86-109
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RESOLUTION NO. 109~86
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, Paragraph 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 Irr:evocable Letter of
Credit No. 1033; and
WHEREAS, the City has prEviously reduced the Letter of
Credit amount by Resolution No. 58...,.86; and
WHEREAS, the City has accepted cer,taim. additional site
work completed by the developer involving total payments to the
contractor to date in the sum of $492,000.
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 total sum of
$492,000.
2. The City Administrator is hereby instructed to inform
Midwest Federal that Irrevocable Letter of Credit No. 1033 may
be reduced to the sum of $836,000.
Adopted by the City Council of the City of Shorewood,
Minnesota, this 22nd day of ,S(3pztffimber , 1986.
Mayor
ATTEST:
City Clerk