HomeMy WebLinkAboutLOC reduction 10-11-18
October 11, 2018
James and Mary Jundt
C/O Brian Benson Via Email
201 East Lake St BKBenson@CBBurnet.com
Wayzata, MN 55391
Re: Southways Plat - Authorization to reduce Letter of Credit
Ref.: Wells Fargo Bank; LOC No. IS000042107U; Dated May 21, 2018
Mr. Benson,
Per your request the City’s Engineer has inspected the Southways site and has determined that a percentage of
the work has been satisfactorily completed. Therefore, a reduction of your letter of credit from the original
amount has been recommended as follows:
Original Amount Current Reduction Amount to Remain in
Effect
$1,009,327.50 $531,317.50 $478,010.00
This letter will serve as City of Orono authorization to you and to Wells Fargo to allow reduction of LOC No.
IS000042107U, in the amount above. The intent of the remaining escrow balance is primarily to assure
completion of items listed in the City Engineers letter of October 9, 2018, attached.
Please feel free to contact me at 952.249.4626 or by email at jbarnhart@ci.orono.mn.us if you have any questions on
the above requirements.
Sincerely,
CITY OF ORONO
Jeremy Barnhart, AICP
Community Development Director
Cc: Ron Olson, Finance Director via email
Adam Edwards, City Engineer via email
David Osdoba, Wells Fargo via email David.J.Osdoba@wellsfargo.com
H:\ORNO\C13115486\1_Corres\C_To Others\Bracketts Development LOC Reduction 10-9-18.docx
October 9, 2018
City of Orono
Attn: Adam Edwards
PO Box 66
Orono, MN 55323
RE: Southways Development
Letter of Credit Reduction
Dear Adam:
As requested, we have reviewed the applicants request to reduce the letter of credit for the Southways
Development. In general, the following items remain to be completed:
Landscaping: $46,185
Common Excavation: $19,720
Sanitary Sewer: $5,643
Remove Existing Sanitary Sewer: $16,500
Storm Sewer: $5,750
Class 5 Base and Fabric: $87,150
Bituminous Paving (remove old road): $99,350
Erosion Control: $8,375
Lift Station and Manhole: $30,000
Total: $318,673
The remaining work has an estimated value of $318,673. Therefore, it is recommended that the City
retain a letter of credit in the amount of $478,010 (150% of the estimated value).
Please let me know if you have questions or need additional information.
Sincerely,
Bolton & Menk, Inc.
David P. Martini, P.E.
Principal Engineer