Agenda - Council Work Session - 09/21/2004

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of the landscaping described in the Phase II Landscaping Plan until the following September 1. Upon the Developer's completion of the landscaping described in the Phase II Landscaping Plan, the Developer must submit to the City a guaranty as required by the ZOning Ordinance. Section 12.4 of the Master Development Agreement is hereby amended to read as follows: 12.4 LETTERS OF CREDIT AND ALTERNATIVE SECURITY. Contemporaneously with the execution of this First Amendment, the Developer has delivered to the City a Letter of Credit in the amount of $3,000,000 (the "Initial Letter of Credit") to secure the Developer's obligations under Sections 7.2, 7.8, 7.15 and 10.1 herein (the 'Initial Letter of Credit"). The letter of credit required under the temps of this Master A~eement must be an Irrevocable Letter of Credit from a state or national banking association or other financial institution reasonably acceptable to the City (the "Letter of Credit"). Unless otherwise expressly stated in this Master Agreement, the Letter of Credit must be in amount equal to $3,000,000 and on same terms and conditions of the Initia] Letter of Credit. The Letter of Credit must obligate the issuer thereof to honor the City's site draft for the full amount of the Letter of Credi~ 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 perfom~ance of the obligation the Letter of Credit secures (as stated in the Letter of Credit). The Letter of Credit, 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 atttomatically renew until released by the City. The Letter of Credit must, in all otl4er respects,, be in a fom~ reasonably acceptable to the City. Until the Developer completes the perfon~ance of ail of the obligations 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 tem~ "Letter of Credit" as used in this Master A~'eement means the Initial Letter of Credit the Developer delivers to the City, each extension or renewal of the original or any subsequent Letter of Credit. At such time as the City reasonably determines that the total value of all of Developer's work under Sections 7.2, 7.8, 7.15 and 10.1 is less than $2,400,0001 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 Letter 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 in the amount of a Letter of Credit, the