1997-623~4
HRA RESOLUTION N0.623
RESOLUTION AUTHORIZING A $450,000 REDUCTION
IN IRREVOCABLE STANDBY LETTER OF CREDIT
DATED NOVEMBER 15, 1996 FOR THE ACCOUNT
OF CSM INVESTORS, INC.
SHOPS AT LYNDALE, PHASE II
WHEREAS, the Housing and Redevelopment Authority 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 provided the HRA with a Letter of Undertaking dated
December 16, 1996 and Irrevocable Standby Letter of Credit in the amount of $2.0
million dated November 15, 1996 as performance security for certain site improvements
and site assembly costs for the Shops at Lyndale, Phase I I; and
WHEREAS, the Developer has made certain site assembly payments and has
requested that the Irrevocable Standby Letter of Credit dated November 15, 1996 be
reduced in the amount of $450,000; and
WHEREAS, staff has found that payments made toward site assembly costs
would warrant the reduction in the Irrevocable Standby Letter of Credit dated November
15, 1996.
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
November 15, 1996 by $450,000 and obtain a replacement Letter of Credit in the
amount of $1,550,000 from the Developer.
Adopted by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota this 17th day of March, 1997.
Thomas E. Harms, Chair
A EST:
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Michael San I, Secretary