Security Documents 11/30/12GLEN LAKE
14550 Excelsior Blvd.
Minnetonka, MN SS34S
952.935.8663
fax 952.93S.4957
COUNTRY VILLAGE
11500 Highway 7
Minnetonka, MN 55305
952.935.5995
fax 952.935.1611
www.fmcbank.com
IIMVOCABLE LETTER OF CREDIT
TO: City of Chanhassen
7700 Market Boulevard, Box 147
Chanhassen, Minnesota 55317
Dear Sir or Madam:
FIRST MINNETONKA
CITY BANK
No. 7297
Date: November 30, 2012
We hereby issue, for the account of Stevens Investments, LLC and in your favor, our
Irrevocable Letter of Credit in the amount of $183,790.29 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. 7297, dated November 30, 2012 of
First Minnetonka City Bank ";
b) Be signed by the Mayor or City Manager of the City of Chanhassen.
c) Be presented for payment at 14550 Excelsior Blvd, Minnetonka, MN 55345, on
or before 4:00 p.m. on November 30, 2013.
BY:.
colt A. Elleraas
Its Vice President
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 30th_ 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 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. This is not a Notation Letter of Credit. More than
one draw may be made under this Letter of Credit.
This Letter of Credit shall be governed by the most recent 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.
Member FDIC
E
4. Improvements. The Developer shall install and pay for the following:
A. Sanitary Sewer System
B. Water System
C. Storm Water Drainage System
D. Streets
E. Concrete Curb and Gutter
F. Street Lights
G. Site Grading/Restoration
H. Underground Utilities (e.g. gas, electric, telephone, CATV)
I. Setting of Lot and Block Monuments
J. Surveying and Staking
K. Landscaping
L. Erosion Control
5. Time of Performance. The Developer shall install all required improvements
except for the wear course by August 1, 2013. The Developer may, however, request an extension
of time from the. City Engineer. If an, extension is granted, it shall be conditioned upon updating�the
security posted by the Developer to reflect cost increases and the extended completion date.
6. Security. 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
improvements, the Developer shall furnish the City with a letter of credit in _ the form attached
hereto, from a bank acceptable to the City, or cash escrow. ( "security ") for $183,790.29. The
amount of the security was calculated as 110% of the following:
Sanitary Sewer $18,864.00
Watermain $29,000.00
Storm Sewer, Drainage System, including cleaning and maintenance $70,582.80
Future Street Connection $25,000.00
Sub- total, Construction Costs $143,446.80
Engineering, surveying, and inspection (7% of construction costs) $10,041.28
Landscaping $13,594.00
Sub - total, Other Costs $23,635.28
TOTAL COST OF IMPROVEMENTS $167,082.08
SECURITY AMOUNT (110% of $167, 082.08) $183,790.29
This breakdown is for historical reference; it is not a restriction on the use of the security. The
security shall be subject to the approval of the City. The City may draw down the security, without
notice, for any violation of the terms of this Contract. If the required public improvements are not
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CITY OF CHANHASSEN
P 0 BOX 147
CHANHASSEN MN 55317
12/05/2012 9:10 AM
Receipt No. 00205638
CLERK: AshleyM
PAYEE: Title Mark
121 West Main Street
Suite 200
Waconia MN 55387-
6330 Hazeltine Blvd
Beehive
-------------------------------------------------------
Administration Fee 4,303.40
Park Dedication Fee 12,500.00
Plat Application and Processing Fee 450.00
Surface Water Management Fee 15,735.60
GIS Fee 35.00
Total
33,024.00
Cash
Check 11006009
Change
0.00
33,024.00
0.00
completed at least thirty (30) days prior to the expiration of the security, the City may also draw it
down. If the security is drawn down, the draw shall be used to cure the default. With City approval,
the security may be reduced from time to time as financial obligations are paid, but in no case shall
the security be reduced to a point less than 10% of the original amount until (1) all improvements
have been completed, (2) iron monuments for lot corners have been installed, (3) all financial
obligations to the City satisfied, (4) the required "record" plans have been received by the City, (5) a
warranty security is provided, and (6) the public improvements are accepted by the City.
7. Notice. Required notices to the Developer shall be in writing, and shall be either
hand delivered to the Developer, its employees or agents, or mailed to the Developer by registered
mail at the following address:
Tyler Stevens
6505 Fox Hollow Court
Chanhassen, MN 55317
Phone: 612- 770 -7611
Notices to the City shall be in writing and shall be either hand delivered to the City Manager, or
mailed to the City by certified mail in care of the City Manager at the following address:
Chanhassen City Hall, 7700 Market Boulevard, P.O. Box 147, Chanhassen, Minnesota 55317,
Telephone (952) 227 -1100.
8. Other Special Conditions.
A. SECURITIES AND FEES
A $183,790.29 letter of credit or escrow for the developer - installed improvements, the
$33,024.00 cash administration fee and the fully- executed development contract must be
submitted and shall be submitted prior to scheduling a pre - construction meeting. The cash fee
was calculated as follows:
Administration Fee: 3% of $143,446.80 $ 4,303.40
Plat Application and processing fee $ 450.00
GIS Fee: $25 (plat) + ($10 /parcel x 1 parcels) $ 35.00
Surface Water Management Fee $ 15,735.60
Park Dedication Fee $ 12,500.00
Total Cash Fees $ 33,024.00
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