HomeMy WebLinkAboutA019 - Letter from Compass Insurance dated July 21, 1987 JUL 21 1987
0 COMPASS INSURANCE Agency, Ltd.
125 South 3rd St., P.O. Box 767, Ames, Iowa 50010 (515) 233-2209
July 21, 1987
John R. Klaus
City Attorney
5th & Kellogg
Ames, IA 50010
RE: Green Hills Company of ;Ames, Inc.
Dear Mr. Klaus,
Please find enclosed original surety bond for Green Hills Company of Ames, Inc.
and Iowa State University Achievement Fund as requested.
If you have any questions regarding the bond, please feel free to contact our
office. Thank you.
S' cere y,
Cheryl J. shem
Vice President
CJH:blo
Enclosure
A Division of The sandage Companies
SURETY BOND
BOND NO. IA 509075
KNOW ALL MEN BY THESE PRESENTS, that we, Green Hills Company of Ames,
Inc. and the Iowa State University Achievement Fund, jointly as princi-
pal , of the County of Story and State of Iowa, and Merchants Bonding
Company (Mutual) of the County of Polk and State of Iowa, as Surety are
held and firmly bound unto the City of Ames, Iowa in the sum of Two
Hundred Eighty-One Thousand Two Hundred Seventy Dollars ($281,270.00,
good and lawful money of the United States of America, to be paid to the
said City of Ames for the payment whereof said principal and Surety bind
themselves firmly by these presents.
WHEREAS, Green Hills Company of Ames, Inc. and the City of Ames has
entered into an agreement dated Aprii 24, 1984 entitled "Agreement for
Construction of the Green Hills Road, Gateway Center Subdivision, Ames,
Iowa." Paragraph 7 of the Agreement calls for the granting to the city
a first mortgage lien on Lot 6 of the subdivision to secure repayment of
the City of Ames for certain street improvements. As such a lien would
seriously disrupt the ability of Green Hills to construct subsequent
phases in the Health Center, the substitution of this performance bond
for the first lien mortgage is acceptable.
NOW THEREFORE, the conditions of this obligation is such, that in the
event that the increased property taxes paid as a result of construction
of the improvements on Lot 1 of Gateway Center Subdivision, pay back in
full the cost of the construction of Green Hills Drive, then this
obligation to be void; otherwise to remain in full force and effect
until 5:00 p.m. December 31, 1993. Demand must be made by the City of
Ames, by certified mail , upon both the principal and surety within 90
days of the expiration date of this bond.
Signed this loth day of 1„na 19 R7
GREEN HILLS COMPANY OF AMES, INC. MERCH ON G ANY (MUTUAL)
Principal uret John Bedn rz, As 'stant' Vice Pres.
IOWA STATE UNIVERSITY ACHIEVEMENT FUND
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4r::�inZcipal