HomeMy WebLinkAboutItem 4.22 DubRanG Release TDA CTTY CLERK
File 600-60
AGENDA STATEMENT
CZTY COUNCZL MEETZNG DATE: June 19t 2001
SUBJECT: Release of letter of Credit Securing Tract Developer Agreement for
Improvements in Tract 7148, Dublin Ranch, Area G
Report Prepared by: Lee S. Thompson, Public Works Director
ATTACHMENTS: Resolution Releasing Letter of Credit Securing Tract Developer
Agreement for Tract 7148
RECOMMENDATION: /~Adopt resolution releasing Letter of Credit securing Tract Developer
Agreement for Tract 7148
FINANCIAL STATEMENT: The City has been provided with substitute security in the form of
bonds of equal value.
DESCRIPTION: On January 16, 2001, the Council approved the Final Tract Map
for Tract 7148, Dublin Ranch, Areas F, G and H. The developer of Tract 7148, DR Acquisitions II,
LLC, the successor to the Lin Family, entered into a Tract Developer Agreement to secure the required
improvements and provided the City with a Letter of Credit in the amount of $7,371,160 to secure the
obligations of the Tract Developer Agreement.
In February, DR Acquisitions II, LLC, transferred its interest in certain property within Area G to Toll-
Dublin, LLC. DR Acquisitions II also transferred its obligations under the Tract Developer Agreement
for Tract 7148 to Toll-Dublin, LLC. Toll Dublin, LLC, provided the City with bonds in the amount of
$7,371,160 to secure its newly-acquired obligations under the Tract Developer Agreement and the City
Manager then approved the assignment of DR Acquisitions II's obligations under the Tract Developer
Agreement, as is required by such agreement (Attachment 1 ).
It is appropriate to release the Letter of Credit which was provided by DR Acquisitions II now that the
City has security in the form of bonds from DR Acquisitions II's assignee, Toll-Dublin, LLC. In order
for the bank to release the Letter of Credit, the Letter of Credit requires that the City Council adopt a
resolution (Attachment 2) certifying that DR Acquisitions II (the "accountee" under the Letter of Credit)
has fulfilled its obligations under the Tract Developer Agreement.
Staff recommends that the Council adopt the Resolution Releasing Letter of Credit Securing Tract
Developer Agreement for Tract7148.
COPIES TO: Martin Inderbitzen, for the Lin Family
ITEM NO.
RESOLUTION NO. - 01
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
RELEASING LETTER OF CREDIT SECURING
TRACT DEVELOPER AGREEMENT FOR TRACT 7148
WHEREAS, on January 16, 2001, the Council approved the Final Tract Map for Tract 7148 (Dublin
Ranch, Areas F, G and H); and
WHEREAS, the developer of Tract 7148, DR Acquisitions II, LLC, entered into a Tract Developer
Agreement with the City to secure the required improvements and provided the City with Letter of Credit No.
SB017542, drawn on Sanwa Bank in the amount of $7,371,160, with DR Acquisitions II, LLC, as the
"accountee" on such letter of Credit, to secure the obligations of the Tract Developer Agreement; and
WHEREAS, in February, DR Acquisitions II, LL, transferred its interest in certain property within
Area G to Toll-Dublin, LL, and assigned its obligations under the Tract Developer Agreement to Toll-Dublin,
LLC; and
WHEREAS, Toll-Dublin, LLC, provided the City with bonds in the amount of $7,371,160 to secure
its obligations under the Tract Developer Agreement and the assignment has been approved by the City; and
WHEREAS, it is appropriate to release the Letter of Credit that was provided by DR Acquisitions II
now that the City has security in the form of bonds from DR Acquisitions II's assignee, Toll-Dublin, LLC;
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin hereby
certifies that the accountee has ful~lled the obligations under the terms of that certain Tract Developer
Agreement dated January 16, 2001. The amount of the Letter of Credit No. SB017542 issued by Sanwa Bank
California may therefore be released in its entirety to the accountee.
PASSED, APPROVED AND ADOPTED this 19th day of June, 2001.
AYES:
NOES:
ABSENT:
ABSTAIN:
Mayor
ATTEST:
City Clerk
g:\develop\dublin ranch\area GXreso letter of credit