2000 HRA Resolution 0763
HRA RESOLUTION NO. 763
RESOLUTION AUTHORIZING A $150,000 REDUCTION IN
IRREVOCABLE STANDBY LETTER OF CREDIT
DATED FEBRUARY 22, 2000 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
February 22, 2000, be reduced in the amount of $150,000; and
WHEREAS
, staff has found that payments made toward site assembly costs would
warrant the reduction in the Irrevocable Standby Letter of Credit dated February 22, 2000.
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
February 22, 2000 by $150,000 and obtain a replacement Letter of Credit in the amount of
$920,000 from the Developer.
Adopted by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota this 15th day of May, 2000.
________________________
Thomas E. Harms, Chair
ATTEST:
_________________________
Michael Sandahl, Secretary