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HomeMy WebLinkAboutRESOLUTION NO. 2010-53 RESOLUTION NO. 2010-53 RESOLUTION APPROVING A LETTER OF CREDIT FROM GUARANTY BANK AND TRUST COMPANY FOR PUBLIC IMPROVEMENTS IN PRAIRIE CREED ESTATES FIFTH ADDITION TO THE CITY OF FAIRFAX, LINN COUNTY, IOWA WHEREAS, Synergy Development Group, L.L.C. has requested approval of the final plat for Prairie Creep Estates Fifth Addition to the City of Fairfax, Linn County, Iowa prior to the completion of the public improvements in said subdivision; and WHEREAS, Synergy Development Group, L.L.C. has submitted a Letter of Credit from Guaranty Bank and Trust Company in the amount of $175,000.00 for said improvements; and WHEREAS, this Letter of Credit may be reduced by resolution of council as draws upon this Letter of Credit are requested to make partial payment for work completed on the public improvements; and WHEREAS, Hall and Hall Engineers, Inc. has reviewed the documents and recommended approval of the estimate of cost for said public improvements and the Letter of Credit for$175,0001.00. NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of Fairfax, Iowa, that the Letter of Credit from Guaranty Bank and Trust Company in the amount of $175,000.00 submitted by Synergy Development Group, L.L.C. is hereby approved and accepted as security for the completion of the public improvements in. Prairie Creek Estates Fifth Addition to the City of Fairfax,Linn County, Iowa. BE IT FURTHER RESOLVED, by the City Council of Fairfax, Iowa, that the Mayor and the City Clerk/Treasurer are hereby authorized and directed to execute said. Resolution. Passed and approved this 91h day of November, 2010. AYES: Beer,Frieden, Otto,Magers, and Wainwright NAYS: None ABSENT: None t //0' Jason R�fbe, Mayor ATTEST: II 6 Cyn is Stimson, City Clerk/Treasurer IRREVOCABLE STANDBY LETTER OF CREDIT ISSUER.GUARANTY BANK&TRUST COMPANY PO BOX 1B07 302 THIRD AVE SE CEDAR RAPIDS,lA 52406 Date of Issue;l 1-042010 Letter of Credit Number;4610146010 Amount.U.S. $ 175,000.00 ( ONE HUNDRED SEVENTY FIVE THOUSAND AND NO1100 U.S, DOLLARS) For Benefit Of: For Account Of: Beneficiary Name and Address Applicant Name and Address CITY OF FAIRFAX SYNERGY DEVELOPMENT GROUP,L.L.C. 525 VAINDERBILT ST FAIRFAX,IA 52228 411 CREEK SIDE DR FAIRFAX,IA 52228-4700 LETTER OF CREDIT. Issuer establishes this Irrevocable Standby Letter of Credit (Letter of Credit) in favor of Beneficiary in the amount indicated above. Beneficiary may draw on this Letter of Credit with a Draft (or Drafts, if the maximum number of drawings is greater than one) together with the documents described below. Each Draft shall be signed on behalf of Beneficiary and be marked "Drawn under [Issuer name] Letter of Credit No, [Letter of Credit number] dated /Letter of Credit date]." Drafts must be presented at Issuer's address shown above on or before the Expiration Date. The presentation of any Draft shall reduce the Amount available under this Letter of Credit by the amount of the Draft. This Letter of Credit sets forth in full the terms of Issuer's obligation to Beneficiary. This obligation cannot be modified by any reference in this Letter of Credit, or any document to which this Letter of Credit may be related.THE AMOUNT OF THE LETTER OF CREDIT BILL BE REDUCED AS DRAWS ARE PAID OUT ON THE LINE OF CREDIT AMT OF $175,000 This Letter of Credit expires on the Expiration Date. #9090001$13 FOR THE BENEFIT OF THE CITY OF FAIRFAX, FOR DRAWINGS PUBLIC IMPROVEMENTS 'TO PRAIRIE CREEK ESTATES 5TH ADDITION. Il Partial drawings shall not be permitted under this Letter of Credit. IE Partial drawings are permitted. The maximum number of drawings that may be made is 5 DOCUMENTS. Each Draft must be accompanied by the following, an original and two copies except as stated: IX The original Letter of Credit, together with any amendments. IXA sight draft drawn by Beneficiary on Issuer. A signed statement by Beneficiary including the following statement; WE HEREBY CERTIFY THAT IMPROVEMENTS HAVE NOT BEEN COMPLETED AS AGREED FOR PRAIRIE CREEK 5TH ADDITION.WE(FURTHER CERTIFY IX Other documents:COPIES OF COMMERCIAL(INVOICES SIGNED,DATED AND THAT PAYMENT IS DUE TO US IN THE AMOUNT OF THE ACCOMPANYING } MARKED"UNPAID". DRAFT. Issuer shall be entitled to accept a draft and the documentation described above, as required by the terms of this Letter of Credit, from any person purporting to be an authorized officer or representative of Beneficiary without any obligation or duty on the part of Issuer to verify the identity or authority of the person presenting the draft and such documentation. SPECIAL INSTRUCTIONS:DRAFT MUST STATE THAT IT IS"DRAWN UNDER GUARANTY BANK&TRUST COMPANY LOAN#4610146010 DATED NOVEMBER 4,20110" Irrevocable Standby Letter of Credit LC-STANDBY 9/11/2009 VMP(y)'Bankers SystemsTu VMPe612 {0909].00 Wolters Kluwer Financial Services©2001,2009 Page 1 of 2 Zjo Z a5lod 60OZ'loOZ OO saul••..AJas letaiUeuld 14AAnl)4 scall 00`60601 Z693dWA KiswDlsRgsJaluee®d, 60OZI1 LIS ASONVIS-01 llpaj0!a b'anad.Agpugis algeoona.., (01111 PUS—K a fTs) 1NIOIS38d 301A'11V983d3N'w Hind (aaaQ) (aa K51 Xg (mw sl)2 ANtldWD01S11 1NtlIltlnn 'aIquolidde sr `dSI zo dDfl agi Tli1m lualslsuoout lou OIL' smul Bons su guol os `Eollouu+d 3o salElS pallufl agl tlM01 3o smEl agi Aq p3u30AOS oq osly Ilugs 1rpaj ;o jalia-1 slgs ''(RMO 866I saapauid XgputIS luuolluusalul agl ❑ °Jllau>puauro so uolsiaA ialEJ)CUP io `(dj!fl)009 'oN uolU-ailgnd ooaaunuoD ;o .laquregD leuoprusalul `uoislnag LOOZ `sllpaJD f.iElua>unao(l alo; aoilaEYd pm, suloisnD Tmopun agl (q p2uioAof aq Iiu>1s llpaa:);o calla l slgI 'Akv-1 g l VDI IddV 'aig7ua;suuIi-uou X olgtja;suEji ❑ si llpaiD;o nlla"I slg,L ',�,1,I'-II'gV2IgdSNV-d.L `Axelogauaq of ianssl uioa; aoliou Aua inoglilm uo a.rldxo lluls ilpaiD jo saliarl s►gl `luana SUE ul •llpaiD;o Jailaq sagl pualxa of lou sloala aanssl amp alE(l ulDiPlidxg agl of loud sfEp lsual 1V fulllam ul Aaulol;auag sal;Ilou janssl ssalun `aIEQ uopl?jidxg agl uioi; sSrp ;o popod E.lo; papuoixo aq llegs aleCl uollejidxg agl `olE(I uollEatdxg agi of loud itpolD ;o 101131 slip ;o lunouiu Iln; agl umuap lou sug ,IlElal;auag 3I ❑ 'aluQuollu.ildxg agl aao;aq ao uo ppa.i; ;o iaua l S1111 JO suo>Islno.id agl pm oauuildmoo bills ul p luasaid sgue lIu aouog of saaztu .lonssl '{aw(j) I I oz-vo-!1 uo (OMIT) 1S0 wd 00:5 Io ssauppu s,jonssl iu ssouisnq;o osola agi lE saxldxa ilpaaD;o aaila'I slgl, '91V,C[ NOIIV'dldXg