HomeMy WebLinkAboutA014 - Council Action Summary from April 17, 2001 meeting COUNCIL ACTION SUMMARY
Meeting Date: 4117101
Agenda Item #: Comments
SUBJECT: Letter from Matt Eller, Premier Contractors, Inc., Concerning Filed Letter
of Credit for Country Meadows, 2nd Addition
ACTION TAKEN: Referred to staff.
MOTION BY: Goodhue
SECOND BY: Quirmbach
VOTING AYE: Campbell, Cross, Goodhue, Hoffman, Quirmbach, Wirth
VOTING NAY: None
ABSENT: None
By:C\�Piyl
Diane Voss, City Clerk
Copy to: Eden Schmitt
Premier Contractors, Inc.3219 Valley View Road,Ames,IA 50014 APB 122001 ( ��
CITY)'CLCRK I.I
CITY OF AIVES,IOWA
To whom it may Concern:
My name is Matt Eller. I own Premier Contractors and Onyx Development,L.C. We are currently in the
Final Plat approval process for a development named Country Meadows Second Addition. As you
probably know it is required to have a letter of credit from a bank or a performance bond while applying for
the Final Plat approval.
The City attorney has denied my letter of credit from Clarke County State Bank. This bank is located in
Osceola Iowa and seems to be a problem for the City attorney. The reason that he denied the letter is
because"if there are problems with the road construction,I do not want to drive to Osceola to turn in the
bills for the uncompleted road. I need a letter from a local bank here in Ames. If you cannot do that then I
need a performance bond."
I discussed with him that a letter of credit is a guarantee from a bank.I did not read anywhere in the
application process that the bank had to be in Ames. He said that that is his requirement and the only way
to waive this requirement is to have the city council or manager over rule him. My argument is that I go to
the Clarke County State Bank for the convenience of working with people I know and work well with. I
also like that I can talk with real people and people that make decisions. If in fact I have to get a
performance bond you would be dealing with an insurance company that most likely is located a lot farther
than Osceola Iowa and it would be even harder to get money from them.
I am in process of building this road right now. I have everything in to the city to have this on the agenda
for the next meeting so I can have the Final Plat approved. This will allow me to start building as soon as
the road is completed. Being that I have holding costs with the development I would like to start building
right away to off set these costs.
This is the only thing holding me up and I feel that I have provided everything that the city has asked me to
provide. There is nothing that says I have to have a letter of credit from an Ames bank.I do not feel that
requiring a letter of credit from a local bank is a fair requirement due to the logistics of why it is not being
accepted. To be penalized for banking at a bank that is not located in Ames is absolutely wrong. Even to
say that the banks that are outside of Ames need to work something out with the banks in Ames is unfair.
This means that if the banks in Ames so decide that they will not work with outside banks,for them to be
used as correspondent offices,then anybody that banks outside of Ames cannot submit letters of credit
from banks outside of the area.
From the City's stand point i would think that it would be a lot easier to work with a small Iowa bank than
a large insurance firm that writes performance bonds.
I would like to request a special meeting to have this discussed and the requirement for a new letter of
4creditaived. `��'�•