10-25CITY OF OTSEGO
WRIGHT COUNTY
STATE OF MINNESOTA
RESOLUTION NO. 2010-25
RESOLUTION AUTHORIZING DRAW ON LETTER OF CREDIT ISSUED BY
THE BANK OF ELK RIVER ON BEHALF OF CP OTSEGO PARTNERS, LLC
REGARDING THE PLAT OF THE SHOPPES OF GREAT RIVER CENTRE
SECOND ADDITION, CITY OF OTSEGO
WHEREAS, The Bank of Elk River has issued a Letter of Credit in the current amount
of $ 29,425.00 to secure obligations of CP Otsego Partners, LLC (CP) relevant to the
Developers Agreement between CP and the City of Otsego (CITY) for that development
known as THE SHOPPES AT GREAT RIVER CENTRE SECOND ADDITION; and
WHEREAS, said Letter of Credit is due to expire on August 13, 2010, and CITY has
been notified by the Bank of Elk River that it will not be renewed; and
WHEREAS, certain public improvements installed by CP pursuant to the Developer's
Agreement between the CITY and CP have not been completed as set forth in the City
Engineer's correspondence dated July 20, 2010; and
WHEREAS, CITY has notified CP that the public improvements must be completed by
August 6, 2010.
NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Otsego,
Wright County, Minnesota as follows:
City staff are hereby directed to draw the full amount of the Letter of Credit
($29,425.00) issued by the Bank of Elk River in the event that the public
improvements are not completed to the satisfaction of the City Engineer by
August 6, 2010.
2. The Mayor, City Clerk and City Administrator are hereby authorized to execute
any and all documents necessary to draw on the Letter of Credit.
ADOPTED this 26th day of July, 2010 by the Otsego City Council.
IN FAVOR: ACTING MAYOR HEIDNER; CM DARKENWALD AND CM SCHARBER
OPPOSED: NONE.
2
CITY OF OTSEGO
ALka-
Vern Heidner, Acting Mayor
Tami LOIV, City Clerk