87-001
RESOLUTION NO. 1-87
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,
WHEREAS, the City of Shorewood (the City) has entered into
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 per-
formance 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, Resolution No. 109-86
and Resolution No. 115-86; and
WHEREAS, The City has accepted certain site work completed by
the developer involving total payments to the contrac-
tor to date in the sum of $540,000.00.
..
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 instruc~ed to inform
Midwest Federal that Irrevocable Letter of Credit No. 1033
may be reduced to the sum of $29,000.00 as requested by
the developer.
Adopted by the City Council of the City of Shorewood,Minnesota,
this 12th day of January , 1987.
.:.
Robert RasGop
Mayor
Sandra L. Kennelly
City Clerk