12.01 - Trailside Estates - Laserfiche WebLink

Home Browse Search

Police City of Pequot City Hall 218-568-8111 Lakes 218-568-5222 Fax 218-568-5647 Fax 218-568-5860 Pequot Lakes,MN 564 plpd @pequotlakes-mn.gov =t 4638 County Road 4 72 cityhall @pequotlakes-mn.gov www.pequotlakes-mn.gov October 19, 2007 Corky Smith 19513 State Highway 371 Brainerd, MN 56401 Dear Mr. Smith: The City is in receipt of copies of the following recent letters on the Trailside Estates project: • Landecker's October 11, 2007 letter on remaining punch list items along with an estimated value of remaining work • WSN's October 12, 2007 letter concurring on the estimated value of remaining work and recommending levels of acceptance of the various public improvements. • Your October 12, 2007 letter stating that you agree the remaining items in the above two letters must be taken care of and requesting a reduction in your project bond to $33,750. The City Council discussed these matters at the City Council meeting on October 17th. They addressed the bond issue and the acceptance of various public improvements. In regards to the bond issue, the Council approved decreasing the project bond in accordance with Landecker's and WSN's letters. However, a question was raised afterwards about conformance of this action with this project's Development Agreement. In a review of Article XII of the Development Agreement, a reduction in the security/bond is allowable to 10% of the estimated cost during the warranty period. Thus, please forward a bond/financial security in the amount of$92,247.39 ($922,473.86 x 10%). When we receive such a proper bond/security, we will return the original project bond to you. In regards to the acceptance issue, the Council concurred with WSN's October 12th letter on the recommended levels of acceptance of the various public improvements. The Council also indicated that the City will only plow from County Road 112 to the lift station so the City can periodically check it.