Hugo Bits & Pieces
City To Review Letter of Credit Process
At its Sept. 2 meeting, the Hugo City Council approved a resolution publishing notice of the city’s action against Lakeland Construction Finance, LLC, regarding incomplete improvements at the Generation Acres townhomes development along Oneka Lake Boulevard.
According to city documents, among other unfinished aspects of the project, developer Seth Marshall and his firm still need to install a bituminous wear course on city streets adjacent to the development.
On August 25, Community Development Director Bryan Bear drove to Lakeland Construction Finance’s headquarters in Eagan and requested that the company honor its letter of credit pertaining to the unfinished development in the amount of $137,501.30, set to expire at the end of that day.
However, company representatives told Bear that Lakeland Construction Finance is unable to provide the city with the requested money at this time, and that the matter would have to be discussed with the company’s attorney.
City Attorney Dave Snyder prepared a resolution which preserves the city’s authority to obtain the funds by way of the company’s legal obligation to the city of Hugo, and the resolution was approved by council on Sept. 2.
“We’re continuing to work with the finance company to either finish the project or to provide the amount under the letter of credit,” Bear said.
“What [the resolution] did is put a lockdown on the property so that it’s clear to everyone that the city won’t be issuing any building permits or approvals of any kind until the remaining improvements are complete,” he added.
Letters of credit represent money that banks promise to pay the city in the event that a developer working on a project is unable to complete the work specified in a project’s final plat within a certain time frame.
Council later approved a motion directing city staff to review the letter of credit process. In other action, the council:
• Approved the Hugo Business Association’s request to plant two trees in Heritage Park on Sept. 11 in remembrance of Nathaniel Prindle and in honor of Patriot Day.
• Approved two additional pay requests for $1,710 and $10,229.75 from Keys Well Drilling Company for work completed on the construction of Well House No. 5.
• Scheduled a public hearing for Oct. 12 to discuss the proposed 129th Street public improvement district.
• Scheduled interviews with three finalists for the position of Public Works Director for Sept. 12 at 8:30 a.m. at City Hall. See related story this page.
Comments on our coverage? E-mail: Editor@ReadTheCitizen.com and let us know.