Letter of Credit 200282
CONSTRUCTION FINANCE, LLC
IRREVOCABLE LETTER OF CREDIT NO. 200282 DATED JULY 9, 2004
City of Chanhassen
7700 Market Boulevard, Box 147
Chanhassen, MN 55317
Dear Sir or Madam:
We hereby establish our IRREVOCABLE LETTER OF CREDIT, numbered as indicated
above, and effective immediately, in favor of the City of Chanhassen (the "City") at the
request and for the account of Plowshares Development, LLC, ("Developer) in the
amount of and not to exceed Five Thousand and 001100 Dollars ($5,0'00.00), as such
amount is decreased as provided below, available to you by your sight draft or drafts
drawn upon us as security for boulevard restoration and erosion control requirements
("Improvements") for the project to be known as the Highlands at Bluff Creek,
Chanhassen, Minnesota.
Each draft drawn under the LETTER OF CREDIT must be accompanied by:
A. The original of this LETTER OF CREDIT;
B. A notarized statement executed by the City, stating that the Developer is in
default of the Improvements, that the Developer has failed to complete the
Improvements in accordance with the terms of the Agreement, and, that the
City is entitled to draw upon the LETTER OF CREDIT. Such statement shall
set forth the Improvements not completed, the respect in which the
Improvements had not been completed, and the amount required to cure such
failure.
Each draft drawn under this LETTER OF CREDIT must:
1. Be signed on behalf of the City by the Mayor or City Manager;
2. Be in the amount required to cure the default by the Developer to complete the
Requirements, amount shall not exceed $5,000.00.
3. Bear on its face the clause "DRAWN UNDER LETTER OF CREDIT NO.
200282, Dated July 9, 2004.
860 Blue Gentian Road, Suite 135
Eagan, MN 55121
Phone: (651) 994-4606 · Fax: (651) 994-7076
7830 Main Street, Suite 210
Maple Grove, MN 55369
Phone: (763) 420-9130 · Fax: (763) 420-9134
22 Eastgate Building. PO Box 6056
St. Cloud, MN 56302-6056
Phone: (320) 259-0900 · Fax: (320) 259-1907
4. Be presented for payment during regular business hours at our Collection
Department, 7830 Main Street, Suite 210, Maple Grove, MN 55369, no later
than 2:00 p.m. on November 30, 2004. 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), we deliver written notice to the Chanhassen City Manager that
we intend 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, Chanhassen, MN 55317, and is actually
received by the City Manager at least thirty (30) days prior to the renewal
date.
The amount of this LETTER OF CREDIT shall be reduced by the amount of the
estimated cost of the work completed as each portion of the Improvements are completed
and paid for, and the City Official approves in writing such reduction. Each drawing
hereunder shall reduce by the amount of such drawing the amount available under this
LETTER OF CREDIT.
We hereby agree that drafts drawn under and presented in conformity with the terms of
the LETTER OF CREDIT will be duly honored upon presentation.
Except as otherwise expressly stated, this LETTER OF CREDIT is subject to the
Uniform Customs and Practice for Documentary Credits (1993 Revision) International
Chamber of Commerce Publications No. 500 (the "Uniform Customs"). This LETTER
OF CREDIT shall be deemed to be a contract made under the laws of the State of
Minnesota and, as to matters not governed by the Uniform Customs, shall be governed by
and construed in accordance with the laws of the State of Minnesota, including the
Uniform Commercial Code as in effect in the State of Minnesota.
This LETTER OF CREDIT is not transferable or assignable and is not issued for the
benefit of any third party claimant.
We shall not be called upon to resolve issued of fact or law between the City and the
Developer.
LAKELAND CONSTRUCTION FINANCE, LLC
~1~
Its Chief Operating Officer \
By
Meuwissen, Kim
From: Generous, Bob
Sent: Monday, October 03,200510:33 AM
To: Meuwissen, Kim
Subject: FW: Highlands at Bluff Creek - return of LOC's
Kim:
Do we have these or does engineering?
Bob
-----Orig i na I Message-----
From: Todd M. Simning [mailto:todd.simning@plowsharesdevelopment.com]
Sent: Monday, October 03,2005 10:21 AM
To: Generous, Bob; Bement, Bill
Subject: Highlands at Bluff Creek - return of LOC's
Bob and Bill:
City Council approved the re-assignment of the DA from Plowshares to Allen-Lee Homes. Allen-Lee Homes has posted the LOC
with the city. I would like to get our original LOC back. I believe I have two - #200277 and 200 82. Could you confirm and also,
I'd like to stop by and pick those up.
Please let me know when I can stop by.
Regards
~
Todd M. Simning
Plowshares Development
Office: 952.361 .0832
Fax: 952.361.0833
www.plowsharesdevelopment.com
1Z~
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10/3/2005
Status Report 11/1/05 plan.OR2
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fiI Securities
11/1/05
11/30/05
~
LC #200282 expires 11/30/04
Highlands of Bluff Creek
Planning Case 04-0 I
Boulevard Restoration &
Erosion Control
$5,000
Notify Bob Generous
NOTE: LC automatically renews for successive one-year periods
11/3/04 - Notified Bob Generous of impending expiration, Kim
11/3/04 - Per Bob, OK to let renew for another year to 11/30/05, Check status 11/1/05, Kim
10/1 0/05 - Per Bill Bement, OK to release letter of credit. LC returned to Jean in Engineering for
return to developer (Plowshares), Activity closed, Kim
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@2oo5 Lotus Developmen1 Corp.
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