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<br />WS – Item 2 <br />WORK SESSION STAFF REPORT <br />Work Session Item No. 2 <br /> <br /> <br />Date: July 27, 2020 <br /> <br />To: City Council <br /> <br />From: Michael Grochala, Community Development Director <br /> <br />Re: St. Clair Estates Letter of Credit Release <br /> <br />Background <br /> <br />The City Council approved the Development Agreement for St. Clair Estates on February <br />27, 2017. The agreement, between the City and St. Clair Land Company, was filed for <br />record with Anoka County on August 2, 2017. Under the terms of the agreement, St. <br />Clair Land Company posted a cash escrow for payment of all costs incurred by the City <br />related to the development of the subdivision and a letter of credit to secure completion <br />of all developer improvements. <br /> <br />In October of 2019, following prior notice, the City drew down on the letter of credit for <br />$71,000 to cover costs related to outstanding and incomplete work. On October 14, <br />2019, the City Council awarded contracts to four contractors to complete work on the St. <br />Clair Project (Resolution’s No. 19-132, 133, 134 and 135). These included: <br /> <br />1. $22,594.00 to Midwest Landscapes to complete open space tree and shrub <br />plantings in accordance with the approved landscaping plan. <br />2. $2,645.00 to ARC Asphalt Restoration Co., Inc., for driveway repair damaged by <br />sidewalk replacement. <br />3. $12,058.10 to Olson’s Sewer Service/Excavating Service for surface water <br />manage system corrections and cleanup. <br />4. $31,680.00 to Prairie Restorations, Inc., for vegetative restoration of open space <br />areas and landscaping of the Enid Island infiltration basin in accordance with the <br />approved landscaping plan. <br /> <br />ANALYSIS <br /> <br />As of this date, all of the work has been completed with the exception of the vegetative <br />restoration of open space areas (outlots A and B). Site preparation including spraying, <br />burning and/or mowing will continue through fall, with seeding and erosion control <br />installed during the September/October seeding window. Approximately, $16,610 <br />remains on this contract. <br /> <br />The City currently holds a Letter of Credit (LOC) with Lake Elmo Bank, in the amount <br />of $20,000, along with a cash security deposit from the October 1, 2019 LOC draw and a <br />cash escrow to cover City reimbursable expenditures related to the subdivision.