HomeMy WebLinkAboutA011 - Memo dated November 7, 1996 regarding the documents required for Letter of Credit MEMO CITY ATTORNEY'S OFFICE
CITY OF AMES
TO: Sandra Ryan,City Clerk F d +
NOV 8199 1
FROM: John R. Klaus,City Attorney
UTY"r�nLERK
DATE: November 7, 1996 CITY OF A"ES
L
, IOWA 1�
S-UB-—J-ECT:-- Research Park-Letters=of-Credit- -
With this are three documents that meet the"letter of credit" requirements of the Research
Park development agreement.
The ADDENDUM to the Stand-Alone Revolving Note is to secure payment of$125,000 as
local match for the RISE grant. The City may draw that money from the Bank at any time
and has no expiration date.
The Bank controlled Escrow Agreement secures payment of $50,000 for the RISE grant
match. It may be drawn by the City Treasurer on or about February 2, 1997.
The irrevocable Letter of Credit#1189 secures$117,000 payment to the City if the 150 full-
time jobs are not created within three years of completion of the RISE funded project. This
cannot be drawn until three years after project completion, of course,but the credit will
be available until July 1, 2001.
Please keep these documents in your Research Park file.
JRK:gmw
Enclosures
c: Steve Schainker
Paul Wiegand
Brian O'Connell
Mark Reinig