemen between the Developer and the City, dated , and shall not in any way be modified, amplified, or limited by reference to any document, instrument, or agreement, whether or not referred to herein. This Letter of Credit is not assignable. le. This is not a Notation Letter of Credit. More than one draw may be made under this Letter of Credit. Unless wc so notify you in writing before April 17, 2007, this Letter of Credit shall automatically renew for an additional 12 months in the amount then outstanding. This Letter o f Credit shall be governed by the la \vs of the State of Minnesota as supplemented (to the extent consistent with this Letter of Credit) by the most current provisions of the Uniform Customs and Practices for Commercial Documentary Credits, international Chamber of Commerce Publication No. 500. We hereby agree that a draft drawn under and in compliance with this Letter of Credit shall be duly honored upon presentation. THE FOLLOWING PAGE IS THE S PAGE. 2 Central Bank (a Minnesota banking corporation) }3y: Scott W. Faust, Branch President This is the signature page to that er ii Irrevocable Standby Letter r of Credit Amendment in the amount of Two Hundred Seventy Five Thousand Dollars ($275,000.00) and dated .0 us 1, 2006.