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HomeMy WebLinkAboutA006 - Irevocable Letter of Credit No. 11090146 dated July 20, 2006 - $137,477 FIRST I�ENl=FICIAA AMERICAN CITY OF`AMES Bl�,yIC IRREVOCABLE LETTER OF FIRST AMERICAN BANK CREDIT 1530 SOUTH DUFF RE: Taylor Glenn 3rd Addition AMES,IA 50010 (515)233-2033 "LENDER" ADDf11r1 ; 515 CLARK AVE NO,: 11090146 AMES, IA 50010 TELEPHONE NO. ID)_NTEFICATION NO. Ct15TOMEF EXPIRATION QATE HUNZIKER LAND DEVELOPMENT COMPANY, L.L.C. This Letter of Credit shall expire upon the earlier of: 1. the close of business on July 20, 2007 and all drafts and accompanying statementsor documents ADD.F.W must be presented to Lender on or before that time;or 105 S. 16TH STREET 2. the day that Lender honors a draw under which the full AMES, IA 50010 rEtEwHONE NQ tDEN7i)ICAT1or�:NO amount of this Letter of Credit has been drawn. Lender hereby establishes at the request and for the account of Customer,an Irrevocable Letter of Credit in favor of Beneficiary for a sum of One Hundred Thirty Seven Thousand Four Hundred Seventy Seven and no/100 Dollars ($ 137,477.00 ), These funds shall be made available to Beneficiary upon Lender's receipt from Beneficiary of sight drafts drawn on Lender at Lender's address indicated above (or such other address that Lender may provide Beneficiary in writing) during regular business hours and accompanied by the signed written statements or documents indicated below. WARNINGTO BENEFICIARY:PLEASE EXAMINE THIS LETTER OF CREDITAT ONCE. IF YOU FEEL UNABLE TO MEETANY OF ITS REQUI REMENTS,EITH ER SINGLY OR TOG ETHER,YOU SHOULD CONTACT THE CUSTOMER I MMEDIATELYTO SEE IF THE LETTER OF CREDITCAN BE AMENDED. OTHERWISE,YOU WILLRISK LOSING PAYMENTUNDER THIS LETTEROF CREDITFOR FAILURETO COMPLY STRICTLY WITH ITS TERMS AS WRITTEN. 1. DRAFT TERMS AND CONDITIONS Lender shall honor drafts submitted by Beneficiary under the following terms and conditions: Upon Lender's honor of such drafts, Lender shall be fully discharged of its obligations under this Letter of Credit and shall not be obligated to make any further payments under this Letter of Credit once the full amount of credit available under this Letter of Credit has been drawn. If a nareArV nand is made, Lender shall notify Beneficiary of its dishonor on or before the time specified in Paragraph 5 belovitl"M k1`!L". `I+: Beneficiary s a, inst Lender for any amount paid under this Letterof Credit once Lender has honored any draft or other document w Ic c8" p les s rl with this Letter of Credit, and which on its face appears otherwise in order but which is signed, issued, or presented by a party or under the name of a party purporting to act for Beneficiary,purporting to claim through Beneficiary,or posing as Beneficiary without Beneficiary's authorization. By paying an amount demanded in accordance with this Letter of Credit,Lender makes no representation as to the correctness of the amount demanded and Lender shall not be liable to Beneficiary,or any other person, for any amount paid or disbursed for any reason whatsoever, including, without limitation, any nonapplication or misapplication by Beneficiary of the proceeds of such payment. By presenting upon Lender or a confirming bank,Beneficiary certifiesthat Beneficiary has not and will not present upon the other, unless and until Beneficiary meets with dishonor. Beneficiary promises to return to Lender any funds received by Beneficiary in excess of the Letter of Credit's maximum drawing amount. 2. USE RESTRICTIONS All drafts must be marked "DRAWN UNDER FIRST AMERICAN BANK IRREVOCABLE LETTER OF CREDIT IIjQQ90146 July 20, 2006 "and the amount of each draft shall be marked on the draft. Only Beneficiary or Beneficiary's Transferee(if this Letter of Credit is transferable)may complete a draft and accompanying statements or documents required by this Letter of Credit and make a draw under this Letter of Credit. This original Letter of Credit must accompany any draft drawn hereunder. Partial draws © are permitted ❑ are not permitted under this Letter of Credit. Lender's honor of a partial draw shall correspondingly reduce the amount of credit available under this Letter of Credit. Following a partial draw,Lender shall return this original Letter of Credit to Beneficiary with the partial draw noted hereon; in the alternative,and in its sole discretion, Lender may issue a substitute Letter of Credit to Beneficiary in the amount shown above, less any partial draw(s). 3. PERMITTED TRANSFEREES ❑ If checked,this Letter of Credit may be transferredby Beneficiary upon prior written notice to Lender of the transfer. The Transferee shall be deemed the new Beneficiary of this Letter of Credit and the documents of the Transferee,including drafts required under this Letter of Credit,will be processed by Lender(or any intermediary)without the original Beneficiary's intervention and without any further obligation of Lender to the original Beneficiary. ❑x If checked, the right to draw under this Letter of Credit shall be nontransferable, except for: A. A transfer(in its entirety,but not in part)by direct operation of law to the original Beneficiary's administrator,executor,bankruptcy trustee, receiver, liquidator, successor, or other representative at law; and B. The first immediate transfer(in its entirety,but not in part)by such legal representative to a third party after express approval of a governmental body(judicial, administrative, or executive). MAST602©FormAtion Technologies,Inc. (9/3/96) (800)937-3799 4. TRANSFEREE'S REQUIRED DOCUMENTS Wherrtne presenter is a permitted Transferee under paragraph 3 above,the documents required for a draw shall include: A. All documents required elsewhere in this Letterof Credit,except that such documents maybe in the name of and executed by either the original Beneficiary or the presenter permitted by paragraph 3; and B. When the presenter is a permitted Transfereeunder paragraph 3.A.or a third party under paragraph 3.6.,a certified copy of the one or more documents which show the presenter's authority to claim through or to act with authority for the original Beneficiary. 5. TIMING OF DISHONOR Lender may rely upon any reason for dishonor which it communicates to Beneficiary or the presenterwithin three(3)Banking Days after Lender has received the last document forming Beneficiary's presentment(the"Three-DayPeriod"). Lender shall be entitled to rely upon such reason without regard to either(i) the timing of any presentment made before the Expiration Date, or (ii) the timing inside the Three-Day Period of any preliminary communication(s)from Lender concerning the dishonor decision or any reason for dishonor. For any reason for dishonor given during the Three-Day Period, Lender shall be conclusively deemed to have met the "reasonable time", "without delay", and other timing requirements as the Uniform Customs and Practice for Documentary Credits, 1993 Revision, ICC Publication No 500, as most recently published by the International Chamber of Commerce(the "UCP")may impose. The Expiration Date shall not be extended to accommodate a presentment made less than three(3) Banking Days before the Expiration Date, and Beneficiary shall not be entitled to submit a draw request or provide Lender with any documents in support of a draw afterthe Expiration Date. Lender shall not be required to communicate a dishonor decision or its reasons within a time less than the Three-Day Period. "Banking Day"means any day,except Saturday,on which commercial banks located in Iowa are open. 6. COMPLIANCE BURDEN Lender is not responsible for any impossibility or other difficulty in achieving strict compliance with the requirements of this Letter of Credit precisely as written. Beneficiary understands and acknowledges: (i) that unless and until the present wording of this Letter of Credit is amended with Lender's prior written consent, the burden of complying strictly with such wording remains solely upon Beneficiary;and (ii)that Lender is relying upon the lack of such amendment as constituting Beneficiary's initial and continued approval of such wording. 7. NON-SEVERABILITY If any aspect of this Letterof Credit is ever declared unenforceable for any reason by any court or governmental body having jurisdiction, Lender's entire engagement under this Letterof Credit shall be deemed null and void ab initio,and both Lender and Beneficiary shall be restored to the position each would have occupied with all rights available as though this Letter of Credit had never occurred. This non-severability provision shall override all other provisions in this Letter of Credit,no matter where such provision appears within this Letter of Credit. 8. CHOICE OF LAW/JURISDICTION This Letter of Credit is subject to the UCP. This Letter of Credit shall be governed by and construed in accordance with the laws of the State of Iowa United States of America,except to the extent such laws are inconsistent with the UCP. Lender and Beneficiary consent to the jurisdiction and venue of any court selected by Lender in its discretion located in the State of Iowa in the event of any legal proceeding under this Letterof Credit. 9. EXPIRATION Lender hereby agrees with Beneficiary that drafts drawn under and in compliance with the terms of this Letter of Credit will be duly honored if presented to the Lender on or before the Expiration Date. Dated: July 20, 2006 LENDER: FIRST AMERICAN BANK A3NHOUV"0 � vw d onoa8 II B : Jo ilges vice President ENDORSEMENT OF DRAFTS DRAWN: Amount Amount Date Negotiated By In Words In Figures MAST602B©FormAtion Technologies,Inc. (9/3/96) (800)937.3799 City Clorkly, Office 515 Clark Avenue,P.O.Box 811 Caring People Ames,IA 50010 Qwepnuality Frog°"" Phone: 515-239-5105 Exceptional Service Fax: 515-239-5142 July 19, 2006 TO WHOM IT MAY CONCERN: I, Diane R. Voss, hereby certify that I have this date received from Hunziker Land Development Company, LLC, an Irrevocable Letter of Credit in the amount of$137,477. Said instrument has been placed on file in the Ames City Clerk's Office, 515 Clark Avenue, for the development of the public improvements: Street Paving ($124,477 ) and Street Lights ($13,000) in Taylor Glenn Subdivision, 3rd Addition, to the City of Ames, Iowa. Bv: Diane R. Voss Title: City Clerk Tracy Warner/COA To "Chuck Winkleblack"<Chuck.Winkleblack@hunziker.com> 07/19/2006 08:18 AM cc ABarton@city.ames.ia.us, DSK@nyemaster.com, DVoss@city.ames.ia.us, JJoiner@city.ames.ia.us, kirsten.alm@FABG.net, sperkins@city.ames.ia.us bcc Subject Re: Letter of credit for Taylor Glenn 3rd Addition[i Chuck, You are correct in saying that the widening of Stange is substantially complete. As of last night, we are reviewing the storm sewer video inspection and will work with the contractor if there are any deficiencies. This is considered to be substantially complete as well. The amount provided looks appropriate for Taylor Glenn 3rd Addition. Please let me know if you have any further questions. Tracy L. Warner, Municipal Engineer City of Ames Public Works Dept. 515 Clark Ave. Ames, IA 50010 Desk: 515-239-5163 twarner@city.ames.ia.us Caring People— Quality Programs ` Exceptional Service "Chuck Winkleblack" <Chuck.Winkleblack@hunziker.com> "Chuck Winkleblack" / <Chuck.Winkleblack hunzike To <ABarton @city.ames.ia.us>, <DVoss cit ames.ia.us>, I r.com> <JJoiner@city.ames.ia.us>, <sperkins@city.ames.ia.us>, �g� 07/14/2006 03:31 PM <twarner@city.ames.ia.us>, <kirsten.alm@FABG.net>, <DSK@nyemaster.com> cc Subject Letter of credit for Taylor Glenn 3rd Addition To all concerned, I am having First American Bank prepare a letter of credit for Taylor Glenn 3rd Addition for the final platting process. I believe that the utilities are complete and have been passed by the City inspector with the public works department. I will be providing a letter of credit for the paving within the subdivision and the street lights. I am not including the widening of Stange as I believe that it is substantially complete and the cuts in the median will be completed long before the council packet must be mailed. Street paving $124, 477 estimate from Manatt's Street Lights $ 13, 000 letter from Mark Imhoff with the city electric department Total $137, 477 I won't have Kirsten with the bank prepare the letter of credit until I hear from John or Tracy at the city that they are Ok with the numbers. I am also working on Sunset Ridge but won't have those numbers until next week. Thanks, Chuck Winkleblack Broker Associate License #B32796000 Licensed in the State of Iowa Hunziker & Associates, Realtors 105 S. 16th Street Ames, IA 50010 515-233-4450 This e-mail, including attachments, is the property of Hunziker & Associates, Realtors, and is covered by the Electronic Communications Privacy Act, 18 U.S.0 2510-2521, is confidential, and may be legally privileged. If you are not the intended recipient, you are hereby notified that any retention, dissemination, distribution, or copying of this communication is strictly prohibited. Please reply to the sender that you have received the message in error, and then please delete. Thank you. Ray D Anderson/COA To Cindy L Hollar/COA@COA 07/19/2006 03:30 PM cc Bob Kindred/COA@COA, Diane R Voss/COA@COA, Seana � J E Perkins/COA@COA bcc Subject Re: Final Plat Letter of Credit[i Thank you, Cindy, for following up with Diane. Ray Ray D. Anderson Planner City of Ames Department of Planning & Housing 515 Clark Avenue, P.O. Box 811 Ames, Iowa 50010 Phone: (515) 239-5400 Fax: (515)239-5404 E-mail: randerson@city.ames.ia.us Caring People*Quality Programs* Exceptional Service Cindy L Hollar/COA Cindy L Hollar/COA 07/19/2006 01:51 PM To Diane R Voss/COA@COA is v cc Seana E Perkins/COA@COA, Ray D Anderson/COA@COA, �► `' Bob Kindred/COA@COA Subject Final Plat Letter of Credit Diane, Deb Krauth brought in a Final Plat for Taylor Glenn Subdivision, 3rd Addition minus the LOC. She indicated that Chuck would be bringing that in to you either Friday or Monday and then you would forward that document to me. I am holding off routing this final plat until I receive that document from you, which is standard practice. Deb brought this in today because she was leaving town for a few days (the deadline for submitting final plats is 5:00 p.m. on Monday, July 24.). 1 assume that she has been in contact with you about this before she left. I will be out of the office on Friday, but will be back in on Monday to route the Final Plat. Let me know if there is anything I can do for you regarding this project. If everything goes okay with this submittal,this item will be on the Council agenda for August 8. Thanks! Cindy Hollar, Secretary Department of Planning & Housing Phone: (515)239-5298 Diane R Voss/COA To Tracy Warner/COA@COA 07/25/2007 06:34 PM cc bcc Diane R Voss/COA Subject LOCs Tracy: I was at the Clerks'Academy this afternoon and will be there the rest of the week. However, Kersten from First American Bank called today to find out what was up with the LOC for Taylor Glenn, 3rd. As you will recall, Chuck Winkleblack had not been in to sign it and told her that you said we no longer needed it. You were going to call Chuck and let me know. Did you get an opportunity to talk to Chuck today? Diane Voss, City Clerk/Records Manager P. O. Box 811 Ames, Iowa 50010 (515) 239-5105 Gk, V�-� G 1 amp Corey Mellies/COA To Diane R Voss/COA@COA 07/23/2007 04:33 PM cc bcc Subject Re: Taylor Glenn, 3rd[ Diane, Sorry I didn't get back to you sooner but we had a interview in today. I talked to Eric and he thinks we should keep the amount I sent to you for the LOC. It appears that there are enough punch list items to keep that amount. Thank you. Corey Mellies, P.E. Civil Engineer II City of Ames Public Works Dept. 515 Clark Ave. Ames, IA 50010 Phone: 515-239-5276 cmellies@city.ames.ia.us Diane R Voss/COA Diane R Voss/COA 07/23/2007 04:06 PM To Corey Mellies/COA@COA cc �.. Subject,rTaylor Glenn, 3rd r.� I REALLY need to know if the public improvements are completed for Taylor Glenn, 3rd. First American Bank gave me until today to figure this out and agreed to post-date a LOC extension if needed. I don't want to ask for another day. They have been good to work with me, but I don't want to abuse it. Diane Voss, City Clerk/Records Manager P. O. Box 811 Ames, Iowa 50010 (515) 239-5105 "Nate Easter" To "Corey Mellies"<cmellies@city.ames.ia.us> <neaster@hws.com> cc 07/19/2007 03:47 PM bcc Subject Taylor Glenn ThirdC , Corey: J 0 , The prices are as follows: (.',��`'�(�f1c•ram; t 2" HMA surface: $23,240.70 ►r Manhole adjustment: $4, 550.00 n ilu Nate Nathan A. Easter, P.E. HWS Consulting Group Inc. 223 S. Walnut Avenue, Suite D Ames, IA 50010-6725 Phone: 515.232 .1103 Fax: 515.232 .1141 E-mail : neaster@hws.com -- aojt - � Diane R Voss/COA To John C Joiner/COA@COA, Tracy Warner/COA@COA, Corey 07/20/2007 12:47 PM Mellies/COA@COA cc bcc Diane R Voss/COA Subject Taylor Glenn, 3rd Chuck Winkleblack called and advised that the public improvements for Taylor Glenn, 3rd, have all been completed and he does not want to authorize a new Letter of Credit. I have called First American Bank and put this on hold until it has been confirmed whether we need a new LOC. Also, I asked if they would be willing to post-date the LOC, if we do need an extension, to 7/20, so it will not lapse. The person I spoke with did not know if that would be possible, but was going to make the request to the Vice-President, who handles LOCs. Would it be possible to inspect these improvements to ascertain if we need an extension by Monday, July 23? Diane Voss, City Clerk/Records Manager P. O. Box 811 Ames, Iowa 50010 (515) 239-5105 Diane R Voss/COA To John C Joiner/COA@COA 06/13/2007 10:57 AM cc bcc Diane R Voss/COA Subject LOC Expiration John: On May 23, 1 sent you an e-mail about four LOCs that were due to expire in the next 90 days. To date, I haven't gotten a response as to whether the LOCs need to be extended. Four Seasons' LOC expires today, so it's imperative that I get an answer on that one. Diane Voss, City Clerk/Records Manager P. O. Box 811 Ames, Iowa 50010 (515) 239-5105 John C Joiner/COA To Diane R Voss/COA@COA 06/13/2007 11:07 AM cc Corey Mellies/COA@COA bcc Subject Re: LOC ExpirationEI Diane, I was out of the office at that time. When I returned, I had the quota warning that my Lotus file was full. I checked back and don't have a record of receiving this request or passing it along. Maybe it never landed in my inbox, but at any rate, I apologize you haven't heard back. I typically want Corey to handle these LOC issues. Please feel free to contact him directly. Corey- Please check with Diane about the 4 locations but please let her know about Four Seasons ASAP Thanks, John AAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAA John C. Joiner, P.E. City of Ames Public Works Director 515 Clark Avenue Ames, Iowa 50010 Desk 515-239-5165 Fax 515-239-5404 Diane R Voss/COA Diane R Voss/COA 06/13/2007 10:57 AM To John C Joiner/COA@COA cc Subject LOC Expiration John: On May 23, 1 sent you an e-mail about four LOCs that were due to expire in the next 90 days. To date, I haven't gotten a response as to whether the LOCs need to be extended. Four Seasons' LOC expires today, so it's imperative that I get an answer on that one. Diane Voss, City Clerk/Records Manager P. O. Box 811 Ames, Iowa 50010 (515) 239-5105 Corey Mellies/COA To Diane R Voss/COA@COA 07/06/2007 02:01 PM cc bcc Subject Re: LOCs ExpiringFi Diane, The Carpet One LOC will have to be renewed because I believe it's for the future installation of sidewalk along Duff. I'm working with Eric on the others and should be able to get back to you early next week. Thanks Corey Mellies, P.E. Civil Engineer II City of Ames Public Works Dept. 515 Clark Ave. Ames, IA 50010 Phone: 515-239-5276 cmellies@city.ames.ia.us Diane R Voss/COA Diane R Voss/COA 07/05/2007 09:05 AM To Corey Mellies/COA@COA, John C Joiner/COA@COA, Steve Schainker/COA@COA cc Subject LOCs Expiring Gentlemen: The LOC for Visions (Bierl's Carpet One) is due to expire October 3, 2007. Could you please let me know the status. Also, I have not heard back from you on Taylor Glenn, 3rd; East Hickory Park; or Sunset Ridge, 2nd. All of those LOCs will expire within two to six weeks. Thank you. Diane Diane R Voss/COA To Corey Mellies/COA@COA, John C Joiner/COA@COA, Steve 07/05/2007 09:05 AM Schainker/COA@COA cc bcc Diane R Voss/COA Subject LOCs Expiring Gentlemen: The LOC for Visions (Bierl's Carpet One) is due to expire October 3, 2007. Could you please let me know the status. Also, I have not heard back from you on Taylor Glenn, 3rd; East Hickory Park; or Sunset Ridge, 2nd. All of those LOCs will expire within two to six weeks. Thank you. Diane Diane R Voss/COA To Corey Mellies/COA@COA 07/19/2007 02:57 PM cc John C Joiner/COA@COA bcc Diane R Voss/COA Subject LOC Expires TOMORROW! Corey: Sorry to keep bugging you, but I haven't heard back from you as to the LOC for Taylor Glenn, 3rd. It expires tomorrow, so I would need to know yet today and request extension, if need be. Please advise as soon as possible today. Thank you! Diane Voss, City Clerk/Records Manager P. O. Box 811 Ames, Iowa 50010 (515) 239-5105 Diane R Voss/COA To John C Joiner/COA@COA, Tracy Warner/COA@COA, Corey 07/20/2007 12:15 PM Mellies/COA@COA cc bcc Diane R Voss/COA Subject LOCs Corey has informed me that 4 Seasons Subdivision is complete. I need, please, a Letter of Completion so that I may put that on a City Council Agenda and release the $270,000 security. Regarding Taylor Glenn, 3rd: Corey told me yesterday that we still need security in the amount of $27,790.70 for HMA surface and manhole adjustment. I called Chuck Winkleblack, but had to leave a message as he was out. So I called First American Bank and asked if they could please process the new LOC so it did not lapse (as it expires today). They have all new people, but I am hopeful that they will work with me on this one. I did indicate that I would do my best to give them more notice in the future. So I need, please, a letter authorizing me to release partial security and setting the new security amount, and I'll put that on a future Council Agenda. THANK YOU! Diane Voss, City Clerk/Records Manager P. O. Box 811 Ames, Iowa 50010 (515) 239-5105