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HomeMy WebLinkAboutA049 - Email correspondence regarding letter of credit and public improvements s Page 1 of 2 2600-0283-0003: The Irons - LOC Covenants for Annexation-Ames Golf and Country Club/review and comments Judy K Parks r n' I O G (5 Ll� a cJ to: �V 1 L dvoss, randerson, ecowles 03/17/2017 11:00 AM _ kdiekmann Hide Details From: Judy K Parks/COA To: dvoss@city.ames.ia.us, randerson@city.ames.ia.us, ecowles@city.ames.ia.us Cc: kdiekmann@city.ames.ia.us 1 Attachment LOC for the Irons(Ames Golf&CC) .pdf Hi Diane, Eric, and Ray, I have received a Letter of Credit from South Story Bank that appears to be security for the remaining improvements at the Irons (a/k/a the Ames Golf and Country Club). I have read that document as well as the attached emails which came with it. Those emails appear to explain what improvements this secures and the costs for those improvements. My comments are as follows: 1.�Pleas cote ttra--expiratlomdate=of=tliis=LOC It is October 25, 2017 (or whatever date all the funds or drawn against it, whichever happens first). I believe I read that this is for sidewalks and trails. I don't know when these are scheduled to be built, but my only concern would be that if the construction of these gets pushed back by weather, or inability to get contractors, or whatever other reason, it might be hard to get the project completed much before October 25th. My experience (which is far more limited than yours) is that these kinds of improvements usually end up being done at the very tail end of the project, and at the very tail end of the construction season. If we are not sure these will be installed by October 25th, then a longer date before this expires would give us a greater cushion of time to deal with the unpredictability of weather, lack of contractors, etc. �o you-know when-the-aevelopi5r-4s-planning--to:install-itheseamprovements? 2. The lender has to honor all drafts drawn on this for 60 days past the earlier of these 2 events: (1) Event#1- date of completion of the project, or(2) Event#2-the expiration date of this letter. This is important, because if they complete the projects, but its not to our satisfaction or its not acceptable to us, we have 60 days after that work is done to go after this money so we can do the work ourselves. This functions somewhat like a warranty period, such that if the work is complete but we deem that there are still things we need to have them do, but they are balking, we have 60 days after completion to draw down this security. Given that we would have to bid out for the work, if the contractor doesn't get it done, it seems to me like it would be a tight timeline for us to have to get this work bid out and completed if the contractor fails to do so. Eric, if this is not a realistic time frame, now is the time to say so, because we can ask them to amend this LOC. The-terms-o�the.:L�C—are-strictly=constr-ued-against=usiso�this is our chance to make sure we have enough time to actually complete the work and get to these funds, if we need to. 3I d©r'- wa#=therels going-to be some kind of agreemert th�at tDevelopesigrrsthat says#fley havoc pry wide-this-security_;imthis amount for these improvements, but what I usually have seen an agreement identifying the project, that the Developer signs which is the supporting documentation for why they are providing file:///C:/Users/Diane.voss/AppData/Local/Temp/notesFFF692/—web4566.htm 3/17/2017 Page 2 of 2 this LOC. In past situations, that has been an agreement for Public Improvements, or for sidewalks and/or street trees, or within the terms of a Development agreement. I would really like something in writing signed by the Developer that explains why we need this security and pursuant to which we can force them to provide this. Is that something I can expect to receive? I will return the LOC to the City Clerk while I wait to hear back from you on my comments & questions. Judy Parks, City Attorney LOC-The Irons.pdf file:///C:/Users/Diane.voss/AppData/Local/Temp/notesFFF692/—web4566.htm 3/17/2017