1997-639HRA RESOLUTION N0.639
RESOLUTION AUTHORIZING EXTENSION
OF LETTER OF CREDIT, MERIDIAN CROSSINGS
WHEREAS, Meridian Properties Real Estate Development LLC (Meridian) is the
developer under the Contract for Private Development with the HRA dated November 6,
1995 and subsequently amended; and
WHEREAS, pursuant to the Third Amendment to the Contract for Private
Development dated April 21, 1997 and the Right of Entry Agreement dated February
18, 1997, Meridian provided the HRA with two letters of credit in the aggregate amount
of $600,000; and
WHEREAS, on or about July 30, 1997, Meridian extended one Letter of Credit
(in the face amount of $495,293) to November 30, 1997 and further has authorized the
HRA to withhold $105,000 of the funds due Meridian as additional security; and
WHEREAS, the extended Letter of Credit and the cash are to be available to the
HRA in the same manner and for the same purposes as the security described in the
Third Amendment and the Right of Entry Agreements; and
WHEREAS, Meridian acknowledges that the extended Letter of Credit is to be
further extended if the matters for which it serves as security have not been resolved
prior to the expiration date.
NOW, THEREFORE, BE IT RESOLVED by the HRA as follows:
1. The Letter of Credit in the face amount of $495,293 with an expiration date of
November 30, 1997 and the cash retainage of $105,000 are hereby accepted as
full and adequate security for the obligations described in the Third Amendment
and the Right of Entry Agreement, and are available for use by the HRA in the
same manner as the security described therein.
2. Meridian shall continue to extend the Letter of Credit beyond the current
expiration date until relieved of the obligations by proper action of the HRA.
Adopted by the Housing and Redevelopment ority in and for the City of
Richfield, Minnesota this 18th day of August 1997
Thomas E. Harms, Chair
ATTEST:
.~~/
Michael Sand
60