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ce4f 9, 29474 ceeeznyesek <br />515 Little Canada Road, Little Canada, MN 55117 -1600 <br />(612) 484 -2177 / FAX: (612) 484 -4538 <br />MEMORANDUM <br />TO: Mayor Hanson & Members of the City Council <br />FROM: Joel Hanson, City Administrator <br />DATE: February 19, 1993 <br />RE: Heritage Development Letter of Credit <br />MA YOR <br />Raymond G. Hanson <br />COUNCIL <br />Beverly Scalze <br />Jim LaValle <br />Steve Morelan <br />Bob Pedersen <br />ADMINISTRATOR <br />Joel R. Hanson <br />Kevin VonReidel of Heritage Development has asked for a <br />reduction in the letter of credit associated with the <br />Jackson Heights development. Pursuant to the development <br />agreement dated September 28, 1992, a $296,000 letter of <br />credit was provided to guarantee installation of public <br />improvements in accordance with City standards. The <br />development agreement also provided for a reduction in this <br />letter of credit to $33,500 after the first lift of <br />bituminous was installed and accepted. <br />Due to scheduling difficulties, the lift of bituminous was <br />not installed last fall prior to freeze up. However, <br />significant work has been done on other public <br />improvements. Therefore, Heritage Development is seeking a <br />reduction in the letter of credit in order to reduce the <br />cost of carrying this instrument. <br />Also enclosed is a letter from the City Engineer whereby he <br />recommends the letter of credit can be reduced to $110,000 <br />at this time. In reviewing this with Dave Harris, the <br />City's Public Works Superintendent, we would agree with <br />this recommendation. Therefore, we would recommend that <br />the Council authorize an amendment to the development <br />agreement whereby the letter of credit can be reduced at <br />this time to $110,000. <br />JRH:kpv <br />Page 55 <br />