86-115
.
RESOLUTION NO. 115-86
WHEREAS, the City of Shorewood (the City) has entered in-
to a Development Agreement dated February 10, 1986 with United
Mortgage Corporation (the developer) for the development of
Covington Vine Ridge; and
WHEREAS, Par~graph 11 of such Agreement provides for a
performance guaranty in the form of an irrevocable letter of
credit approved by the City in an amount equal to 150% of the
total cost of the improvements; and
WHEREAS, Developer has obtained such a letter of credit
from.Midwest Federal in the sum of $828,000.00, which letter is
dated September 20, 1985, and entitled Irrevocable Letter of
Credit No. 1033; and
WHEREAS, the City has previously reduced the Letter of
Credit amount by Resolution No. 53-86 and Resolution No. 109-86;
and
.
WHEREAS,', The City has accepted certain site work completed
by the developer involving total payments to the contractor
to date in the sum of $492,000.
WHEREAS, the Developer has requested that the Letter of
Credit be reduced by 150% of the total payments made to date.
NOW, THEREFORE, BE IT RESOLVED by the City Council of
the City of Shorewood, Minnesota, that:
1. The original letter of credit required by Paragraph
11 of the Development Agreement may be reduced by the sum of
150% of the payments made to date.
2. The City Administrator is hereby instructed to inform
Midwest Federal that Irrevocable Letter of Credit No. 1033 may be
reduced to the slam of $100,000 as requested by the Developer.
Adopted by the City Council of the City of Shorewood,
Minnesota, this 14th day of October , 1986.
Mayor
ATTEST:
.
City Clerk