Letter of Credit 839BGC1000252Status Report 7/1/11 PLAN.0132
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Securities
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7/1/11 7/1/11 F LC #839BGC1000252 Expires 11/30/10
(Replaces LC #1506)
Preserve at Bluff Creek 1st Addition
Planning Case 2006 -14
$37,775
Letter of Credit automatically renews for successive one -year terms.
LC #1506 Expires 1/18/08
Preserve at Bluff Creek 1st Addition
Planning Case 2006 -14
$122,601 (landscaping)
Letter of Credit automatically renews for successive one -year terms
Notify Jill Sinclair
11/27/07 - Received notice from bank cancelling LC as of 1/18/08. Per Jill, LC must be renewed.
Sent letter to bank requesting renewal of LC to 1/18/09. Check status on 12/10/07. KM
12/6/07 - Received letter from Guaranty Bank authorizing extension of LC to 1/18/09. Check status
11/15/08. Kim
10/28/08 - Per Jill, subdivision is still under construction. LC needs to be retained through the 2009
growing season. Check status 8- 15 -09. Kim
8/17/09 - Notified Jill.
8/20/09 - Per Jill, site is still under construction. Check status 6/15/10. Kim
10/2/09 - Per Jill, mailed letter to bank authorizing reduction to $37,775. Waiting for confirmation
from bank. Kim
11/30/09 - Received letter from FDIC indicating Guaranty Bank is in receivership and letter of credit is
being repudiated. Per Roger Knutson, the city can request a claim form and file a claim but he is
doubtful the city will receive anything. Kim
3/16/10 - Received Replacement Letter of Credit 839BGC1000252 in the amount of $37,775 dated
March 15, 2010. Kim
7/6/10 -Per Jill, hold LC until entire project is completed. Check status annually on July 1st. Kim
9/28/10 - Received letter from Ryland Homes requesting reduction in letter of credit to $24,350. Jill
Sinclair authorized reduction. Reduction letter sent of Deutsche Bank on 9/29/10. Waiting for
confirmation of reduction. Check status 7/1/11. Kim
10/11/10 - Received Amendment to Letter of Credit 839BGC1000252 dated 10/6/10 decreasing
amount by $13,425 to leave a new balance of $24,350. Kim
............................................................................................................................................................................................................................................................. ...............................
0 2010 Lotus Development Corp. 10111/10 at 4:02 PM S= Status P= Priority - - -- - - - -- Page 1
Transmittal
Mail Courier Other
To: Jill Sinclair
City of Chanhassen
7700 Market Boulevard
PO Box 147
Chanhassen, MN 55317
From: Mark Sonstegard
Date: October 8, 2010
Twin Cities Division
X FedEx 7599 Anagram Drive
Eden Prairie, MN 55344
952.229.6000 Tel
952.229.6024 Fax
Subject: Preserve at Bluff Creek 1 St Addition, Planning Case No. 2006 -14
Jill,
With this transmittal, please find an Amendment to Irrevocable Letter of Credit reducing
the Letter of Credit No. 839BGC1000252.
Thanks
Mark
Deutsche Bank
AMENDMENT TO
IRREVOCABLE LETTER OF CREDIT
TO: City of Chanhassen
7700 Market Boulevard, Box 147
Chanhassen, Minnesota 55317
Dear Sir or Madam:
Deutsche BankAG NewYork Branch
Trade Services
60 Wall Street/ NYC60 -2417
NewYork, NY 10005 -2858
No. 839BGC 1000252
Date: October 6, 2010
By order of our principal, The Ryland Group, Inc. we, Deutsche Bank AG, New York
Branch hereby amend the above referenced Credit as follows:
• Amount of Credit is decreased by US$13,425.00 to a new balance not exceeding
US$24,350.00.
All other terms and conditions remain unchanged. This amendment is effected on the strength
of your letter dated September 29, 2010.
This amendment is to be attached to the original credit instrument, of which it is to become an
integral part thereof.
If you require clarification or discussion of any of the aspects of this amendment, please do not
hesitate to contact Ann Thompson at 212 - 250 -9639 or Rey de los Reyes at 212- 250 -9616.
Yours truly,
Deutsche Bank AG
New York Blompson
eyna e os Reye
so ' e Asst. Vice President
t o
CITY OF
CgANHASSEN
7700 Market Boulevard
PO Box 147
Chanhassen, MN 55317
Administration
Phone: 952.227.1100
Fax: 952.227.1110
Building Inspections
Phone: 952.227.1180
Fax: 952.227.1190:
Engineering
Phone: 952.227.1160
Fax: 952.227.1170
Finance
Phone: 952.227.1140
Fax: 952.227.1110
Park & Recreation
Phone: 952.227.1120
Fax: 952.227.1110
Recreation Center
2310 Coulter Boulevard
Phone: 952.227.1400
Fax: 952.227.1404
Planning &
Natural Resources
Phone: 952.227.1130
Fax: 952.227.1110
Public Works
1591 Park Road
Phone: 952.227.1300
Fax: 952.227.1310
Senior Center
Phone: 952.227.1125
Fax: 952.227.1110
Web Site
www.ci.chanhassen.mn.us
September 29, 2010
Reynaldo M. de los Reyes
Deutsche Bank AG New York
Trade and Risk Services
60 Wall Street / NYC60 -2517
New York, NY 10005 -2858
Re: Letter of Credit No. 839BGC1000252 Reduction
Preserve at Bluff Creek 1 st Addition
Planning Case No. 2006 -14
Dear Mr. de los Reyes:
Please accept this letter as authorization to reduce Letter of Credit No.
839BGC1000252 in the amount of $37,775 by $13,425 to leave a remaining balance
of $24,350. Please send written acknowledgement of this reduction at your earliest
convenience.
If you have any questions or concerns, please contact me by email at
jsinclair @ci.chanhassen.mn.us or at 952- 227 - 1133.
Sincerely,
CITY OF CHANHASSEN
WJ s
Jill Sinclair
Environmental Resources Coordinator
JS:ktm
c: Mark Sonstegard, Ryland Homes
gAplan\2006 planning cases\06 -14 the preserve\lc reduction letter 9- 29- 2010.doc
Chanhassen is a Community for Life- Providing for Today and Planning for Tomorrow
RYLAND
HOMES®
September 24, 2010
Jill Sinclair
City of Chanhassen
7700 Market Boulevard
PO Box 147
Chanhassen, MN 55317
RECEIVE
SEP 2 8 2010
C17-y OF CHANHASSEN
TWIN CITIES DIVISION
7599 Anagram Drive
Eden Prairie, MN 55344
952 - 229 -6000 Office
952 - 229 -6024 Fax
www.ryland.com
Re: The Preserve at Bluff Creek Landscape LOC # 839BGC 1000252 Reduction Request
Dear Jill:
As I stated in my last letter requesting a LOC reduction, Ryland Homes did not exercise its
options to develop additional lots with Gayle Degler, the landowner and this past summer Ryland
completed all the landscape within the property Ryland had purchased within The Preserve at
Bluff Creek.
Therefore, Ryland request our landscape surety be reduced down to the landscaping we install
during this past summer plus 25 %.
Remaining Landscaping within it's one year warranty planted in 2010:
(11) Foundation Landscape Packages @ $740 $ 8,140
(27) Blvd Trees @ $420 $11,340
Sub Total $19,480
Total Adding 25% $24,350
Currently the City of Chanhassen is holding a $37,775 Landscape LOC provided by Ryland
homes for The Preserve at Bluff Creek development. Ryland request the LOC be reduced to
$24,350.
If you have any questions with this request, please call me at (952) 229 -6007. Thank you for you
time with this matter.
Sincerely,
Mark Sonstegard
Land Development Manager
Ryland Homes, Twin Cities
IN
Deutsche Bank IZI
Deutsche Bank AG New York
Trade and Risk Services
60 Wall Street/ NYC60 -2517
clrY OF New York, NY 10005 -2858
�3itic - IRREVOCABLE LETTER OF CREDIT
MAR 1 6 2010 No. 839BGC1000252
ENGINEERING DEPT Date: March 15, 2010
TO: City of Chanhassen
7700 Market Boulevard, Box 147
Chanhassen, Minnesota 55317
Dear Sir or Madam:
We hereby issue, for the account of The Ryland Group, Inc. and in your favor, our
Irrevocable Letter of Credit No. 839BGC1000252 in the amount of $37,775.00 (Thirty Seven
Thousand Seven Hundred Seventy Five & 00 /100 U.S.Dollars), available to you by your draft
drawn on sight on the undersigned bank.
The draft must:
a) Bear the clause, "Drawn under Letter of Credit No. 839BGC1000252 dated March 15,
2010, of Deutsche Bank AG, New York Branch ";
b) Be signed by the Mayor or City Manager of the City of Chanhassen.
c) Be presented for payment at Deutsche Bank AG, New York Branch, 60 Wall Street, 25
Floor/NYC60 -2517, New York, NY 10005 -2858 Attn: Trade Services, on or before 4:00
p.m. on November 30, 2010.
This Letter of Credit shall automatically renew for successive one -year terms unless, at
least forty -five (45) days prior to the next annual renewal date (which shall be November 30 of
each year), the Bank delivers written notice to the Chanhassen City Manager that it intends to
modify the terms of, or cancel, this Letter of Credit. Written notice is effective if sent by overnight
courier or certified mail, postage prepaid, and deposited in the U.S. Mail, at least forty -five (45)
days prior to the next annual renewal date addressed as follows: Chanhassen City Manager,
Chanhassen City Hall, 7700 Market Boulevard, P.O. Box 147, Chanhassen, MN 55317, and is
actually received by the City Manager at least thirty (30) days prior to the renewal date.
This Letter of Credit sets forth in full our understanding which shall not in any way be
modified, amended, amplified, or limited by reference to any document, instrument, or agreement,
whether or not referred to herein.
This Letter of Credit is not assignable. More than one draw may be made under this Letter
of Credit.
Deutsche Bank IZI
Page Two of Two Pages
Irrevocable Letter of Credit No. 839BGC1000252
This Letter of Credit shall be governed by the 2007 Revision of the Uniform Customs and
Practice for Documentary Credits, International Chamber of Commerce Publication No. 600.
We hereby agree that a draft drawn under and in compliance with this Letter of Credit shall
be duly honored upon presentation.
Very truly yours,
Deutsche Bank AG,
T c , — , /
Afirn Thompson
Asst. Vice President
Transmittal
Mail FedEx Courier X Other
To: Gordy Stauff
City of Chanhassen
From: Mark Sonstegard
Date: March 16, 2010
Subject: The Preserve at Bluff Creek LOC Replacements
Twin Cities Division
7599 Anagram Drive
Eden Prairie, MN 55344
952.229.6000 Tel
952.229.6024 Fax
Gordy,
With this transmittal, please find two replacement LOC's for The Preserve at Bluff
Creek.
• Deutsche Bank LOC 83BGC1000251 will replace Guaranty Bank's LOC 1429
which covered the 1 Addition irr provements. Per your February 9, 2009 letter,
the value of this LOC is set at $48,000.
• Deutsche Bank LOC 839BGC1010252 replaces Guaranty Bank's LOC 1506
which covers The Preserves lan Per Jill Sinclair's October 2, 2009
letter, the value of this LOC is set at $37,775.
Please call me at (952) 229 -6007 if you
Mark
CITY OF REC�EEVEn SSE !
MAR 1 6 2010
ENGI NEERING DEPT.
(have any questions with these LOC's.