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Home My WebLink AboutRESOLUTION - 18-00 - 6/27/2000 - LETTER OF CREDIT, ACCEPTINGRESOLUTION NO. 18-00 A RESOLUTION ACCEPTING IRREVOCABLE LETTER OF CREDIT NO. 553 FROM THE NATIONAL REPUBLIC BANK OF CHICAGO IN THE AMOUNT OF $27,205.20 EXPIRING JUNE 6, 2001 TO GUARANTEE PUBLIC IMPROVEMENTS FOR MICROTEL INN & SUITES (HIGGINS ROAD & COMMERCE DRIVE) NOW, THEREFORE, BE IT RESOLVED by the President and Board of Trustees of the Village of Elk Grove Village, Counties of Cook and DuPage, State of Illinois: Section 1: That the President and Board of Trustees do hereby authorize acceptance of Irrevocable Letter of Credit No. 553, dated June 6, 2000 from The National Republic Bank of Chicago in the amount of $27,205.20 to guarantee the completion of public improvements for Microtel Inn & Suites described in the engineering plans and specifications with revisions dated January 4, 2000, prepared by Tinaglia Design Group, Inc., approved on May 25, 2000, and agreements (including any amendments thereof) attached hereto and made part hereof. Said Letter of Credit expiring June 6, 2001. Section 2: That this Resolution shall be in full force and effect from and after its passage and approval according to law. VOTE: AYES: PASSED this APPROVED this ATTEST: Ann I. Walsh Village Clerk LOCMicrotelInn.doc 5 NAYS: 0 ABSENT: 1 27th 97th day of June 2000. day of June 2000. Craig B. Johnson Village President THE NATIONAL REPUBLIC BANK OF CHICAGO 0 33 6 1201 West Harrison Street • Chicago, Illinois 60607 Area Code 3121738-4900 Fax 3121738-4944 IRREVOCABLE LETTER OF CREDIT Village of Elk Grove Village 901 Wellington Avenue Elk Grove, Illinois 60007 Gentlemen: Completion Guaranty Letter of Credit No. 553 Date: June 6, 2000 Amount: $2 , 205.20 Completion Date: February 25, 2001 Expiration Date: June 6, 2001 We hereby establish our Irrevocable Straight Letter of Credit in your favor for The account of Shiva Hotel Group, Inc., hereafter called the "Owner", in the aggregate amount of $27,205.20, U. S. Currency, available by your draft drawn on sight and marked "Drawn under Letter of Credit No.553, dated January 6, 2000. These monies are to guarantee the completion of public improvements for the following project: Microtel Inn & Suites described in the engineering plans and specifications with revisions dated January 4, 2000, prepared by Tinaglia Design Group, Inc., approved on May 25, 2000, and agreements (including any amendments thereof) on the property legally described in Exhibit A (attached hereto and made part thereof). Monies may be drawn on sight by the Village of Elk Grove when accompanied by the following document: A signed statement by the Village Manager or any other duly authorized official of the Village of Elk Grove Village certifying that any portion of the site improvements has not been satisfactorily completed in accordance with the approved plans and specifications with revisions dated January 24, 2000 prepared by Tinaglia Design Group, Inc., approved on May 25, 2000 and agreements (including any amendments thereof) for the following project: Microtel Inn & Suites The improvements in the above described project consist of: (X appropriate boxes). (X] Watermain and Appurtenances (X) Sanitary Sewer and Appurtenances (Xl Storm Sewer and Appurtenances ( ) Roadway (Curb & Gutter, Pavement) (X) Sidewalk () Street Lights ( ) Parkway (Trees, etc.) ll Traffic Control (Signals, Signs, Markings) (XI Ponds (Detention/ Retention) (X) Excavation (Soil Erosion Control, Stockpile) ( 1 Other (Retaining Walls, etc.) These improvements itemized above shall be completed on or before February 25, 2001. If said improvements have not been property installed and satisfactorily completed on or before that date as reasonably determined by the Village Engineer, then the Village of Elk Grove Village (the "Village") is hereby granted authority to draw upon this Irrevocable Letter of Credit for the purpose of completing fully said improvements in accordance with the provisions herein and above set forth. The principle amount of this Irrevocable Letter of Credit shall not be reduced for any public improvements installed or completed unless such reduction is approved by the Village Engineer in writing with supporting wavers, liens and affidavits from contractors or subcontractors furnishing material or performing work to complete these improvements. And then only in the exact amount of such payments less 10% for interim maintenance. This remaining amount shall never be reduced to an amount less than 110% of the estimated costs to complete the remaining public improvements plus 10% of the cost of the completed public improvements as a guarantee for maintenance purposes. The Village may submit its sight drafts as herein above provided without the consent of Shiva Hotel Group, Inc., or any other party. Partial drawings are permitted under this Irrevocable Letter of Credit. Said drafts may be submitted for payment for a ninety (90) day period following the completion date of this Irrevocable Letter of Credit and said draft shall be duly honored upon presentation during the ninety day (90) days in accordance with the terms and provisions herein contained. If, within thirty (30) days of the date of any demand (made in conformity with this Irrevocable Letter of Credit) presented, we fail to honor same, we agree to pay all attorney fees, court costs and other reasonable expenses incurred by the Village of Elk Grove Village in enforcing the terms of this Irrevocable Letter of Credit. The amount of each draft must be endorsed on the reverse side of the original Irrevocable Letter of Credit by the Village Engineer and attested by the Clerk. This Irrevocable Letter of Credit shall be utilized to secure the installation of all improvements required under the Municipal Code of the Village of Elk Grove Village and specified on the engineering drawings and in the specifications and agreements. This Irrevocable Letter of Credit shall not operate as a limitation upon the obligation of Shiva Hotel Group, Inc. ("Owner"), and Faith Builders, Inc. ("Developer") to properly and completely install all improvements required by the Village of Elk Grove Village. It is a condition of this Irrevocable Letter of Credit that it shall be automatically extended for one year from the present expiration date hereof unless thirty (30) days X prior to such expiration date the Village Manager shall notify the undersigned in writing, certified mail, return receipt requested that he or she, based upon the advice and supporting documentation from the Village Engineer that he or she does elect not to arbitrarily request renewal of this Irrevocable Letter of Credit for such additional one (1) year period without due cause. The undersigned shall notify the Village Manager, by certified mail, return receipt requested, at least ninety (90) days prior to said expiration date that this Irrevocable Letter of Credit is about to expire. It is expressly agreed by the undersigned that the expiration date shall be automatically extended as shall be required to comply with this notice provision and the requirements stated previously. This Irrevocable Letter of Credit is subject to the "Uniform Customs and Practice for Document Credit' the International Chamber of Commerce Publication #290, most recent revision" except as herein above modified. We hereby agree with the drawers, indorser(s), and bona fide holders of drafts drawn in compliance With the terms of this credit that they shall be honored on presentation. Dated: January 6, 2000 Issuing Financial Instit By: Edward Fitzgeralkl Developer/Owner "The undersigned hereby acknowledges the absolute right of the Village of Elk Grove Village to draw on this Irrevocable Letter of Credit subject to the conditions herein set forth and waives Any right to enjoin the Village from so proceeding." Date: June 6, 2000 Owner/ Developer: (2) Shiva Hotel Group, Inc. Faith Builders, Inc. Note: If property is in a trust, attach a copy of the trust agreement as Exhibit. 3 Village Officials Approval/Acceptance (Title) (Date) Exhibit A Resolution: Legal Description w/ Phase Plan indicated (if applicable) Village Officials Release (Title) (Date) 0 Resolution: