6.c) Reduction of Letter of Credit for Public Improvements, Superior Land Preservation Meeting Date: 1/6/2009
Agenda Item: � C�
City Council Agenda Report
City of Scandia
14727 209`h St. North
Scandia, MN 55073 (651)433-2274
Action Requested: Approve the request of Superior Land Preservation, LLC for a
reduction in the letter of credit for public improvements in the Tii
Gavo subdivision.
Deadline/ Timeline: N/A
Background: • The development agreement for Tii Gavo required the developer
to submit a financial guarantee in the form of a letter of credit for
the public improvements (streets, drainage, etc.) in the total
amount of$1,514,344. T'he Council has approved three previous
requests for reductions, and the guarantee is currently$300,000.
• The developer has requested that the guarantee be reduced to
$50,000.
• The site was inspected by the city's engineering firm and Code
Enforcement Official Steve Thorp. They have recommended that
the guarantee be reduced,but that the new letter of credit amount
should be $65,000 to cover the required 125%of the estimated
cost of remaining work.
• This request does not affect the guarantee for the landscaping and
tree preservation plan, which remains at the amount of$141,787
as approved at the December 2, 2008 meeting.
Recommendation: I recommend that the Council approve the reduction of the letter of
credit for public improvements to a new amount of$65,000.
Attachments/ • Letter from City Engineer Paul Hornby, P.E.
Materials provided:
Contact(s): Mark Sandercott, President
Superior Land Preservation LLC
(651 433-1000)
Paul Hornby, Bonestroo (651 967-4625)
Prepared by: Anne Hurlburt, City Adminstrator
(tii gavo loc reduction)
Page 1 of 1
12/30/08
� �— } 2335 Highway 36 W
St.Paul,MN 55113
Tel 651-636-4600
Fax 651-636-1311
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December 17, 2008
f�Ec:� �, 9 2�08
Ms. Ann Hurlburt � Bonestroo
City Administrator �•CAh�DIA �
14727 209�h Street North CtTY GF �
Scandia, MN 55073
RE: Letter of Credit Reduction
Tii Gavo on Big Marine Lake Development
City of Scandia, Minnesota
Project No. 568-06132-0
Dear Ms. Hurlburt:
We have compieted our review of the Developers request for a reduction in the firancial security
(Letter of Credit) for the referenced project. The Developer is requesting the letter of credit for
the public improvements be reduced to $50,000. After review of the project site we prepared an
estimate of the construction items that remain to be completed itemized as follows:
1. Install road and street signs $ S 000
2. Complete road striping $ 2�500
3. Wastewater Treatment and Collection System $ 4,500
4. Storm water, infiltration, filtration, and wet basin work $ 6,500
5. Ditch excavation, yrading, and shaping $ 7,500
6. Erosion repair $ 7,500
7. Restoration repair work $ 8,500
8. . Project site cleanup $ 10,000
Subtotal construction amount $ 52,000
125% per Development Agreement x 1.25
Letter of Credit amount remaining (Public Improvements only) $ 65,000
If the City Council considers a reduction in the letter of credit amount for the public
improvements, the amount of this financial security should be no less than $65,000. The
Developer is not requesting a reduction in the financial securities for the Landscape and Tree
Preservation Plan letter of credit at this time.
Please do not hesitate to contact me at 651-967-4625 with any questions or comments you may
have regarding our review of this financial security reduction request.
Sincerely,
_F_
:�.. _ _;:.�-.:��...�.-_--�
Paul T. Hornby, P.E.
City Engineer
St.Paul
Copy: Mr. Mark Sandercott, Big Marine Lake Development st.cioUd
Steve Thorp, City Building Official Rochescer
Milwaukee
Chicago
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