01-819r
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HRA RESOLUTION NO. 819
RESOLUTION AUTHORIZING THE RELEASE OF THE
IRREVOCABLE STANDBY LETTER OF CREDIT
DATED OCTOBER 30, 2000 FOR THE ACCOUNT OF
CSM INVESTORS, INC. FOR SHOPS AT L YNDALE, PHASE II
WHEREAS, the Housing and Redevelopment Authority (the "HRA") entered into an
Agreement with CSM Corporation (the "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 3.3(g) of the Agreement required the Developer to furnish the
HRA with performance security for certain of Developer's obligations under the Agreement;
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 site assembly costs for the Shops at Lyndale, Phase II; and
WHEREAS, the HRA last approved a $150,000 reduction to the Irrevocable
Standby Letter of Credit on May 15, 2000, which amounts to a new total of $920,000; and
WHERES, the Irrevocable Standby Letter of Credit, dated May 22, 2000, was
replaced with an Irrevocable Standby Letter of Credit, dated October 30, 2000, with an
expiration date extended to November 15, 2001; and
WHEREAS, since then the Developer has made final site assembly payments and
has most recently requested that the Irrevocable Standby Letter of Credit, dated October
30,2000, be released; and
WHEREAS, staff has found that final payments made toward site assembly costs
warrant the release of the Irrevocable Standby Letter of Credit, dated October 30, 2000;
and
WHEREAS, staff has found that a cash deposit of $10,000 (the "Deposit") to be
made by the Developer with the HRA will ensure the necessary clean-up legal work
required to close out the condemnation files.
NOW THEREFORE, BE IT RESOLVED by the Housing and Redevelopment
Authority that upon receipt of the Deposit, the Executive Director and HRA Chair are
directed to take all steps necessary to facilitate the release of the Irrevocable Standby
Letter of Credit, dated October 30,2000.
Adopted by the Housing and Redevelopment ~o (ty in an::;Z:for he City of
Richfield, Minnesota this 21st day of May, 2001.
, !
Thomas E. Harms, Chair
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