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<br /> <br />AGENDA ITEM – 1D <br /> <br /> <br /> <br /> <br />MEMORANDUM <br /> <br /> <br />DATE: July 18, 2016 <br /> <br />TO: Honorable Mayor and City Council <br /> <br />FROM: Sue Iverson, Interim City Administrator/Director of Finance and Admin Services <br /> <br />SUBJECT: Letter of Credit for Phase I Development Agreement – Land O’Lakes <br /> <br /> <br />Background/Discussion <br /> <br />The City Council approved the Phase I Development Agreement for Land O’Lakes on Monday, July 11, <br />2016. The City requires financial security to be provided by a developer for required infrastructure and land <br />alteration activities and it is City policy to require that security in the form of an irrevocable letter of credit <br />issued by a Minnesota FDIC insured bank. The Development Agreement approved by the City Council at its <br />last meeting incorporates that requirement. <br /> <br />Subsequent to that approval, the developer has informed the City staff and attorney that they “are bound by <br />our credit agreement to issue any LOCs (Letters of Credit) through CoBank which is a Farm-Credit System <br />bank headquartered in Denver.” The City attorney and staff have reviewed the developer’s request and <br />recommend acceptance of the proposed financial security by the City Council for both Phase 1 and Phase 2. <br /> <br />Requested Action <br /> <br />Staff would like to know if there is Council consensus to accept the recommendation of the City Attorney to <br />accept the proposed financial security proposed by Land O’Lakes. <br />