08-26-85 agenda~~_ ~
CITY OF RICHFIELD, MINNESOTA
Office of City Manager/HRA Executive Director
Council Letter No. 310
HRA Letter No. 45
Agenda August 26, 1985
The Honorable Mayor
Members of the City Council. --
Housing and Redevelopment
Authority Commissioners
City of Richfield
Subject: Request by the Woodlake Point Developer to reduce
the $25,000 Letter of Credit by 50~ Retained by
the HRA.
Council Members and Commissioners:
The Contract for the Sale of Land for Private Development
was executed May 14, 1984, between the HRA and the Woodlake Point
developer. 'The contract requires the Woodlake Point developer
to provide a $25,000 Letter of Credit to the HRA for the
pro j.ect.
As of the date of closing, December 27, 1984, a Letter of
Credit was provided (see attached Letter of Credit)'. The Letter
of Credit holds the Developer liable to the HRA for liquidated
money damages up to $25,000 on the Woodlake Point Condominium
project,. Housing Component A.
Section 4.10 of the Contract also states;
"The Letter of Credit shall be retained by the HRA until the
construction of the principal building on such portion of
the property is thirty percent (30~) complete as certified
by the Developer's architect; at which point the letter of
credit .amount applicable to that component may be reduced by
fifty percent (50~) and shall be fully released when tree
building is one hundred percent (100) complete as certified
by Developer's architect."
Attached is a communication from Richard Krier, Vice
President of Derrick Companies, reporting that 30~ or more of
the Woodlake Paint Condominium project has been certified by the
architect. as being complete. The letter from Gary Tushie, with
the architectural firm of Tushie-Montgomery Associates, Inc.,
certifying the project as 36~ complete, is also attached.
-2-
~ - a-'
Staff has also contacted Phillip Olson, the Project Manager,
to verify the percent of completion based on a cost stand
point. Mr. Olson indicated that as of August 1, 1985, the
project was ~7~ complete from a cost standpoint.
Inasmuch as the HRA is a party to the contract with the Wood
Lake Point developer, it is appropriate for-the HRA to act upon
this request. The information has also been presented to the
city council for information, but requires no council action at
this time.
It is recommended that the HRA authorize the Developer to
submit a new Letter of Credit in the amount of $12,500 for the
6Joodlake Pcint project (Housing Component A).
Respectfully submitted,
~~~u•_~
Steven Dev' c~'~
Acting Executive Director
Acting. City Manager
SD/eja
~ ~
-`,)
4 `j4.
dr~~~~4
/~~~~~'
~~ ~
The ~emctc Companies 1650 Shelcrd Tower • Minneapolis, MN 5..426 • 612%546-2276
26 July 1985
sir. John Cartwright, .Executive Director
CITY OF RICHFIELD HOUSIVG AI9'D
REDEVELOP*iE.1T AUTHORITY
6700 Portland Aveaue South
Richfield, Minnesota 55423
Subject: WoodI.ake Point
Dear John:
As per the Redevelopment Agreement, 5.07 of the construction
Letter of .Credit may be released when thirty Fercent (307) of the
' building is c8rtified completed by the architect. Attached is a
letter from the architect certifging same.
Please authorize a releasa of the $25,000 Woodlake Point Letter
of Credit which we will then replace with a $I 2,50.0 Letter of
Credit.
Should you have any questions, please call.
Siacerelp,
~ ~.~/~--
~'C
Richard C. Brier, AICP
Vice President
Derrick Companies
RCZ:c1b
enclosure
cc: Steve Yurick
John Dean
~( -."~
~+~ ~ 2LL4~
• AN INOEPENOENT BANK
6625 Tyndale Avenue So. Richfield. Minnesota 55423 !Telephone: 86~ -7355
December 27, 1984
Housing and Redevelopment Authority
of the City of Richfield
6700 Portland Avenue South
Richfield, Kinnesota 55423
ATTV: John Cartwright
RE: Our Irrevocable Standby Letter of Credit DIo. 305
amount: $25,000.00 ~*U.S. Funds
Gentlemen:
We hereby establish our Irrevocable Standby Letter of Credit fE305 and
authorize you to value on us at sight the sum not to exceed $25,000.00
for the account of. :°farket Plaza Corp. (concerning the development of a
Condominium component in the Lyndale-Hub-Nicollet ??roject area described
herein).
For I00/, value of beneficiary's signed statement (signature verified by
financial institution) as follows: '
"`iarket- Plaza Corp., has defaulted on that certain 'contract for
the sale of. land for private development,' dated :'!ay 14, 1984
by and between the Housing and Redevelopment Authority of the
City of Richfield and ~Sarket Plaza Corp. as per Article III,
Section 3.3 or Article IV, Section 4.10 thereof."
DRAFTS DRAIJ~I L"NDER THIS LETTER OF CREDIT "?UST BE CLAUSFD "DRA>~'V UNDER
RICHFIELD BAl~'K & TRUST C0.'s LETTER OF CREDIT X305 DATED DECKER 27,
1984."
I~ HEREBY AGREE. TdITH DRASIERS , ENDORSERS , A~~?D BOT?A FIDE HOLDERS OF DRAFTS
DRAW*i UNDER A_ND IN CO'•~2DLIANCE WITH.THE TERMS OF THIS LETTER OF CREDIT
THAT THE SA.'°fE SHALL BE DULY HONORED UPON D?2FSI?.ITATIOr1 AT THIS RA:V:~ IF
DRAIN A.'ND :NEGOTIATED Old OR BEFORE i4ARCH 27, 1987.
EXCE?'T AS OTHER:JISE EXPRESSLY STATED, THIS LETTER OF CREDIT IS SUBJECT
TO THE UNZFOR,'~f CUSTO.iS Ah'D PP.ACTICE FOR DOCUMENTED CREDITS , INTER~IATIO:~IAL
CHA~`D3ER OF COi~TM1ERCE, DUBLICATION ~r290, EFFECTIVE OCTOBER 1, 1984.
RICHFIELD BAs`TK & TRUST CO.
n A. Wittek
sistant Vice President
oranercial Loan Department
~/ ~
CITY OF RICHFIELD, MINNESOTA
Office of City Manager/HRA Executive Director
Council Letter No. 309
HRA Letter No. 44
Agenda. August 26, 1985
The Honorable Mayor
Members of the City Council
Housing and Redevelopment
Authority Commissioners
City of Richfield
Subject: Amendments to the Market Plaza Corporation
Developers Agreements
Council Members .and Commissioners:
On May 14, 1984, the City of Richfield (City) and the
Housing and Redevelopment Authority (HRA) entered into a.
contract for the Sale of Land for Private Development with
Market Plaza Corporation (Developer), Arkell Development
Corporation (Co-developer) and E.J. Plesko Association Inc.
(Co-developer).
The City and the HRA are being asked to consider several
amendments to the Developerts Agreement, Assessment Agreement,
and Agreement to Pay Deficiencies. The new language separates
the obligations of tYie developers of the Shopping Center
Component from the Apartment Component. With these revisions,
each project will be freestanding and pay their own deficiencies
without the support of the other.
At the July 22nd meeting, the City Council also approved the
modifications to Exhibit H of the developers agreement. The
items. to be reflected in the revised Exhibit H are:
-a reconfiguration of the building on the east end;
-an increase in the gross floor area from 316,400 square
feet to 322,659 square feet;
-the building has been pivoted southward slightly;
-an addition of a maintenance building on~the west side of
the structure;
-a reconfiguration of commercial spaces and a reduction in
the mall width;
-a reconfiguration in the apartment guest parking area and
in the commercial parking area adjacent to ~dendys; and,
-a revision in the exterior facade materials.
n
~~ vC~
-2-
A revised Exhibit H will be presented on Monday evening.
It will reflect all of the modifications identified above..
This will be a part of the amendments made to the developers
agreement.
The language in the Developers Agreement will also be
revised to reflect the off-street loading and unloading area for
the .Market Plaza housing component. The-City. will be given the
right to order the developer to construct off-street parking at
the Developer's expense if it is found by the City to be
necessary. The City Council recommended this amendment at the
July 22, 1985, public hearing.
The documents are being prepared by the Developer's legal
counsel and were not available at the time this letter was
written. However,-they will be distributed prior to the Monday
evening meeting.
It is recommended that the .City Council and the HRA
authorize the recommended amendments to the Developer's
Agreement. This action must occur prior to the closing on the
Housing Revenue Bonds.
Respectfully submitted,
teven L. v'ch
Acting City Manager
Acting HRA Executive Director
SD/eja