HomeMy WebLinkAboutA014 - Letter dated March 28, 2008 regarding letter of credit • Memo
e
Legal Department
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TO: Diane Voss, City Clerk
FROM: Doug Marek, City Attorney
DATE: March 28, 2008
SUBJECT: Letter of Credit for Woodbridge Subdivision Sidewalk Deferment
_You asked me to review the letter of credit submitted by Woodbridge Development Partnership for
deferment of sidewalks in the Woodbridge Subdivision. The letter of credit was provided to the City
as part of the final plat approval process as required by Ames Municipal Code sections
23.403(14)(a)(1) and 23.409(1). Additionally, the letter of credit is required under the terms of the
supplemental sidewalk agreement for deferment of sidewalks. For the reasons set out below the
letter of credit inadequate and cannot be accepted.
The letter of credit guarantees payment of invoices that have remained unpaid for sixty days from
the date of the invoice.It is dated March 17,2008,and is for a term of sixty days. The City Council
did not act upon the final plat approval until March 25. The letter of credit is insufficient to
guarantee the completion of the sidewalks because it will expire prior to the first date that the City
could present it to the bank for payment.
Also, the supplemental sidewalk agreement requires the owner of the property to complete the
sidewalks within sixty days ofreceiving notice from the City. The supplemental sidewalk agreement
was designed specifically to defer construction of the sidewalk to such time in the future that
sidewalks are installed elsewhere on Oakwood Road. Again,the letter of credit will expire in less
than sixty days and prior to the anticipated date of any sidewalk construction.
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