Agenda - Council - 11/12/2013 - Laserfiche WebLink

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(a) Cash escrow accounts with bona fide title insurance companies as to which the City is a third party beneficiary (b) Letters of credit (c) Peiformance bonds (d) Insurance policies insuring performance (e) Evidence of construction financing sufficient to fund the improvements in question, with delivery to the City of copies of construction draws, hen waivers or other satisfactory evidence of payment of invoices as construction proceeds (f) Evidence of lines of credit sufficient to fund the improvements in question, updated regularly (g) Other arrangements satisfactory to the City The City Council may also consider the alternative security arrangements descnbed in this Section 12 4 in connection with the City's establishment of the requirements for Secondary Development Agreements Each letter of credit required under the terms of this Master Agreement must be an Irrevocable Letter of Credit from a state or national banking association or other financial institution reasonably acceptable to the City (each a "Letter of Credit") Unless otherwise expressly stated in this Master Agreement, a Letter of Credit must be in amount equal to 125% of the City's estimate of the cost to perfoini the obligation the perfoiniance of which the Letter of Credit secures Each Letter of Credit must obligate the issuer thereof to honor the City's site diaft for the full amount of the Letter of Credit provided the City submits to the issuer, along with the City's site draft, a Certificate signed by the City Administrator of the City of Ramsey stating the Developer is in default in the performance of the obligation the Letter of Credit secures (as stated in the Letter of Credit) Each Letter of Credit, except for the letter of credit the Developer provides pursuant to Section 10 1(a) which may be for a term of one year and, if not released, must be renewed pursuant to the requirements of this Section 12 4, must provide that it will automatically ienew until released by the City Each Letter of Credit must, in all other respects, be in a form reasonably acceptable to the City Until the Developer completes the performance of the obligation the Letter of Credit secures, the Developer must obtain and provide the City with extensions or renewals of the Letter of Credit at least thirty (30) days prior to the stated expiration date of the Letter of Credit The term "Letter of Credit" as used in this Master Agreement means the original Letter of Credit the Developer delivers to the City, each extension of renewal of the original or any subsequent Letter of Credit and any new Letter of Credit Developer delivers to the City to satisfy Developer's obligations under this Section 12 4 Each time a Letter of Credit is extended, renewed or replaced, the amount of the Letter of Credit may be reduced to an amount equal to 125% of the Developer's estimate of the total cost of completing the obligation which the Lettez of Credit secures In addition, Developer may, not more than once per calendar month, ask the City to consent to a reduction in the amount of a Letter of Credit to reflect the Developer's partial completion of the obligation the Letter of Credit secures To request the City's consent to such a reduction m the amount of a Letter of Credit, the Developer must submit to the City a description of the work the Developer has completed and 155573003 32