HomeMy WebLinkAboutA016 - Email Correspondence dated July 17, 2015 Fw: 2600-0314: McFarland Subdivision / E-Mail
Diane R Voss to: David W. Benson 07/17/2015 10:47 AM
Bcc: Diane R Voss
The process, as outlined in your emai to me dated July 16, 2015 and sent at 11:31 AM, is confirmed.
Thank you.
Diane Voss, City Clerk/Records Manager
P. O. Box 811
Ames, Iowa 50010
(515) 239-5105
----- Forwarded by Diane R Voss/COA on 07/17/2015 10:33 AM-----
From: Mark Lambert/COA
To: Diane R Voss/COA@COA
Date: 07/17/2015 10:23 AM
Subject: 2600-0314: McFarland Subdivision/E-Mail
To: Diane Voss
Ames City Clerk
Diane, I have reviewed the proposed process for replacing the Letter of Credit regarding
the McFarland Subdivision with a check from a law firm, for the same amount as the Letter
of Credit, as security.
You are correct, the City can accept cash as security. The City would cash the check
promptly and hold the funds in a non-interest bearing City account, and then would seek
Council authorization to release the funds back to the law firm after it has been confirmed
that the work was completed and the need for the security no longer exists.
If Mr. Benson or Mr. Klassman have any questions about the above, they can feel free to
contact me.
Mark
C I'T C
Pmes
Mark O. Lambert
Assistant City Attorney
515.239.5146 main 1515.239.5142 fax
mlambert@city.ames.ia.us I City Hall, 515 Clark Avenue Ames, IA 50010
www.CitVofAmes.org ^ Caring People —Quality Programs— Exceptional Service "
McFarland Subdivision- Letter of Credit Page 1 of 1
David W. Benson
to:
'Diane R Voss'
07/16/2015 11:31 AM
Cc:
"Klassman, Kenneth"
Hide Details
From: "David W. Benson" <dwb@nyemaster.com>
To: 'Diane R Voss' <DVoss@city.ames.ia.us>
Cc: "Klassman, Kenneth" <kklassman@hmblaw.com>
History: This message has been replied to.
Diane:
As we just discussed with Kenny Klassman, attorney for Ames Associates, please confirm the accuracy of the
process that I described below in an email to Kenny and others on July 8. My email described a process to
provide substitute security to the City of Ames to support the Agreement entered into by Ames Associates as
part of the approval process for the final plat of McFarland Subdivision on June 23. 1 have copied Kenny on this
email. Thanks for your help.
Dave Benson
Nate and Kenny:
I visited a moment ago with the Ames City Clerk. She said the City will accept a check from my law firm trust
account of$190,000 as replacement for the LOC issued by First American Bank at the time of plat of approval.
The City will cash the check and deposit it to a "Developer's Account" maintained by the City. At that point,the
LOC issued by the bank will be terminated and the claim on XXXX line of credit can be lifted by the bank. When
the Work is completed and approved by the City's inspection department, a memo to that effect will go the
Clerk who will put it on the next council agenda—at which time the council will authorize release of the
security. The clerk will then direct the City's finance department to issue a $190,000 check to my law firm's trust
account. I can deposit that and then my firm can issue a check back to Kenny's client (xxxxxxxxxxxxxx) when my
client is satisfied with the Work. So, if Kenny's client is agreeable, maybe the easiest route is to eliminate the
bank from the process and just have the agreement between the parties, with my law firm acting as the escrow
agent. My law firm would receive the initial $xxxxxxxx at closing—transfer$190,000 to the City—retain
$xxxxxxx; eventually receive back the $190,000—and ultimately distribute $xxxxxxxxxxxxto Kenny's client.
David W.Benson
Nyemaster Goode,P.C.
1416 Buckeye Avenue
Ames,Iowa 50010
Telephone: 515-956-3913(direct)
Facsimile: 515-956-3990
E-mail: dwb(&nyem aster.com
www.nyemaster.com
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file:///C:/Users/diane.voss/AppData/Local/Temp/notesFFF692/—web3698.htm 7/17/2015
McFarland Subdivision
Diane R Voss to: mlambert 07/17/2015 10:02 AM
Bcc: Diane R Voss
Could you send me an email back confirming the process. I anticipate needing that to send to Dave
Benson so he can forward it to the attorney in Chicago.
Thanks!
Diane Voss, City Clerk/Records Manager
P. O. Box 811
Ames, Iowa 50010
(515) 239-5105