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HomeMy WebLinkAboutA017 - Letter dated February 12, 2014 regarding release of financial security - $148,618 Office 515 Clark Avenue,P.0.Box 811 Qring People Ames IA 50010 Qunliry Programs , Excepfionnl service Phone: 515-239-5105 Fax: 515-239-5142 February 12, 2014 U S Bank 405 Main Street Ames, Iowa 50010 Attention Doug Ragaller RE: Four Seasons Subdivision (Flummerfelt's Shady Grove) Dear Mr. Ragaller: At its meeting of February 11, 2014, the Ames City Council released the financial security on file for the above-named Subdivision. Enclosed is the Irrevocable Letter of Credit in the amount of $148,618. If you have any questions,please contact me. Sincerely, Diane Voss City Clerk /dry Enclosure Qrbank. All ofus serving you- 405 Main Street ✓ ?Ci�%�~ P.O.Box 828 Ames,IA 50010-0828 515.232.8200 515.239.3616 fax 9/16/2014 IRREVOCABLE LETTER OF CREDIT BENEFICIARY: City of Ames C/o City'Clerk 515 Clark Avenue Ames,Iowa 50010 RE: Michael Flummerfelt/Flummerfelt's Shady Grove MHC,LLC aka Four Seasons We hereby authorize you to draw on US Bank,405 Main St,Ames IA 50010,for account of Flummerfelt's Shady Grove MHC,LLC aka Four Seasons up to the aggregate amount of$148,618 available by your draft on sight at US Bank,to be accompanied by: I. Copies of all invoices,which have remained unpaid for 60 days from invoice date 2. Beneficiary's signed statement indicating that the invoices are unpaid 3. Copy of this Irrevocable Letter of Credit Partial payments are permitted. We hereby agree that drafts drawn under and in compliance with the terms of this Letter of Credit will be duly honored. The expiration date of this Letter of Credit is3/15/2014. It is a condition of this Letter of Credit that it will be automatically extended without amendment in one-year increments until one of the following occurs: (a) 60 days prior to the then expiration date,we notify Beneficiary at the above address of our election not to extend this Letter of Credit for an additional one-year period; or, (b)a deposit for an equivalent amount is made with the City of Ames. Upon receipt of the 60-day notice,the Beneficiary may draw on this Letter of Credit. This Letter of Credit is subject to the Uniform Customs and Practice of Documentary Credit(1993) Revision,International Chamber of Commerce Publications No. 500, or current revision in place. Sincerely, Doug Ragaller Market President APPROVED AS TO FORM BY 1V4,4b4,Z41__11_1 MARK O. LAMBERT ASSISTANT CITY ATTORNEY usbank.com