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Letter of Credit 1506Meuwissen, Kim From: Fauske, Alyson Sent: Tuesday, December 15, 2009 10:48 AM To: Meuwissen, Kim Subject: RE: Preserve at Bluff Creek Repudiation of Letters of Credit from FDIC Attachments: image001.jpg; image002.gif Mark has to go through corporate to get approval, so it will take a little time. From: Meuwissen, Kim Sent: Tuesday, December 15, 2009 10:27 AM To: Fauske, Alyson Subject: RE: Preserve at Bluff Creek Repudiation of Letters of Credit from FDIC Alyson — Do you have an updated status on the cash escrows? KIM MEUMSSEN .. CITY OF CFIANI-- ASSEN PLANNING SECRETARY 952-227-1107 MAJL7 KMEU CHANH ASSEN. XI N, U'S r From: Fauske, Alyson Sent: Tuesday, December 01, 2009 3:04 PM To: Meuwissen, Kim; Sinclair, Jill; Stauff, Gordy; Stec ling, Jean; Aanenson, Kate Subject: RE: Preserve at Bluff Creek Repudiation of etters of Credit from FDIC just spoke with Mark Sonstegard at Ryland. He is w rking on getting cash escrows to us to cover the remaining securities. From: Meuwissen, Kim Sent: Monday, November 30, 2009 1:17 PM To: Sinclair, Jill; Stauff, Gordy; Steckling, Jean; Fauske, Alyson; Aanenson, Kate Subject: FW: Preserve at Bluff Creek Repudiation of- etters of Credit from FDIC Per Roger's reply (see below) the letters of credit a now void. Should we attempt to request a proof of claim form and file a claim? Plea, e advise. Kim MEUwISSEN CITY OF C1 iANl iASSEN PLANNING SECRETARY 952-227-1107 iWA1L70.KNtL-C. 1A11SSE:i{ From: Roger Knutson [mailto:RKnutson @ck- law.com] Sent: Monday, November 30, 2009 12:05 PM To: Meuwissen, Kim Subject: RE: Preserve at Bluff Creek Repudiation of Letters of Credit from FDIC The letters of credit are now void. Per the letters from the FDIC you can request a proof of claim form and file a claim but don't hold your breath. The city will very very likely get nothing. From: Meuwissen, Kim [mailto:kmeuwissen @ci.chanhassen.mn.us] Sent: Monday, November 30, 2009 10:57 AM To: Roger Knutson Cc: Sinclair, Jill; Steckling, Jean; Stauff, Gordy Subject: Preserve at Bluff Creek Repudiation of Letters of Credit from FDIC Roger, We received the attached two letters from the FDIC today referencing two letters of credit the City is holding for The Preserve at Bluff Creek. Letter of Credit 1429 has a remaining balance of $48,000. Letter of Credit 1506 has a remaining balance of $37,775. As the project is not complete, these securities need to remain in place. Please review the attached letters and advise as to what steps the City needs to take in this matter. Kim MEUWISSEN 'CITY OF CI-IANI- IASSEN PLANNING SECRETARY 952-227-1107 I VIAILTO:K, IEUWISS . CNANFIASSEN, ,, MN.LJS a �r S,c M T M T W T F "S; :S74 M T W T F St t 1 2 3 4 6 1 2 ................... 2 3 4 5 6 .................. $ 7 8 9 10 11 12 3 4 5 6 7 8 ,- ...................... 10 11 12 13 14 75 t '14 15 16 17 18 7 11 12 13 14 15 17 18 19 20 21 23 21 22 23 24 25f 18 19 20 21 22 23 24 .. ?5 .. 26 _ 27 28`29 28 29 30 31 24.25 26 27 28 29 �3i7,.. 30'31 Securities ['start .P Qot 6/15/10 6/15/10 F LC #1506 Expires 1/18/08 Preserve at Bluff Creek Ist 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 authorized reducti n to $37,775. Wa ng for confirmation from bank. Kim 11/30/09 - Received letter from FDIC indicating Guaranty Bank is in receivership and letter of credit is being r pudiated. Per Roger Knutson, the city can request a claim form and file a claim but he is 1 the city will receive anything .................................................................. ............................... doubtf anything. .. .................................................................................. ............................... FDIC Federal Deposit Insurance Corporation 1601 Bryan Street, Dallas, TX 75201 Division of Resolutions and Receiverships November 11, 2009 CERTIFIED MAIL RETURN RECEIPT REQUESTED RECEIPT NO. }oo 4 LgZO Ooo3 2So 2581 City of Chanhassen 7700 Market Blvd. Chanhassen, MN 55317 Subject: 10105 — Guaranty B Austin, Texas — In P RECEIVED NOV 3 0 2009 CITY OF CHANHASSEN Repudiation of Letter of Credit Letter of Credit #1506 dated May 22, 2007, between Guaranty Bank and The Ryland Group Closing Date: August 21, 2009 Claims Bar Date: Nine v Days From Date Of This Letter Dear Sir or Madam: On August 21, 2009, Guaranty Supervision. Subsequently, the Federa receiver of the Institution (the "Receivf charged with the duty of winding up th goal, the Receiver is given the right un entered into by the Institution where it repudiation will promote the orderly ac of the Institution's affairs. The Institution's records indicate that you may be a party to the above - referenced Letter(s) of Credit. The Receiver has determined that the above - described Letter(s) of Credit are burdensome and that disaffirmance of said Letter(s) of Credit will promote the orderly administration of the Institution's affairs. The purpose of this letter is to inform you that the Receiver has elected to disaffirm the above - referenced Letter(s) of Credit to the full extent, if any, that it represents an enforceable obligation of the Institution r the Receiver. This disaffirmance shall only affect an obligation of the Institution or the Recei er, and is not a dissaffirmance on behalf of other parties, if any. Sank (the "Institution ") was closed by the Office of Thrift Deposit Insurance Corporation was appointed as °" ). Under the laws of the United States, the Receiver is affairs of the former Institution. In order to achieve this er 12 U.S.C. Section 1821(e) to repudiate undertakings inds such undertakings to be burdensome and where such You may determine that the Receiver's decision to disaffirm the above Letter(s) of Credit gives you a claim against the receivership. If so, you must file a Proof of Claim form with the Receiver no later than ninety days from the date of this letter. A Proof of Claim form may be obtained by calling (972) 761 -8677. Federal Deposit Insurance Corporation as Receiver for Guaranty Bank 1601 Bryan Street Dallas, TX 75201 Attention: Claim Agent If you have any questions concerning any of the matters discussed above, you may contact the Receiver at the above address. Federal Deposit Insurance Corporation as Receiver of Guaranty Bank Mark Randall, Receiver -In- Charge FDIC as Receiver for Guaranty Bank cc: Receiver -In- Charge: Mark Claims Department Legal Dept: Lee Van Fleet CITY OF October 2, 2009 CHMSEN 7700 Market Boulevard PO Box 147 Ms. Juanita Vidal Chanhassen, MN 55317 Loan Administrator Guaranty Bank Administration 8333 Douglas Phone: 952.227.1100 Dallas, TX 75225 Fax: 952.227.1110 Re: Letter of Credit 1506 Reduction — The Preserve at Bluff Creek Building Inspections Planning Case No. 2006 -14 Phone: 952.227.1180 Fax: 952.227.1190 Dear Ms. Vidal: Engineering Phone: 952.227.1160 Please accept this letter as authorization to reduce Letter of Credit No. 1506 by Fax: 952.227.1170 $84,826 to leave a remaining balance of $37,775. Please send written Finance acknowledgement of this reduction at your earliest convenience. Phone: 952.227.1140 If you have any questions or concerns, please contact me by email at Fax: 952.227.1110 jsinclair @ci.chanhassen.mn.us or at 952 227 - 1133. Park & Recreation Phone: 952.227.1120 Sincerely, Fax: 952.227.1110 CITY OF CHANHASSEN Recreation Center 2310 Coulter Boulevard <� Phone: 952.227.1400 Fax: 952.227.1404 j Jill Sinclair Planning & Environmental Resource Specialist Natural Resources Phone: 952.227.1130 JS:k Fax: 952.227.1110 Public Works c: Mark Sonstegard,.Ryland Homes 1591 Park Road Phone: 952.227.1300 gAplan\2006 planning cases \06 -14 the preserve \lc reduction 10- 2- 09.doc Fax: 952.227.1310 Senior Center Phone: 952.227.1125 Fax: 952.227.1110 Web Site www.ci.chanhassen.mn.us Chanhassen is a Community for Life - Providing for Today and Planning for Tomorrow Re: The Preserve at Bluff Creek Landscape LOC # 1506 Reduction Request Dear Jill: Currently the City of Chanhassen is holding a $122,601.00 Landscape Surety for common area landscaping, irrigation, and foundation plantings within The Preserve at Bluff Creek development. As you may know, Ryland Homes did not exercise its options to develop additional lots with Gayle Degler, the landowner. Therefore development has been significantly reduced in size. To date, Ryland has completed all common area landscaping associated with the 1S Addition and the tot lot park area associated with the 2" Addition. At this time Ryland request a reduction in the current surety to $39,963 which reflects the amount of landscaping remaining to be completed. Remaining landscaping to be completed: (17) Foundation Landscape Packages @ $740 $12,580 (42) Blvd Trees @ $420 $17,640 Sub Total $30,220 Total adding 25% $37,775 Attached for your use is a site map of the Preserve noting which lots are "Occupied" or complete and which lots remain to be completed, "Available ", "Sold ", or "Quick Delivery". 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 I Land Development Manager Ryland Homes, Twin Cities RYLAND HOMES® TWIN CITIES DIVISION 7599 Anagram Drive Eden Prairie, MN 55344 952 - 229 -6000 Office 952 - 229 -6024 Fax September 29, 2009 v✓ww.rylandtwincities . com Jill Sinclair Builder's License #20035443 City of Chanhassen 7700 Market Boulevard PO Box 147 Chanhassen, MN 55317 Re: The Preserve at Bluff Creek Landscape LOC # 1506 Reduction Request Dear Jill: Currently the City of Chanhassen is holding a $122,601.00 Landscape Surety for common area landscaping, irrigation, and foundation plantings within The Preserve at Bluff Creek development. As you may know, Ryland Homes did not exercise its options to develop additional lots with Gayle Degler, the landowner. Therefore development has been significantly reduced in size. To date, Ryland has completed all common area landscaping associated with the 1S Addition and the tot lot park area associated with the 2" Addition. At this time Ryland request a reduction in the current surety to $39,963 which reflects the amount of landscaping remaining to be completed. Remaining landscaping to be completed: (17) Foundation Landscape Packages @ $740 $12,580 (42) Blvd Trees @ $420 $17,640 Sub Total $30,220 Total adding 25% $37,775 Attached for your use is a site map of the Preserve noting which lots are "Occupied" or complete and which lots remain to be completed, "Available ", "Sold ", or "Quick Delivery". 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 I Land Development Manager Ryland Homes, Twin Cities Unavailable (0) Available (3) Model (2) Sold (13) Q 1 0,q/ - j2- 0 G4� RYLAND HOMES @ THE PRESERVE Last Revised: 9/28/2009 0005 0146 \ 0147 F G 0148 0152 0149 0151 n 1 q 0150 0031 '. 0038 L 0039 0094 0093 0092 0091 0090 0089 0095 0088 0096 0087 0135 0086 0134 O� 0085 0133 �� 0084 117 0132 01 - 0083 O 0118 0131 0119 0130 0120 0129 0082 0081 0080 0079 0078 0077 DEGLER LANE �7 0121 0128 m 0076 0137 0138 0139 0140 z 0122 0127 0136 O 0075 Z A 0074 0141 < O 0123 0124 0125 0126 0145 0144 0143 0142 m �7 ? 0073 m m RIVER ROCK DRIVE N. 0072 0071 0058 100591 0060 1 1 0061 I0062I0063I0064I0065I0066I006710068I0069I0070 ouapppr ANK December 5, 2007 RECEIVE DEC 0 6 2007 CITY OF CHAWHA &WEN City of Chanhassen, Beneficiary 7700 Market Blvd Chanhassen, MN 55317 Attn: City Manager Re: Our Standby Letter of Credit No. 1506 Account of The Ryland Group For $ 122,601.00 Gentlemen: On November 26, 2007 we sent you a letter advising that the validity of the above referenced letter of credit would not be extended beyond its current expiration date of January 18, 2008. Please disregard the said letter. We hereby confirm that this letter of credit will be automatically extended to January 18, 2009 in accordance with its automatic extension clause. If you have any questions, please contact me directly at 214 - 360 -1632 GUARANTY BANK B Na Juanita Vidal Title: Loan Administrator CC:Mark Sonstegard Land Development Manager Ryland Homes, Twin Cities Sent via FedEx cl 'X 07 2007 8333 Douglas MEMBER n Dallas, Tx 75225 FDIC ctlie. November 28, 'M' Juanita Vidal Guaranty Bank 8333 Douglas Ave. Dallas, TX. 75225 L ' HOMES Re: Letter of Credit No. 1506 Dear Juanita Vidal: "7 TWiN CIT19S DIVISION 7599 Anagram Drive Eden Prairie, MN 55344 952 -229 -600 Office 952- 229 -5024 Fax www. ryland.com Builder's License #20039443 Ryland Homes was coped on your November 26' letter to the City of Chanhassen. (attached) noting a 45 day notification of cancellation on Letter of Credit No. 1506, The LOC sill needs to be in place, therefore please renew the Letter of Credit No. 1506 for an additional year. PIease call me at (952) 229 -6007 if you have any questions. Sincerely, Mark Sod tegard Land Development Manager Ryland I Tarn: s, Twin Cities CC: Andrew Lee, Ryland Homes City of Chanhassen 0 CITY OF CENASSEN 7700 Market Boulevard PO Box 147 Chanhassen, MN 55317 November 27, 2007 Ryland Homes Mark Sonspegard Land Development Coordinator 7599 Anagram Drive Eden Prairie, MN 55344 Administration Phone: 952.227.1100 Re:. Landscape Letter of Credit No. 1506 Renewal Request Fax: 952.227.1110 The Preserve 1" Addition — Planning Case 06 -14 Building Inspections Phone: 952.227.1180 Dear Mr. Sonspegard: Fax: 952.227.1190 Engineering The City of Chanhassen received a 45 -day notification of cancellation of the Phone: 952.227.1160 above- referenced letter of credit from Guaranty Bank. The letter of credit is due Fax: 952.227.1170 to expire on January 18, 2008. The purpose of this lettef, of credit is to guarantee Finance all common area landscaping, irrigation, and foundati "I" lantings. Since the Phone: 952.227.1140 roject is incomplete the City is requesting a new l ar d , ft p , e letter of credit in the Fax: 952.227.1110 amount of $122,601.00 be issued with an expiration ale VI f. January 18, 2009. 2 �3 Park & Recreation Phone: 952227.1120 If you have anyq>a�slns oar concentis about this matter, lease`ntact me. Fax: 952.227.1110 Recreation Center Sincerely 1 2310 Coulter Boulevard Phone: 952.227.1400 1 r s Fax: 952.227.1404 t X Planning &� Natural Resources Phone: 952.227.1130 Jill Sinclair Fax: 952.227.1110 Environmental Res�ce 'A A Public Works ` F f r J S :ktm .E^ 1591 Park Road Phone: 952.227.1300 �� r Y Fax: 952.227.1310 r a t F 4 < Enclosures Senior Center g��>��0 � �� 4t1i ��pwe� se��l��t�s��a�dn �e��st`�d� � �� 0 R�� -'� skt Phone: �- 952.227.1125 x� e 4 t x s r�'% Fax: 952.227.1110 Web Site www.ci.chanhassen.mn.us The City of Chanhassen • A growing community with clean lakes, quality schools, a charming downtown, thriving businesses, winding trails, and beautiful parks. A great place to live, work, and play. GuaM November 26, 2007 City of Chanhassen, Beneficiary 7700 Market Blvd. Chanhassen, MN 55317 Attention: City Manager Gentlemen: IRREVOCABLE LETTER OF CREDIT NO. 1506 Guaranty Bank's Letter of Credit No. 1506 for the account of The Ryland Group, Inc. dated January 18, 2007 in the amount of $122,601.00 is due to expire on January 18, 2008. As you are aware, a 45 day notification of cancellation is a condition of this Letter of Credit. This is your official notification that Guaranty Bank has elected not to renew of Letter of Credit No. 1506 and it will expire on January 18, 2008. If you should still require this Letter of Credit, please contact The Ryland Group, Inc. GUARANTY BANK By: V Na : Juanita Vidal Title: Loan Administrator i Cc: The Ryland Group I RECEIVED i NOV 2 7 2007 8333 Douglas MEMBER n Dallas, TX 75225 FDIC �EW6EA Ou CRIA BANK a Temple/nland company Date: January 18, 2007 IRREVOCABLE STANDBY LETTER OF CREDIT NUMBER: 1506 Beneficiary /Seller: City of Chanhassen 7700 Market Blvd. Chanhassen, MN 55317 Applicant/Buyer. The Ryland Group, Inc. 24025 Park Sorrento, Suite 400 Calabasas, CA 91302 Amount: Not Exceeding U.S. Dollars $122,601.00 One Hundred Twenty Two Thousand Six Hundred One and No /100 U.S. Dollars Expiry Date: January 18, 2008 At Our Counters We hereby issue in your favor this Irrevocable Standby Letter of Credit, in the aggregate amount of One Hundred Twenty Two Thousand Six Hundred One and No /100 U.S. Dollars ($122,601.00), which is available by presentation of your draft at sight drawn on Guaranty Bank, having an address at 8333 Douglas Avenue, Dallas, Texas 75225, attention: Home Builder Finance Loan Support, 2 " Floor, bearing the clause: "Drawn under Letter of Credit No. 1506 of Guaranty Bank" accompanied by the original of this Letter of Credit and the signed statement addressed to us in the form attached hereto as Attachment A and incorporated herein by this reference. Notwithstanding anything set forth therein to the contrary, this Letter of Credit shall remain in force until the "Expiry Date" specified above. This Letter of Credit sets forth in full the terms of our undertaking to you. Such understanding shall not in any way be modified, amended or amplified by reference to any document or instrument referred or related to herein and any such reference shall not be deemed to incorporate herein by reference any such document or instrument. The original of this Letter of Credit must be presented to us with any drawings hereunder for our endorsement of any payments effected by us. Partial Drawings are permitted. This Letter of Credit shall automatically renew, without amendment, for successive one -year terms unless, at least forty-five (45) days prior to the next annual renewal date (which shall be January 18 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, 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. 8333 Douglas Ave. MEMBER Dallas, TX 75225 FDIC ENDEI SCANNED This Letter of Credit is irrevocable and is not transferable nor assignable. If cancellation of this Letter of Credit is required before the expiry date stated herein as extended from time to time, the original of this Letter of Credit must be returned to us accompanied by the Beneficiary's Letter requesting cancellation in the form attached hereto as Attachment B. This Letter of Credit shall also be automatically reduced upon receipt by us of Attachment B. An amendment to this Letter of Credit will be issued to confir n this action. Except as expressly provided herein, this Letter of Credit is subject to the Uniform Customs and Practice for Documentary Credits (current revision), International Chamber of Commerce Publication No. 500. If you require any assistance or have any questions regarding this transaction, please call Linda Bryant at 214 -360- 4874. Guaranty Bank By: Name: Linda Bryant Title: Senior Vice President Director, Home Builder Finance Loan Support Irrevocable Letter of Credit No. 1506 Attachment A Attached to and made a part of Irrevocable Standby Letter of Credit No. 1506, dated January 18, 2007 issued by Guaranty Bank to City of Chanhassen (`Beneficiary") for The Ryland Group ( "Applicant'). Statement . The undersigned, being a Beneficiary under Irrevocable Standby Letter of Credit No. 1506 (the "Letter of Credit') hereby certifies and represents that Buyer is in default of its obligation under that certain Agreement between Buyer and Seller, dated 200_. Seller has given Buyer the attached written thirty (30) days notice to cure such default and Buyer has failed to cure such default within the aforesaid thirty (30) days cure period. Beneficiary By: _ Name: Title: SCANNED Irrevocable Letter of Credit No. 1506 Attachment `B" (On Beneficiary's Letter head) Date: January 18, 2007 The Ryland Group, Inc. AND Guaranty Bank 24025 Park Sorrento, Suite 400 8333 Douglas Avenue Calabasas, CA 91302 Dallas, TX 75225 Attn: Home Builder Finance Loan Support, 2 " Floor Ref: Letter of Credit No. 1506 As Beneficiary of the above referenced Letter of Credit, we request that the following actions(s) be taken as evidenced by our initials and signature below: Please initial: REDUCE the amount from $ to $ EXTEND the expiry date from to CANCEL this Letter of Credit effective immediately. Enclosed herewith are the original Letter of Credit documents, including the amendments thereto. (Note: If any of these documents are not included with this letter, you must specify each missing document and explain the reason why they are not being returned.) Authorization: City of Chanhassen By: Name: Title: The Ryland Group, Inc. By: _ Name: Title: SCANNED January 19, 2007 City of Chanhassen Jill Sinclair Environmental Resource Specialist 7700 Market Blvd. P.O. Box 147 Chanhassen, MN 55317 Re: The Preserve - Landscape Bond Jill, www.ryland.com Builder's License #20035443 Enclosed is Letter of Credit #1506 for landscaping at The Preserve at Bluff Creek 1St Addition. Please retain this letter of credit until the work is complete. Please contact me with any questions or concerns. Sincerely, Matt DuCette Ryland Homes Land Development Coordinator 612.366.0735 mobile 952.229.6059 office 952.229.6024 fax Enclosure (1) SCANNED RYLAND HOMES® JA 2 3 20t TWIN CITIES DIVISION 7599 Anagram Drive CITY OF CHANH Eden Prairie, MN 55344 ►1 A�7 6&,,,. 952- 229 -6000 Office 952- 229 -6024 Fax January 19, 2007 City of Chanhassen Jill Sinclair Environmental Resource Specialist 7700 Market Blvd. P.O. Box 147 Chanhassen, MN 55317 Re: The Preserve - Landscape Bond Jill, www.ryland.com Builder's License #20035443 Enclosed is Letter of Credit #1506 for landscaping at The Preserve at Bluff Creek 1St Addition. Please retain this letter of credit until the work is complete. Please contact me with any questions or concerns. Sincerely, Matt DuCette Ryland Homes Land Development Coordinator 612.366.0735 mobile 952.229.6059 office 952.229.6024 fax Enclosure (1) SCANNED