HomeMy WebLinkAbout2014-111 Council ResolutionCITY OF LINO LAKES
RESOLUTION NO. 14-111
APPROVING FIRST AMENDMENT TO
PUBLIC IMPROVEMENT SURETY AGREEMENT
NORTHPOINTE
WHEREAS, the City Council adopted Resolution No. 14-48, on June 23, 2014, approving the
Development Contract and Planned Unit Development Agreement ("PUD Agreement) for
NorthPointe; and
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 BE IT RESOLVED by The City Council of The City of Lino Lakes
hereby approves the First Amendment to Public Improvement Surety Agreement attached
hereto.
Adopted bthe Council of the City of Lino Lakes this 22nd day of September, 2014.
The motion for the adoption of the foregoing resolution was introduced by Council Member
Kusterman and was duly seconded by Council Member Roeser and upon
vote being taken thereon, the following voted in favor thereof:
Kusterman, Roeser, Rafferty, Stoesz, Reinert
The following voted against same:
none
ATTEST:
e Bartell, City lerk
Jeff Reinert, Ma, or
CITY COUNCIL
AGENDA ITEM 6C
STAFF ORIGINATOR: Michael Grochala
MEETING DATE: September 22. 2014
TOPIC: Consider Resolution No. 14-111, Approving 1st
Amendment to Public Improvement Surety Agreement,
NorthPointe
VOTE REQUIRED:
INTRODUCTION
3/5
Staff is requesting council consideration to approve an amendment to the NorthPointe surety
agreement.
BACKGROUND
The City Council approved the development contract and planned unit development agreement
for NorthPointe by Resolution No. 14-48 on June 23, 2014. The development contract
included a surety agreement to provide financial security for the proposed public
improvements. The agreement required a financial security in the amount of $913,300 to be
deposited with the escrow agent. This amount represented 125% of the estimated cost of
improvements ($730,589). The developer has requested the ability to escrow the estimated cost
of the improvements ($730,589) and provide the remaining financial security ($182,411) to the
City in the form of a letter of credit.
Staff has reviewed the request with the City Attorney who prepared the proposed First
Amendment to the Public Improvement Surety Agreement. The amendment provides for the
deposit of funds and the provision of a letter of credit for the remaining amount. The City
routinely accepts letters of credit to secure the cost of public improvements.
RECOMMENDATION
Staff recommends adoption of Resolution No. 14-111.
ATTACHMENTS
1. Resolution No. 14-111
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.
REGISTERED ABSTRACTORS, INC.
Jan Thomas, President
STATE OF MINNESOTA )
) ss.
COUNTY OF ANOKA )
On this day of September, 2014, before me, a Notary Public within and for
said County, personally appeared Jan Thomas (Escrow Agent), who executed the foregoing
instrument.
Notary Public
TONY EMMERICH CONSTRUCTION, INC.
Anthony J. Emmerich
STA I E OF MINNESOTA )
) ss.
COUNTY OF ANOKA )
On this day of September, 2014, before me, a Notary Public within and for
said County, personally appeared Anthony J. Emmerich (Developer), who executed the
foregoing instrument.
Notary Public
CITY OF LINO LAKES
By
Jeff Reinert. Mayor
ATTEST:
By
Julianne Bartell, City Clerk
STAIE OF MINNESOTA
) ss.
COUNTY OF ANOKA )
On this day of September, 2014, before me, a Notary Public within and for
said County, personally appeared Jeff Reinert (Mayor) and Julianne Bartell (City Clerk), to me
known to be respectively the Mayor and Clerk of the City of Lino Lakes, and who executed the
foregoing instrument and acknowledge that they executed the same on behalf of said City.
Notary Public