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STAFF REPORT <br />1 <br />TO:Mayor Fischer and Members of the City Council <br />FROM:Eric Seaburg, P.E., City Engineer <br />DATE:January 11, 2023 <br />RE:Gervais Woods 2nd Addition – Letter of Credit Reduction <br />ACTION TO BE CONSIDERED: <br />Motion to authorize a Letter of Credit reduction for the Gervais Woods 2nd Addition project. <br />BACKGROUND: <br />The City of Little Canada entered into a Development Agreement for the plat of Gervais Woods 2nd <br />Addition with Landmark of Little Canada, LLC. The Development Agreement required that the <br />developer post a Letter of Credit (LOC) as a security for the public infrastructure needed to serve the <br />development. The LOC amount was equal to 125% of the estimated cost to install the public <br />infrastructure and included things like street construction, utility construction, and stormwater <br />management infrastructure. <br />Significant progress was made on this development in 2022 and only minor infrastructure work is <br />required before the City accepts the completed infrastructure in 2023. As is common with <br />developments that span several seasons, the Developer has requested that the City reduce the LOC to <br />cover only the remaining infrastructure items. City staff finds the request acceptable and recommends <br />that the City Council authorize a reduction of the LOC from $721,700 to $55,000. <br />STAFF RECOMMENDATIONS: <br />Staff recommends that the City Council authorize a Letter of Credit reduction for the Gervais Woods <br />2nd Addition Project for a revised Letter of Credit amount of $55,000.