CCP 12-28-1994 - Laserfiche WebLink

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CITY OF ARDEN HILtS . MEM:lRANOOM DATE: December 19, 1994 TO: Mayor & City Council FR.ao1: Brian FritsiDger, Carmmity PI""";"'!}' Coordinate@) SUB.JECT : McClung 4th Addition Letter of Credit The City Council, in August of 1994, approved the developrent agreement for the McClnng 4th Addition with John McClnng. within this agreement were the terms and conditions for the developrent of McClnng 4th Addition. Uhder Section 3.2 of this agreerrent, the developer agreed to undertake specific improvements estimated to cost $82,000. The City Engineer has reviewed these improvements and determined that only fifty (50'0) percent of the street improvements remain to be corrpleted. The estimated cost for the remainder of this work is $17,500. - Section 3.11 of the agreement specifies the security to be provided to the City to ensure performance by the developer nnder this contract. This se=ity was to amount to one hundred twenty five percent (125'0) of the cost of the improvements or conveyance of two lots to the city. At the time of the agreements execution, the developer conveyed to the City, fee title to iDts 1 and 2, as se=ity for this project. The developer has made a request to provide the City with an alternate form of se=ity for the pIllp:)se of having these lots released. Staff has reviewed this request with the City Attorney and City Engineer and determined that a letter of credit in the amount of $22,000 would be an adequate form of se=ity under Section 3.11. Rec~"tion Staff would reccmnend that the City Conncil accept a letter of credit in the arrount of $22,000 for se=ity on the work rerraining in McClnng 4th Addition. The City would also release title to the lots previously conveyed to the City. This letter of credit would have an expiration date of September 8, 1995. ..