86-053
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.
I,
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RESOLUTION NO.
53-86
WHEREAS, the City of Shorewood (the City) has entered
into a Development Agreement dated~eh;.c10, .1986witn 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 Irrevocable Letter of
Credit No. 1033; and
WHEREAS, the City has accepted certain site grading work
completed by the developer involving payments to the contractor in
the sum of $ 136,710
NOW, THEREFORE, BE IT RESOLVED by the City Council of the
City of Shorewood, Minnesota, that:
1. The letter of credit required by Paragraph 11 of the
Development Agreement may be reduced by the sum of $ 136,710
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 $ 691,291
Adopted by the City Council of the City of Shorewood,
Minnesota, this 12th day of May , 1986.
Mayor
ATTEST:
City Clerk