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515 Little Canada Road, Little Canada, MN 55117 -1600 <br />(612) 484 -2177 / FAX: (612) 484 -4538 <br />MEMORANDUM <br />TO: Mayor Fahey & Members of the City Council <br />FROM: Joel Hanson, City Administrator <br />DATE: February 3, 1995 <br />RE: Revisions to Jackson Heights Development Agreement <br />MAYOR <br />Michael I. Fahey <br />COUNCIL <br />Beverly Scalze <br />Jim LaValte <br />Steve Moreton <br />Bob Pedersen <br />ADMINISTRATOR <br />Joel R. Hanson <br />On September 28, 1992, we entered into a development agreement with <br />Heritage Development relative to the Jackson Heights project. One of the <br />provisions of this agreement was that the developer was to provide us with <br />a Letter of Credit in the amount of $15,000 to provide for the future <br />connection of the cul -de -sac area on Maple Lane to Yorkton Boulevard. <br />(This would connect into the industrial park area between the Metal - tronics <br />and <br />St. Jude buildings.) This Letter of Credit is in effect until September <br />28, 1995. We would hold that amount until that time to allow us to <br />determine if the connection is necessary to allow for proper traffic flow <br />in this area. (See copy of provision attached.) <br />Attached is a letter from Heritage Development asking us to substitute a <br />performance bond for this Letter of Credit. This will free up their line <br />of credit which is apparently necessary for their business. While a <br />performance bond is not nearly as advantageous as a Letter of Credit, it <br />appears to be a reasonable accommodation given the fact that the street <br />connection does not appear necessary. This opinion has been confirmed by <br />both the City Planner and the Public Works Superintendent as indicated on <br />the attached correspondence. <br />Therefore, I would recommend that we allow the substitution of a <br />performance bond for their Letter of Credit in the amount of $15,000 <br />subject to Heritage Development paying the outstanding balance due the City <br />of $4,440.60. If the Council has concerns about the need for this street <br />connection, we should begin the process of making that determination in <br />order that the Letter of Credit could be drawn upon within its allotted <br />time frame. <br />JRH:kpv <br />Enclosures <br />cc: Tom Sweeney, City Attorney <br />Dick Boss, Fire Chief <br />Jerry Bourdon, City Engineer <br />Dave Harris, Public Works Superintendent <br />Steve Grittman, City Planner <br />Page 10 <br />