1997-63859
HRA RESOLUTION N0.638
RESOLUTION AUTHORIZING A $180,000 REDUCTION IN IRREVOCABLE
STANDBY LETTER OF CREDIT ORIGINALLY DATED NOVEMBER 15, 1996
AND AMENDED APRIL 4, 1997, 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 an Irrevocable Standby Letter of
Credit in the amount of $2.0 million, dated November 15, 1996, as performance security for
certain site assembly costs -for Phase II, Shops at Lyndale, and a Letter of Undertaking,
dated December 16, 1996, for outstanding site work for Phase I and II, Shops at Lyndale;
and
WHEREAS, on March 17, 1997, the HRA approved a reduction to the $2.0 million
Irrevocable Standby Letter of Credit, dated November 15, 1996, by $450,000 and the
Developer provided the HRA with Amendment Number 1 to the Irrevocable Standby Letter
of Credit, dated April 4, 1997, in the new total amount of $1,550,000 as performance
security for certain site improvements and site assembly costs for the Shops at Lyndale,
Phase II; and -
WHEREAS, the HRA has billed the Developer for certain site assembly costs and
the Developer is current; and
WHEREAS, Developer has requested that the Irrevocable Standby Letter of Credit,
originally dated November 15, 1996 and amended on April 4, 1997, be further reduced by
$180,000; and
WHEREAS, staff has found that the request for another reduction in the Irrevocable
Standby Letter of Credit, originally dated November 15, 1996 and amended on April 4, 1997
is reasonable; and -
WHEREAS, the Letter of Undertaking, dated December 16, 1996, for certain
outstanding site improvements expired on June 30, 1997; and
WHEREAS, the staff has found that the Developer is making progress towards the
completion of all outstanding site work under said Letter of Undertaking and recommends
an extension of an additional 60 days, or no later than September 19, 1997, for unfinished
work.
HRA Resolution No. 638 -2-
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, originally dated
November 15, 1996 and amended on April 4, 1997, by $180,000 and to obtain from the
Developer at the appropriate time Amendment Number 2 to the said Letter of Credit for a
new total of $1,370,000; and direct staff to oversee and facilitate the completion of the
outstanding site work under the Letter of Undertaking, dated December 16, 1996, within the
extended 60 day time period, not later than September 19, 1997; and that further reduction
in the Letter of Credit be contingent upon CSM Corporation responding to the request to
take action to resolve traffic concerns related to exiting to westbound 77th Street from the
Shops at Lyndale.
Adopted by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota this 21st day of July, 1997.
Thomas E. 1=farms, Chair
ATTEST:
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ichael San a ,Secretary
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