2014-111 Council Resolution - Laserfiche WebLink

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FIRST AMENDMENT TO PUBLIC IMPROVEMENT SURETY AGREEMENT NorthPointe This Amendment is entered into on September , 2014, by Registered Abstractors, Inc. ("Escrow Agent"), City of Lino Lakes, and Tony Emmerich Construction, Inc. ("Developer"), all parties to the original Public Improvement Surety Agreement, which is Attachment D to the Development Contract & Planned Unit Development Agreement for NorthPointe ("PUD Agreement") dated August 8, 2014. RECITALS WHEREAS, the PUD Agreement requires financial security of $913,300 to be escrowed with the Escrow Agent, that amount being 125% of the estimated cost of improvements ($730,589); and WHEREAS, the Developer desires to escrow the estimated cost of improvements ($730,589) with the Escrow Agent and provide the remaining financial security ($182,411) to the City in the form of a letter of credit; and WHEREAS, the City is amenable to receiving the remaining financial security in the form of a letter of credit that is acceptable to the City. NOW, THEREFORE, in consideration of the foregoing recitals and other good and valuable consideration, it is agreed between the parties as follows: 1. Paragraph 1 of the August 8, 2014, Public Improvement Surety Agreement is hereby deleted and replaced with the following: "1. Developer will deposit funds in the amount of $730,589 with the Escrow Agent. In addition, Developer will provide the City with an irrevocable letter of credit ("LOC") in the amount of $182,411. The LOC may not expire or be reduced in amount, revoked or otherwise modified without the City's written consent. The LOC is for the sole benefit of the City and may be drawn upon by the City in the event the Developer fails to satisfy its obligations under the PUD Agreement and the escrowed funds are insufficient or are otherwise unavailable. The form of the LOC shall be approved by the City and shall be issued by a United States financial institution acceptable to the City in its sole discretion." 2. All other terms of the Public Improvement Surety Agreement remain unchanged.