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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 CREEK 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 Creek 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$175,000.00. 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 91"day of November, 2010. AYES: Beer, Frieden, Otto, Magers, and Wainwright NAYS: None ABSENT: None Jason e, Mayor ATTEST: r Cyn. is Stimson, City Clerk/Treasurer IRREVOCABLE STANDBY LETTER OF CREDIT ISSUER:GUARANTY BANK&TRUST COMPANY PO BOX 1807 302 THIRD AVE SE CEDAR RAPIDS,IA 52406 Date of Issue:11-04.2010 Letter of Credit Number:461O146O1O 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 VANDERBILT 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 WILL 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. ;/ 9090001813 FOR THE BENEFIT OF THE CITY OF FAIRFAX, FOR DRAWINGS. PUBLIC IMPROVEMENTS TO PRAIRIE CREEK ESTATES 5TH ADDITION. ❑ Partial drawings shall not be permitted under this Letter of Credit. ® 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: ® The original Letter of Credit, together with any amendments. IX A sight draft drawn by Beneficiary on Issuer. IX 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 4,2010" Irrevocable Standby Letter of Credit LC-STANDBY 9/11/2009 VMPO Bankers SystemsTM VMPC612 (0909).00 Wolters Kluwer Financial Services©2001,2009 Page 1 of 2 Z;o Z abed 6002'100Z Osao)niaweioueu)Sjannn eslai 0016060) ZMMA swaisAsialu8 a d, 600Z/1 L/6 A90NViS-0l 1!paj0}o iaRal AgpueiS ajge0 na,., (0111,1 pua—N -ifTS) 1NMISMd 30111 IMH383N'W Him (aaecl) (aa (awe sr) AN11dW001Sf1H 1Nt1HGf10 •algeollddt,se `dSI JO dOfl aul ullm Jualslsuooul Jou aae smel cans se 8uol os `eolaauid 3o saJeJS paJlufl aui VM01 3o smel aui Fq pau.zano8 oq osle Ileus JlpajO 3o calla-1 stun •(86dSI)8661 sa0POPM XgputIS lt,uoilruialul aul ❑ •luauzpuawt,10 uoisnA aaJt,l fue a0 `(dDfl)009 'ON uoileollgnd aozauuuoD 3o nquzeuO leuolleul3lul `u0lslna-d LOOZ `sJlpaaO fleluamooCl jo3 aolioeJd put, suxoisnD tulo3iufl aul :,iq p3uz3no2 oq Ileus llpaaO 3o JOIIaYl slu.I, 'MVI 9'l9VOI'lddV algt,za3sueaJ-uou ® olgt,z33suujl ❑ sl JlpojDjo jollo"I slu.L •A.LI'IIgtd2IgdSNd2I.L 6jeiol3auag of janssl uzoz3 aotlou Mut, Jnouilm uo ajidxo llt,us J?paid 3o njp-I slut `Juana fue ul •llpaaO;o .z w-1 slut puoixa of Jou sioala janssl lt,ul oleCl uolJt,aldxg aul of jolad sXup ist,al Jt, ftppm ul Xirio!puag s3i3llou nnssl ssalun `mci uolpealdxg auJ uwz3 skep 3o popod e ao3 papualxa oq Ileus ;Dw(j uolJendxg auJ 'ojrCj uollealdxg aul of joud I!poiD 3o .zow-j slut 3o iunoum Iln3 aul umezp Jou seu Simo!pw3I ❑ •aJeQ uopuiidxg cul aaopq jo uo JlpojD 3o c)lla-1 slul 3o suolslAwd aul ullm aouellduzoo souls ur poluasoid sJ3ezQ Ile jouou of s3az8e aanssl •(aJt,Q) LLOZ•b0'LL uo (auzil,) ISO Wd 00:9 Je ssaippe s,ianssl it, ssaulsnq 3o asolo oils Jt, sazldxo JlpaIO Io JW-1 STU -9JVa NOIJV-dldXg