10.02 - Trailside Estates - Laserfiche WebLink

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, ‘ AN ,,,, xELIN p . ,.,,6,, rn.,. ,..A","..,„ , , „ " ,, . LAW OFFICE ATTORNEYS AT LAW 30849 FIRST STREET PAUL J. SANDELIN P.O. BOX 298 TELEPHONE (218) 568-8481 STACY M. JOHNSON PEQUOT LADS, MINNESOTA 56472 FAx (218) 568-8444 www.lakesarealaw.com March 10, 2008 City of Pequot Lakes Attn: Sandy Peine 4638 County Road 11 Pequot Lakes, MN 56472 Re: Trailside Estates Plat Development Agreement/Bond Our File No. 25000.047 Dear Sandy: I spoke with Brad Tollefson of Granite RE, Inc. regarding the Trailside Estates Performance Bond. The City would need to follow the process described in the bond for filing a claim. The bond requires that the °'`.. City notify both the Developer and the Surety (bonding company and agent) that we have declared a default and we then request a conference with the Developer and the Surety to meet within fifteen (15) days to discuss methods to resolve the default. If a resolution cannot be reached then ultimately it is the Surety's responsibility to pay the claim and then pursue recovery of the claim directly from the Developer. The Surety has the right to pursue recovery from the Developer as the Developer has agreed to indemnify the Surety for any losses or claims brought against the bond. The Surety will incur costs and other out of pocket expenses as a result of a bond claim (including legal fees and expenses) and the Developer must reimburse those fees, costs and expenses. Obviously this will negatively impact the Developer. I suggested to Mr. Tollefson that he contact the Developer's agent at Pate Bonding Company and request that the agent discuss directly with the Developer the practical adverse effect of a bond claim brought by the City. If you have any questions please let me know. Thank you. Very truly yours, C C - u J. S : de in I sandelin • akesarealaw.com PJS: jdf S:\LAW\TEXT125000.047\Peine.ltr7.doc