HomeMy WebLinkAboutA007 - Emal from Legal Department dated January 25, 2022 - security amount Voss, Diane
From: Feilmeyer, Victoria
Sent: Tuesday, January 25, 2022 3:09 PM
To: Moore, Justin; Cintron, Cesar j
Cc: Lambert, Mark; Voss, Diane; Rippke, Becki
Subject: Improvements Agreement - Kingsbury's Fifth [2600 ( �
Attachments: PI Estimates Fifth v Fourth Addition.pdf; PI_Agreeme
Importance: High
Justin and Cesar: I have reviewed the Agreement sent at 2:09 p.m. and do not find it acceptable. My comments are:
1) There seems to be a major disconnect between the Owner and the Agreement drafted by the Attorney. The
agreement contemplates that we will continue to hold the $17,315 taken in connection (an LOC) with the Fourth
Addition, however, it seems likely that several items overlap. See my second attachment with notes.
2) The owner indicated to Diane when he dropped off$63,815 earlier today that the entire $17,315 would be
released to him. Perhaps we agree, however, (i) the agreement does not authorize Diane to do that (in fact, it
suggests she will continue to hold; and (ii) there are several items on the amount held with the 4 th Addition that
are strangely NOT part of the schedule with the Fifth Addition ($420 for 6"thick sidewalk, $240 for warning
panels and$2,865 for COSESCO). We need Cesar's input on this, and if the LOC is to be released(all or a part)
there needs to be specific direction to do so for Diane within the Improvements Agreement.
3) The revised Agreement fails to refer to and attach the Strand calculation ($63,815) as an exhibit so that Diane
can track each line item. Needs to be attached and labeled "Exhibit A."
4) New paragraph 5 is incomplete. Should be rewritten in the following manner: WW is required to construct
certain improvements and utilities (the "Improvements") within the real estate as shown on the attached Exhibit
A'and incorporated herein by reference. WW shall deposit with the City Clerk cash security in the amount of
$63,315 to secure the Improvements. The parties agree that the City may construct the Improvements in the
event that WW, or its successors and/or assigns,fail to do so as agreed, and to cover the cost with the cash
security deposited with the City Clerk. Upon the satisfactory completion of the said Improvements, including
paying the reasonable engineering and inspections fees therefor, the Clerk may release the security to the party
posting the some.
5) Further future note that if WW will be selling lots—they should not expect to get part of their$63,815 security
back from the City—they need to make the appropriate arrangements with their buyer.
Please route a revised agreement to my attention once the amount of security issue is resolved. This is not ready to go
to Council in its current form.
t- I
%k Ames
Victoria A. Feilmeyer
Assistant City Attorney
515.239.5146 main 1515.239.5142,fay:
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