Agenda - Economic Development Authority - 12/01/2003

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Cash escrow accounts with bona fide title insurance comparfies as to which'the CiU is a third, parry beneficiary. (b) Letters of credit. (c) P e~ormance bonds. (d) Insurance policies insuring performance. Evidence of construction Lancing sufficient to fund the improvements in question, with deliver to the, City. of copies of construction draws, lien Waivers or ori~er satisfacrou evidence of payment of invoices as construction proceeds. Evidence of lines of credit sufficient to fund the improvements in question, updated regn.garly. (g) Other arrangements satisfactou to the City. The Ciq¢ Council may also consider the alternative security arrangements described in th/s Section. !2.4 in cormecrion with the Ci~s establ/shrnent of the requ/rements for Secondary Development A~eements. Each letter of credit reqa/red under the terms of ti:ds Master A~eement must be an Irrevocable Letter of Credit from a state or national bartkmg association or other fmanciai institution reasonably acceptable to the City (each a "Letter of Credit"). Unless otherwise expressly stared in tiis Master A~eement, a Letter of Credit' must be in amount equal to !25% of the Ci~'s estimate of the cost to pe,~onn .the obligation the pe~onnance of which the Letter of Credit secures. Each Letter of Credit must obligate the issuer thereof to honor the Cip;s site draft for the fu!] amount of the Letter of Credit provided the City subrmts to the issuer, along with the Ci~'s site draft, a CeniScate si~zned by the City Adminisn'ator of the City of Ramsey stating the Developer is in default in the performance of the obligation the Letter of Credk 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. l(a) wi-rich 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 pro~dde that k wi]] automatically renew until released by the City. Each Leper of Credit must, in all other respects, be in a form reasonably acceptable to the City. Until the Developer completes *.he performance of the ob/Jgation the Loner of Credit secures, the Developer must obtain and provide the C.iU wkh extensions or renewals of the Loner of Credit at least tlti,wy (30) days prior to the stated expiration dare of the Leper of Credk. The term "Letter of Credit" as used in this Master A~eement means the ori=~fnal Letter of Credit the Developer delivers to the City, each extension or renewal of the original or any subsequent Letter of Credit and any new Letter of Credk Developer delivers ro the City to satisfy Developer's obligations under th/s Section 12.4. Each rime a Loner of Credit is extended, renewed or replaced, the amount of the Letter of Credit may be reduced to ~ amount equal to 125% of the Developer's estimate of the total cost of completing the obligation which the Loner of Credit secures. In addition, Developer may, not more thmn once per calendar month, ask :he City to consent to a,reduction in the amount of a Loner of Credit to re~qect the Develooer~s partial compietion of the obligation the Letter of Credit secures. To reauest the C}ty's consent to such a reduction in the amount of a Letter of Credk, the Developer must subrrfit to the City a description of the work the Developer has completed and