Agenda - Council - 02/22/2005 - Laserfiche WebLink

Home

42. 43. The last sentence of section 12i3 of the Master Agreement is hereby deleted in its entirety and rePlaced with the following: The Letter of credit the DeVeloPer delivers to the City pursuant to Section 12.4 is' intended~ in :part, lto seCure the Developer's performance of its obligations under this Section 12.3.- Section 12.4 of the Master 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 delivei'ed t6 the City a Letter of Credit in the amount of $3,000,000 (the '!Letter of i Credit") to secure the Developer's obligations under Sections 10.1, 11.1,'. 11.2 and 12.3 herein. The Letter of Credit secures only the !Developer's obligations under Sections 10.1, 11.1, 11.2 and 12.3 of the Master A~e~ent. To the extent that other letters of credit are requiredUnder' any other Sections of this Agreement or a Phase DeveloPment Agreement, the Developer (or a Secondary Developer, in the case of a Secondary DevelOpment Agreement) must provide those additional Letters: of Credit~ 'The Letter of Credit and any other letters of credit required under the terms of this Master Agreement must: (i) be an Irrevocable Letter~ of Credit!from a state or national banking association or other financial institutiOn reasonably acceptable to the City; (ii) obligate the issuer thereof,to honor ithe City's site draft for the full amount of the letter of credit pr°vi .dq-xl 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 one or more of the obligations the letter of credit secures (as stated in the letter of credit); 0ii) provide that it Will aUtomatically renew until released by the City' and (iv) be, in all other respects, in a 'form reaSonably acceptable to the City. At such: time as ~,the City reasonably determines that the. total value of all of Developer's 0bligations under Sections 10.1, 11.1, 11.2 and 12.3 is less than $2,400,000, : the amount of the Letter of Credit may be reduced, not more often than once per month, to an amount equal to 125% of the City's estimate of the total cost of completing the performance of obligations which the ~LettCr of~Credit secures. To request the City's consent to such a reduction in the amount of the Letter of Credit, the Developer must submit:to the City a description of the work the Developer has completed and.mechanio's and materialmen's lien waivers showing the Developer's full Payment for the completed work. The City's Engineer will inspect the wOrk identified in the Developer's request and report the results of his or her inspeCtion'to the City Administrator. The City Administrator will:apprOVe t. he reduction and the outstanding amount of the Letter: of Credit when the City Administrator is satisfied, based on the Engineer's report, that the amount of the requested reduction accurately reflects the cost of the work the Developer has completed and paid for. The City will release the Letter of Credit when the Developer has fully 1710652v6 19