2000 HRA Resolution 0753
HRA RESOLUTION NO. 753
RESOLUTION AUTHORIZING A $300,000 REDUCTION IN
IRREVOCABLE STANDBY LETTER OF CREDIT
DATED OCTOBER 13, 1999 FOR THE ACCOUNT OF CSM INVESTORS, INC.
SHOPS AT LYNDALE, PHASE II
WHEREAS,
the Housing and Redevelopment Authority (HRA) entered into an
Agreement with CSM Corporation (Developer), a Minnesota business corporation,
dated April 11, 1994, pursuant to and in furtherance of the ILN Redevelopment Project
heretofore adopted by the City and the Richfield Housing and Redevelopment Authority;
and
WHEREAS,
the Agreement obligated the Developer to construct certain
improvements to property identified in that Agreement; and
WHEREAS,
Section 4.7 of the Agreement required the HRA to furnish the
Developer with a Certificate of Completion upon completion of the Phase II construction
in accordance with Concept Plans; and
WHEREAS,
the Developer originally provided the HRA with an Irrevocable
Standby Letter of Credit in the amount of $2.0 million dated November 15, 1996 as
performance security for payment of assembly costs for the Shops at Lyndale, Phase II;
and
WHEREAS
, since then the Developer has made certain site assembly payments
and has most recently requested that the Irrevocable Standby Letter of Credit dated
October 13, 1999, be reduced in the amount of $300,000; and
WHEREAS
, staff has found that payments made toward site assembly costs
would warrant the reduction in the Irrevocable Standby Letter of Credit dated October
13, 1999.
NOW THEREFORE, BE IT RESOLVED
by the Housing and Redevelopment
Authority that the Executive Director and HRA Chair are directed to take all steps
necessary to facilitate a reduction in the Irrevocable Standby Letter of Credit dated
October 13, 1999 by $300,000 and obtain a replacement Letter of Credit in the amount
of $1,070,000 from the Developer.
Adopted by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota this 18th day of January, 2000.
________________________
Thomas E. Harms, Chair
ATTEST:
_________________________
Michael Sandahl, Secretary