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<br />Fifth Street Towers <br />150 South Fifth Street, Suite 700 <br />Minneapolis, MN 55402 <br />(612) 337-9300 telephone <br />(612) 337-9310 fax <br />kennedy-graven.com <br />Affirmative Action, Equal Opportunity Employer <br /> <br />MICHELLE E. WEINBERG <br />Attorney at Law <br />Direct Dial: (612) 337-9227 <br />Email: mweinberg@kennedy-graven.com <br /> <br /> <br /> <br />October 2, 2024 <br /> <br />VIA FEDEX OVERNIGHT DELIVERY <br /> <br /> <br />Tim Taylor <br />Granite Re, Inc. <br />14001 Quailbrook Drive <br />Oklahoma City, Oklahoma 73134 <br /> <br />RE: Demand to Freeze Contract Funds for Torre Pines Street and Utility <br />Improvements Project and Whistling Valley Street Project (Project No. <br />2020.123) <br /> PRINCIPAL: Jacon LLC <br /> BOND NO. GRMN45745A <br /> <br />Dear Mr. Taylor: <br /> <br />We represent the City of Lake Elmo (“City”), the obligee under the above-reference bond, which <br />was provided by Jacon, LLC (“Contractor”) in connection with the City’s Torre Pines and <br />Whistling Valley Street Projects. On August 24, 2023, the City received two letters from Granite <br />Re, Inc. (“Surety”) instructing the City to freeze the contract funds because the Surety had <br />received potential bond claims. A copy of these letters are enclosed for your convenience. The <br />City has frozen the Project funds as requested, and currently holds the following amounts: <br />$31,138.19 (Torre Pines) and $74,339.16 (Whistling Valley), or a total balance of $105,477.35. <br />Copies of the final pay applications and change orders are also enclosed. <br />The City is now ready to close out the Projects. All work has been completed, but the City has <br />been unable to obtain the final paperwork indicating that all outstanding subcontractor contracts <br />have been paid. It is the City’s understanding that the Contractor has declared bankruptcy and <br />will not be addressing the subcontractor claims. The grant obtained by the City for these Projects <br />requires that they be completely closed out before the end of this calendar year. <br />The City is prepared to transmit the remaining Project funds to the Surety in exchange for a release <br />from all outstanding payment claims. Please contact me as soon as possible to discuss the release <br />of funds and close-out of these Projects.