90-106
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RESOLUTION NO. 106-90
A RESOLUTION APPROVING AGREEMENT FOR
CASH ESCROW/LETTER OF CREDIT
WATERFORD THIRD PHASE T.I.F.
WHEREAS, the City of Shorewood (the City) and Sherman-Boosalis
Interests, Incorporated (the Developer) have entered into a Contract to
Tax Increment Finance Development dated 25 June 1990 for development of
certain land (the Project) within the City of Shorewood; and
WHEREAS, said Contract provides for the Developer to furnish the
City with a Letter of Credit in the sum of $678,403.00 on or prior to
December 1, 1990; and
WHEREAS, the City and the Developer are desirous of commencing
the Project prior to December 1, 1990, and have agreed to the posting of a
temporary cash deposit or letter of credit by the Developer, pursuant to
the terms and conditions contained in that certain Agreement for Cash
Escrow/Letter of Credit attached hereto as Exhibit A.
NOW, T HEREFO RE, BE IT RESOLVED by the City Council of the
City of Shorewood as follows:
1. T hat the City Council hereby approves the said Cash
Escrow/Letter of Credit agreement between the City and the Developer,
attached hereto as Exhibit A.
2. That the Mayor and City Administrator/Clerk are hereby
authorized to execute said agreement on behalf of the City Council.
ADOPTED BY THE CITY COUNCIL OF THE CITY
24th day of September, 1990.
F SHOREWOOD this
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.urence E. Wlil~
City Administrator/Clerk
Roll Call Vote:
Ayes - Haugen, Brancel, Gagne, Stover, Watten
Nays - 0
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AGREEMENT FOR CASH ESCROW/LETTER OF CREDIT
WATERFORD THIRD PHASE T.I.F.
THIS AGREEMENT, made this 24th day of September, 1990, by and
between the City of Shorewood, a Minnesota Municipal Corporation (City),
and Sherman-Boosalls Interests, Incorporated, a Minnesota Corporation,
(Developer) .
WHEREAS, the City and the Developer have entered into a Contract
for Tax Increment Finance Development dated 25 June 1990, (the Contract)
for the development of certain land (the Project) within the City of
Shorewood; and
WHEREAS, Article V, Section 5.3 of the Contract provides for the
Developer to furnish the City with an unrestricted irrevocable letter of
credit (Letter of Credit) in the sum of $678,403.00 to ensure that the
debt service will be timely paid on the bonds issued by the City to fund
the Project with said Letter of Credit to be furnished by the Developer on
or prior to December 1, 1990; and
WHEREAS, the City and the Developer are desirous of commencing
certain procedures pertaining to the Project prior to the date the Letter
of Credit becomes effective, such procedures to include the preparation of
Plans and Specifications for the Project the preparation of a Developer's
Agreement for a Planned Unit Development (PUD Agreement), and the
performance of various other engineering legal, planning and
administrati ve tasks; and
WHEREAS, it has been determined that the expenses incurred by the
City in connection with such preparation and performance of tasks could be
as much as $75,000.00.
NOW, THEREFORE, in consideration of the mutual covenants and
guarantees contained herein, the parties hereby agree as follows:
(1 )
That to induce the City to undertake the preparation of
Plans and Specifications for the Project, the preparation
of a PUD agreement, and the performance of various other
engineering, legal, planning and administrative tasks
prior to the providing of the Letter of Credit, the
Developer shall furnish to the City either a cash deposit
or an irrevocable letter of credit approved by the City
in the amount of $37,500.00. Said deposit or Letter of
Credit shall remain in effect until such time as the
Developer furnishes to the City the Letter of Credit in
the sum of $678,403.00, as provided by Article V,
Section 5.3, of the Contract.
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(2)
That in the event the Developer fails to provide the
Letter of Credit as provided by the Contract on or prior
to December 1, 1990, the City may draw on the deposit of
cash or the letter of credit furnished in lieu thereof to
reimburse staff for all expenses incurred by it for the
preparation of Plans and Specifications, the preparation
of a PUD Agreement, and the performance of all
engineering, legal, planning and administrative tasks
associated therewith. Any sum remaining after payment of
said expenses shall be returned to the Developer.
(3) That in the event the Developer provides the Letter of
Credit in the sum of $678,403.00 on or prior to December
1, 1990, all expenses incurred by the City as set forth
above shall be included as part of the cost of the
Project, and the cash deposit or irrevocable' letter of
credit in the sum of $37,500.00 shall be returned or
released to the Developer.
(4) T his A greement shall be binding and inure to the benefit
of the parties, their respective legal representatives,
successors and assigns.
IN WITNESS WHEREOF, the parties hereto have caused these presents
to be executed on the day and year first above written.
CITY OF SHOREWOOD
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SHERMAN-B 0 OSALIS INTERESTS, INC 0 RPO RATED
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