Agenda Packets - 1994/04/25 - Laserfiche WebLink

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a AIMIMML 1114 THE EVEREST GROUP LTD March 18, 1994 Ms. Samantha Orduno City Administrator City of Mounds View 2401 Highway 10 Mounds View, MN 55112-1499 Dear Samantha: I am writing in regard to the letter of credit which has been issued to the City of Mounds View by Commercial State Bank in satisfaction of the requirement set forth in each of the contracts for redevelopment covering Mounds View Business Park and Mounds View Business Park South. In light of the overall success and performances of the underlying business parks, coupled with the fact that six years have passed since the original tax increment bonds were issued, we believe the risks for which the letter of credit is required have been eliminated for all intents and purposes. As such, we respectfully request the letter of credit requirement be removed. This will assist us as we move forward in the final development phase of the overall Mounds View Business Park by increasing our ability to finance the investment. By way of background, the contracts for redevelopment require that the developer issue a letter of credit to insure the annual debt service payment is available to the City in the event that the real estate taxes are not paid on the underlying project. Section 6. 1 of the contracts requires the letters of credit to be issued in an amount equal to the maximum annual debt service payable on the bonds. Such letter of credit is to be kept in place for a period of six years from the date of issue of the bonds. We have complied with the requirements of Section 6. 1 of the redevelopment contracts by delivery of a single letter of credit, currently in the amount of $387, 000. In February 1994, the six year requirement period for the original Mounds View Business Park redevelopment contract expired. The portion of the current letter of credit which is 2685 Long Lake Road P.O. Box 130190 • Roseville, MN 55113 (612) 636-5500 Fax: (612) 636-0183