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HomeMy WebLinkAboutRESOLUTION - 7-87 - 2/10/1987 - LOC/O'HARE BUSINESS CENTER RESOLUTION NO. 7-87 A RESOLUTION ACCEPTING AN IRREVOCABLE LETTER OF CREDIT NO. 16260 FROM THE LOMAS & NETTLETON COMPANY EXPIRING FEBRUARY 1, 1988 IN THE AMOUNT OF $820,000.00 TO GUARANTEE THE COMPLETION OF PUBLIC IMPROVEMENTS AT O'HARE BUSINESS CENTER 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 the acceptance of an Irrevocable Letter of Credit No. 16260 from the Lomas and Nettleton Company in the amount of $820,000.00 to guarantee completion of public improvements at O'Hare Business Center as described on Exhibit "A" attached hereto and made a part hereof in accordance with plans and specifications prepared by Digital Engineering and Surveying, Ltd. on property described in Exhibit "B" attached hereto and made a part hereof. Said Letter of Credit expiring February 1, 1988. Section 2: That this Resolution shall be in full force and effect from and after its passage and approval according to law. PASSED this 10th day of February 1987 . APPROVED this 10th day of February 1987. Charles J . Zettek Village President ATTEST: Patricia S. Smith Village Clerk The Lomas&Nettleton Company 2001 Bryan Tower Post Office Box 225644 Dallas,Texas 75265 Phone:(214)746-7111 February 2, 110II7 RECEIVED E. C. V. Elk Grove Village FEB 3198!'. 901 Wellington Aven:.le ENGINEERING DEPT Elk Grove, Illinois 60007 Re: Irrevocable Letter of Credit No. 16260, dated October 27, 1986 (the "Letter of Credit") issued by The Lomas & Nettleton Company ("Issuer") to Elk Grove Village ("Beneficiary") Gentlemen: In connection with the referenced Letter of Credit, the undersigned wishes to clarify the requirements contained in the second full paragraph on page 2 of the Letter of Credit, and particularly the last sentence thereof which reads as follows: "Beneficiary, upon the request of Issuer, shall deliver to Issuer, from time to time, a statement certifying the value of the Work completed, the estimated cost to complete the outstanding Work (or that all of the Work has been satisfactorily completed) , and the principal amount available under this Letter of Credit. " It is the Issuer's understanding that the owner of the subject property, Webb/Schmitt Ventures 101 , Ltd. ("Developer") shall submit to the Beneficiary a certificate of completion that shall (i.) itemize the Work completed to date and the value of said Work and (ii ) estimate the cost to complete the outstanding Work. Upon Beneficiary's approval of the Work and the information contained in such certificate, such approval shall be binding upon the Beneficiary with respect to the principal amount that may be drawn under the Letter of Credit. Beneficiary shall not be required by Issuer to independently estimate the cost to complete the outstanding Work. To the extent the Letter of Credit is inconsistent with this Letter of Understanding, the terms of this letter shall control . If this is your understanding of our agreement, please execute this letter in the space provided below and return an executed counterpart to the undersigned. Very truly yours, THE LOMAS & NETTLETON COMPANY By: ,7z A member of The Lomas&Nettleton Financial Group Elk Grove Village February 2, 1987 Page 2 AGREED TO AND ACCEPTED this day of February, 1987: ELK GROVE VILLAGE By: Tit / V , ---L&N Loan No . 3682 LP FVte4qW. 851 V=Y 2ODtriearPosoftce650096 Dallas, Texas 75265 \C\ Phone: (214) 746-7111 F,NG�N IRREVOCABLE LETTER OF CREDIT NO. 16260 DATE: October 27, 1986 Elk Grove Village 901 Wellington Avenue Elk Grove, Illinois 60007 Gentlemen: We hereby establish our Irrevocable Letter of Credit and authorize you (sometimes hereinafter called "Beneficiary" ), to draw on us at sight for the account of Webb/Schmitt Ventures 101, Ltd. , 1845 E. Rand Road, Arlington Heights, Illinois 60004 ( "Developer" ) , for any sum or sums not exceeding the aggregate amount of Eight Hundred Twenty Thousand and No/100 Dollars ($820, 000. 00) . The drafts drawn under this Letter of Credit must be marked "Drawn Under The Lomas & Nettleton Company Letter of Credit No. 16260" and must be accompanied by the original Letter of Credit. The funds available under this Letter of Credit are to guarantee the completion of public improvements (the "Work" ) for the O' Hare Business Center described in the engineering drawings prepared by Digital Engineering and Surveying, Ltd. as more particularly described on Exhibit A attached hereto and made a part hereof, approved by Beneficiary (including any amendments thereto) on the property legally described in Exhibit B attached hereto and made a part hereof. The Work consists of ( i ) watermain and appurtenances, ( ii ) sanitary sewer and appurtenances, (iii ) storm sewer and appurtenances, (iv) roadway (curb and gutter pavement) , (v) sidewalk, (vi ) street lights, (vii ) parkway (trees, etc . ) , (viii) traffic control (signals, signs, markings) , (ix) ponds (detention, retention) , and (x) excavation (soil erosion control, stockpile) . Funds may be drawn on sight by Beneficiary when accompanied by the following documents : 1 . A signed statement by the Village Manager or any other duly authorized official of the Beneficiary certifying (a) that all or a portion of the Work has not been satisfactorily completed in accordance with the engineering drawings prepared by Digital Engineering and Surveying, Ltd. A member o1 The Lomas&Nettleton Financial Group Elk Grove Villo October 17, 1966 Page 2 as more particularly described on Exhibit A attached hereto and made a part hereof, approved by Beneficiary (including any amendments thereto) , for the O'Hare Business Center (the "Project" ) , on property legally described in Exhibit B, attached hereto and made a part hereof, (b) the nature of the Work to be completed, and (c) that the amount drawn is equal to the costs of completing such Work. 2 . The original Letter of Credit. The Work shall be completed on or before November 1, 1987 . If said Work has not been properly installed and satisfactorily completed on or before that date as reasonably determined by the Village Engineer, then the Beneficiary is hereby granted authority to draw upon this Letter of Credit for the purpose of completing said Work in accordance with the provisions herein. Beneficiary may submit its sight drafts as herein above provided without the consent of the Developer or any other party. The principal amount of this Letter of Credit shall be reduced for any Work installed or completed; provided, however such reduction shall only be effective if the Work is approved by the Village Engineer in writing and then only in. the exact amount of the cost of the Work completed less 10% for interim maintenance; provided, further, however, the remaining principal amount of this Letter of Credit shall never be reduced to an amount less than 110% of the estimated costs to complete the remaining Work, plus 10% of the cost of the completed Work. Beneficiary, upon the request of Issuer, shall deliver to Issuer, from time to time, statements certifying the value of the Work completed, the estimated cost to complete the outstanding Work (or that all of the Work has been satisfactorily completed) , and the principal amount available under this Letter of Credit. Partial drawings are expressly permitted hereunder. Drawings of Beneficiary may not exceed the value of this Letter of Credit. This Letter of Credit shall be utilized to secure the installation of all the Work as required under the Municipal Code o:. the Village of Elk Grove Village and specified on the engineering drawings and in the specifications and agreements. This Letter of Credit shall not operate as a limitation upon the obligation of the Developer to properly install all improvements required by the Village of Elk Grove Village. The term of this Letter of Credit shall expire on the earlier of (i) completion of the Work or (ii ) February 1, 1988, but shall be deemed automatically extended for one year to February 1, 1989 unless (i) thirty (30) days prior to such expiration date the Village Manager shall notify the undersigned in writing, certified Elk Grove Village October 27, 1986 Page 3 mail , return receipt requested, that he or she, based upon the advice and supporting documentation from the Village Engineer , of the Beneficiary ' s election not to require renewal of this Letter of Credit for said additional one ( 1 ) year period or ( ii ) written notice of the undersigned ' s election not to renew this Letter of Credit is delivered to the Village Manager , by certified mail , return receipt requested, at least thirty ( 30 ) days prior to said expiration date; provided, however , if an election is made by Issuer not to renew this Letter of Credit , you shall be entitled to draft upon us for the full amount of our liability pursuant to the terms hereof prior to the then applicable expiration date, unless the election is made by Beneficiary not to require the renewal of the Letter of Credit in accordance with ( i ) above . Our liability hereunder shall be extinguished on the expiration date , except liability on unpaid drafts duly submitted prior thereto. This Letter of Credit is governed by the Uniform Customs and Practice for Documentary Credits ( 1983 Revision, effective October 1, 1984 ) International Chamber of Commerce, Publication No. 400, when not in conflict with Article Five of the Uniform Commercial Code adopted by the State of Texas , which shall otherwise govern this Letter of Credit . We hereby engage with drawers and/or bona fide holder that any draft drawn and negotiated in conformity with the terms of this Credit will be duly honored on presentation and delivery of documents as specified herein if negotiated or presented any time before the expiration hereof . The amount of each draft must be endorsed on the reverse of this Credit . Very truly yours, THE LOMAS & NETTLETON COMPANY By: Authorized Officer EXHIBIT A Drawing$ prepared by Digital 1nsineerinS and Surveying, Ltd. as follows Latest Drawing Revision Drawing Rumbar Date Title Sheet 1 9 Typical Sections 2 9/8/86 Siu/Detention Area Grading 3 8/13/86 Higgins 1084 Improvemente 4 9/12/86 Laadmeier Road Improvn$nts S 9/8/86 Landmeiar Road Improvements 6 9/8/86 Elmhurst Road Improvements 7 9/8/86 112hurst Road I"rovemsats 8 9/8/86 Landmier Cross Sections 9 7/11/86 Landmsier Cross Sections 10 7/11/96 Temporary Traffic Signals 11 9/8/86 Traffic Signals - Installation Plan 12 9/8/86 Traffic Signals - Quantities, Sequence, Cable Plan 13 9/8/86 Street Name signs 14 2/26/79 Details is 8/13/86 EXHIBIT B PARCEL I : LOT 1 IN HIGGINS-ELMHURST SUBDIVISION NO. 1 BEING A SUBDIVISION IN THE SOUTHEAST 1/4 OF SECTION 26, TOWNSHIP 41 NORTH, RANGE 11, EAST OF THE THIRD PRINCIPAL MERIDIAN, ACCORDING TO THE PLAT THEREOF RECORDED MAY 21, 1981 AS DOCUMENT NUMBER 25, 878, 643 IN COOK COUNTY, ILLINOIS . PARCEL II : LOT 1 IN HIGGINS-ELMHURST SUBDIVISION NO. 2 BEING A SUBDIVISION IN THE SOUTHEAST 1/4 OF SECTION 26, TOWNSHIP 41 NORTH, RANGE 11, EAST OF THE THIRD PRINCIPAL MERIDIAN, ACCORDING TO THE PLAT THEREOF RECORDED MAY 21, 1981 AS DOCUMENT NUMBER 25, 878, 644 IN COOK COUNTY, ILLINOIS .