4.12 SR 02-20-2024
Request for Action
To Item Number
Mayor and City Council 4.12
Agenda Section Meeting Date Prepared by
Consent Agenda February 20, 2024 Zack Carlton, Community Development Director
Item Description Reviewed by
Letter of Credit Reduction: Miske Meadows Eighth Cal Portner, City Administrator
Addition
Reviewed by
Action Requested
Adopt, by motion, a resolution reducing the Letter of Credit for Miske Meadows Eighth Addition by
$1,546,687.60 to the new Letter of Credit amount of $200,000.
Background/Discussion
The development agreement for Miske Meadows Eighth Addition requires a Letter of Credit on file with the city
as financial security for the public improvements installed with the project. The agreement states that upon review
of invoices outlining the work completed, the value of the letter can be reduced.
LGI Homes submitted a series of invoices describing the work completed during the 2023 construction season
and requests a reduction in the value of the current letter held by the city. City staff reviewed the invoices and
recommends reducing the amount of the letter to $200,000, which will cover the remaining public improvements
outlined in the original development agreement.
Financial Impact
None
Mission/Policy/Goal
Support the growth and development of the community
Attachments
Resolution
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional
service, and community engagement that encourages and inspires prosperity.
Updated: January 2023
City of Elk River
City Council
Resolution 24-____
A Resolution of the City Council of the City of Elk River Reducing the Value
of the Letter of Credit for the Public Improvements in Miske Meadows
Eighth Addition
WHEREAS, On June 6, 2022, the City Council adopted resolution 22-30 approving the
final plat of Miske Meadows Eight Addition and they approved a development agreement
outlining the standards for installation of the public improvements along with the
appropriate financial security; and
WHEREAS, the approved development agreement required a letter of credit equal to 100
percent of the cost of public improvements; and
WHEREAS, on September 14, 2022, Wells Fargo Bank, N.A. provided irrevocable
standby Letter of Credit number IS000315499U in the amount of $1,746,687.60 as financial
security for the public improvements constructed with the plat of Miske Meadows Eight
Addition; and
WHEREAS, on January 29, 2024, the developer, LGI Homes-Minnesota, LLC, submitted
invoices documenting the work that has been completed on the Miske Meadows Eight
Addition development and requested a reduction to their letter of credit; and
WHEREAS, city staff have reviewed the invoices and support the request to reduce the
value of the Letter of Credit held by the city.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Elk
River, Minnesota, as follows: Wells Fargo Bank is authorized to reduce irrevocable Letter of
Credit number IS000315499U by $1,546,687.60 to the new Letter of Credit amount of
$200,000.
th
Passed and adopted this 20 day of February 2024.
John J. Dietz, Mayor
ATTEST:
Tina Allard, City Clerk