HomeMy WebLinkAbout4.n. Approve Addendum No. 1, Wensmann 5th Addition Subdivision Development Contract ... � . 4� . . � � . � � . . � . . . . .. � . . � ..
CITY OF ROSEMOIINT
E%ECIITIVE SUMMARY FOR' ACTION
CTTY COUNCIL MEETING DATEs OCTOBER 2, 1990
AGENDA ITEM: Addendum No. 1 - Wensmann 5th AGENDA SECTION:
, Addition Subdivision Development Cont�act Consent Agenda
PREPARED BY: AGENDA NO•�TE{YI
Dean Johnson - Director of Comm. Development �
ATTACHMENTS: Addendum No. 1, APP D BY:
Bradley Syverson Letter
Subsequent to the approval of the Wensmann Fifth Ad 'tion Plat and
Subdivision Development Contract, a request has been made by Mr.
Wensmann's bank to change the terms of the contract, regarding the
renewal of the required letter of credit. Staff and City Attorney are
in agreement to accept the proposed amendment.
RECOMMENDED ACTION: Motion to approve Addendum No. 1 to Wensmann Fifth
Addition Subdivision Development Contract.
COUNCIL ACTION:
APProved.
ADDENDUM NO. 1 TO WENSMANN FIFTH ADDITI'ON
DEVELOPMENT CONTRACT
AGREEMENT date , 1990, by and between the CITY OF ROSEMOUNT,
a Minnesota municipal corporation, ("City"), and HERBERT H. WENSMANN d/b/a
WENSMANN REALTY and ELAINE E. WENSMANN, husband and wife, (the "Developer").
l.Prior Agreement. This is an addendum to a Development Contract dated July 30, 199D,
previously entered into between the parties for the Wensmann Fifth Addition. Except as
specifically set forth beiow, the prior agreement between the parties remains in full force
and effect.
2.Security. Paragraph 16., of the Wensmann Fifth Addition Development Contract shall
be amended to read as follows
To guarantee compliance with the terms of this Contract, payment of special assessments,
payment of the costs of all public improvements, and construction of all public
improvement, the Developer shall furnish the City with a cash escrow or irrevocable letter
of credit from a bank ("security") for $364;000.00. The amount of security was calculated `
as follows:
Sewer and Water $ 120,000.00 .
Streets and Drainage $ 145,000.00
Street Lights $ S,OQ0.00
Erosion Control/Landscaping $ 10,000.00
Engineering, Surveying and
Inspection $ 84,000.00
The bank and form of the ietter of credit shall be subjec:t to the approval af the City
Administrator. The letter of credit shall be for a term of three years. In an alternative,
the letter of credit may be for a one year term provided that thirty days prior to expiration
that a substitute letter of credit is provided to extend until such time as the City accepts
public improvements within the plat. The letter of credit shall secure compliance with the
terms of this Contract, payment of special assessments and all financial obligations of the
Developer under it. The City may draw down on the letter of credit, wixhout notice, upon
receiving notice that the letter of credit will be allowed to lapse prior to City acceptance
of public improvements within the plat. The City may draw down the letter of credit,
without notice, for any violation of the terms of this Contract. The security may be
reduced from time to time as special assessments and other financial obligations are paid,
but not more than twice per year.
IN WITNESS WHEREOF, this agreement has been executed by the parties the day
and year first above written.
CITY OF ROSEMOUNT
BY:
Vernon J. Napper, Mayor
BY:
Stephan Jilk, City Administrator
DEVELOPER
Herbert H. Wensmann, d/b/a
WENSMANN REALTY
Elaine E. Wensmann
STATE OF MINNESOTA )
) ss
COUNTY OF DAKOTA )
The foregoing instrument was acknowledged before me this day of
, 1990, by Vernon J. Napper, Mayor, and Stephan 3ilk, City
Administrator, of the City of Rosemount, a Minnesota municipal corporation, on behalf of
the corporation and pursuant to the authority granted by its City CounciL
Notary Public
STATE OF MINNESOTA )
) ss
COUNTY OF DAKOTA )
The foregoing instrument was acknowledged before me this day of
, 1990, by Herbert H. Wensmann and Elaine E. Wensmann.
Notary Public
2
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Mr . Michael Wozniak
City Planner
City flf Rosemount
2875 145th Street West
P.O. Box 510
Rosemount, Minnesota 55068
Re: Letter of Credit by First Bank National Association
(First Bank Bloomington) in favor of the City of
Rosemount f or the account of Herbert H . Wensmann
d/b/a Wensmann Realty
Dear Mr . Wozniak ;
As you and I discussed some time ago, an issue appears to
- have developed between my client, First Bank National
Association, and the City of Rosemount with regard to the
Letter of Credit submitted by the Bank on behalf of Mr .
Wensmann. The Developer"s Agreement appears to require a three
year Letter of Credit ar one year Letter of Credit that is
"automatically renewable . " The Letter of Credit which has been
provided to you is for a stated term and is not °automatically
renewable . "
As I have explained to you , the Bank is not in a position
to issue any Letters of Credit whieh are "automatically
renewable . " Nor is the Bank in a position to issue a �.hree
year Letter of Credit. However , what the Bank proposes to do
is to provide you with a substitute Le�ter of Credit which
would provide that if the developer , Mr. Wensmann, has not
provided you with a substitute Letter of Credit at least thirty
days prior to the expiration of any outstanding Letter of
Credit, the City may draw upon the Letter of Credit, As a
result, the City would have access to the cash drawn out of the
Letter of Credit to hold as surety for the developer ' s
performance .
, , p
FREDRIKSON & BYR4N
.. . . . � A�PROFESSlONAG ASSOC1AT10N � � . � . . �. . � � � �
Mr . Michael Wozniak
September 18 , 1990
Fage 2
Please let me know whether this compromise is acceptable
to the City in such a manner that the City can then execute the
letter we have requested of it.
Thank you for your cooperation.
Si erely,
� �
� "��
Bradley P. Syverson
BPLS/sb/8756e
ccs Mr . George F . Hayden