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Item LA <br />Memorandum <br />To: Mayor, City Council and City Administrator <br />From: Steve Bubul and John Dean <br />Subject: Confirmation Letter to RRLD and US Bank National Association. <br />Date: April 10, 2009 <br />RLLD wishes to enter into a $32,000,000 revolving line of credit with US Bank National <br />Association (USB'). Among the requirements that USB has placed on RLLD as a <br />condition to making the loan is that RLLD pledge to USB any right, or interest RLLD has in <br />the $2,250,000 earnest money previously paid under the QTP. To further protect that <br />pledge, USB is requiring that any returned earnest money that would have otherwise gone to <br />RLLD be sent to USB instead. <br />RLLD and USB are requesting that the city provide them with a letter: (i) referencing the <br />relevant agreements that control the use, payment and return of the earnest money, (ii) <br />acknowledging that RLLD has pledged the earnest money as security for the loan from <br />USB; and (Ili) agreeing to deliver any earnest money returned to the city to USB instead of <br />to RLLD_ <br />We recommend that the council authorize the city administrator to execute and deliver the <br />attached letter to RLLD and USB. The request is commercially reasonable, and does not <br />impair any of the city's rights, obligations or remedies created by the various agreements <br />referenced in the letter. <br />