HomeMy WebLinkAboutA016 - Resolution No. 08-156 adopted April 22, 2008 RESOLUTION NO. 08-156
RESOLUTION AUTHORIZING LETTER OF CREDIT
FOR FINANCIAL SECURITY FOR FUTURE IMPROVEMENTS
ASSOCIATED WITH WESSEX SUBDIVISION
FOR THE CITY OF AMES
WHEREAS,City staff was approached recently by the developers of the Wessex Subdivision
requesting that the City consider accepting a letter of credit as an alternative to satisfying the
financial security requirement for street improvements specified in the Wessex Subdivision
Development Agreement; and,
WHEREAS,the Development Agreement for this subdivision specifies that the developers
are responsible for the costs of widening Oakwood Road to three lanes along the frontage of the
subdivision, and according to the Agreement, the responsibility to complete these street
improvements is to be secured with cash placed in escrow by the developers; and,
WHEREAS, the developers have emphasized that in accordance with this obligation, a
significant amount of cash has been placed in an account at a very low interest rate, and because it
must be readily available to the City, these funds are not available to the developers to accomplish
other projects in the City; and,
WHEREAS, a letter of credit will adequately secure the developer's obligation to fund the
street widening project, and it will automatically renew annually until the. project has been
completed or the City is given written notice of the intent to close the letter, at which time the City
may present the letter for cash.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa,
that authorization for a.letter of credit from the developers of Wessex Subdivision in the amount of
$60,000 as financial security for future street improvements for Oakwood Road is hereby approved.
ADOPTED THIS 22"d day of April, 2008.
Diane R. Voss, City Clerk Ann H. Campbell, Mayor
Introduced by: Larson
Seconded by: Popken
Voting aye: Goodman, Larson, Popken, Rice
Voting nay: None Absent: Doll, Mahayni
Resolution declared adopted and signed by the Mayor this 22"a day of April, 2008.