10.03 - Trailside Estates - Laserfiche WebLink

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Trailside Estates 19513 State Hwy 371 I:Irainerd, MN 56401 February 7,2008 City of Pequot Lakes Attn.: Sandy Peine- City Clerk 4638 County Road#11 Pequot Lakes, MN 56472 This letter is in response to letter dated January 29, 2008 from Sandelin Law Office to Granite RE, Inc. Trailside Estates Project is substantially completed except for a punch list which includes waiting until spring on some things. The city reduced the bond amount on recommendation from the City Engineer to 10 % of the original bond. In the Developer's Agreement it states : The City may in its discretion reduce the security to 10%of the estimated cost during the warranty period, subject to review by the City Engineer. We do not feel that we are in default of the Developer's Agreement, because of the above statement. A warranty bond was provided in October for $92,247.39, which the city agreed to reduce from the original amount. The project is completed, so it is the warranty period. That is the kind of bond that is issued for the warranty period. We did not hear anything for three months, after we brought the new bond in, about it being the wrong kind of bond. If the City thought it was the wrong kind of bond, you should have informed us within ten days. Keep in mind, that we did put approximately $165,000.00 in additional costs in the development to accommodate future growth of the city. We agreed to wait for the city's $165,000.00 portion of the utilities and exchange it for Wac & Sac hook-up fee's. Because of the downturn of the housing market and economy, we have not been able to recover this money and it has put us in a financial bind. We ask you again and sincerely hope that you will work with us, by waiting for your money until we can go through the spring market and hopefully get something sold. Please let us know what you decide. Sincerely, Trailside Estates Development, LLLP By Car-Col Construction, Inc. It's General Partner 4 Carl Smith,Jr. President